2023 Universal Registration
Including the AnnualDocument
Financial Report

CONTENTSMESSAGE FROM THE EXECUTIVE MANAGEMENT

4HIGHLIGHTS 2023

6

1 PRESENTATION OF THE GROUP AND ITSRESULTS

AFR
AFR
AFR
AFR
AFR
AFR

NFPS

1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11

Six generations of craftspeople
Group governance
Strategy
Simplified organisation chart and Group locations
Key financial and non-financial figures
Revenue and activity by métier
Revenue and activity by geographical area
Comments on the consolidated financial statements
Significant events since the end of the financial year
Outlook
Fondation d’entreprise

2 CORPORATE SOCIAL RESPONSIBILITY AND
NON-FINANCIAL PERFORMANCE

2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9

Business model
People: teams
People: savoir-faire
The planet: raw materials
The planet: environment
Communities: suppliers & partners
Communities: stakeholders and transparency
Ethics – Compliance
Report of one of the Statutory Auditors, appointed as
independent third party, on the verification of theconsolidated non-financial statement
2.10 Reasonable assurance report from one of the Statutory
Auditors on the Identified Sustainability Information ofHermès International’s non-financial performancestatement as at/ for the year ended December 31st, 2023

AFR
AFR

AFR

3 CORPORATE GOVERNANCE
Supervisory Board report on corporate governance
3.1 The Company’s corporate governance code
3.2 Ambitious and balanced governance
3.3 Administrative and management bodies
3.4 Organisation of the Supervisory Board
3.5 Functioning of the Supervisory Board
3.6 Specialised committees
3.7 Evaluation of the Supervisory Board and Committees
3.8 Compensation and benefits of Corporate Officers
3.9 Other information
3.10 Other information from the Executive Management
report

4 RISK FACTORS AND MANAGEMENT
4.1
4.2
4.3

Risk factors
Insurance policy and risk hedging
Risk management, internal control and internal audit

AFR

9
10
13
14
17
23
26
35
39
41
42
44

5 CONSOLIDATED FINANCIAL STATEMENTS
5.1
5.2
5.3
5.4
5.5
5.6
5.7

AFR

6 PARENT COMPANY FINANCIAL
STATEMENTS

6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8

47
51
71
99
113
153
201
217
248

Consolidated income statement
Consolidated statement of comprehensive income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Statutory Auditors’ report on the consolidated financial
statements

6.9

Income statement
Balance sheet
Changes in equity
Statement of cash flows
Notes to the financial statements
Table of results over the last five years
Information on payment terms
Other information on the parent company financial
statements
Statutory Auditors’ report on the financial statements

7 INFORMATION ON THE COMPANY AND ITSSHARE CAPITAL

262
AFR

269

7.1
7.2
7.3
7.4
7.5

273
275
275
278
281
293
329
339
347
349
373

AFR

9.1

380

AFR

9.2
9.3
9.4
9.5
9.6

383
384
404
405

Presentation of Hermès International
Informations on share capital and shareholders
Dividend policy
Stock market information
Shareholder information

8 COMBINED GENERAL MEETING
OF 30 APRIL 2024

8.1
8.2
8.3
8.4

AgendaExplanatory statements and draft resolutions
Supervisory Board report to the Combined General
Meeting of 30 April 2024
Statutory Auditors’ reports

9 ADDITIONAL INFORMATION
Persons responsible for the Universal Registration
Document
Persons responsible for auditing the financial statements
Consultation of regulatory information
Information included by reference
Cross-reference tables
Glossary

The sections of the Annual Financial Report are identified in the contents with the AFR pictogram.
Elements constituting the statement of non-financial performance are clearly identified in the contents with the NFPS pictogram.

415
416
416
417
418
419
420
460

467
468
469
470
470
471
486
487
488
489

495
496
505
517
518
522

527
528
530
551
553

561
562
563
563
564
566
581

The French language version of this Document d’Enregistrement Universel(Universal Registration Document) was ﬁled on March 26th, 2024 with the French
Financial Markets Authority (Autorité des Marchés Financiers), as the competentauthority under Regulation (EU) 2017/1129, without prior approval in accordancewith Article 9 of said Regulation.
This Document d’Enregistrement Universel (Universal Registration Document) may
be used for the purposes of a public offer of ﬁnancial securities or the admissionof ﬁnancial securities to trading on a regulated market only if supplemented
by a transaction note and, if applicable, a summary and all amendments
to the Document d’Enregistrement Universel (Universal Registration Document).
The group of documents then formed is approved by the French Financial Markets
Authority in accordance with Regulation (EU) 2017/1129.

The digital version of this document is compliant with the PDF/UA (ISO 14289-1), WCAG 2.1 level AA and RGAA 4.1 accessibility standards
with the exception of the colour criteria. Its design enables people with motor disabilities to browse through this PDF using keyboard
commands. Accessible for people with visual impairments, it has been tagged in full, so that it can be transcribed vocally by screen readers
using any computer support.
Accessible PDF powered byThis document is a reproduction, freely translated into English, of the ofﬁcial version of the 2023 Universal Registration Document including the Annual
Financial report established in French in the European Single Electronic Format (ESEF) and ﬁled with the AMF on March 26th, 2024, available on the
AMF website https://www.amf-france.org/fr, and on the Company’s website, https://ﬁnance.hermes.com/. It has no other value than an informative
one. Should there be any difference between the French and the English version, only the French language shall be deemed authentic and considered
as expressing the exact information published by Hermès.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

1

2

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

2023
UNIVERSALREGISTRATIONDOCUMENT

Including the Annual Financial Report

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

3

MESSAGE FROM THE EXECUTIVE MANAGEMENT

Continuing to be astonished as a foundation for tomorrow’s successes
What a pleasure it is, having achieved some historic results, to be able
to celebrate once again the success of the house’s creations andinnovations, the fruit of hard work by our teams all over the world.
We would like to thank and congratulate them on their continued ability to surprise and amaze us,
in keeping with the 2023 theme of Astonishment.
Because, yes, this success could almost be seen as a challenge issued to the uncertain economic andgeopolitical context, and to the high tensions and profound transformations that some regions are
currently experiencing.
And yet, is it really surprising to want to treat oneself, to seek out companion objects designed tolast and gain a patina, to want to dream and escape the grave times for a few moments?
Today, Hermès is a refuge. In our house of creations and new ideas, where quality is nevercompromised and the finest materials are always sought, we strive to remain true to our highstandards as artisans and merchants.
Being astonished by the world
In 2023, we continued to expand and enhance our network of stores to receive our customers inthe best possible surroundings. Our stores in Bordeaux (France), Chicago (USA), Vienna (Austria)
and Zhengzhou (China) reflect the aesthetics of local materials, colours and designs. It is hardly
surprising, then, to find stained-glass windows in Vienna, even if they were created by a designer
more accustomed to working on silk scarves and tableware. Are you familiar with shades of bleu
Encre and rouge Casaque? Whether it’s with the mascaras and eyeshadows of Le Regard or the
women’s and men’s ready-to-wear collections, colour has been a major theme of our productlaunches.
With the new Louviers and La Sormonne workshops, and the extension of the textiles site at
Pierre-Bénite, we are maintaining our ambition to establish strong regional roots and centres of
excellence for our crafts. Beautiful things are made in beautiful places, and everything is even more
beautiful when our buildings are E4C2 certified (1). Being anchored in a place also means
strengthening relationships with our long-term partners and making an active contribution to the
expansion of these sectors.

1.

4

The E+C- label assesses the performance of a new building according to two criteria: energy (E) and carbon (C). A score of E4, the highest level, certifies both
workshops as positive energy buildings, meaning that they produce more energy than they consume. Equally, the C2 grading denotes the highest level of operational
efficiency for carbon footprint reduction.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

To secure our supply chains and support the growth of all our métiers, we have continued to invest
in increasing capacity and have accelerated our vertical integration projects, particularly in jewellery
and shoes.
Confident in the relevance of our business model, we are maintaining and strengthening ourcommitment to environmental and social responsibility.
As the source of our exceptional materials, nature is at the heart of our business model, andpreserving it plays a central role in our CSR actions. Global warming and its impact on
biodiversity, as well as the industrialisation of raw materials, are areas of concern that we are
addressing through our climate strategy, our concrete initiatives in terms of responsible supply
chains, and our policies for preserving natural resources.
In order to establish scientific objectives for the preservation of biodiversity, the Group has
committed the SBTN (Science Based Targets for Nature) initiative and is one of 120 companies
worldwide to have done so.
Ranked 4th among SBF120 companies for the proportion of women in its management bodies, thehouse’s social model is acclaimed. The École Hermès des savoir-faire, with its eight schools, is now
able to award a certificate of professional qualification (CQP) in cutting and stitching in addition to
the CAP vocational qualification in leatherwork. Transmission, training, development and job
creation – more than 2,400 new employees were recruited in 2023 – are the watchwords of ourapproach to corporate citizenship and the expression of our human values. For the third time, thehouse was awarded the Grand Prix Emploi France by the Humpact rating agency.
Making a serious effort not to take ourselves too seriously
2023 was a busy year for events and opportunities to get together. In keeping with our tradition,
we welcomed more than 52,000 visitors to the Hermès in the Making exhibition in Lille (France),
Chicago (United States) and Bangkok (Thailand), and more than 35,000 visitors to the immersive
La Fabrique de la légèreté exhibition in Taiwan, Los Angeles (United States), Hong Kong andShanghai (China).
We come to the end of 2023 happy and proud of the work we have done, and with a promise tocontinue astonishing ourselves in 2024.

Axel Dumas

Henri-Louis Bauer

EXECUTIVE
CHAIRMANREPRESENTATIVE OF ÉMILE HERMÈS SAS,EXECUTIVE CHAIRMAN

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

5

HIGHLIGHTS 2023
The group’s consolidated revenue amounted to €13,427 million in
2023, up 21% at constant exchange rates and 16% at current
exchange rates compared to 2022. Recurring operating income
amounted to €5,650 million, i.e. 42.1% of sales. Net proﬁt groupshare reached €4,311 million, an increase of 28%.
In the fourth quarter 2023, sales reached €3,364 million, up 18% atconstant exchange rates and 13% at current exchange rates, despite
the particularly high comparison base in America and in Asia. The
group pursued the trend seen over the third quarter, thanks tosustained sales.
Axel Dumas, Executive Chairman of Hermès, said: “In 2023, Hermès
has once again cultivated its singularity and achieved an outstanding
performance in all métiers and across all regions against a high base.
These solid results reﬂect the strong desirability of our collections andthe commitment and talent of the house’s women and men. I thankthem all warmly.”

in the second half of the year. After being renovated and expanded,
the Chicago store was inaugurated at the end of October, and the
Bellagio store reopened in Las Vegas in December, following the store
openings of Naples on the Gulf of Mexico in February, Aspen in Juneand Los Angeles Topanga in July. The Hermès in the Making travellingexhibition which showcases the know‑how of the House, met withgreat success in Chicago in October.
Europe excluding France (+20%) and France (+20%) recorded robust
growth, thanks to the loyalty of local clients and to the dynamic of
tourists ﬂows. Following renovation, the Crans‑Montana store in
Switzerland reopened in December, after the store located in thehistoric centre of Bordeaux in November and the Vienna store inAustria in September. The Silk event Par un beau soir de carrés,staged in Brussels in November, attracted great attention.

Sales by sector at the end of December(at constant exchange rates unless otherwise indicated)
Sales by geographical area at the end of December(at constant exchange rates unless otherwise indicated)
At the end of December, all the geographical areas posted a solid
performance with homogeneous growth of around 20%. Sales
increased both in the group’s stores (+20%), which beneﬁtted from astrong demand and the reinforcement of the exclusive distribution
network, and in wholesale activities (+24%), driven by the travel retailbusiness.
Asia excluding Japan (+19%) pursued its strong growth, withsigniﬁcant increases in sales in all the countries of the region. A
second store opened in October in Chengdu, the capital city of theprovince of Sichuan, becoming the house’s thirty‑third address in
Mainland China, following the opening of a store in Tianjin in July. In
Korea, the store at the Shilla Hotel in Seoul reopened in December
after renovation and extension work.
Japan (+26%) recorded a steady and sustained increase in sales. The
Daimaru Sapporo store on Hokkaido island and the Takashimaya
store in the centre of Kyoto were inaugurated in October andNovember, after renovation and expansion.
America (+21%) conﬁrmed an outstanding performance, in particular

62023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

At the end of December 2023, all the métiers conﬁrmed their solid
momentum, with Ready‑to‑wear and Accessories, Watches and Other
Hermès Sectors achieving a remarkable increase.
The Leather Goods and Saddlery métier (+17%), which demand isvery sustained, saw a strong increase. The Maximors bag, with its
sterling work, and Della Cavalleria Élan and Arçon bags have been
unveiled. Finally, the models displaying exceptional savoir‑faire in an
Arts & Craft’s spirit around the Haut à Courroies notably have met
with great success.
In 2023, Hermès inaugurated the leather goods workshops inLouviers and la Sormonne, the ﬁrst two industrial buildings in France
to carry the E4C2 label that assesses environmental performancebased on energy consumption and carbon emissions. Production
capacities continue to grow with four leather goods workshop projects
over the next four years: Riom (Puy‑de‑Dôme) in 2024,
L’Isle‑d’Espagnac (Charente) in 2025, Loupes (Gironde) in 2026 andCharleville‑Mézières (Ardennes) scheduled for 2027, which willreinforce the nine centres of expertise located all over France.
Hermès continues to reinforce its local anchoring in France in regionswith strong manufacturing know‑how, while also developing
employment and training.

HIGHLIGHTS 2023

The Ready‑to‑wear and Accessories sector (+28%) pursued its strong
growth, thanks to the success of the ready‑to‑wear and footwear
collections. The men’s and women’s spring‑summer 2024 collections
were very well received when they were presented at fashion shows inJune and September respectively.
The Silk and Textiles sector (+16%) recorded a solid performance,
supported by the success of the collections which feature exceptional
materials and unique craftsmanship. Production capacities continue
to expand, notably with the set‑up of a new printing line at the
Pierre‑Bénite site in Lyon.
The Perfume and Beauty sector (+12%) beneﬁtted from the successof both the latest creations and the House’s classics such as Terred'Hermès, the Jardins collection and Twilly d’Hermès. The Hermès
Beauty range was enhanced with a ﬁfth chapter at the end of
September, Regard Hermès, inspired by the House’s emblematicshades, as well as with limited editions of Rouge Hermès.
The Watches métier (+23%) conﬁrmed its splendid performance,
displaying singular creativity and remarkable watchmaking know‑how,in both the complication models and the House’s iconic models. The
Hermès H08 line is a great success and welcomed several newmodels this year.
The Other Hermès sectors (+26%), which include Jewellery and
Homeware, recorded strong growth. Jewellery showcased the Chaîne
d’ancre design, reinterpreted in a multitude of shapes and materials
unveiled at an exhibition at the Faubourg store in Paris in July.

Outstanding results

Recurring operating income increased by 20% to €5,650 million
compared to €4,697 million in 2022. Thanks to the strong sales
growth and the favourable impact of currency hedging, annual
recurring operating proﬁtability reached its highest level ever at
42.1%, up from 40.5% in 2022.
Consolidated net proﬁt group share amounted to €4,311 million(32.1% of sales) compared to €3,367 million in 2022, an increase of
28% resulting from the outstanding operating performance as well as
an improved return on cash management.
Operating cash ﬂow was €5,123 million, up 25%. This enabled us toﬁnance €859 million of operating investments and a €794 million
increase in working capital requirements, consistent with the strong
rise in activity. Adjusted free cash ﬂow reached €3,192 million.

inclusion of ﬁnancial investments (€316 million) and treasury sharebuybacks (€132 million for 74,954 shares outside the liquidity
contract), the restated net cash position increased by €1,422 million
to €11,164 million compared to €9,742 million as at 31 December
2022.

A sustainable and responsible model

The Hermès group continued to recruit and increased its workforce byaround 2,400 people. At the end of 2023, the group had 22,040
employees, including 13,700 in France. Over the past three years,
Hermès has created more than 5,400 jobs, including 3,300 in
France.
True to its commitment as a responsible employer, and its policy of
sharing the fruits of growth with all those who contribute to it on adaily basis, Hermès will pay at the beginning of the year a bonus of€4,000 to all its employees worldwide in respect of 2023, after
announcing last July a new plan for the allocation of free shares to all
the employees. Hermès is strengthening its commitments in the ﬁeldsof education and knowledge transmission particularly through the
deployment of the École Hermès des savoir‑faire, which has extended
its leatherwork, cutting and stitching diploma courses in 8 regional
training schools in France this year.
In line with the House’s commitments to the ﬁght against climatechange, Hermès pursued its actions in line with its emissions
reduction targets validated by the Science Based Target initiative(SBTi). Hermès aims to reduce emissions by 50.4% on scope 1 and 2
in absolute value and by 58.1% in intensity on scope 3, over the
2018‑2030 period. Pursuing its commitment to quality and thedevelopment of sustainable materials for its 16 business lines, theHouse is continuing its drive to achieve certiﬁcation for its 44 supply
chains by 2024. Thus, at the end of December, more than 80% of theleather goods division’s suppliers were LWG (Leather Working Group)
certiﬁed.
In 2023, the group has initiated the Science Based Targets for Nature(SBTN) process to set scientiﬁc targets for nature, in particular in
biodiversity, fresh water, forests and soils. Hermès is one of 120
companies worldwide to have launched this process. Regarding theprotection of natural resources, the House also implemented its
particularly demanding responsible real estate standard that
integrates sustainability issues across the life cycle of real estate
projects.

After distribution of the ordinary dividend (€1,359 million) and

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

7

1

PRESENTATION OF THE GROUP
AND ITS RESULTS
1.1

SIX GENERATIONS OF CRAFTSPEOPLE

10

1.2

GROUP GOVERNANCE

13

1.3

STRATEGY

14

1.4

SIMPLIFIED ORGANISATION CHART AND GROUP LOCATIONS

17

1.4.1

1.4.5

Summary description of the Group as at 31 December 2023
Integrated production and training sites worldwide
Integrated production and training sites in the French regions
Worldwide distribution network
Real estate

17
18
19
20
22

1.5

KEY FINANCIAL AND NON‑FINANCIAL FIGURES AFR

23

1.5.1

1.5.4

Revenue by métier for 2023 (2022)
Revenue by geographical area for 2023 (2022)
Key consolidated financial data
Key non‑financial figures

23
23
23
25

1.6

REVENUE AND ACTIVITY BY MÉTIER AFR

26

1.6.1

1.6.8

Leather Goods & Saddlery
Ready‑to‑wear and Accessories
Silk and Textiles
Other Hermès sectors
Perfume and Beauty
Watches
Other products and brands
Group partnerships

26
28
29
29
30
31
32
34

1.7

REVENUE AND ACTIVITY BY GEOGRAPHICAL AREA AFR

35

1.7.1

1.7.5

EuropeAsia‑Pacific
Americas
Near and Middle East
Digital strategy

35
36
37
37
38

1.8

COMMENTS ON THE CONSOLIDATED FINANCIAL STATEMENTS
AFR

39

1.8.1
1.8.3

Income statement
Cash flows and investments
Financial position

39
40
40

1.9

SIGNIFICANT EVENTS SINCE THE END OF THE FINANCIAL YEAR
AFR

41

1.10

OUTLOOK AFR

42

1.11

FONDATION D’ENTREPRISE

44

1.4.2
1.4.3
1.4.4

1.5.2
1.5.3

1.6.2
1.6.3
1.6.4
1.6.5
1.6.6
1.6.7

1.7.2
1.7.3
1.7.4

1.8.2

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

9

1

PRESENTATION OF THE GROUP AND ITS RESULTS
SIX GENERATIONS OF CRAFTSPEOPLE

1.1

SIX GENERATIONS OF CRAFTSPEOPLE

The Hermès adventure began in 1837 when the harness‑maker
Thierry Hermès opened a workshop in rue Basse‑du‑Rempart in Paris.
Gradually, generation after generation, the House followed a dual
thread – on the one hand the painstaking work of the craftspeople in
his workshop, and on the other the active lifestyles of its customers.
Carried by an enduring spirit of freedom and creativity, Hermès
remains highly sensitive and attentive to the changing nature andneeds of society.
In 1880, Charles-Émile Hermès, the founder’s son, moved theworkshops to 24, rue du Faubourg Saint‑Honoré, and set up an
adjoining store. At this now‑emblematic address, harnesses andsaddles were made to measure. The business was already standingout for the excellence of its creations.

AN INNOVATIVE HOUSE PASSIONATE ABOUT ITS
ERADuring the interwar period, lifestyles changed and the House broke
new ground under the management of Thierry’s grandson, Émile
Hermès. He decisively inﬂuenced the family ﬁrm’s destiny when, while
travelling in Canada, he discovered the opening and closing system ofan automobile hood. In 1922 he obtained exclusive rights to thisAmerican “universal fastener” – known today as the zip – which wasused extensively in the House’s luggage and other designs. Under theimpetus of Émile Hermès, the House opened up to other métiers,
while retaining a close connection with the equestrian world, drawing
on its mastery of raw materials and its artisanal culture to create its
ﬁrst ready‑to‑wear collections. In 1937, the famous silk scarf wasborn with the Jeu des omnibus et dames blanches design, the ﬁrst ina long series.
Robert Dumas – one of Émile Hermès’ sons‑in‑law, who took the helmof the House in 1951 – was a regular visitor to the workshops anddesigned objects whose details (buckles, fasteners, saddle nails andanchor chains) exuded an elegance that in no way diminished theirpracticality. Hermès objects stand out for their noble materials, theirmastery of savoir‑faire, and their bold creativity, stimulated by theHouse’s keen vision of the world. The Silk métier now invites artists tocreate unique designs.

A VISIONARY HOUSE
From 1978 onwards, Robert Dumas’ son Jean‑Louis gradually
revolutionised the House, diversifying it and projecting it onto theworld map. Hermès embraced new métiers founded on uniquesavoir‑faire, with watchmaking from 1978, along with the integrationof new Houses into the Group – the bootmaker John Lobb in 1975,
Puiforcat silversmiths in 1993, and the Cristalleries Saint‑Louis in
1995. Hermès has also created its own shoe collection, designed by
Pierre Hardy, since 1990.

102023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

In 1987, for the House’s 150th anniversary, Parisians were treated toa memorable ﬁrework display that launched the ﬁrst theme, a
tradition that has been perpetuated annually ever since to nourish allforms of creativity with a shared source of inspiration.
Jean‑Louis Dumas also supported the development of Hermèsaround the world with the opening of numerous stores, which allingeniously combined the identity of 24 Faubourg with local culture.
Among these stores, several Maisons Hermès were opened on
Madison Avenue, New York in 2000, in Ginza, Tokyo in 2001 and in
Dosan Park, Seoul in 2006.
From 2006, Patrick Thomas decentralised the strategic organisationof the métiers and reorganised Hermès’ presence across the world
into geographical regions. He also ensured the transition to the sixth
generation of the family.

HERMÈS TODAY
In 2005, Pierre‑Alexis Dumas, son of Jean‑Louis Dumas, wasappointed Artistic Director. The House expanded its range ofsavoir‑faire, complementing its jewellery product offer with a ﬁrst
haute joaillerie collection in 2010. Creativity, combining innovationand imagination, became ever more abundant within the different
métiers. In 2008, Pierre‑Alexis Dumas also created the Fondationd’entreprise Hermès, which supports artistic creation, supports
artisanal savoir‑faire, and promotes the conservation of biodiversity.
Executive Chairman since 2013, Axel Dumas, nephew of Jean‑LouisDumas, strengthened the dynamic growth of the Group with theinauguration of the ﬁfth Maison Hermès in Shanghai in 2014. He is
accompanying the Group’s digital roll‑out, which led to the redesign ofthe hermes.com website in 2018. Axel Dumas has also taken Hermès
into the new technological era, in keeping with the expectations ofcustomers, who are becoming more and more connected. The Apple
Watch Hermès, initiated in 2015, bears witness to a bold andinnovative partnership with Apple. In addition, the Group is steppingup the omnichannel dynamic within its organisation.
In 2018, Hermès International entered the CAC 40 index followed, in
2021, by the Euro Stoxx 50 index. This demonstrates the Group's
remarkable industrial trajectory and stock market performance of an
independent, family‑run House of craftspeople, which distributes its
objects through a dynamic network of 294 stores around the world.
For over 150 years, Hermès has enriched its métiers without
deviating from its strict quality standards. In this regard, the House iscommitted to continuing to develop its production in France throughits 60 integrated production and training sites.
Defying the trend for industrial standardisation and globalisation,
Hermès stands out for its unique business model.

PRESENTATION OF THE GROUP AND ITS RESULTS
SIX GENERATIONS OF CRAFTSPEOPLE

HERMÈS IN KEY DATES

1

1837

1956

s The workshop of craftsman saddler- and harness‑maker Thierry
Hermès opens in the Grands Boulevards district in Paris.

s The bag created by Robert Dumas in 1930 is named the Kelly intribute to Grace Kelly.

1867

1967

s Thierry Hermès receives an award at the Universal Exhibition in
Paris for the excellence of his work.

s Presentation of the first women’s ready‑to‑wear collection.

1973
1880
s Thierry Hermès’ son, Charles-Émile Hermès, moves the workshops
to 24, rue du Faubourg Saint‑Honoré and opens a store sellingbespoke harnesses and saddles.

1900
s Creation of the Haut à courroies bag.

s Launch in Germany of the publication Die Welt von Hermès. Le
Monde d’Hermès is created two years later in France.

1978s Jean‑Louis Dumas, Robert Dumas’s son, takes the reins of theHouse.
s Creation of the La Montre Hermès watchmaking subsidiary in
Bienne, Switzerland.

1922
s Émile Hermès, son of Charles-Émile Hermès, brings the American“universal fastener”, later known as the zip, to France, with
exclusive rights for its development.

1925

1984
s Jean‑Louis Dumas creates the Birkin bag, named after the singer
and actress Jane Birkin.
s Creation of the first dinner service, Les Pivoines.

s Creation of a golf jacket, the first ready‑to‑wear garment.

1987

1927

th
s Hermès celebrates its 150 anniversary with a firework display on
the Pont‑Neuf bridge in Paris. Ever since, an annual theme has
guided inspiration for all of the House’s métiers.

s Creation of the first piece of jewellery, the Filet de selle bracelet.

1937

1992

s Creation of the first silk scarf, Jeu des omnibus et dames blanches.

s Leather workshops established in Pantin.

1945

1993

s The Duc attelé, groom à l’attente design by Alfred de Dreux fromthe Émile Hermès collection, representing a horse‑drawn carriage,
becomes the Maison Hermès emblem.

s Flotation of Hermès International on the stock exchange.

1949s Creation of the first tie.

1951

2000
s A Maison Hermès opens on Madison Avenue in New York.

2001
s A Maison Hermès opens in Ginza, Tokyo.
s Launch of the first e‑commerce website in the United States.

s Robert Dumas creates the Chaîne d’ancre bracelet.
s The creation of the Eau d’Hermès fragrance marks the founding ofa new métier.

2006
s Patrick Thomas becomes Executive Chairman of Maison Hermès.
s A Maison Hermès opens in Dosan Park, Seoul.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

11

1

PRESENTATION OF THE GROUP AND ITS RESULTS
SIX GENERATIONS OF CRAFTSPEOPLE

2008

2015

s Creation of the Fondation d’entreprise Hermès under the impetusof the House’s Artistic Director Pierre‑Alexis Dumas, son of
Jean‑Louis Dumas.

s Apple and Hermès launch the Apple Watch Hermès.

2010
s Creation of petit h.

2018s Hermès International enters the CAC 40.
s Launch of the new hermes.com website in Europe and China.

s Creation of the first haute joaillerie collection, designed by Pierre
Hardy.

2020

s The first Saut Hermès at the Grand Palais takes place in Paris.

ths Launch of the 16 métier: Beauty.

2013

2021

s Axel Dumas, nephew of Jean‑Louis Dumas and sixth generation
family member, is appointed Executive Chairman.

s Hermès International enters the Euro Stoxx 50.

2022

12

2014

s Opening of the new Madison 706 store in New York.

s A Maison Hermès opens in Shanghai.

s First graduates from the École Hermès des Savoir‑Faire.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALPRESENTATION OF THE GROUP AND ITS RESULTS
GROUP GOVERNANCE

1.2

GROUP GOVERNANCE

The Executive Management ensures the management of HermèsInternational. The role of Executive Chairman is to manage the Groupand act in its general interest, within the scope of the corporate
purpose and subject to those powers expressly granted by law or by
the Articles of Association to the Supervisory Board, to the ActivePartner and to Shareholders’ General Meetings.
The Executive Chairmen’s roles are distributed as follows: Axel Dumas
is in charge of strategy and operational management, and Émile
Hermès SAS, through its Executive Management Board, is responsible
for vision and strategic priority areas.
The Executive Chairmen are supported in their management of theGroup by the Executive Committee. This consists of Executive
Vice‑Presidents, each of whom has well‑deﬁned areas of
responsibility. The role of the Executive Committee is to oversee theGroup’s strategic and operational management. Its composition
reﬂects the Group’s main areas of expertise.

1
The Operations Committee, which reports to the Executive
Management, is made up of the Executive Committee and the Senior
Executives of the Group's main métiers and geographical areas, aswell as commercial and support functions.
Its duties are:s to involve Senior Executives in the Group’s major issues andstrategic orientations;s to promote communication, sharing and reasonable exchanges
amongst its members in their area of responsibility;
s to enable the Executive Committee to take certain decisions.

Detailed information on the administrative and management bodies isprovided in chapter 3 “Corporate governance”, § 3.2 and § 3.3.

Members of the Executive Committee in the Pantin leather goods workshop in Île de France. From left to right: Agnès de Villers, Pierre-Alexis Dumas, Olivier Fournier,
Sharon MacBeath, Guillaume de Seynes, Axel Dumas, Catherine Fulconis, Florian Craen, Charlotte David, Wilfried Guerrand, Éric du HalgouëtThe Supervisory Board exercises ongoing control over the Company’s management. For this purpose, it has
the same powers as the Statutory Auditors and receives the same documents as they do, at the sametime. Detailed information on the composition and work of the Supervisory Board is provided in chapter 3«Corporate governance», § 3.2 and § 3.4.

Éric de Seynes
Chairman of the Supervisory Board

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

13

1

PRESENTATION OF THE GROUP AND ITS RESULTS
STRATEGY

1.3

STRATEGY

Hermès is an independent company backed by family shareholders.
Its strategy is based on three pillars: creation, craftsmanship and an
exclusive distribution network.
Since 1837, the Group has remained true to its values of freedom,
demanding craftsmanship savoir‑faire, authenticity and responsible
growth. Its integrated craftsmanship business model places quality
and sustainability at the centre.

CREATION AT THE CORE OF HERMÈS’ STRATEGY
Hermès creates and manufactures quality objects designed to last, tobe passed on from one generation to the next, and to be repaired.
This approach requires these issues to be taken into account at every
stage, from design to sales.
Hermès’ strategy is based on creative freedom. Each year, a theme
inspires creators and Artistic Directors. Driven by a history spanningnearly 200 years, during which the House has continued to develop withaudacity and ingenuity, Hermès paid homage to the theme ofAstonishment in 2023. Inspired by creation at Hermès, the ability toastonish is a constant source of innovation and dynamism for theHouse. High standards in design and manufacturing encourage thecreation of objects that aim to surprise and amaze customers. This
creativity, revolving around traditional savoir‑faire, is coupled with
innovative processes to revisit timeless models and create exceptional
pieces, without departing from Hermès’ trademark humour andimaginative ﬂair. The unbridled creativity ﬂourishes in all métiers, asreﬂected in the numerous scarf designs printed every year. It is thenexpressed through over 50,000 references, developed around a unique
identity and a style blending exceptional quality, innovation, surprise,elegance and simplicity. In 2023, it was expressed in particular with thesuccessful launches of the perfumes Un Jardin à Cythère and Tutti Twilly
and of the 5th chapter of Beauty, Le Regard Hermès, new models in theleather goods collections such as Arçon, Della Cavalleria Elan or by thevery strong momentum of Jewellery and Watches, for example with the
Hermès H08 watch, which is available in several versions.
Hermès’ mission is to create unique and original objects to elegantly
satisfy the needs and desires of its customers.
Its goal is the pursuit of excellence and uncompromising quality, ineach of its métiers and services.

PERFORMANCE OF THE INTEGRATED
CRAFTSMANSHIP MODEL
Hermès leverages its craftsmanship division, the second pillar of its
strategy, with more than 7,300 craftspeople in France. Backed by ahistory shaped by six generations, Hermès moves with the times, but
always respecting tradition, transmission and innovation.
The House works alongside those who master, preserve and transmit

142023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

craftsmanship savoir‑faire through their knowledge of materials andtheir exceptional techniques. Each new leather goods workshop is anarchitectural project in its own right, enabling around 300 jobs to becreated and promoting a pleasant working environment on a humanscale.
Hermès boosts its investments every year to expand its production
capacity and satisfy its 16 métiers.
The House ensures that it continually nurtures improvements in the
gestures and savoir‑faire of its craftspeople. True to its commitments
in terms of education and transmission, and to support the growth of
its activities, Hermès opened the École Hermès des Savoir‑Faire in
2021, which has been rolled out in eight training schools in theregions. After the CAP in Leather Goods, the professional training
certiﬁcate was extended this year to cutting and stitching. In 2022,
the House also launched the École des artisans de la vente in Parisand is rolling out its training courses mainly for sales teams inHermès stores around the world.
To guarantee this craftsmanship model in the long term, the House’s
strategy is to accelerate the securing of its supplies of materials andconsolidate relations with its suppliers over time. Vertical integration,
through partnerships and acquisitions, ensures traceability in its
supply chains and supports the development strategy, with regards tomaterials as well as techniques and savoir‑faire. More than 55% ofproduction is integrated and 74% is located in France.

THE DYNAMICS OF AN EXCLUSIVE, OMNICHANNEL
AND MULTI‑LOCAL DISTRIBUTION NETWORK
Hermès' own distribution model is based on a network of stores, mostof which are operated directly, and innovative e‑commerce sales
sites, making it possible to respond to rapid changes in demand andmaintain a privileged relationship with customers.
The exclusive distribution network consists primarily of branches run
by the Group around the Hermès brand. Each of the 294 stores
across the world offers a personalised selection of objects, to exceed
the speciﬁc expectations of customers and offer a distinct purchasing
experience in each and every store. Each store is unique and enables
its customers to explore and discover the most beautiful products,
and extends the House’s lustre worldwide.
The performance of e‑commerce is continuing to grow, alongside thephysical network. For the past seven years, Hermès has made thestrategic choice of ramping up online sales, with the successful
rollout of its proprietary platform worldwide, the attraction andretention of new customers, and the development of services. This
strategy supports the House’s customers and accelerates thedigitisation of uses. This digital ﬂagship is designed like any Hermès
store with its spirit of fantasy, authenticity and diversity. The windows,
products, services and stories are gathered in a single virtual place.

PRESENTATION OF THE GROUP AND ITS RESULTS
STRATEGY

Customers are placed at the core of the omnichannel network, so as
to best meet their expectations and offer them a unique experience.
Around the world, Hermès stores are veritable “homes for Hermès
objects”, each with its unique architecture, offering customers aunique experience, complementary to its website hermes.com. The
House also hosts special occasions, revolving around events in theworld, and dynamic and animated set designs. Its unique andresponsible communication ensures that it stands out, while nurturing
the link with its customers, by giving prominence to multi‑local
expression.
Maison Hermès, present in 45 countries, has an omnichannel
network that is geographically balanced, with measured development
and a constant search for prime locations.

AN ENTREPRENEURIAL SPIRIT AND
INDEPENDENCE
The entrepreneurial spirit has been at the heart of Maison Hermès
since its creation. It is illustrated by its abundant creativity, a capacity
for constant innovation, new métiers, new production units and store
openings.
This strategy offers store managers freedom of purchase, to meet the
speciﬁc needs of their customers. Two podiums are organised every
year to present the fall‑winter and spring‑summer collections. Thesebring together all store and country managers, managers of thedifferent métiers, as well as designers, to present all collections tothe sales teams, who are thus responsible for compiling their own
collections and making their store unique, with a special mix ofproducts. This freedom means that in each country the Group’s
customers are presented with a diversiﬁed and unique mix ofproducts resulting from this ﬂurry of creativity, blending emblematic
products and the House’s new references, chosen to best meet local
expectations.
In order to continue this strategy, Hermès asserts its independence,
underpinned by a strong family‑based shareholding structure,committed to retaining most of its production in France andpreserving its culture.
This independence, and the House’s strict ﬁnancial management,
allow it to self‑ﬁnance operational investments, both in production
capacities and the network, as well as cross‑functional projects, andto preserve its long‑term strategy.

RESPONSIBLE GROWTH AND HUMANIST VALUESAs a company that respects the nature that inspires it, Hermès
ensures the preservation of its resources and its impact on naturalenvironments and local ecosystems, with an artisanal production
model. The Group is stepping up its efforts in terms of social, societal
and environmental performance.
Hermès’ highly integrated craftsmanship model promotes the creationof skilled jobs in France and social inclusion. The Group has morethan doubled its workforce in 10 years and more than 60% of
recruitment takes place in France. The diversity of talents is a sourceof wealth, creativity and innovation. In 2023, Hermès accelerated its
job creation by recruiting 2,400 people, including 1,400 in France.
More than 22,000 employees promote Hermès worldwide. These
women and men who guarantee the quality of the objects, constitutea heritage for the House. To afﬁrm its commitment to education, theHouse is developing its training schools for its major craftsmanshipmétiers.

1

The proﬁt‑sharing and incentive agreements, as well as the grantingof free shares, enable all employees in France to share in the Group’s
success. A new free share allocation plan to all employees wasannounced in June 2023. Today, employee shareholding, taking into
account these latest allocations, concerns approximately 80% of
employees. True to its commitment as a responsible employer, andrecognising the commitment of everyone to the Group’s performanceand success, Hermès paid all Group employees an exceptional bonus
in 2024, in addition to the salary increases in France and worldwide.
In 2023, the House also continued its actions to strengthen inclusionand diversity. Today, 6.85% of Hermès employees in France have adisability, exceeding legal obligations. A third Group Disability
Agreement was signed at the end of 2023.
Nature, a source of exceptional materials, is at the heart of ourcraftsmanship model and its preservation plays a central role in
Hermès' commitments. Global warming, its impact on biodiversity andthe industrialisation of raw materials are areas of concern, which theHouse addresses through its climate strategy, its concrete initiatives
in terms of responsible supply chains and its policies for thepreservation of natural resources.
The Group’s environmental policy is based on major commitments topreserve natural resources: protection and regeneration of
biodiversity, reduction of water abstraction, control and reduction ofdischarges and waste. The House is increasing its practical actions tominimise its footprint on biodiversity, in particular through acomprehensive inventory of its impacts according to the Global
Biodiversity Score (GBS) method in partnership with WWF and CDC
Biodiversité and the undertaking of ad hoc studies in certain sectors.
In 2023, the Group committed to the Science Based Targets for
Nature (SBTN) approach, in order to establish scientiﬁc objectives fornature, in particular for biodiversity, freshwater, forests, soils andoceans. Hermès is one of the 120 companies that have initiated thisapproach worldwide.
The House, which by its nature is a low emitter of greenhouse gases,
however continues to implement its commitments against climatechange, in line with its objectives for a climate trajectory below 1.5°C,
validated by the Science Based Targets initiative (SBTi). The Group is
stepping up its actions by controlling its industrial, logistics andcommercial activities and by the gradual commitment of its partners
within the value chain. In particular, on the subject of energy, theGroup’s energy sobriety policy is supplemented by an energy
de‑fossilisation strategy, in particular through the use of renewableenergies.
Hermès places responsibility and sustainability in all its actions andcreations. The systematic implementation of its particularly
demanding responsible real estate standard will make it possible not
only to reduce the greenhouse gas emissions of new constructions
but also the energy consumption of buildings to integratesustainability issues across the entire life cycle of real estate
projects. The Hermès “responsible IT” approach, led by Hermès
Système d’Information (HSI), covers all of the Group’s digital products
and services and aims to use best market practices to respond to therepositioning of digital to assist the environmental transition ofoperations (IT for Green), to limit the digital carbon footprint (Green IT)

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

15

1PRESENTATION OF THE GROUP AND ITS RESULTS
STRATEGYand support the Finance function in the consolidation of regulatory
reporting. Each métier or production unit is committed to applying theprinciples of eco‑design to use materials wisely, as well as to reduce
waste and promote reuse and recycling to move towards a circular
economy. The widespread use of product LCAs (life cycle analyses)
structures this approach.
Through its engagement with local authorities and communities whereits production sites are located, Hermès contributes to revitalisingregions, and provides working conditions that offer proximity andstable employment. Thanks to the Fondation d’entreprise Hermès,
the Company is expanding its philanthropic actions through artistic
creation, education and transmission, solidarity and the preservationof biodiversity. The Group is an economic player that is committed toits ecosystem and its stakeholders. Hermès is committed to support
its suppliers in meeting requirements in terms of traceability,
certiﬁcation, carbon trajectory, reduction in water consumption andthe use of plastics. Its supply chain briefs are published on theHouse’s website, as well as its animal welfare policy. The House has
increased the transparency of its non‑ﬁnancial information, inparticular through the publication of its Climate Transition Plan and its
Forest policy.

162023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

In 2023, Hermès again saw an improvement in non‑ﬁnancial ratings,
reﬂecting the strength of its CSR commitments. Hermès was thus
rewarded when it received the Grand Prix Emploi Humpact, which
recognises achievements in social matters, for the third time, as wellas the Grand Prix CAC Large 60 of the Transparency Awards, which
recognises the quality of regulated information. Hermès is on the CDP
A‑list (ranking of the 330 best performing companies worldwide on
environmental issues), rated A for Climate and Water, and A- forForest. The ISS agency published an improved rating of “BPrime” (versus C+ in 2021). The Group consolidated its position in
the ratings of Moody's ESG and FTSE4Good.
Hermès, a family business, has been able to adapt to changes whilefavouring a long‑term approach. The Group, on the strength of its
craftsmanship savoir‑faire, its exclusive distribution network and its
creative heritage, will continue its sustainable and responsible
development.

PRESENTATION OF THE GROUP AND ITS RESULTSSIMPLIFIED ORGANISATION CHART AND GROUP LOCATIONS

1.4

SIMPLIFIED ORGANISATION CHART AND GROUP LOCATIONS

1.4.1

SUMMARY DESCRIPTION OF THE GROUP AS AT 31 DECEMBER 2023

1HERMÈS INTERNATIONALSUBSIDIARIESRETAIL• Germany• Argentina• Australia• Austria• Belgium,• Denmark• Spain• USA• France• Greece• Guam• India• Italy• Japan• Malaysia• Mexico• Norway

Netherlands• Brazil• Canada• China,HERMÈS
BRAND

Hong Kong,Taïwan,Macau• South Korea

Leather goods andequestrianism

Women’sready-to-wear

Men’s ready-to-wear

Belts

Hats

Gloves

Shoes

Women’s silk

Men’s silk

Jewellery

Furniture andart of living

Tableware

Perfume

BeautyWatches

WHOLESALE PRODUCTION AND DISTRIBUTION

Internet of Things(IoT)

OTHER BRANDS

of Monaco• Czech Republic• United Kingdom• Russia(1)• Singapore• Sweden• Switzerland• Thailand• Türkiye

WHOLESALE PRODUCTION AND DISTRIBUTIONMÉTIERSOTHER PRODUCTS

OTHER
PRODUCTS
AND BRANDS• Poland• Portugal• Principality

Tanneries andPrecious Leathers

Manufacturede MétauxPetit hBESPOKE DESIGN

Ateliers
Horizons

RETAIL AND WHOLESALE PRODUCTION AND DISTRIBUTION
Crystal Saint-Louis

Bootmaker John Lobb

Silversmith Puiforcat

Textiles and furnishing fabrics(1)

Stores temporarily closed.

The main consolidated companies as at 31 December 2023 (distribution subsidiaries and holding companies of the divisions) are listed
in note 16 of the consolidated ﬁnancial statements.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

17

1

PRESENTATION OF THE GROUP AND ITS RESULTSSIMPLIFIED ORGANISATION CHART AND GROUP LOCATIONS

1.4.2

INTEGRATED PRODUCTION AND TRAINING SITES WORLDWIDE

The Hermès Group operates 75 fully owned production and training sites, including 60 in France.

Métiers

Leather Goods & Saddlery

Tanneries and Precious
Leathers

Country/French region

Number of sites

France/Auvergne‑Rhône‑Alpes

8

France/Bourgogne‑Franche‑Comté

3

Allenjoie (including EHSF) *Héricourt

Seloncourt

France/Grand‑Est

3

Bogny‑sur‑Meuse
Tournes‑Cliron

Val‑de‑Vence (EHSF) *France/Île‑de‑France

4

Montereau (including EHSF) *Pantin Pyramide and CIA

Paris Faubourg Saint‑Honoré
Paris Saint‑Antoine

France/Normandy

2

Louviers (including EHSF) *Val‑de‑Reuil

France/Nouvelle‑Aquitaine

6

Ambarès (EHSF) *Marthon (EHSF) *Montbron

NontronSaint‑JunienSaint‑Vincent‑de‑PaulFrance/Auvergne‑Rhône‑Alpes

2

Annonay

Le‑Puy‑en‑Velay

France/Centre‑Val‑de‑Loire

1

ChabrisFrance/Île‑de‑France

1

Montereau

France/Nouvelle‑Aquitaine

1

BellacVivoinFrance/Pays de la Loire

1

Australia

6

United States

2

Italy

1

France/Auvergne‑Rhône‑Alpes

9

TextilesManufacture de Métaux

Tableware

Bourgoin‑Jallieu – 4 sites
Bussières
IrignyFrance/Nouvelle‑Aquitaine

1

NontronFrance/Pays de la Loire

1

ChallesFrance/Bourgogne‑Franche‑Comté

3

Bonnétage
Châtillon‑le‑Duc

France/Hauts‑de‑France

1

Roye
Champigny‑sur‑Marne – 2 sites

France/Île‑de‑France

2

Portugal

2

France/Nouvelle‑Aquitaine

3

France/Auvergne‑Rhône‑Alpes

1

Dardilly

2

ChessyLimoges
NontronJewelleryFrance/Île‑de‑France
France/Occitanie

1

Toulouse

Perfume and Beauty

France/Normandy

1

Le Vaudreuil

Watches

Switzerland

2

Shoes

Italy

1

Crystal Saint‑LouisFrance/Grand‑Est

1Saint‑Louis‑lès‑Bitche

Silversmith Puiforcat

France/Île‑de‑France

1

Pantin‑CIA

France/Île‑de‑France

1

Paris Mogador

United Kingdom

1

Bootmaker John Lobb

* EHSF: École Hermès des Savoir‑Faire.

18

French locality
Aix‑les‑Bains
BelleyBons‑en‑Chablais
Fitilieu (EHSF)*

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALLes Abrets
Pierre‑Bénite
Riom (EHSF) *Sayat

Le Grand‑Lemps
Pierre‑Bénite – 2 sites

Serre‑les‑Sapins

Saint‑Just‑le‑Martel

Magny‑Le‑Hongre

PRESENTATION OF THE GROUP AND ITS RESULTSSIMPLIFIED ORGANISATION CHART AND GROUP LOCATIONS

1.4.3

1

INTEGRATED PRODUCTION AND TRAINING SITES IN THE FRENCH REGIONS

Bogny-sur-Meuse
Roye

Tournes-Cliron
Val-de-Vence

Val-de-Reuil

Le Vaudreuil

Paris
Louviers
Champigny sur Marne

PantinChessyMagny-le-Hongre

Saint-Louis-lès-Bitche

Montereau
VivoinChallesHéricourt

Allenjoie
Seloncourt

ChabrisChâtillon-le-Duc

Bonnétage

Serre-les-Sapins

Dardilly
BellacSaint-JunienSaint-Vincent-de-Paul
Ambarès

Montbron
Marthon

Limoges

Riom
Sayat

Saint-Just-le-Martel

Bussières
Pierre-Bénite
IrignyBourgoin-Jallieu

Bons-en-Chablais
BelleyAix-les-Bains
Fitilieu
Les Abrets
Le Grand-Lemps

Annonay

Nontron

Le-Puy-en-Velay

Toulouse

Leather Goods & Saddlery
EHSF

Crystal Saint-Louis

Tanneries and Precious Leathers

Silversmith Puiforcat

Perfume and Beauty

Tableware

TextilesManufacture de Métaux

Jewellery

Bootmaker John Lobb

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

19

1

PRESENTATION OF THE GROUP AND ITS RESULTSSIMPLIFIED ORGANISATION CHART AND GROUP LOCATIONS

1.4.4

WORLDWIDE DISTRIBUTION NETWORK

Hermès objects are available worldwide through a network of 294 exclusive stores. Hermès watches, perfumes and tableware are also soldthrough networks of specialised stores.

Europe97

Asia-Pacific

Americas58

EuropeGermany: 11
9 branches:s Baden‑Badens Berlin KaDeWes Berlin Kudamms Düsseldorf
s Frankfurts Hamburgs Kampens Munichs Stuttgart
2 concessionaires
Austria: 2
1 branch:s Vienna
1 concessionaire
Belgium: 2
2 branches:s Brusselss Knokke‑le‑Zoute
Denmark: 1
1 branch:s Copenhagen
Spain: 4
4 branches:s Barcelona Paseo de Gracias Madrid Canalejass Madrid Ortega y Gassets Marbella

1.
20

Near andMiddle East

9

France: 27
13 branches:s Aix‑en‑Provences Biarritzs Bordeauxs Canness Deauvilles Lilles Lyons Marseilles Paris Faubourg Saint‑Honorés Paris George V
s Paris Sèvres
s Saint‑Tropezs Strasbourg
14 concessionaires
United Kingdom: 8
6 branches:s London Bond Streets London Harrods
s London Royal Exchanges London Selfridges
s London Sloane Streets Manchester
2 concessionaires
Greece: 1
1 branch:s Athens
Ireland: 1
1 branch:s DublinStores temporarily closed.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Italy: 12
10 branches:s Bolognas Capris Florences Milans Napless Paduas Porto Cervos Romes Turins Venice
2 concessionaires
Kazakhstan: 1
1 concessionaire
Luxembourg: 1
1 concessionaire
Norway: 1
1 branch:s OsloNetherlands: 3
2 branches:s Amsterdam De Bijenkorf
s Amsterdam P.C. Hooftstraat
1 concessionaire
Poland: 1
1 branch:s Warsaw
Portugal: 1
1 branch:s Lisbon130

Principality of Monaco: 1
1 branch:s Monte Carlo
Czech Republic: 11 branch:s Prague
Russia: 4 (1)4 branches:s Moscow Gums Moscow Stoleshnikov
s Moscow Vremena Godas Saint‑Petersburg
Sweden: 1
1 branch:s Stockholm
Switzerland: 9
8 branches:s Basels Cranss Genevas Gstaads Lausannes Luganos St Moritzs Zurich
1 concessionaire
Türkiye: 43 branches:s Istanbul Emaars Istanbul Istinye Parks Istanbul Nisantasi
1 concessionaire

PRESENTATION OF THE GROUP AND ITS RESULTSSIMPLIFIED ORGANISATION CHART AND GROUP LOCATIONS

Asia‑Paciﬁc
Australia: 65 branches:s Brisbane
s Gold Coast Pacific Fairs Melbourne Chadstones Melbourne Collins Streets Sydney
1 concessionaire

Mainland China: 33
29 branches:s Beijing China Worlds Beijing Peninsulas Beijing SKP
s Changsha
s Chengdu SKP
s Chengdu Swires Chongqings Dalians Guangzhous Hangzhou Hubins Hangzhou Towers Harbins Kunmings Nanjings Ningbo
s Qingdao
s Shanghai IFC
s Shanghai Maisons Shanghai Plaza 66
s Shanghai Qiantans Shenyangs Shenzhen Bay Mixc
s Shenzhen Mixcs Suzhous Tianjins Wuhans Xi’Ans Xiamens Zhengzhou

Japan: 31

Malaysia: 3

4 concessionaires

27 branches:s Chiba Sogos Fukuoka Hakata Hankyu
s Fukuoka Iwataya
s Kobe Daimarus Kyoto Takashimayas Nagoya JR Takashimayas Nagoya Matsuzakayas Nagoya Mitsukoshis Okayama Takashimaya
s Osaka Hiltons Osaka Shinsaibashi Daimarus Osaka Takashimaya
s Osaka Umeda Hankyu
s Sapporo Daimaru
s Sendai Fujisakis Tokyo Ginzas Tokyo Ikebukuro Seibu
s Tokyo Marunouchis Tokyo Nihombashi Mitsukoshis Tokyo Nihombashi Takashimaya
s Tokyo Omotesandos Tokyo Shinjuku Isetans Tokyo Shinjuku Takashimaya
s Tokyo Tamagawa Takashimaya
s Urawa Isetans Yokohama Sogos Yokohama Takashimaya
4 concessionaires

2 branches:s Kuala Lumpur Pavilions Kuala Lumpur The Gardens
1 concessionaire

South Korea: 19
11 branches:s Busans Daegu Shinsegaes Seoul Dosan Parks Seoul Gallerias Seoul Hyundai Apkujungs Seoul Hyundai Coexs Seoul Lotte World Towers Seoul Shillas Seoul Shinsegae Gangnams Seoul Shinsegae Mains Pangyo Hyundai
8 concessionaires

Guam: 1
1 branch:s GuamHong Kong: 7
7 branches:s Hong Kong Elementss Hong Kong Harbour Citys Hong Kong International Airports Hong Kong Landmark Prince’ss Hong Kong Lee Gardenss Hong Kong Pacific Places Hong Kong Sogo

India: 2
2 branches:s Mumbais New Delhi

Indonesia: 2

Macao: 4
4 branches:s Macao Four Seasonss Macao Galaxys Macao One Centrals Macao Wynn Palace

Philippines: 1
1 concessionaire

Singapore: 6
6 branches:s Singapore Changi Airport T1
s Singapore Changi Airport T2
s Singapore Changi Airport T3
s Singapore Liat Towers Singapore Marina Bay Sandss Singapore Takashimaya

Taiwan: 8
6 branches:s Kaohsiungs Taichungs Tainans Taipei Bellavita
s Taipei Regents Taipei Sogo Fuxing
2 concessionaires

Thailand: 5
4 branches:s Bangkok Central Embassys Bangkok Icon Siams Bangkok Siam Paragons Phuket Floresta
1 concessionaireVietnam: 22 concessionaires

2 concessionaires

Americas
Argentina: 1

Caribbean: 1

1 branch:s Buenos Aires

1 branch:s Saint‑Barthélemy

Brazil: 3

Chile: 1

3 branches:s Rio de Janeiros Sao Paulo Cidade Jardims Sao Paulo Iguatemi

1 concessionaire

35 branches:s American Dreams Aspens Atlantas Austins Aventuras Beverly Hills
s Bostons Chicagos Costa Mesa South Coast Plazas Dallass Denvers Greenwichs Hawaii Ala Moanas Hawaii Waikikis Houstons Las Vegas Bellagios Las Vegas Crystalss Las Vegas Wynns Los Angeles Topangas Miamis Napless New York Madison 706
s New York Meatpackings New York Roosevelt Fields New York Wall Streets Orlandos Palm Beachs Palo Altos Philadelphia King of Prussia
s San Diego

Bahrain: 1

Kuwait: 1

Lebanon: 1

Qatar: 2

1 concessionaire

1 concessionaire

1 concessionaire

2 concessionaires

Canada: 5
4 branches:s Calgarys Montreals Torontos Vancouver
1 concessionaire

1United States: 40

s San Franciscos Seattle
s Short Hillss Troys Washington
5 concessionaires

Mexico: 6
6 branches:s Cancúns Guadalajaras Mexico Artzs Mexico Masaryks Mexico Molieres Monterrey

Panama: 1
1 concessionaire

Near and Middle East

United Arab Emirates: 44 concessionaires
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

21

1

PRESENTATION OF THE GROUP AND ITS RESULTSSIMPLIFIED ORGANISATION CHART AND GROUP LOCATIONS

1.4.5

REAL ESTATEThe surface areas set out below correspond to the gross ﬂoor space,measured on plans by an architect, for all of the Group’s buildings inand around Paris.
In Paris, the Group now occupies ofﬁce space of approximately
31,400 m2 mainly near its historical registered ofﬁce of 24, rue duFaubourg Saint‑Honoré and 19‑21, rue Boissy d’Anglas, which it
owns. Staff work in ofﬁce premises in rue de la Ville‑l’Évêque, rued’Anjou and rue de Penthièvre in Paris 8th arrondissement, leased
from third parties under commercial leases. In order to meet the
expected growth in the Paris workforce, the Group leased two
additional buildings on rue d’Anjou in Paris 8th arrondissement in
2022, with surface areas of 4,400 m² and 9,900 m², which will
undergo major renovations prior to being occupied. In 2023, theGroup acquired the latter and leased an additional building of
5,000 m² on rue d'Athènes in Paris 9th arrondissement.
In Pantin, Hermès occupies 79,200 m² of manufacturing premises
and ofﬁce space, most of which is owned by the Group, including theEspace Jean‑Louis Dumas, which opened in 2015, and the Cité desMétiers, which won the Prix de l’Équerre d’Argent 2014. In 2022, theGroup took on a lease for three and a half ﬂoors in a new building on

222023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

the banks of the Ourcq Canal, for a total surface area of 8,700 m², tohouse the employees of IT services and the Home métiers. In 2023,
the Group leased an additional ﬂoor and a half in this building for an
additional surface area of approximately 4,330 m².
The Group leases an ofﬁce building located in Pré-Saint‑Gervais toprovide a surface of 6,200 m².
In Bobigny, the Group owns its logistics site, with a total surface areaof approximately 32,100 m². In 2023, the Group added a new
32,070 m² logistics site in Vémars under an off‑plan lease.
The Group is the owner of 63 of the 75 production sites that it
operates (§ 1.4.2).
Hermès products are sold worldwide through 294 exclusive stores(§ 1.4.3). A total of 225 stores are operated as branches, most ofwhich have commercial leases, intended primarily to ensure thecontinuity of operations over time.
However, the Group also owns the buildings that house certain stores,
including those in Paris, Ginza in Tokyo, Dosan Park in Seoul, Beverly
Hills, Sydney and Geneva. In addition, the Group owns a commercial
building and ofﬁces in London.

PRESENTATION OF THE GROUP AND ITS RESULTSKEY FINANCIAL AND NON‑FINANCIAL FIGURES

1.5

KEY FINANCIAL AND NON‑FINANCIAL FIGURES AFR

1.5.1

REVENUE BY MÉTIER FOR 2023 (2022)

1.5.3

KEY CONSOLIDATED FINANCIAL DATA

In millions of euros

Revenue

Growth at current exchange rates vs. n‑1

1.5.2

1

REVENUE BY GEOGRAPHICAL AREA
FOR 2023 (2022)

2023

2022

2021

2020

2019

13,427

11,602

8,982

6,389

6,883

16%

29%

41%

(7)%

15%

Growth at constant exchange rates vs. n‑1 1

21%

23%

42%

(6)%

12%

Recurring operating income 2

5,650

4,697

3,530

1,981

2,339

in % of revenue

42.1%

40.5%

39.3%

31.0%

34.0%

Operating income

5,650

4,697

3,530

2,073

2,339

in % of revenue

42.1%

40.5%

39.3%

32.4%

34.0%

Net income attributable to owners of the parent

4,311

3,367

2,445

1,385

1,528

in % of revenue

32.1%

29.0%

27.2%

21.7%

22.2%

Operating cash ﬂows

5,123

4,111

3,060

1,993

2,063

Operating investments

859

518

532

448

478

Adjusted free cash ﬂows 3

3,192

3,404

2,661

995

1,406

Equity attributable to owners of the parent

15,201

12,440

9,400

7,380

6,568
4,372

Net cash position

4

10,625

9,223

6,695

4,717

Restated net cash position 5

11,164

9,742

7,070

4,904

4,562

Headcount in number of people 6

22,037

19,686

17,595

16,60015,417(1) Growth at constant exchange rates is calculated by applying, for each currency, the average exchange rates of the previous period to the revenue for the period.
(2) Recurring operating income is one of the main performance indicators monitored by Group Management. It corresponds to operating income excluding non‑recurring
items having a significant impact that may affect understanding of the Group’s economic performance.
(3) Adjusted free cash flows are the sum of cash flows related to operating activities, less operating investments and the repayment of lease liabilities recognised inaccordance with IFRS 16 (aggregates in the consolidated statement of cash flows).
(4) Net cash position includes cash and cash equivalents presented under balance sheet assets, less bank overdrafts which appear under short‑term borrowings andfinancial liabilities on the liabilities side. Net cash position does not include lease liabilities recognised in accordance with IFRS 16.
(5) The restated net cash position corresponds to net cash plus cash investments that do not meet the IFRS criteria for cash equivalents due in particular to their original
maturity of more than three months, less borrowings and financial liabilities.
(6) Headcount corresponds to employees on permanent employment contracts and those on fixed‑term contracts of more than nine months.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

23

1

PRESENTATION OF THE GROUP AND ITS RESULTSKEY FINANCIAL AND NON‑FINANCIAL FIGURESCHANGE IN CONSOLIDATED REVENUECHANGE IN THE NUMBER OF HERMÈS EXCLUSIVE STORESIn millions of euros

24

CHANGE IN RECURRING OPERATING INCOME

CHANGE IN NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT

In millions of euros

In millions of euros

CHANGE IN OPERATING INVESTMENTS

CHANGE IN ADJUSTED FREE CASH FLOWSIn millions of euros

In millions of euros

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALPRESENTATION OF THE GROUP AND ITS RESULTSKEY FINANCIAL AND NON‑FINANCIAL FIGURES

1.5.4

KEY NON‑FINANCIAL FIGURESDIVERSITY
AND INCLUSION
6.85%

GENDEREQUALITY
60%

TURNOVER

jobs createdin 2023

direct employment
rate of people with diabilities

women manager
in the group

group turnover rateLOCAL
ANCHORING74%

VERTICALINTEGRATION55%

SUSTAINABLE
RELATIONSHIPS
19 YEARSLOCALSUPPLIERS
66%

objects are
made in France

manufactured in its in-houseand exclusive workshops

average length of supplier
relationships (top 50)

puarchases come from
France (Top 50)

CLIMATESCOPE 1&2 (SBTI)-30%

BIODIVERSITY
SBTN

WATER
CONSUMPTION-62%

ENERGY
TRANSITION
70%

emissions reduction in absolutevalue between 2022 and 2023

Scientific approachfor nature undertaken

in industrial water intensity
over 10 years

renewableenergyTRANSPARENCYAWARDS#1COMMITTEDTO COMMUNITIES400

SUSTAINABILITYCERTIFICATION>200,000

100%

CAC LARGE 60

local actions and partnerships
in 2023

repairs in workshopsof the Group’s tanneries are
Leather Working Group certified

CHANGE IN GREENHOUSE GAS EMISSIONS

4.78%

CHANGE IN INDUSTRIAL WATER CONSUMPTION

666

622

120

46

644

578

1

RESPONSIBLE
EMPLOYER
2,400-52% in intensity-62% in intensity-50% in absolute values

44

22
2023

2018

2014

2023

Scope 3

Scopes 1 & 2

Absolute values: in k tonnes of CO2 eq;
Intensity: in tonnes CO2 eq per €M gross margin.

Intensity: in M3 per €M of revenue.

CHANGE IN GROUP WORKFORCECHANGE IN PRODUCTION WORKFORCE+43%
17,595

16,60015,41762%

22,037

19,686

+47%
7,053

2019

2019

2020

2021
France

2022

9,469

10,395

62%

63%

62%

63%

8,020

8,486

2020

2021

2022

2023

2023

excl. France

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

25

1

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY MÉTIER

1.6

REVENUE AND ACTIVITY BY MÉTIER AFR
Change
2023

Mix

2022

Mix

at current
exchange rates

Leather Goods & Saddlery

5,547

41%

4,963

43%

12%

17%

Ready‑to‑wear and Accessories

3,879

29%

3,152

27%

23%

28%

In millions of euros

Silk and Textiles

932

7%

842

7%

11%

16%

Other Hermès sectors

1,653

12%

1,371

12%

21%

26%

Perfume and Beauty

492

4%

448

4%

10%

12%

Watches

611

5%

519

4%

18%

23%

Other products
CONSOLIDATED REVENUE

1.6.1

313

2%

306

3%

2%

5%

13,427100%

11,602

100%

16%

21%

1.6.1.1

WOMEN’S BAGS

LEATHER GOODS & SADDLERY

Leather Goods & Saddlery, Hermès’ original métier, encompasses
bags for men and women, travel articles, small leather goods andaccessories, saddles, bridles, and a full range of equestrian products
and clothing.
The Leather Goods & Saddlery métier represents 41% of consolidated
sales. In 2023, it generated revenue of €5,547 million.
Hermès leather goods and saddlery objects are the result of a very
special alchemy, based on both a constant dialogue between
designers and craftspeople, and the use of the ﬁnest materials,
selected with the greatest care. The craftspeople use traditionalsavoir‑faire, passed down from generation to generation. This patientdaily dialogue with leather, crafted and fashioned by hand, gives
these unique objects a distinctive additional measure of personality.
Leather goods and saddlery objects are made in nine centres ofexpertise that bring together production units, workshops and training
centres in Paris, Pantin and six regions of France. To meet continued
strong demand, Hermès is expanding its network of manufacturing sites
each year in order to strengthen its production divisions. Two newleather goods workshops were inaugurated in 2023: in Louviers (Eure)in April, and Tournes‑Cliron (Ardennes) in May. In June, the glove‑leather
goods workshop in Saint‑Junien (Haute‑Vienne) also opened a newbuilding that will enable it to double its workforce. Four other site
projects are underway over the next four years. Work on the Riom
production unit (Puy‑de‑Dôme) continued during the year and will becompleted in 2024. Hermès is also preparing for the construction of
three future production units, which are scheduled to open in 2025 in
L'Isle‑d'Espagnac (Charente), 2026 in Loupes (Gironde) and 2027 in
Charleville‑Mézières (Ardennes). All these establishments are set up in
close collaboration with local stakeholders, administrative and economic
development bodies. In this way, Hermès reafﬁrms its commitment toregions with a strong manufacturing savoir‑faire and its will to provide
high‑quality jobs.
The House is also continuing to perfect the skills and savoir‑faire of its
craftspeople through a range of training and professional qualiﬁcation
programmes. These programmes are delivered within the École
Hermès des Savoir‑Faire and through a range of partnerships withtraining structures in the regions concerned.
26

at constantexchange rates

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

2023 was a year rich in equestrian‑inspired creations, in particularthrough silversmith pieces, which are continuing their journey in thewomen's bag collections. Thus, the Hermès Della Cavalleria line, bornfrom the adaptation of an equestrian bit into a clasp, welcomes a new
day‑to‑day Élan format. The horse bit is also transformed into anovelty handle on the Maximors bag, a small evening bag withfeminine curves. For its part, the saddle has inspired two new
products, the Petite Course bag, whose construction evokes thesaddle's skirt, and the Arçon bag, whose roundness echoes that of
the saddle ﬂap.
The emblematic models continue their metamorphosis: the Jypsièreline is growing with a new mini format to be worn close to the body,while the Kelly expands its evening offering with the Kelly Élan clutch
bag format, available in classic and precious hide versions.
The reinterpretation of the great classics is also expressed throughexceptional versions, designed in an Arts & Crafts spirit: daring andsurprising stories that constantly push the boundaries of creation andsavoir‑faire. The Folie’s design reveals an air of lightness with itsfeathers wafting and waving on the Kelly Élan, the Toupet and a newmodel, the Étrille, inspired by horse grooming bands.
In a Western twist, the Birkin Sellier 35 Anate and the Kelly Danse II
Anate are adorned with fringes. The Birkin Shadow clutch bag isreissued in a limited series. The Birkin Picnic Stripes, the embodimentof the summer spirit, is given leather stripes, while the Kelly mini and
35 are offered in Pluch versions in sheepskin that testify to thedexterity of the craftspeople. Finally, the Kellyoptic combines thesavoir‑faire of the leather and jewellery craftspeople in an exceptionalversion in which the bag becomes a jewel.
The Constance appears in silk, echoing evening tuxedos, and isembroidered with tone‑on‑tone dancing ﬂowers on the ﬂap, while acoloured straw marquetry design highlights the clasps of the size 24.

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY MÉTIER

To celebrate its centenary, the Bolide bag gets four wheels on its mini
version, thus preparing to roll out on new adventures.

1.6.1.2

MEN'S BAGS

The men's collections are expanding and taking on a new dimension
thanks to a dynamic range that responds to contemporary uses.
Alongside the emblematic Haut à Courroies and the new timeless Hac
à dos, the codes of the Kelly are reinterpreted with a masculine twist,
giving rise to the Maxi Kelly size 42, which picks up all their traditionalsavoir‑faire, and the Kelly Messenger, designed for people on themove and offered in two formats. In a more casual spirit, the Herbag
Messenger 39 has a masculine style with its canvas and leather
construction and atypical shoulder strap. Finally, the Videpoches, acompact bag in tune with the times, instils a youthful breath of fresh
air to the world of men.
The Arts & Crafts odyssey also continues with essentials such as the
Bolide Skate size 65, as well as through a bold new identity, theGilados, a magniﬁcent Barenia leather and toile H waistcoat.

1.6.1.3

TRAVEL

Launched at the end of 2021 in France and China, the R.M.S. case iscontinuing its rollout and has now expanded its presence to morethan 35 stores worldwide. Resolutely innovative and customisable
through the play of handles and wheels, it offers a wide variety ofmaterials and colours. The printed versions make it even moreunique, like the latest designs, HER‑MES, which seems to scan thecase of an equestrian going on an adventure, and the sublime Jaguar
dans un Jardin Mexicain.

1.6.1.4

ACCESSORIES AND SMALL LEATHER GOODS

The collections of small leather goods are constantly being enriched
and renewed in order to provide the perfect response to the uses ofeach market.
For several seasons, small leather goods have been moving towards
very contemporary hands‑free bags with bold silhouettes, such as the
To go Chaîne d’ancre baguette format with its very feminine signatureor the Compact Chaîne d’ancre format with a trinket clasp.
Men also beneﬁt from functional small leather goods: H Sellier, R.M.S.
and Iliade are three new timeless lines offering various formats, fromglasses cases to compact wallets, not to mention card holders. Two
new formats provide a hands‑free mode, Hacabox and Pochenplus,
which can hold a phone and a few essentials.
In the era of digitisation, the Reading & Writing universe, with its
diaries, calendar reﬁlls, notebooks and covers, offers a symbolic
counter‑balance enjoyed by all generations.

1.6.1.5

MATERIALS

1

In 2023, the materials pay homage to Hermès’ talent as a colourist.
Indeed, if materials have a language and express themselves throughtheir sheen, their drape, their touch, in this imaginary language
accents are revealed through colour.
Seasonal or timeless, colours play with light and combine withmaterials in an inﬁnite ﬁeld of exploration: the vibrance of Caban on
Togo calfskin or the felted depth of Meyer grey on Clémence calfskinecho the delicate pallor of Mushroom on Mysore goatskin or thedelicacy of Fizz Green, which distills the clarity of soft summer lightthrough its gentle strokes.
This year was also the opportunity to permanently establish a placefor Regate calfskin, a tailor‑made material for the R.M.S. case. Withan elegant sobriety, its small round grain with barely marked relief
reassures and adds intensity to the colours. Its slight satin, soft to thetouch ﬁnish, will acquire a patina and shine with use. A veritablechameleon, it wears its colours with pride and underlines the paletteof the season’s prints.

1.6.1.6

EQUESTRIANISM

In 2023, Hermès reafﬁrmed its commitment to saddlery at thehighest level of competition.
In May, the House welcomed British rider Ben Maher, show‑jumping
champion and current world number two, to its team of partner riders.
Widely respected and holding values that echo those of the House,such as the love of the horse and the quest for excellence, he rides
on the Hermès Vivace saddle at all major sporting events.
In September, Hermès saddles added new gold medals to their list ofprizes thanks to the performances of the House’s partner riders at
the European championships. Steve Guerdat, Swiss show‑jumping
rider, and German dressage rider, Jessica von Bredow‑Werndl, werecrowned European champions, respectively on the Hermès Cavale
and Hermès Arpège saddles. In para‑dressage, the young Frenchrider Chiara Zenati won the silver medal at just 20 years old.
To support the dynamic of the métier, a new saddlery and bridle
workshop was inaugurated in April at the Maroquinerie de Louviers, inNormandy. It will be a further growth driver, in addition to the historic
saddlery workshop at 24, Faubourg Saint‑Honoré.
Moreover, in order to meet the growing needs of customers and riders
seeking physical and mental balance, a new sport has joined the
métier: yoga, through an elegant and comfortable technical range incontrasting knitwear whose colours evoke the different phases of theday, from sunrise to evening.

Finally, this universe remains that of fantasy, boasting card holders
with abstract ﬁgures evoking ﬁsh or crocodiles, printed Calvi versions,and especially the mischievous family of charms, whose creations
always arouse smiles: a miniature Bolide on wheels, a realconcentrate of savoir‑faire, a Jockey built entirely using wood andleather, a Sail 24 boat, the ﬁrst Hermès 3D charm, the Buddy dog in
new punk and silk versions, and a brightly coloured seahorse, a new
addition to the family of animals this year.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

27

1

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY MÉTIER

1.6.2

READY‑TO‑WEAR AND ACCESSORIESThe Ready‑to‑wear and Accessories métier generated 2023 revenueof €3,879 million, i.e. 29% of consolidated sales.

1.6.2.1

WOMEN’S READY‑TO‑WEAR

For the summer 2023 collection, Nadège Vanhée, Artistic Director ofwomen’s Ready‑to‑wear, offers a utilitarian wardrobe inspired by thefunctionalities of tents and hammocks. These technical elements aredeconstructed to create clothes that can be transformed and can beworn in multiple ways: a short drawstring jacket and high‑waisted
wide‑leg trousers in crisp water‑resistant cotton, a graphic jacquard
knit sweater with racer cut for a slender and athletic silhouette.
Another feminine and light allure is embodied by ﬂuid cut‑out gowns,
in silk organza jersey in warm colours like the setting sun.
The fall‑winter collection evokes a stroll in a mysterious forest, where
the glow of the winter sun is reﬂected on sensual silhouettes, with
self‑assured femininity. The materials and colours evoke natural
textures such as the bark of trees or the coats of horses. The
collection focuses on outdoor models, which provide softness,
warmth and comfort. The coats, like blankets, are embellished withknitwear that can be worn in multiple ways, as a mufﬂer around theshoulders or as a crossover wrapped around the body.

1.6.2.2

MEN’S READY‑TO‑WEAR

Clothing‑objects, which express creativity, savoir‑faire andsustainability, are at the heart of the approach taken by Véronique
Nichanian, Artistic Director of the men’s universe.
The spring‑summer collection combines precision, the delicacy of thehand and the nonchalance of a free spirit. The transparency of waterand a “pressed ﬂower” pattern evoke a peaceful and happy holiday
resort, bathed in vivid colours sometimes bleached by the summersun.
The fall‑winter collection presents clothes that tell stories, with leather
braiding that evokes the strands of multiple lives, scarf patterns witha soft haze, giving glimpses of what might have gone before, and knits
that blossom with colour and burst into life through their stitching.
Hermès Homme is thus transforming male elegance into a casualchic ﬁeld of exploration.

1.6.2.3

FASHION ACCESSORIES

1.6.2.3.1 Fashion jewellery
The women’s fashion jewellery collections are marked by the play ofmaterials and colours, in particular the Olympe line, whose aesthetic
is inspired by a 1970 model and which reveals a glimpse, at its
centre, of a discreet H. Jewellery in Madame, Swift or Epsom calfskinhighlights the eight colours of leather offered on bracelets, cuffs andearrings.
The emblematic stud of the Collier de Chien line is combined withwicker on light summer bracelets, or is adorned with lacquer andbecomes a jewel for the Loop line.
For men, a new material, Vulcanium, gives rise to a horse headbrooch and a Chaîne d’ancre pendant. Derived from the upcycling of
Swift calfskin, Vulcanium offers a surprising touch, smooth as stone
yet warm as leather.

28

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

1.6.2.3.2 Belts
The annual theme of astonishment enlivens the collections of belts
for women. The kit belt buckles can be transformed into imaginativelemon, red fruit or green apple versions. Some models include azipped pocket in which you can store change or cards. As for the H
buckles, after dabbling with colour blocks last year, they have turned
two‑tone, thanks to the skill of the craftspeople who, by applying twocoats of enamel of different colours, creates a perfect colour
gradient.
In the men's collections, belts have turned away from leather for awhile to explore textiles. A two‑tone, reversible technical mesh band
makes it possible to wear all kit buckles, while a webbing belt is
attached and detached in a single gesture thanks to its smart
aluminium buckle.

1.6.2.3.3 Hats and gloves
The collection of women's hats stands out for its many details, Chaîne
d’ancre patterns, embroidery, ribbons, leather embellishments,
leather‑clad studs, etc. These can be found on berets, sailor's caps,
visors, bucket hats and fedoras.
For summer, straw is in the spotlight, not only on Panama hats but
also on caps and wide‑brimmed hats, always adorned with a colourfulgraphic ribbon.
In winter, the warmth of felt crowns heads with its luminous colours,
intense pink, camel and oakum tints.
Headbands and hair clips continue to play with the House’s materials
and come in printed leather, spaghetti silk, aluminium, cashmere orprinted jersey.
To protect the hands in winter, gloves are proposed in glazed lambskin
or cashmere knits. On one model, a skillful heart‑shaped cut‑out
adorns the back of the hand thanks to meticulous work on theoverlapping straps.

1.6.2.3.4 The Internet of Things
The collaboration with Apple continues and is enriched in 2023 by acollection of bracelets that explore new materials. In addition to themodels still proposed in leather, the collection is expanded withdouble‑wrap Bridon bracelets, tricolor knitted, or rubber bracelets
combined with a folding clasp with the Kilim model.
MagSafe‑certiﬁed magnetic card holders add a touch of whimsy to
iPhones. They are decorated with saddle stitch that outlines the headof a horse, a hedgehog or a walrus.
True to its desire to support its customers in their daily lives, themétier offers a new AirPod case available in eight colours in Swiftcalfskin, to be worn around the neck or attached to a bag, to stayconnected at all times.

1.6.2.3.5 Shoes
In this year of astonishment, Pierre Hardy, Creative Director of men’s
and women’s shoes, expresses cross‑functional creativity byimagining bold new products and reinventing wardrobe essentials in
unexpected ways. Exceptional savoir‑faire and innovations appear in
fashion‑forward or more classic models, meeting all uses.
Spring‑summer continues to explore the imagination and codes of theHouse by combining elegance and originality. Various stylishinterpretations are proposed for the Chaîne d’ancre, transformed into

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY MÉTIER

a totem jewel heel with assertive femininity, or a maxi‑strap on a very
fashion‑forward sling‑back. The contemporary spirit of the collections
is expressed through the Clou de forge heel models, a court shoeinspired by the Collier de chien for women, or hybrid moccasins andreﬁned sandals with leather soles for men. Gladiator sandals offer asophisticated allure in tune with the times. Mixed training shoes andtechno‑sandals offer a wide range of vibrant colours, while theessentials come in toile H, denim or with frayed edges, jersey ortechnical mesh, and ripstop or parachute fabric in monochrome orcontrasting versions.
The fall‑winter collection invites you to an urban or outdoor getaway
and surprises with its exaggerated volumes. Several classic pieces
from the female wardrobe have seen their soles reinterpreted in an
oversized version for a casual chic look. For men, the House’sbootmaker savoir‑faire and heritage are showcased with Blake or
Goodyear stitched soles and buckle details. New models foradventures or more gentle activities, combining comfort andtechnicality, are designed to accompany customers on unfamiliar
explorations. Several sporty models use surprising materials, such as
velvet or satin crêpe. The mixed, graphic and colourful training shoe
has become a new classic.

1.6.3

SILK AND TEXTILESThe Silk and Textiles métier generated revenue of €932 million
in 2023 and represents 7% of the Group’s consolidated sales.

1.6.3.1

WOMEN'S SILKThe women's silk collections offer objects that add a fabulous touchof style. With constantly renewed creativity, the carré 90 scarf in silk
twill, the driving force behind the Hermès silk identity, is available in
new colour ranges inspired by the annual theme of astonishment.
Chevaloscope mischievously depicts 16 horse heads represented byneon lights, musical instruments and gardening tools, while Super Silk
Quest invites you to play a Hermès arcade game.
These new designs also give pride of place to the great classics fromthe House’s heritage. The “traditional scarves” showcase threeclassic designs, Grand Apparat, Coaching and Astrologie, in a uniqueand emblematic colour scheme.
Alongside the carré 90, the carré 70 is tied in a single gesture andthe giant scarf is back, with its designs treated in large format like abanner and its vibrant colours underlining its beauty.
In the family of cashmere and silk shawls, Mon Premier Galop
surprises with its playfulness. This design, which represents a joyful
horse with a slightly unsteady gait, evoking a child's ﬁrst steps,
combines the simplicity of lines and the delicacy of meticulously
detailed decoration.
Cashmere scarves and stoles combine a functional spirit withelegance, in a strong stylish statement. A small cashmere mufﬂer
adorned with embroidered patches and crests in a collegial twist,
seems to come straight from American universities. Another, made ina cashmere reminiscent of denim, takes up all the best bits of jeans,from pockets decorated with rivets to a leather loop on which to hangkeys.

Lastly, precious scarves, with their self‑conﬁdent sophistication,
reveal the quintessential elegance of silk. Embroidered with glass
beads, sequins and crystals in a formal evening wear twist, they wereshowcased for the ﬁrst time at a special event organised at theMadison Avenue store in New York in October.

1.6.3.2

1

MEN'S SILK

Season after season, the Hermès tie reafﬁrms its role as abenchmark of elegance in formal wear and the precious moments oflife and is reﬁned with an extended 7 cm‑wide range added to thecollection. Alongside printed silk and woven silk ties, sometimes withclassic and sometimes fancy patterns, new models are strengthening
the creative statement by imagining a bridge between design andplain.
The scarf for men is very dynamic, in particular by illustrating different
facets of horses. Robocabar immortalises a prancing horse, with ametal shell, straight out of a Japanese cartoon. The naïve lines ofhorses in the collection pay homage to the various representations ofhorses in the Émile Hermès collection. Even more surprising, theimpertinent Rocabar de rire, an almost photographic illustration of amocking horse, is having fun in the warmth wrapped in its Rocabar
blanket.
Halfway between the scarf - for the narrative power of its designs and the mufﬂer - which is so easy to wear - the cashmere and silk
rectangle is an essential family of accessories for men. Its playing
ﬁeld is inﬁnite: adapting to the format of classic designs, games
between prints and plain, or the creation of new designs such as thePuzzle végétal, a camouﬂage pattern that reveals to the attentive eye
galloping horses under its interlacing foliage.
Lastly, the range of mufﬂers is expanding as it continues to be
explored. Alongside the essential plain colours, new materials andunprecedented techniques are being introduced. For example, theTeddy mufﬂer in looped wool and cashmere jersey, withlambskin‑trimmed pockets, can be worn like a sweatshirt.

1.6.4

OTHER HERMÈS SECTORS

Other Hermès sectors include Jewellery and Hermès Art of Living andTableware. In 2023, they generated revenue of €1,653 million,
contributing 12% of Group revenue.

1.6.4.1

JEWELLERY

In 2023, Hermès Jewellery showcased its emblematic shapes andcast a new light on them with bold, assertive and sensitive creations.
Thus, the Chaîne d’ancre motif, designed by Robert Dumas in 1937
and an inexhaustible source of inspiration for the House and the
métier, is freely reinterpreted by Pierre Hardy, Creative Director ofJewellery, in a multitude of shapes and materials, creating bridges
between silver and gold, stones and metal, reﬁnement andaccumulation. These pieces were unveiled in July at the launch of theChaîne d’ancre exhibition on Faubourg Saint‑Honoré.
At the same time, the Kelly motif and its metamorphoses continued toshine around the world with the Kellymorphose exhibition.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

29

1

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY MÉTIER

The year was also marked by the launch of several new jewellery
lines.
The Kelly Gavroche line reinvents itself in rose gold and diamonds andnew ways to be worn. The Kelly clasp adorned with diamonds is
associated with ﬂexible and light Milanese mesh, and reinterprets thestraps that seem entwined around the neck or the wrist, offering
feminine and everyday designs. Two exceptional haute bijouteriepieces, also in rose gold and diamonds, complete the line. On thenecklace, the straps are tied in a diamond buckle, giving an illusion of
volume and movement. On the pair of earrings, pure and radical form
are at the heart of the matter, in particular thanks to the use of thebaguettes cut, a favourite of Pierre Hardy for the particular shine it
brings.
The Danaé Chaîne d’ancre in yellow gold conjures up an antique andmajestic aesthetic. Gold threads, folded over each other without any
soldering, surround and highlight a braided Chaîne d’ancre
pattern. The jewels that make up the line thus give an impression of
movement, between ﬂuidity and structure. There are many ways ofwearing them to create statement pieces, such as bibs and cuffs withbold volumes, but also more understated items, such as pendants or
earrings.
Inspired by the creations of the Enchaînements Libres hautebijouterie collection, the Adage line reinvents itself in new volumes
and in a new way, as assertive as ever but closer to the body. The
chain thus becomes a sculpture that accompanies movement.
Combining the beauty of simplicity and the power of form, Adage plays
on contrasts and asymmetry, ﬂexibility and strength.
Chaîne d’ancre Chaos comes into its own and partners withdiamonds for more intricately jewelled pieces. In a false sense of
precious disorder, the emblematic patterns of Hermès jewellery ingold and diamonds punctuate the marine and jaseron chains, offering
very light pieces. Rings are reinvented as chains, which are evendouble or triple; earrings, sometimes asymmetrical or standing highagainst the ear, offer unexpected ways to be worn; necklaces andbracelets are displayed on free‑standing chains and can be combined
as desired.
Finally, the Ex‑Libris line highlights the emblematic Sceau Ex‑Libris:the rose gold pattern is stamped into the material. Marked with thisembossed imprint, medals and chains, pendants, rings and earrings
invite you to wear them with joy and a lighter spirit.

1.6.4.2

HERMÈS ART OF LIVING AND TABLEWARE

In 2023, the Hermès Home universe, which brings together
collections of porcelain, textiles, objects, furniture and lighting,conﬁrmed the strong acceleration in its growth, observed for the past
three years.
Milan Design Week was an opportunity to present an abundant newcollection, in which many pieces, including furniture and lighting, were
noticed - the Ancelle armchair, Contours sofa, Conservatoire chair andSouﬀle d’Hermès lighting – as well the new Saut Hermès porcelaintableware, exceptional bronze and leather objects, and novel textile
processes combining weaving and embroidery techniques.
In addition to this major event, which brought together customers,
journalists, architects and decorators, several other initiatives

30

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

contributed to the discovery of the Hermès Art of Living andTableware collections in Korea, Dubai and China throughout the year.

1.6.5

PERFUME AND BEAUTY

Perfume and Beauty generated revenue of €492 million in 2023,
i.e. 4% of consolidated sales.

1.6.5.1

PERFUME

Activity in 2023 was punctuated by the launch of two new perfume
products, and promoting the collections.
The year opened with an exclusive edition of Hermessence Rose
Ikebana. Poetry and humour come together to celebrate the bloomingof a rose, whose freshness is taunted by a crisp dash of rhubarb. The
bottle's calligraphy symbolises the art of ikebana with a pure rose
unfurling under the mischievous gaze of a little rabbit. Similar
designs, hand‑painted by the same craftsman, also adorn the bottle's
red Tadelakt calfskin sheath.
In the ﬁrst days of spring, Hermès celebrated the 20th anniversary of
the Parfums‑jardins collection by unveiling its seventh opus, Un Jardin
à Cythère. At the crossroads of the annual theme, the soul of alocation and the inspiration of Hermès perfumer Christine Nagel, thissurprising garden, neither green nor ﬂoral, reveals the fragments of a
Greek summer bathed in sunshine. The international event welcomed
guest journalists and inﬂuencers to Athens, to a recreated agora,where they could feel, touch, look at and taste locally crafted produce
from Cythera and the Peloponnese. Men and women were lulled bythis unexpected garden, which awakened olfactory memories ofgolden grasses, olive trees and fresh pistachios wafted by the breeze.
A “white, blond and blue” Parfum‑jardin of softness and light,
between land, sky and sea.
The second half of the year was marked in September by thesensational late summer appearance of the Twilly girls. Always quick
to reappropriate the House’s heritage and twist its codes, they werereunited under the banner of the new Tutti Twilly perfume. Like arainbow illuminating the city day with its colours, this fourth creationin the Hermès Twilly line blossoms its characteristic ginger from root
to ﬂower, combining the delicacy of its petals with the euphoria of
lychees and the enveloping scent of musk. Tutti Twilly thus celebrates
the youthful spirit of the Hermès girls, a curious, free and optimistic
spirit, which believes in its dreams, and which is also that of theHouse.
From October, the Fêtes en Hermès boxes were adorned with the
Fantaisies d’étriers carré design. The delicate reinterpretation ofequestrian accessories joyfully marries the graphic strength ofribbons and braids, like a link established at this year‑end between
the world of Hermès perfumes and that of beauty.

1.6.5.2

BEAUTY

Since its creation in March 2020, the Hermès Beauty métier has
experienced rapid growth through its exclusive distribution. The year
was marked by two limited editions of Rouge Hermès, with initiatives
to promote the Rose Hermès and Hermès Plein Air chapters, and thelaunch of the Le Regard Hermès chapter, dedicated to the beauty ofeyes.

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY MÉTIER

Fashion accessories in their own right, reborn with each season, thelimited editions of Rouge Hermès have continued to bring rhythm andcolour, under the leadership of Pierre Hardy, designer of beauty
objects, and Gregoris Pyrpylis, Creative Director of Hermès Beauty.
For the spring‑summer collection, broad seaside stripes adorned thecases of three new reﬁllable lipsticks. These “pocket beach huts”
housed sunny shades with a shimmering ﬁnish, evoking a seaside
atmosphere.
In February, the Hermès Plein Air chapter, which embodies a natural
approach to complexion speciﬁc to the métier, saw the arrival of
H Trio: a healthy glow mineral powder and a pearly mineral powder
with an exceptional feel, pure and light as air, and offered in sevenharmonies of three shades inspired by the radiance of sunshine andthe multiple hues of the earth. A collection that delivers a modern
vision of a healthy glow, alive and radiant. Inside the case, thesurface is signed with the House’s emblematic H. Two new brushes,
Le précis and Le voyageur, support the gestures and make it possible
to play endlessly with the shades of each trio, for a make‑up look fromthe most natural to the most sophisticated.
In April, expressing the colour of emotion applied to the skin, the Rose
Hermès chapter welcomed three new shades with an iridescent ﬁnish
for cheeks, offered in the Rose Hermès Silky Blush reﬁllable case.
They are accompanied by their own brushes, Le sculpteur andL’aérien, with lacquered wooden handles and goat hair ﬁbres
hand‑assembled by a French brushmaker. A beautiful Rosy lipenhancer with a new formula and a glossy ﬁnish completed thissubtle gesture.
From September, Rouge Hermès shook up the season with its newfall‑winter Limited Edition composed of three colours with a subdued
shine, whose cases reﬂect the original inspiring idea in three cosmic
versions: a deep black from which contrasting colours emerge. Threeobjects draped in a lacquered mist whose sensual colours fade away.
The last creation gesture by the métier was the October launch of Le
Regard Hermès, a celebration of a singular view of the world by anactive and attentive woman. A collection of six reﬁllable Ombresd’Hermès palettes - quartets of colour in the Bauhaus spirit - and six
Trait d'Hermès mascaras, made from 97% natural ingredients, with an
exclusive ultra‑technical H-shaped brush. Renewing the focal point on
the beauty of eyes, Le Regard Hermès offers a dizzying choice ofcolours with matte, satin or glossy ﬁnishes, echoing the different
aspects of silk, muslin, twill and lamé. A beauty made of shadows andlights, perfected by the precise line of a boldly coloured mascara suchas Rouge H, with an exceptional result enhancing the lashes
one‑by‑one and disconcerting ease of use, since it can be removed
with warm water. The collection is accompanied by its expert brushes,
L’ombreur, Le traceur and L’estompeur, and an eyelash curler,
essential for opening up the eyes.
Lastly, an exceptional gift was a highlight of the holiday season: thenail polish wreath, which presented the 24 colours of the Les Mains
Hermès collection in an originally shaped orange box.
Activity was supported throughout the year by a global communication
system and major media campaigns, in particular for the new
products Un Jardin à Cythère and Tutti Twilly, and the Terre d’Hermèsand H24 pillars in Perfume, as well as the structuring Rouge Hermèsand Hermès Plein Air gestures and the new Le Regard d'Hermès line
in Beauty.

1.6.6

WATCHES

1

With consolidated revenue of €611 million in 2023, the Watches
division represents 5% of Group sales.
Established in Biel in 1978, Hermès has solidiﬁed its reputation as awatchmaker in less than 50 years, employing nearly 350 people in its
manufacturing division in Switzerland. Hermès now produces almost
all of its watches, movements and components in‑house. Its resolutely
Parisian creativity afﬁrms its unique style, which is invigorated by theother métiers in the House. Its savoir‑faire has thus given Hermès asingular voice in the watch industry over the years.
Following spectacular growth in 2022, sales continued to increase ata high pace in 2023, thanks to the dynamism of all markets. The
distribution of watches is mainly carried out by Hermès stores, withsales through external multi‑brand stores now reduced to a very
select number of retailers.
In April, Hermès exhibited its new products at the Watches andWonders trade show in Geneva. The métier teams were able towelcome media and customers from all over the world. Once again,
Hermès powerfully expressed the originality of its vision within the
restricted circle of haute horlogerie players, by afﬁrming its territory of
expression: a unique relationship with time, full of fantasy andemotion, a time with which we play without wanting to control it. Thismessage was supported by the Le Temps, un objet Hermès press,
billboard and digital advertising campaign.
The Salon de Genève notably revealed the extension of the Hermès
H08 line, which has been very successful since its launch in 2021.
Its unique, resolutely contemporary and immediately recognisable
design combines technological materials, surface effects and atypicalshapes. The line's new models were presented in a scenography
called “La ﬁnesse du temps”, where astonishing and poetic animatedcarvings in very light technical materials echoed their innovative
aspects. Thus, an in‑house mono‑pusher chronograph movement ispresented in a carbon ﬁbre case, with added graphene for
exceptional lightness and extreme strength. In the same vein, the new
H08 colour family proposes four joyful watches in bright colours,
which beneﬁt from a case combining ﬁbreglass, aluminium and slate.
2023 was a year that also conﬁrmed the success of Le temps
voyageur complication in the Arceau line, which had won two awards
in Geneva at the end of 2022. The ambition of Le temps voyageur is
to renew a classic watchmaking complication, the GMT (or second
time zone), and take it to a new dimension. Thus, this watch hides its
GMT function under an aesthetic inspired by world time, and invites
you on a double journey: ﬁrstly a very concrete journey, with anextremely practical and functional complication, which accompanies
the globe‑trotter from one country to another; but also a more
dreamlike escape to the heart of a fantasy world, the planisphèred'un monde équestre that adorns the dial, with its continents, rivers
and mountains inspired by the world of horses. To make the journeyeven more fun, Hermès has made technical innovations and proposes
an original mechanism: the hours and minutes in local time arehoused in a small satellite, which gravitates around the dial on
demand. 24 place names indicate the 24 time zones, some of which
are unusual and surprising. All the traveller needs to do is position thesatellite on his place of arrival and the local time automatically
adapts, while the original time remains frozen in a window above thedial. As playful as it is useful, this complication is available in three
versions and two diameters, in steel (38 mm) and titanium‑platinum(41 mm).
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

31

1

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY MÉTIER

Two other Arceau complications also reinforced the interest arousedby their versions launched in 2022: Arceau l’Heure de la Lune, which
explores the classic moon phase in an unexpected way by reversing
the usual relationships between the functions of the watch and thecomplication, and Arceau Tourbillon Répétition Minutes, which shows
the movement through its dial cut into the shape of a horse’s head, amotif that can also be found on the back on bridges and plates.

The production unit had the pleasure of welcoming students from the
Design Academy in Eindhoven for a partnership of several months.
Seven third‑year undergraduate students came to make their own
moulds at the glassworks and talk to the craftspeople who create themoulds. Two glassblower craftspeople also accompanied them during
their experiments at the Halle du Chaud before they revealed theirvaried and daring creations.

The growth of the men's lines was conﬁrmed in 2023, in particularwith the Hermès Slim line, which, after the Quantième Perpétuel and
GMT complications, received a Squelette phases de lune version that
was an immediate success.

A highlight of 2023, handmade glass production knowledge, craft andskills were inscribed on Unesco's Intangible Cultural Heritage of
Humanity. Glass crafts and skills refer to the traditional practices
used by craftspeople to produce glass and crystal. These include thecreation of the material, its hot shaping by blowing or torch, andﬁnally, cold cutting and decoration. This is a wonderfulacknowledgement of the savoir‑faire of Saint‑Louis glass and crystal
craftspeople, whose skills ﬁt perfectly with this international
distinction. This will promote the transmission of their passion for
their profession and will help make young people keen to pursue
these crafts to perpetuate the manufacture of glass objects inFrance.

The women's lines have also been expanded, with the Médor line andits mini version, in particular, a true watchmaking jewel that has
generated real enthusiasm, as well as the Faubourg line and the
Nantucket line, with its metal bracelet in steel or rose gold.
Sales also beneﬁted from the strong results worldwide of theindispensable Cape Cod and Heure H lines, whose constant renewal
attracts a growing number of enthusiasts: they have been able todiscover new bracelets in steel and rose gold, alongside a fresh rangeof precious, technically innovative and occasionally bejewelled
expressions of these emblematic and imaginative lines.
Finally, the collection of exceptional pieces developed by Hermès
demonstrated its major strong appeal once again this year, withwatches showcasing unique artistic métiers and watchmaking andjewellery savoir‑faire (i.e. Faubourg, Klikti, Arceau, Médor, etc.).

1.6.7

OTHER PRODUCTS AND BRANDSSILVERSMITH PUIFORCAT

During 2023, the Puiforcat teams carried out numerous structuring
projects on which the future development of the brand will be based.
A new collection created in collaboration with the Judd Foundation
was presented in New York and then Paris. This collection, comprisingsolid silver objects designed by Donald Judd and not previously
produced, represents the ﬁrst step in a calendar of regularpresentations of exceptional objects from artistic collaborations.

of €313 million,

The new brand identity, constructed in 2022, has been rolled out
across all communication media. In addition, a new website was put
online in the second half of the year and is now Puiforcat’s virtual
showcase.

In 2023, Saint‑Louis started a new chapter in the use of tableware:
following oenology and mixology, this year honours tea and coffee
through a collection of three cups designed in close collaboration witha tea sommelier. The Apollo collection, created in 1979, welcomes
these new objects marrying Venetian coastlines and large prints withporcelain. Teas and crystal unite in perfect harmony for an
unprecedented tasting that magniﬁes all the subtleties. Each cup isdesigned to adapt to a particular type of tea, from the lightest to themost strongest. Coffee also has its own cup. These twocomplementary services allow both enthusiasts and the ﬁnest
connoisseurs to indulge their passion.

The workshop set up in the Paris region has grown thanks to therecruitment of new craftspeople and a strong training policy to enableboth historical pieces and new collections to be produced.

In 2023, Other products generated
contributing 2% of Group revenue.

1.6.7.1

revenue

CRYSTAL SAINT‑LOUISThe Lumière aspect of the glassworks was also highlighted. Following
its ﬁrst edition in Paris in September 2022, the Lumières exhibition
continued to travel, ﬁrstly to Milan in April and then to Asia in theautumn. Visitors were impressed by the luminocinematic installations
creating a dialogue between crystal, sound and lighting in a uniqueimmersive experience that breaks away from the image of vertical andornamental light.

32

1.6.7.22023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The renovation of the avenue Matignon store, which began in August
2022, was completed at the end of spring and was inaugurated in
October. At the same time, several commercial events were organised
in China, the United States and Taiwan to strengthen the brand’svisibility with new customers and markets.

1.6.7.3

BOOTMAKER JOHN LOBB

In 2023, John Lobb continued its dynamic commercial growth. The
spring‑summer and fall‑winter collections were very well received by
the network of stores as well as by partners. New casual shoe models
developed by the Northampton craftspeople rapidly found theiraudience and became bestsellers alongside the House’s emblematic
models.

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY MÉTIERIn November, John Lobb celebrated the opening of its new ﬂagship on
Madison Avenue in New York. Relocated a few blocks to one of themost prestigious locations on the avenue, the store has doubled its
surface area and presents all the services developed by the House. It
also includes a section dedicated to personalisation, a maintenanceand repair bar, and a private lounge reserved for bespoke creations.
The ready‑to‑wear range is displayed in a bright and comfortable
space. With this new store, John Lobb afﬁrms its presence in NewYork.

1.6.7.4

TEXTILES

Holding Textile Hermès regroups and coordinates under a single
structure all savoir‑faire relating to textile production: from creation to
sewing, through weaving, engraving, printing, dyeing and ﬁnishing.
In 2023, the Holding Textile Hermès continued its dynamic growth bydeveloping its sales with all of the House’s métiers. This performance
was based on solid fundamentals, such as the very rigorous control of
the quality of its products and its exceptional craftsmanshipsavoir‑faire.
It also continued to develop its clothing manufacturing capacities inFrance with the help of long‑standing partners.
In July, Holding Textile Hermès inaugurated the extension of its
historic Pierre‑Bénite site, located south of Lyon. This event concludes
a major transformation project initiated in 2019, which not only
increases table printing capacities, but also professionalises the
management of production ﬂows and supports the development ofworking methods.

1.6.7.5

TANNERIES AND PRECIOUS LEATHERSThe Tanneries division handles the purchase, tanning, ﬁnishing andsale of leathers destined for the Hermès Group and other high‑quality
brands and creations, mainly in the fashion, leather goods andwatches industries.
In 2023, the takeover of the Gal tannery made it possible to expand
its scope of action, by adding leathers from large bovines intended forequestrianism and plant‑based tanning, to the usual activities related
to calfskin, goatskin or exotic leathers and integrated crocodile
farming operations.
The division's objective is to solidify its position of excellence in the
precious leather market by securing its supplies, optimising its
production capacities and developing its savoir‑faire, as well as
respecting the environment and animal welfare. It constantly works
and invests in this direction, focusing on innovation, creativity and theexemplary nature of its supply chains.
In order to support the Hermès Group’s value strategy, the focus has
been on the development of new exceptional ﬁnishes that will expand
the House’s offering from 2024. Savoir‑faire has also been extended
on chrome‑free exotic leathers, opening up a range of unprecedented

colours, as well as on supple calfskin such as Evercolor. Thesedevelopments aim to ensure the growth of the Tannery activities in
the coming years and to meet their ever‑increasing requirements interms of chemistry, safety and the environment.

1

Once again this year, the mobilisation of teams and the synergies
established between the tanneries and the House’s main métiers
made it possible to serve a sharp increase in needs. Activity in 2023
thus exceeded the 2022 record level. The exotic leathers activity wasable to respond to the spectacular dynamism of the Ready‑to‑wear
and Accessories métier, driven by shoes. The response to thedemand for bespoke and exceptional ﬁnishes for Leather Goods has
also been improved. The calfskin activity for the House saw a strong
increase. The Box sac calfskin, in its black or colour versions, thus
reached a new high in 2023. Grain Madame calfskin tripled its
volumes, while belt leathers doubled theirs. The goat leather activity
for the House is also increasing, thanks in particular to the Chagrin
goatskin. Efforts to continuously improve the quality of supplies
continued throughout the year in these three sectors. The rise in theHouse’s transformation rates attest to the importance of the efforts
made in recent years.
The Tanneries division is committed to ensuring that it always acts
responsibly, in line with Hermès’ ethical and sustainable development
values. Hence, it only sells exotic hides where the source is perfectly
identiﬁed, controlled and audited, and refrains from dealing in certain
species or sectors, if necessary. In 2023, the implementation of
traceability of individual calf hides continued. Today, 100% of its
exotic leathers and 75% of its calfskin are traced in this way. In
addition, active support continues to be given to external initiatives
and scientiﬁc collaborations aimed at improving the standards ofeach supply chain.
The activity's innovation and digitization efforts allow the teams to
reﬁne their control of production parameters, improve theirreplicability, and thus optimise the use of materials.
In Australia, the new farm inaugurated in 2022 began delivering totanneries in 2023. The quality of its ﬁrst productions conﬁrms thepertinence of the innovations implemented in its facilities, its
management and actions to promote animal welfare. It continues toroll out projects that support its strong ambitions in terms ofsustainable development, responsible management of resources,
circularity and the involvement of local stakeholders.
In 2023, multiple investments were made in industrial facilities. The
tannery in Vivoin thus began its extension to renew its tanningfacilities. The tannery in Annonay has completed the renovation of its
old buildings, bringing its corporate premises into compliance with theGroup’s requirements and improving its internal operations. It has
also acquired adjacent plots which will enable it to expand its
ﬁnishing, maintenance and research activities. Lastly, theconstruction of the new Le Puy tanneries treatment plant started, andwas put into partial service during the year.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

33

1

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY MÉTIER

1.6.7.6

ATELIERS HORIZONS

Since the beginning, Hermès has offered its customers the creationand manufacture of exclusive bespoke objects. This service, at theheart of the House’s history, is provided by the Ateliers Horizons.
Every day, this métier explores new creative ideas and uses
exceptional materials and savoir‑faire to bring the dreams of its
customers to life.
Fantasy, technical skills and surprise are everyday features in thePantin and Faubourg Saint‑Honoré workshops, where exclusive
stories of leather goods or the interior design of vintage cars or yachts
are written, as well as those of more unexpected objects such as
cricket bats or boxing gloves.
At the same time as this bespoke activity, the Ateliers Horizons teamalso creates small series of objects that capture the spirit of thetimes, such as jukeboxes, bicycles and paddleboards, or even pooltables and connected speakers.

1.6.7.7

PETIT H

Petit h offers a unique design approach based on materials andobjects no longer used by other Hermès métiers. These elements,grouped together in the same workshop, are made available to guest
designers and the House’s craftspeople, who combine their talents
and savoir‑faire to offer them a new life. This “reverse creation” gives
rise to poetic, hybrid and joyful objects.
In 2023, petit h continued its appetite for the creative and quirky. A
source of great inspiration, silk is thus taken and reworked into an
inﬁnite number of small cords or spaghetti ropes more than 300
meters long. Then, using a series of knots borrowed from the nauticalworld, the net braiding of these silk cords gives rise to a hammockthat is as aesthetic as it is functional.
To share its creations with its customers, petit h presents them all
year round in the Paris store on the rue de Sèvres and on its
e‑commerce platform.
The métier also reaches out to its customers around the world. In
2023, petit h notably went to Osaka for a festive and joyful stopoverat the heart of the Nakanoshima Museum of Modern Art, and to the
China World store in Beijing.

1.6.7.8HERMÈS MANUFACTURE DE MÉTAUXThree years after its integration within Hermès, the J3L group is
continuing its restructuring. In addition to the many ongoing projects,
the management has redesigned its identity through a new corporatename that better reﬂects its purpose, its strategy and its desire tounite its employees and its various entities even more ﬁrmly. The J3L

342023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

group therefore becomes Hermès Manufacture de Métaux (HMM)
and adopts a new logo. This banner ensures the integration of all
Group employees within the House and underlines its commitment tothe craftsmanship dimension in a world that is also industrial.
The Hermès Manufacture de Métaux group retains its specialisationin the development, manufacture and sale of luxury metal parts. It
supports all of the House’s métiers, from the design phase to the
production of ﬁnished parts.
The most commonly manufactured items are clasps, belt buckles,
carabiners, padlocks, bracelets, earrings, press studs and eyelets.
They are intended to be positioned on handbags, wallets, shoes, belts
or bracelets.
The manufacture of metal parts requires different savoir‑faire. The
unﬁnished parts are ﬁrst obtained by machining or stamping thematerial. Polishing then gives them an exceptionally smooth surface,
without streaks or scratches. The parts can then be covered with athin layer of precious metal: white, yellow or rose gold, silver or
palladium depending on the designer’s choice. Lastly, the complex
parts and clasps are assembled and ﬁnished with a touch ofbrightening to ensure the metal really shines. Hermès Manufacturede Métaux also has expertise in other area of savoir‑faire, such as thelacquering of jewellery.
2023 was marked by a sharp increase in the HMM group’s
production in order to match the growth of its customers and, inparticular, that of the Hermès métiers. At the same time, and in linewith the value strategy of these same métiers, many new products
have emerged, such as the Geta clasp for Leather Goods, Olympe
rings for fashion jewellery, an unprecedented association with Crystal
Saint‑Louis for the Folia lamp or the development of a new version ofa clasp for R.M.S. luggage to support the dynamic outlook for theworld of travel. HMM’s development teams also ﬁnalised thelaunches of new materials such as titanium, used by the Ateliers
Horizons métier in 2023 (Neige bag) or ceramics, which will appear instores in 2024 with the fashion accessories métier.
The HMM group, whose production quality has always been abenchmark, is also developing business with external customers.

1.6.8

GROUP PARTNERSHIPSIn accordance with its vertical integration strategy, Hermès holds
non‑controlling interests in the share capital of some of its historicalsuppliers, in various sectors such as weaving, ready‑to‑wear, watches,
jewellery, shoes and fashion accessories. These investments,
consolidated using the equity method, are not material with regard to
the Group’s ﬁnancial statements.

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY GEOGRAPHICAL AREA

1.7

REVENUE AND ACTIVITY BY GEOGRAPHICAL AREA AFR

1ChangeIn millions of euros

2023

Mix

2022

Mix

at current
exchange rates

at constantexchange rates

Europe

3,093

22%

2,600

22%

19%

20%

s France

1,274

9%

1,064

9%

20%

20%

s Europe (excluding France)

1,818

13%

1,536

13%

18%

20%

Asia‑Paciﬁc

7,533

57%

6,657

57%

13%

20%

s Japan

1,260

10%

1,101

10%

14%

26%

s Asia‑Pacific (excluding Japan)

6,273

47%

5,556

48%

13%

19%

Americas

2,502

19%

2,138

18%

17%

20%

299

2%

207

2%

44%

44%

13,427100%

11,602

100%

16%

21%

Other
CONSOLIDATED REVENUE

1.7.1

EUROPEIn France, Hermès strengthened its presence with the expansion of
the Bordeaux store. The House has been present there since 1977,
on Place Gambetta, in the heart of the historic centre. Reopened in
November, the store was completely renovated to accommodate theHouse’s 16 métiers on two levels. The interior gives pride of place tonatural materials, stone, terracotta and wood, associated with acolour palette that evokes the typical landscapes of the Gironde,
deep skies, green vineyards and the aquatic tones of the nearby
ocean. The ﬁrst ﬂoor is intimate, housing in particular an exceptionaloak cabinet sheathed in leather by the Ateliers Horizons.
The year was also punctuated by many events. In January, men's
Ready‑to‑wear took over the Ségur hall of the Maison de l’Unesco tounveil its fall‑winter 2023 collection. March was a busy month, withthe fall‑winter 2023 women’s Ready‑to‑wear collection show at theGarde Républicaine, then the 13th edition of the Saut Hermès, once
again at the Grand Palais Éphémère. As usual, this CSI 5* levelinternational competition was an opportunity to celebrate equestrian
sport, the world of horses and the Hermès métiers over three days.
The summer started off in a smooth and airy fashion with thespring‑summer 2024 men's Ready‑to‑wear collection show at the
Palais d'Iéna. At the end of June and throughout July, the Chaîne
d’ancre exhibition lit up the Faubourg Saint‑Honoré with its jewellery
collections entirely dedicated to the Chaîne d’Ancre and its variations,
before going on a tour. The Le Monde d'Hermès kiosk spent the lastweekend of June in Strasbourg. Created in 2021 based on the modelof Paris news stands, this kiosk representing the Hermès magazine
criss‑crosses the world and welcomes passers‑by in a lively andhappy atmosphere, for an artistic and poetic break. In July, theHouse’s métiers and craftspeople went out to meet the people of Lille
thanks to the travelling forum Hermès In The Making, which gave rise
to multiple opportunities for demonstrations, fun discoveries and time
for discussions over a ten‑day period.

The start of the school year was marked by the launch of the lastchapter of Hermès Beauty, Le Regard. The Émile Hermès Museum
served as the setting for the international presentation of this new
creation gesture. The summer extended the fun with thespring‑summer 2024 women’s Ready‑to‑wear collections show at theGarde Républicaine at the end of September.
There were also many highlights in other European countries. In
February, the astonishing Un Jardin à Cythère perfume chose Greece
and the intimate setting of the Vorres family museum in Paiania, near
Athens, for its presentation to the international press. At the end of
March, Hermès once again took part in the unmissable Watches &Wonders watchmaking fair in Geneva to present its new products andits unique approach to time.
In mid‑April, Hermès reopened its new store in Hamburg, after moving
and expanding it. Located in the heart of the city centre, in acontemporary building with strong geometrical lines and glass walls
largely open onto the street, this store invites customers to wander
freely around the various islands where the collections are presented.
Numerous decorative elements pay homage to the city’s maritime
culture: oak timbers reminiscent of the hulls of boats, screens in
braided leather and natural cord, a horse ﬁgurehead, etc.
The month of April continued with the joint participation of the Home
universe and Crystal Saint‑Louis at Milan Design Week, where visitors
were able to discover the latest furniture and lighting creations.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

35

1

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY GEOGRAPHICAL AREA

The end of the summer marked the reopening of the Vienna store,
which was completely renovated and expanded to a new ﬂoor and an
extension that double its surface area. Still nestled in an 18th century
building on the famous Graben, a wide pedestrian avenue in thecentre of the city, the store now welcomes visitors over three levels
around a majestic travertine staircase. The interior, inspired by the“Vienna Secession” art movement of the late 19th century, develops
daring plays on colours, moulded glass lights, stained glass windows
and intricate trims.
In November, La Verrière, an exhibition space adjacent to the Hermès
store in Brussels, hosted the ﬁrst performances of the original
creation Par un beau soir de carrés for 10 days. This surprisingexperience, designed as a warm and intimate show featuring silk
scarf designs, invites viewers, in small groups of around 20, toimmerse themselves in the creative and colourful world of Hermèssilk. Three actors lead these 30‑minute sessions, which are open to
everyone and offered in French, English and Dutch.
Finally, at the beginning of December, Hermès reopened the doors of
its store, located in the ski resort of Crans‑Montana in Switzerland formore than 30 years. Behind the local stone façade, with its larger
window, the store has been extended and reinvented in a friendly
atmosphere, presenting a selection of objects from the House’svarious métiers on two levels.

1.7.2

ASIA‑PACIFIC

Still buoyed by strong momentum, China saw no fewer than four
openings in 2023. At the beginning of January, the store in Nanjing in
the province of Jiangsu since 2010 reopened after having relocating
within the Deji Plaza mall, in the district of Xinjiekou. Larger and now
covering two levels, the new store is distinguished in particular by its
façades clad in glass panels. The interior highlights local materials
and savoir‑faire such as bamboo, wicker and hand‑woven rugs.
In April, the emblematic Peninsula store in Beijing, the ﬁrst address
opened by Hermès in mainland China in 1997, was given a makeover.
Having doubled in size, it unveils to customers its rectangular lounges
in a calm and elegant atmosphere. With its façade covered in wooden
carvings inspired by the statues of the Forbidden City, its grey stone
ﬂoor reminiscent of the Imperial Palace and its interior decoration inwarm colours, it presents multiple tributes to the historical heritage of
the Chinese capital.
The seventh haute bijouterie collection designed by Pierre Hardy, Lesjeux de l’ombre, was presented in Shanghai for 10 days in April.
In July, Hermès settled for the ﬁrst time in the metropolis of Tianjin, inthe north of the country. Located on the ground ﬂoor of the MixC
shopping mall, the store has two entrances and an impressive
locally‑made glazed brick façade, creating an intense gradient of colour.
Inside, the rich colour palette evokes the particular topography of thiscoastal city crossed by the River Hai and bordered by the salt marshes
of Bohai Bay.

36

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Always travelling, petit h unveiled its creations in a plant‑ﬁlled décor in
Beijing in September.
In October, Hermès inaugurated its second store in the city ofChengdu, capital of Sichuan province, where the House has beenpresent since 2007. Located in the recent SKP shopping mall in the
Tianfu district dedicated to new technology, the store extends over
two levels bathed in natural light. The wide open spaces decoration
echoes the surrounding lush bamboo forests.
On 30 September, Hermès Japan celebrated its 40th anniversary. On
this occasion, a celebration in Tokyo brought together more than 900
employees from all over the country for a retrospective on the historyof the House since its creation in 1983. In addition, several
inaugurations took place in the country during the year; starting withthe reopening in May of the store located since 2011 in Fukuoka, on
the island of Kyushu. Accessible on one level from the Hankyu
department store located in Hakata station, an important
cosmopolitan crossroads in the heart of this city known for its
festivals and liveliness, the store has been completely renovated. Its
ceramic façade and interior decoration pay homage to traditional
Japanese savoir‑faire such as porcelain, indigo and the art ofweaving, a local ancestral speciality.
In October, it was the turn of the store in Sapporo, on the island of
Hokkaido, to reveal its new face to the public. Located in the Daimaru
department store, amidst modern skyscrapers that illustrate thedynamism of this city, the renovated and expanded store beneﬁts
from a large window opening onto an outdoor pedestrian esplanade.
Its main entrance, on the ground ﬂoor of the gallery, is framed by afaçade drawing a circular relief pattern, a nod to the rising sun. Inside,
footfall is designed along two parallel axes punctuated by islands
where the 16 métiers of the House are exhibited, lit by delicate playsof light.
In November, the historic Takashimaya store in central Kyoto reopened
after being renovated and expanded. The interior space invites visitors
to stroll around and evokes local architecture.
Petit h applied its singular imagination to the creation of a “small
theatre” in Osaka at the end of April and until mid‑May, at the
Nakanoshima Museum of Fine Arts.
In South Korea, Hermès renovated its historic store, nestled since1997 in the bucolic setting of the legendary hotel, The Shilla, in Seoul.
Reopened in December, the store reﬂects the spirit of this exceptional
place, a symbol of reﬁnement and hospitality, perched on a hill in theheart of the effervescent capital. Its two‑storey architecture is inspiredby the Hanock, a traditional Korean house with a charcoal‑coloured
tiled roof. Its interior decor, putting warm monochromatic tones from theDansaekhwa artistic movement at the fore, is enhanced with delicate
touches of blue and pink. At the rear, a picture window looks out onto alandscaped garden.
The Home collections were given centre stage in Seoul in April during
a performance of the immersive choreography, Parade, which invites
participants to evolve among the dancers and objects.

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY GEOGRAPHICAL AREA

The world of silk lit up the skies of Busan in June, with the Kite
festival, a wonderfully poetic moment of interaction, whereparticipants learned to make and ﬂy a kite made from silk squares,
diamonds, shawls or bandanas.
In October, the Please check in experience called in Seoul, taking
visitors on an offbeat journey through the history of Hermès bags andtheir manufacturing secrets.
Numerous other events and initiatives punctuated the year indifferent countries. The spring‑summer 2023 men's Ready‑to‑wearcollection celebrated lightness in Tokyo in March, for an evening thatimmersed guests in an aquatic setting at the Sea Forrest Waterway
nautical centre. In turn, the women's universe highlighted its
masterpieces of ready‑to‑wear, silk and jewellery for fall‑winter 2023
through the Jockey Jam event, which recreated in an auditorium thevibrant and exciting atmosphere of a horse race. This stage
performance, combining movement, music and video, was performedin Shanghai in June and then Beijing in August.
Hermès Fit, the unusual and interactive gym that allows visitors to
discover the fashion accessory collections while indulging in various
fun activities with friends or family, continued its tour, stopping over in
Singapore in May and then Jakarta in September.
Several cities hosted the Le Monde d’Hermès kiosk for a few days:
Haikou and Jakarta in May, and Hong Kong and Hanoi in October.
The original stage performance On the Wings of Hermès, created fromthe 2022 annual theme, La Fabrique de la Légèreté, extended its tour
by visiting Taipei in May, Hong Kong in November and Shanghai in
December. With four performances per day for 10 days, this live show
delighted its audiences as it told the story of Hermès' values throughthe imaginary quest of Pegasus.
Lastly, the Hermès In The Making event took several craftspeople
from different House métiers to Bangkok at the end of November, for
10 days of convivial discussions with the public about the savoir‑faire,skills and materials that make Hermès objects so beautiful.

1.7.3

AMERICAS

Several renovations or store creations have consolidated Hermès’presence in the United States. In February, a store opened in the cityof Naples, Florida. Located in the outdoor Waterside Shops shopping
centre, famous for its lush garden and impressive waterfall mural, theboutique takes on the appearance of a tropical pavilion inspired bytraditional barges and typical local architecture of the 1950s. Entirely
on one level and bathed in natural light, it presents a bright andrelaxed atmosphere.
In a very different style, the city of Aspen welcomed a second Hermès
store in Colorado in June. Surrounded by trees and mountains, thebuilding gives pride of place to local species of wood and theblue‑grey stone of Aspen. The interior space is spread over two ﬂoors
and a mezzanine with exposed beams, lit by large picture windows. It
offers a panoramic view of the neighbouring peaks and forms anatural, calm and warm setting for the House’s métiers.

In July, a new store opened in the Westﬁeld Topanga shopping mall in
Los Angeles, in the heart of California's San Fernando Valley.
Surrounded by striking views, the store pays homage to the
Californian landscape and climate, with its façade clad in columns
and its interior decoration whose colours and textures evoke thesurrounding nature. On the occasion of this opening, a Carré
Généreux was offered for sale, with the proﬁts being donated to the
Citizens for Los Angeles Wildlife association (CLAW), which works topreserve local fauna.

1

In October, the historic Chicago store, which occupies an iconic Gold
Coast building at the intersection of Oak Street and Rush Street,
reopened after being renovated and expanded. Behind the tall façadewith its picture windows outlined by slender metal frames, the store
displays the collections over three levels. The soft colours andundulating partitions recall the typical landscapes of the shores of
Lake Michigan.
The year ended with the December reopening of the fully renovatedBellagio Resort store in Las Vegas. The new façade, with its striking
arched windows, is enhanced by opaque panels whose circular
sculptures evoke the ripples that form on the surface of the water.
Several events punctuated the year in both Americas. Thus, the Kite
festival created a celebration of silk and colour in the skies of Buenos
Aires in March, while the Le Monde d’Hermès kiosk made two stops
on the continent, offering the House’s magazine to visitors in thecities of Austin in May and Lake Louise in Canada in August.
The live show La Fabrique de la Légèreté delighted audiences in Los
Angeles for 10 days in July.
In September, the spectacular Domino Sugar de New York, a former
sugar reﬁnery located on the East River in Brooklyn and offering aunique view of the Manhattan skyline, welcomed the press andinternational journalists for the men's fall‑winter 2023 Ready‑to‑wearshow.
Also in September, the Heritage - Hermès in Motion exhibition went to
Sao Paulo to present its module dedicated to the theme of travel andmovement through the history of Hermès objects.
Lastly, continuing its journey around the world, the travelling event
Hermès In The Making landed in Chicago in October, offering the
public interactive meetings and direct discussions with craftspeople
from different métiers.

1.7.4

NEAR AND MIDDLE EAST

In the United Arab Emirates, Hermès relocated the store created in
Abu Dhabi in 2012, reopening it in June in the Galleria Al Maryah
Island shopping centre in the heart of the new Global Market Squarebusiness district. The new store is larger and follows the curved linesof the building. It beneﬁts from a fully glazed façade. The interior
space exhibits soft shapes and light tones, echoing the landscapes of
the Persian Gulf shaped by the sea, sand and wind.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

37

1

PRESENTATION OF THE GROUP AND ITS RESULTS
REVENUE AND ACTIVITY BY GEOGRAPHICAL AREA

Among the events that marked the year, the Kite festival took over thebeaches of Dubai in February to unfurl its colourful silk kites in thesky; manufacturing workshops and voltige classes delighted the
public for three days. In March, building on the success of the Once
Upon a Bag exhibition held in 2022, the Hermès Heritage travelling
cycle made a new stop at the National Museum of Qatar in Doha, topresent its second phase, Harnessing the roots, an exhibition thattells the story of the House’s equestrian roots and their imprint on its
creativity.

1.7.5

DIGITAL STRATEGY

E‑commerce continued its growth in all regions of the world, with asteady increase in trafﬁc and sales compared to 2022. As theGroup’s leading store in terms of revenue and volume of products
sold, the hermes.com platform is also an important recruitment
vehicle: in 2023, 65% of customers making purchases on the sitewere new to the House.

38

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The ergonomics of the hermes.com site were further improved todevelop its position as a showcase. The product presentation grids
contain more space and the visuals are larger to enable the details of
the objects to be viewed more easily, with some of which now being
presented by video. The customisable belts have been grouped
together to optimise browsing, and virtual testing has been extended
to all Beauty métier products. Coverage of the collections presented
online has been extended for all métiers and all countries where
e‑commerce is present.
At the same time, the service has been considerably enhanced toadapt to local uses. The creation of and connection to the customer
account have been optimised on all sites according to local
preferences, and local payment methods have been added (Naver
Pay in Korea or Pix in Brazil).
The use of omnichannel services by customers has increased
signiﬁcantly and now represents nearly 20% of e‑commerce activity.
Finally, e‑commerce was rolled out in Brazil in March 2023.

PRESENTATION OF THE GROUP AND ITS RESULTS
COMMENTS ON THE CONSOLIDATED FINANCIAL STATEMENTS

1.8

COMMENTS ON THE CONSOLIDATED FINANCIAL STATEMENTS AFR

1.8.1

INCOME STATEMENT

1

2023

2022

Revenue

13,427

11,602

Cost of sales(3,720)(3,389)Gross margin

9,708

8,213

Sales and administrative expenses

In millions of euros(3,169)(2,680)

Other income and expenses

(889)

(836)

Recurring operating income

5,650

4,697

-

-

Other non‑recurring income and expenses
Operating income

5,650

4,697

Net ﬁnancial income

190

(62)

Net income before tax

5,840

4,635

Income tax(1,623)(1,305)

Net income from associates

105

50

CONSOLIDATED NET INCOME

4,322

3,380

(12)

(13)

4,311

3,367

Non‑controlling interests
NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT

In 2023, the Group’s consolidated revenue amounted to€13.4 billion, up 21% at constant exchange rates and 16% at current
exchange rates compared to 2022.
The gross margin rate was 72%, up by 1.5 points compared to 2022.
This change is due to the positive impact of foreign exchange hedges,
an accretive translation effect, sustained activity at the production
sites and particularly high collection turnover rates.
Sales
and
administrative
expenses,
which
represented€3,169 million, compared with €2,680 million in 2022, notably
included €607 million in communication expenses, compared with
€525 million in 2022. Other sales and administrative expenses,
which include mainly the salaries of sales and support staff as wellas variable rents, amounted to €2,561 million compared to€2,155 million in 2022.
Other income and expenses amounted to €889 million, comparedwith €836 million in 2022. They include depreciation andamortisation of €604 million (€552 million in 2022), half of which
relates to property, plant and equipment and intangible assets andthe other half to right‑of‑use assets. The steady increase indepreciation and amortisation reﬂects continued investments in theextension and renovation of the distribution network, digitaltechnology and information systems. Other expenses also include€151 million related to free share plans in 2023.

Recurring operating income amounted to €5.7 billion, up by 20%
compared to 2022. Current operating proﬁtability reached a record
level of 42.1% of sales, an improvement of 1.6 points compared to2022.
Net ﬁnancial income was positive in the amount of €190 million
compared to an expense of €62 million in 2022. It includes the costof foreign exchange hedges, interest on lease liabilities and interest
payments on cash which, in line with the rise in interest rates,
amounted to €331 million in 2023.
The income tax expense amounted to €1.6 billion and represents aneffective tax rate of 27.8%.
After taking into account the net income from associates (income of€105 million) and non‑controlling interests, the consolidated net
income attributable to owners of the parent amounted to €4.3 billion
compared with €3.4 billion in 2022, i.e. an increase of 28%. The
improvement in recurring operating proﬁtability and interest payments
on cash led to a record level of net proﬁtability of 32%, up 3 points
year‑on‑year.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

39

1

PRESENTATION OF THE GROUP AND ITS RESULTS
COMMENTS ON THE CONSOLIDATED FINANCIAL STATEMENTS

1.8.2

CASH FLOWS AND INVESTMENTS

In millions of euros

2023

2022

Operating cash ﬂows

5,123

4,111

Change in working capital requirements

(794)

73

Change in net cash position related to operating activities

4,328

4,184

Operating investments

(859)

(518)

Repayment of lease liabilities

(277)

(261)

Adjusted free cash ﬂows 1

3,192

3,404

Investments in ﬁnancial assets

(316)

(21)

(1,386)

(852)

(132)

(116)

64

257

CHANGE IN RESTATED NET CASH POSITION 1

1,422

2,672

Restated net cash position at the end of the period

11,164

9,742

Restated net cash position at the beginning of the period

9,742

7,070

Dividends paid
Treasury share buybacks net of disposals (excluding liquidity contract)
Other movements(1) Alternative performance indicators deﬁned and reconciled in Note 2 to the ﬁnancial statements

Operating cash ﬂows amounted to €5.1 billion, up 25% year‑on‑year,
a rhythm that is close to that of net income before tax.
After two years of decline in working capital requirements, the change
is net asset use of €794 million in 2023. This increase is mainly due
to the rebuilding of ﬁnished goods inventories in the distribution
network and the increase in raw material inventories to secure
production capacities.
Group operating investments amounted to €859 million:s €258 million was allocated to the renovation and expansion of the
exclusive distribution network;s €208 million was dedicated to strengthening production
capacities, particularly in Leather Goods, but also in the Silk andTextiles, Perfume and Beauty, Home and Watches métiers;s €392 million was invested to support the Group’s development inreal estate projects intended for support functions, métiers andlogistics activities. The Group also accelerated its spending on IT
and digital projects.

402023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

After taking into account the aforementioned operating investments
and the repayments of ﬁxed lease liabilities recognised in accordancewith IFRS 16, which are considered by the Group as items affecting
operating activities, adjusted free cash ﬂows amounted to €3.2 billion
against €3.4 billion in 2022.
Financial investments of €316 million mainly concern equity
investments aimed at strengthening ties with historical partners, inaccordance with the Group’s vertical integration strategy.
After payment of €1,386 million in dividends, share buybacks
amounting to €132 million and taking into account negative currency
depreciation against the euro (included in other movements), theGroup's restated net cash position increased by €1.4 billion to reach€11.2 billion at the end of 2023.

1.8.3

FINANCIAL POSITIONThe Group’s consolidated balance sheet at the end of 2023 totalled€20.5 billion compared with €17.5 billion at the end of 2022. Cashaccounted for nearly 52% of total assets, and equity, which amounted
to €15.2 billion as at 31 December 2023, represented 74% ofliabilities. The Group has thus consolidated a solid ﬁnancial structurethat allows it to maintain its independence and pursue its long‑term
strategy.

PRESENTATION OF THE GROUP AND ITS RESULTSSIGNIFICANT EVENTS SINCE THE END OF THE FINANCIAL YEAR

1.9

SIGNIFICANT EVENTS SINCE THE END OF THE FINANCIAL YEAR AFR

No signiﬁcant event has occurred since the closing on 31 December
2023.
In line with its distribution network vertical integration strategy, theHouse has reinforced its relationship with its historical partner in the
Middle East. Thus, Hermès became in early 2024 a majority

1

shareholder alongside its partner in the retail activities located in the
United Arab Emirates. The latter remains the majority shareholder inthe other countries of the region (Qatar, Kuwait, Bahrain). The impactof the change in consolidation method resulting from this acquisitionof a majority stake and the amount paid will not be signiﬁcant on the2024 consolidated ﬁnancial statements.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

41

1

PRESENTATION OF THE GROUP AND ITS RESULTS
OUTLOOK

1.10 OUTLOOK AFR
On the strength of its unique business model, based on its values of
independence, entrepreneurial spirit, craftsmanship and creativity,
Hermès has shown the solidity of the House's craftsmanship andentrepreneurial business model, with exceptional results in 2023,
despite an unstable global context. Sales growth was remarkable inall geographical areas. All métiers grew well, reﬂecting the desirabilityof creations among its customers. Hermès, ﬁrmly rooted and inspiredby its heritage, is enriched by its creative freedom and innovation, andits attachment to savoir‑faire. Firmly believing that there can be nocreation of economic value and long‑term development without
creation of social and societal value and without environmental
responsibility, Hermès is committed to leaving a positive footprint on
the world.
Thanks to the ongoing dialogue between creation and excellence insavoir‑faire, the House will continue to blossom, afﬁrming theuniqueness of its style. The year 2024 will be marked by thedevelopment of new collections based on the most beautiful
materials and an abundant creativity. Among the new products, thePerfume and Beauty métier will launch a new perfume for women in
the fall, after launching a new Hermessence, Oud Alezan, and thefragrance for men, H24 Herbes Vives. Watches will continue to roll out
its Hermès H08 line, which has been expanding rapidly since its
launch in 2021, and will present its new products at the Watches &Wonders Salon in Geneva. As part of Milan Design Week, Hermès will
present the new collections of the Home universe and will launch theTressages Équestres table service, in particular. The emblematic
Constance and Bolide bags, with new ways of being carried and used,
and the R.M.S. travel line, boasting new functionalities, will enrich theleather goods collections. Jewellery will unveil its eighth hautejoaillerie collection.
The integrated and exclusive distribution network will continue tostrengthen its omnichannel offering. In order to nurture the link with
its particularly loyal local customers, to increase trafﬁc and attract
new customers, special attention will be paid to the acceleration of
the digitisation of uses, the development of services and the
expansion of the online product offering. The qualitative developmentof the store network will continue in 2024, with in particular plans toopen, expand or renovate stores in Wuxi and Shenzhen MixC
(mainland China), Atlanta and Princeton (United States), and Lille(France). Priority will be given to expansions and renovations in some
20 branches around the world.
In view of the House’s strong momentum, the development of
production capacities will continue across all métiers, and in particularin Silk, with the planned new printing line at Pierre‑Bénite near Lyon, inJewellery and in Home. The growing demand for Leather Goods &Saddlery will be supported by the ramp‑up of the new sites within thenine centres of expertise throughout the country. The Group willcontinue its objective of opening on average one production unit per
year, representing around 300 new hires. In 2024, Hermès will
inaugurate a new leather goods workshop in Riom in the Puy‑de‑Dômeregion, within the former Manufacture des tabacs de la ville, abrownﬁeld site steeped in history. Together with the Sayat leather goods

422023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

workshop, it will form the regional hub “Les Manufactures d'Auvergne”.
The leather goods workshop projects in L’Isle‑d’Espagnac (Charente),
Loupes (Gironde) and Charleville‑Mézières (Ardennes) will continue.
Hermès will strengthen its integration in France in regions with highmanufacturing savoir‑faire and develop employment and training. The
House’s other métiers will continue to use their extensive expertise to
design and create exceptional objects.
True to its commitment as a responsible employer, with the creation of
5,400 jobs over three years, of which more than 60% in France,
Hermès will continue this multi‑local and multi‑métier dynamic in
2024. The Group will step up its efforts in terms of social, societal
and environmental performance. Hermès will pursue its commitment
to the development of its employees, inclusion and diversity. The
enhancement and transmission of savoir‑faire will remain at the heartof the priorities of the métiers, with, in particular, the acceleration of
the rollout of the apprentice training centres (CFA) dedicated to theleather goods métiers, as well as the House's training in the uniquesavoir‑faire of the other métiers, such as Jewellery. Present today ineight regions, the École Hermès des Savoir‑Faire will be gradually set
up in all the regional Leather Goods divisions. Control of the supply
chains, guaranteeing the quality of materials, will continue with theimplementation by the House’s partners of “CSR briefs”, which bring
together the Group’s requirements in terms of traceability,
certiﬁcation, carbon trajectory, reduction of water consumption andrespect for human rights.
The House’s commitments to ﬁghting climate change and thepreservation of biodiversity will remain at the forefront. With thedevelopment of eco‑design strategies for all métiers and theconstruction of an internal tool to make life cycle analyses systematic,
the Group will continue its efforts to encourage the sparing use ofresources and waste management. More broadly, the Group’s actions
in favour of biodiversity will be strengthened with the continuation of
the Science Based Targets for Nature (SBTN) approach and thegreater depth given to impact analyses using the Global Biodiversity
Score (GBS) method.
In line with its climate change commitments, the Hermès Group willcontinue its actions in accordance with its reduction objectives,approved by the Science Based Target initiative (SBTi), to reduce
scopes 1 and 2 emissions by 50.4% in absolute value and scope 3
emissions by 58.1% in intensity, over the 2018‑2030 period. The
particularly demanding responsible construction framework willcontinue to be rolled out for new real estate projects. At the sametime, Hermès will increase its contribution to the implementation ofcarbon offset systems consistent with a net zero carbon target in
2050, supported by Livelihoods’ long‑term projects. Hermès will
strengthen its role as a socially responsible company alongside its
suppliers, which it will continue to support, with the rollout of its new
Supplier Code of Conduct, and with the communities in which it
operates, whether through site openings, job creation, thedevelopment of vocational training centres for its craftsmanshipmétiers, and contributions to the social and cultural life of theregions.

PRESENTATION OF THE GROUP AND ITS RESULTS
OUTLOOK

The Group is looking forward to 2024 with conﬁdence, thanks to its
highly integrated craftsmanship model, its balanced distribution
network and the loyalty of its customers.
In the medium term, despite the economic, geopolitical and monetary
uncertainties around the world, the Group conﬁrms an ambitious goalfor revenue growth at constant exchange rates. Thanks to its uniquebusiness model, Hermès is pursuing its long‑term development
strategy based on creativity, maintaining control over savoir‑faire andsingular communication.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

1

43

1

PRESENTATION OF THE GROUP AND ITS RESULTS
FONDATION D’ENTREPRISE

1.11 FONDATION D’ENTREPRISE
2023 was marked above all by the commitment of the Fondationd’entreprise Hermès to a new ﬁve‑year term with an increased
budget. By giving its Fondation more resources, Hermès isunequivocally renewing its trust in it and strengthening its action infavour of the public interest.
Driven since its creation in 2008 by the House’s humanist values, theFondation strives to implement its philanthropic initiatives in waysthat distinguish it within the corporate philanthropic landscape. It haschosen to be an operator - or semi‑operator - rather than distributor,
through the development of speciﬁc programmes in the ﬁeld ofartistic creation, the transmission of savoir‑faire, the preservation of
biodiversity and solidarity. Each of these programmes enables the
Fondation to act as closely as possible on the ground in response totargeted needs. Whether they are artists, project leaders or simply
students, the beneﬁciaries of these actions can thus experience very
concretely how the Fondation contributes, on its own scale, to building
a better world.
By its very name, the new Transforme programme dedicated to theperforming arts reﬂects the driving power that guides the Fondation in
all its actions, particularly in the ﬁeld of creation. Following on from
New Settings, Transforme is a travelling festival created with four
partners: La Comédie de Clermont‑Ferrand, Les SUBS in Lyon, theThéâtre de la Cité Internationale in Paris and the Théâtre National de
Bretagne in Rennes. In order to spread the vitality of the performing
arts to other regions and thus reach new audiences, Transforme
aspires to move spectators and artists alike through amultidisciplinary programme. Inaugurated in November 2023 in Paris,
this ﬁrst edition includes 15 hybrid shows scheduled by partner
theatres until spring 2024. Each institution extends the discovery of
the shows through suggestions for “Going further” in order toconsolidate and enrich the link with audiences.
Moreover, as part of its commitment to creation, the Fondation
produced and scheduled 10 contemporary art exhibitions this year in
its four spaces spread across Europe (Brussels andSaint‑Louis‑lès‑Bitche) and Asia (Tokyo and Seoul).
Dedicated to contemporary photography, the Immersion programme
was highlighted speciﬁcally in New York in 2023 at the International
Centre of Photography, which presented a collective exhibition
bringing together the last three winners of this programme.
Lastly, the Artist Residencies programme enabled the visual artist
Bianca Bondi to produce unique textile sculptures within Holding
Textile Hermès, with the help of the site’s craftspeople.
A legacy of the House’s craftsmanship culture, transmission isnaturally one of the Fondation’s focus areas. The Manufacto

442023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

programme is continuing its rollout among educational
establishments for the eighth consecutive year. Spread across 15
academies – including Reunion Island – since the start of the 2023
school year, 2,100 students from primary to high school have been
keen to discover the craftsmanship métiers during sessionsorganised as part of the school day. The Académie des savoir‑faire,
open to savoir‑faire professionals such as craftspeople, designers
and engineers, was extended this year to architects due to thematerial - stone - to which this sixth edition was dedicated, under theeducational direction of the architect Lina Ghotmeh. For students
seeking a work‑study course, the various projects of the Artists in theCity programme continued to be funded by the Fondation, and ﬁrst
and foremost the system of scholarships based on social criteria forthe talents of tomorrow undertaking higher education in dance,theatre or circus skills. At the start of the 2023 school year, allclasses combined, 140 students were receiving ﬁnancial support ofthis kind.
While the importance of ecological issues is becoming more prevalenteach day, the Fondation is working actively with tomorrow's
generations through Manuterra, which aims to raise awareness of theliving world from the youngest age. For the third edition of thisprogramme, more than 600 students in 10 academies are learning
about the savoir‑faire of permaculture by taking care of a garden plot
through the seasons. At the same time, the Fondation is also
committed to various project leaders who, on the ground, contributeto the preservation of biodiversity and ecosystems.
Lastly, the internal H3 programme - Heart, Head, Hand, which
structures the Fondation d’entreprise Hermès' solidarity actions,completed its fourth edition before being reconﬁgured with the help of
the Group’s human resources department. In addition to the ﬁnancial
support granted to projects identiﬁed by the House’s employees, they
can now participate in a skills‑based sponsorship format: they canthus act directly with charitable associations, within the framework ofslots arranged during their working hours.
Throughout its programmes, the Fondation d’entreprise Hermès
conducts its sponsorship activities by supporting women and men
who act in favour of the public interest and with whom it shares acommon humanist purpose. As it embarks with ambition andresponsibility upon its new ﬁve‑year term, it will continue to cultivate
collective intelligence, combine progress and the common good, andput people back at the heart of society.
The full activity report of the Fondation d’entreprise Hermès can befound on the website www.fondationdentreprisehermes.org, section“The Fondation”.

PRESENTATION OF THE GROUP AND ITS RESULTS

12023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

45

2

CORPORATE SOCIAL RESPONSIBILITY
AND NON-FINANCIAL PERFORMANCE
NFPS

2.1

BUSINESS MODEL

51

2.1.1

2.1.6

Concrete long‑term commitments
An ambitious and structuring CSR strategy
Materiality analysis
Analysis of non‑financial risks
CSR strategy
CSR governance

56
57
58
61
61
67

2.2

PEOPLE: TEAMS

71

2.2.1

2.2.7

The “Hearts & Crafts” social model
Our teams: Growing our House, and growing with it
Seeking rarity and diversity, key issues for our growth
Our managerial philosophy – managing diversity, equity and inclusion
Health & well‑being
Recognition & reward
Fostering and promoting quality social dialogue

74
74
76
81
86
93
96

2.3

PEOPLE: SAVOIR‑FAIRE

99

2.3.1
2.3.2

Creating the conditions for professional development and employability
Meaningful work

102
108

2.4

THE PLANET: RAW MATERIALS

113

2.4.1
2.4.3

Eco‑design and circular economy
Supply chains
Biodiversity

117
127
137

2.5

THE PLANET: ENVIRONMENT

153

2.5.1

Environmental actions framework
Responsible real estate
Responsible IT
Resource management
Waste management
Control of pollution risks
Climate change

156
157
159
161
170
173
178

2.1.2
2.1.3
2.1.4
2.1.5

2.2.2
2.2.3
2.2.4
2.2.5
2.2.6

2.4.2

2.5.2
2.5.3
2.5.4
2.5.5
2.5.6
2.5.7

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

47

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE

2.6

COMMUNITIES: SUPPLIERS & PARTNERS

201

2.6.1

Support and control
Development of purchases with a social contribution or responsible
social impact

204

2.7

COMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

217

2.7.1

220
222
228
232

2.7.6

Regional responsibility in FranceSocially responsible company
Communication and transparency vis-à-vis stakeholders
Application of the European Taxonomy to the Hermès Group
Analysis of correspondence with the main non‑financial reporting
frameworks
Hermès’ contribution to the UN sustainable development goals

239
245

2.8

ETHICS – COMPLIANCE

248

2.8.1

Promoting ethics
fighting corruption
Protecting personal data
Duty of care

249
255
257
258

REPORT OF ONE OF THE STATUTORY AUDITORS, APPOINTEDAS INDEPENDENT THIRD PARTY,
ON THE VERIFICATION OF THE CONSOLIDATED NON‑FINANCIAL
STATEMENT

262

REASONABLE ASSURANCE REPORT FROM ONE OF THE
STATUTORY AUDITORS ON THE IDENTIFIED SUSTAINABILITY
INFORMATION OF HERMÈS INTERNATIONAL’S NON‑FINANCIALPERFORMANCE STATEMENT AS AT/ FOR THE YEAR ENDEDDECEMBER 31ST, 2023

269

2.6.2

2.7.2
2.7.3
2.7.4
2.7.5

2.8.2
2.8.3
2.8.4

2.9

2.10

48

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

212

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE

Through its sustainable development approaches, Hermès
implements practices that reconcile economic and social progresswith preservation of the planet’s natural equilibrium, in a long‑term
vision. These societal and environmental challenges, linked to the 17
sustainable development goals deﬁned by the United Nations for2030, provide the framework for the House’s action in this area.
Hermès, a family business, has been able to adapt to changes whilefavouring a long‑term approach. The Group, relying on the strength of
its craftsmanship savoir‑faire, its exclusive distribution network andits creative heritage, is committed to sustainable development.
The Group’s craftsmanship manufacturing model is based mainly on
its creativity and the savoir‑faire of men and women working inFrance. It draws on the House’s four essential heritages: creation,
exceptional raw materials, savoir‑faire, and the retail universe. It isbased on the geographical and cultural proximity between designers
and craftspeople. Supported by a network of regional manufacturing
sites, Hermès enhances the regions with a desire to ensure thetransmission of this exceptional savoir‑faire. Finally, it operates withmoderation and sobriety in the use of raw materials and with a desire
for a low environmental footprint. The promotion of these four
heritages has contributed to the sustainability of the Hermès
craftsmanship model since 1837.
The Hermès Group’s ambition in terms of sustainable development isalso to ensure virtuous economic and social development, not only for
employees, but more broadly for its stakeholders, by thinking about
the future of the next generations. This objective will also be achievedby reducing its impacts, however moderate, on the planet. This goal isaccompanied by a deep humanist desire to give back to the worldsome of what the world gives to Hermès. This vision feeds into theHouse’s strategy and makes it possible to deﬁne the priorities, as
illustrated below in the materiality analysis conducted along two axes:
impacts on the sustainability of the business model and impacts fromthe Group’s entire supply chain on the world.

Methodology note

The scope of this Non‑Financial Performance Statement (NFPS)
covers all of the Hermès Group subsidiaries and sites, including all
métiers and all regions, the scope of which is detailed in chapter 1“Presentation of the Group and its results”, § 1.4.
This NFPS is based on the qualitative and quantitative contributionsof the métiers (production), subsidiaries (distribution), central
departments, and the following Group corporate departments: humanresources, industrial affairs and innovation, direct and indirectpurchasing, real estate, logistics, general services, legal, ﬁnance andsustainable development. From the end of the ﬁrst half‑year, thevarious contributors come together to rank the subjects they wish toprioritise and prepare a schedule extending to the end of the year.
Given the time frames, certain annual data is reported at the end of
October, in particular for the industrial affairs department. Eachdepartment uses tools to consolidate the information related to theiractivities. These main contributors rely on their respective networks inorder to summarise, consolidate and verify the ﬁgures, highlight themost signiﬁcant progress and the work carried out on the major
strategic sustainable development issues. This operating mode
enables a fairer reﬂection of operating reality, in an environment inwhich the activities of the House are very diversiﬁed.

2

More speciﬁcally, the social, societal and environmental informationin chapter 2 has been prepared, in all material respects, inaccordance with the reporting guidelines of the industrial affairs andhuman resources departments, in force as at 31 December 2023,
consisting of i) reporting procedures, ii) a glossary specifying thedeﬁnitions for the social, societal and environmental information, andiii) other underlying information for the internal reporting tools. These
guidelines are available on request from the Hermès International
headquarters for the ﬁnancial year ended 31 December 2023.
This work is compiled, standardised and controlled by the sustainable
development department, in particular through the implementation ofa dedicated digital tool.
The social, societal and environmental information published in
Hermès International’s consolidated Non‑Financial Performance
Statement is veriﬁed by an external third party in accordance with theprocedures described above. The report by PricewaterhouseCoopers
Audit, an independent third party and one of the Statutory Auditors,
on the consolidated Non‑Financial Performance Statement includedin the Group’s management report, is available in § 2.9. In addition,
one of the Statutory Auditors, PricewaterhouseCoopers Audit,
performed a reasonable assurance assignment on a selection ofsustainable indicators presented in the consolidated Non‑Financial
Performance Statement for the ﬁnancial year ended 31 December
2023. The list of indicators concerned as well as the nature anddepth of the corresponding work are deﬁned in the assurance reportin § 2.10.
As stated in chapter 3 “Corporate governance”, § 3.6.3.4, theassignment was approved as a “service other than certiﬁcation of the
ﬁnancial statements” by the Audit and Risk Committee, using thedelegation granted to it, and is compliant with the French rules on
independence.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

49

2

50

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

2.1

BUSINESS MODEL

The Hermès Group presents its value creation model using graphics(see the following pages) in order to put the distinctive features of its
highly integrated French craftsmanship manufacturing model into
perspective. This approach is designed to help explain the activitiesof the House, its footprint and contribution to a more sustainable
world, in their economic, social, societal and environmental
dimensions.
The Hermès Group’s model is unique in many ways:
s a family‑run business rooted in a tradition of craftsmanship, thefoundations of an eagerness to ensure transmission of skills andsustainability;s fundamental heritages, a source of sustainability, that arecontinuously reinvented: creation, materials, savoir‑faire and retail;s objects designed to last: rigor and responsibility that are the life
force of the House’s 16 métiers (see chapter 1 “Presentation of
the Group and its results”, § 1.6);
s a French House with an international reach: 74% of production ismade in France;2s an integrated model, from the manufacturing of objects in its
in‑house and exclusive workshops (55%) to distribution throughout
the world, tailored to local situations;s controlled development and solid results;s a contribution to a more sustainable world through its operating
model, a moderate environmental footprint, a humanist vision of its
activity, the harmonious sharing of value created and a desire to
give back to the world some of what the world gives it.

s resilience to societal, sector and market trends;

For readers who would like more details on all of the Group’s actions in addition to what is presented in thisNon‑Financial Performance Statement, the Hermès Finance website can be accessed using this QR Code.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

51

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE

BUSINESS MODEL

BUSINESS MODEL

AN ARTISANAL, CREATING VALUE AND SUSTAINABLE FRENCH MODELCAPITAL AND RESOURCES

Committed women and men
22,037 employees, of which 62% in France:
47% production, 35% sales, 18% support
68% women and 40% on the Executive Committee
Gender equality index: 92/100 (France)
6.85% of employees with disabilities in France

Exceptional craftsmanship savoir-faire
Creation of a leather goods apprentice training centre(Ecole Hermès des Savoir-Faire)
21 Meilleurs Ouvriers de France(Best Craftspeople in France)
10 Entreprises du Patrimoine Vivant(Living Heritage Company ‒ EPV)
150 in-house trainers

Abundant creativity
Around 50,000 items in each collection
Distinctive style
Omnipresent creation
Material and process innovations
Unique and responsible communication

Resilient andgrowing luxury
goods market

SUPPLYCHAIN

PRODUCTION

75 exceptional materials, without compromising on quality
58% of purchases made in France and 98% in Europe
CSR supply chain briefs for our partners
74% of leather suppliers are LWG certified
98% of hides used are by-products from the food industry
Hermès RJC COP certified
88% of top 50 suppliers audited
100% non-mining gold used in the workshops
Formalisation of the animal welfare policy
Traceability and in-depth knowledge of supply chains:
74 materials have undergone supply chain analysis

Leather goods
and saddlery

Women’sready-to-wear

Men’s
ready-to-wear

Belts

Shoes

Women’ssilk

Hats

GlovesJewellery

Logistics and transportation:

Use of alternative and local transport

Financial independence

Social and environmental responsibility
in the value chain

FurnitureandArt of Living

Perfume

Beauty50,000 product references
Local production: 74% in France
Vertical integration: 55% ofobjects made in exclusive in-house
workshops

Support for our partners
Payment terms 28 days on average in France

Tableware

Financial value

Watches

petit hMore than 7,300 craftspeople, i.e.
53% of the workforce in France
75 production and training sites
worldwide

Societal value
2,400 jobs created, including 1,400 in France
27.8% consolidated tax rate
€293 million in purchases with social andenvironmental added value, from 1,261 SMEs, including€6.7 million with socially supported organisations
3 Fondation programmes promoting biodiversity and2 Fondation programmes promoting transmission of skills
to young people
Contribution to the scientific and academic world
388 social actions carried out around the world

STRONG VERTICAL

Craftsmanship model on a human scale
Climate strategy aligned with 1.5°C trajectory
validated by SBTi
Certified sustainable real estate standard

Exclusive omnichannel
distribution network
DISTRIBUTION

Retailsales

Wholesale

Onlinesales

Societal anchoring

I N T E G R AT I O N

Environmental value

294 exclusive stores in 45 countries
Multi-local and international network
Agility through local logistics platforms
Strengthening e-commerce in 30 countries
Quality of service for customers
Local repairs€61 million budget for the Fondation d’entrepriseHermès over the 2023-2027 period
Strong local presence: regional craftsmanship centres
and exclusive store in 11 out of 13 French regions
60 production and training sites in FranceContinuation of the supply chain certification
process in 2024
54 supply chains certified and/or awarded
a label by 2023
92% renewable electricity supply
More than 200,000 repairs
Decrease of 50% in scopes 1 and 2 emissions
in absolute value and 52.2% in scope 3 in intensity
since 2018
Offset of direct emissions (scopes 1 and 2)
as well as scope 3 transport-related emissions
Measurement of the biodiversity footprint
and collaboration with NGOs for the preservationof biodiversity

HOUSE OF CREATIONMANUFACTURINGHERMÈS RETAIL

Creative freedom
Exceptional materials and savoir-faire

Vertically integrated modelLong-lasting, repairable objects

Purchasing freedom
Exclusive distribution network

An independent creative house since 1837, guided by the skills of the craftspeople. An integrated model of French manufacturing.
A humanist approach to employee management. A rich selection of useful and long-lasting objects. A socially responsible company thatgives back to the world.
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

3 days of training per employee on average€203 billion market capitalisation as at december 2023
€1,386 million total dividends paid to shareholders€859 million in operating investments

Natural resources used with care

52

Transmission of savoir-faire

Support for the highest standards
Men’s
silk

65 years length of relationship with textile suppliers

Launch of the Science-Based Targets for Nature(SBTN) approach

6th free share plans worldwide since 2007
More than 18,000 employee shareholders€13.4 million dedicated to training

19 years length of relationship with top 50 suppliers€3,192 million adjusted free cash flow
€15,203 million in equity€11,164 million in restated net cash position
Shareholder stability: 66.7% of the share capital heldby the Hermès family2

For employees€1.7 billion of payroll costs in 2023
€4,000 exceptionnal bonus paid to all employees
in 2024 in respect of 2023 for a total amountof €92 million€207 million incentive schemes and profit-sharing
in respect of 2023 in France

16 métiers

Local and sustainable sourcing:

2 logistics centres in France (Bobigny, Saint Priest)
1 externalized logistics center in Orléans (France)
Regional logistics centres established internationally
26% decrease in GHG transport-related emissions in intensity
between 2018 and 2023

Long-term partners

VALUE CREATION AND SHARING

Responsible consumer
expectationsin terms ofsustainability

Limited natural
resources andadaptation
to climate change

62.2% reduction in water consumption
in intensity in 10 years

Active contribution
to 10 ODD out 17
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL53

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE

BUSINESS MODEL

BUSINESS MODELHERMÈS, EXCEPTIONAL OBJECTS DESIGNED TO LAST

1. Creative freedom
The designers sketch, innovate and revisit theHouse’s models with the greatest artistic freedom.
Around an annual theme, “Astonishment” in 2023,
the artistic department proposes and renews thecollections and objects.

OUR SINGULARHERITAGE
Creative heritage
Originally a harness workshop,
Hermès has revolutionised riding
equipment. Driven by creative
freedom, the House innovatesand revisits its timeless models.

2. Development
Close cooperation between our creative minds
and developers ensures that original ideas
become a reality. This step is crucial in defining
the manufacturing processes that reconcile
optimisation, quality, innovation and aesthetics
for a virtuous life cycle.

Retail heritage
Hermès takes a unique approachto developing its distribution
network and digital flagships.
Its artistic and poetic spirit
permeates the creativity of storesand window displays.

7. Logistics
Mainly manufactured in France, the products aresent to one of the Group’s two logistics platforms,
where they are checked, packaged and stored before
being distributed to the store network. The choiceof a centralised logistics model makes it possible
to optimise flows, find and implement transportation
solutions in order to control the carbon impact
and reduce the environmental footprint.

8. Exclusive distribution
While its products are made in France, they are distributed
worldwide. Retail sales in our exclusive stores have been
supplemented by e-commerce since 2002, in order to provide
an omnichannel offering. Hermès favours a qualitative developmentof its network combining the enhancement of its stores and special
attention is paid to their social and ecological footprint.

Photo credits - in order of appearance: Hermès International, Martin BRUNO, Chris PAYNE, François COQUEREL, Benjamin SCHMUCK,STUDIO DES FLEURS, Osma HARVILAHTI, Kejia CHEN, Javier DARDO, Maxime VERRET, Eugénia SIERKO.

54

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

2

4. Integrated vertical model
The vertical integration and sustainable relationships
with its partners ensure traceability of its supply chains
and reinforce the House’s responsible development
strategy with regard to materials, techniquesand savoir-faire.

6. Purchasing freedom
Present worldwide, Hermès is strongly committed
to the principle of giving purchasing freedom to its retailsubsidiaries and stores. Store managers choose the products
to propose to their customers. The offer is varied and relevant,the ecological footprint controlled and waste reduced.

Materials heritage
Hermès uses, respects andpreserves the most noble
materials, secures its supplies
and seeks to limit their impact
on biodiversity.
Savoir-faire heritage
Hermès develops and protects
its often unique craftsmanshipsavoir-faire. The excellenceof the craftsmanship techniques
is passed on through a proactive
internal training policy.

3. Exceptional materials
The use of materials is optimised from creation to production,with careful use of only the essential resources encouraged in order
to avoid unnecessary waste and surplus materials and to take the endof life of objects into account. Hermès manufactures high-quality products,
mainly from renewable natural resources, the most emblematic ofwhich are leather, silk and cashmere. The Group does not compromise,
whether on the intrinsic quality of the materials or their procurement(environmental footprint, biodiversity and consideration of animal welfare).

5. Handcrafted production
Craftspeople take the greatest care in manufacturing
the products ordered by the stores. Emphasis is placedon in-house training, which guarantees the transmissionof exceptional savoir-faire within the production units.
The use of subcontracting is limited and is based onlong-term partnerships.

9. Responsible communication and transparency
CSR communication is a major focus, with the aimof making the strategy and actions in this area moretransparent. It takes the form of actions to improveexternal understanding: dialogue with customers andthe public, the press and influence, investors and financial
analysts. In a pro-active approach, responses are provided
to external assessors.

10. Long-lasting objects
Hermès objects stand the test of time and are passed
on from one generation to the next. They are caredfor, repaired or renovated thanks to the savoir-faireof craftspeople. At the same time, the métiers are working
on ways to reuse and improve the circularity of materials
and finished objects with the aim of recycling, innovating
and finding new uses.

11. Product end-of-life
Although the craftsmanship model is,by design, a factor in the sparing andoptimal use of materials, work is being
carried out to anticipate the end-of-lifeof objects. The métiers and subsidiaries
innovate and work on concrete projects
which aim to extend the life of products andreuse sources of materials, in particularthrough donations and circularity (reuse,recycling, etc.). In France, from 1 January2022, Hermès is subjected to the AGEC law(Preventing Waste and the Circular Economy)
which aims to prohibit the destructionof unsold products in the textile, household
linens, shoes and furniture métiers.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL55

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

2.1.1

CONCRETE LONG‑TERM COMMITMENTS
Group
environmental
policySustainable
Development
Committee

2003
2002
Creation of the EHS(Environement,
Health, Safety)

First large-scale
donations of
unsold items
First GroupDisability
Agreement

2018

2016

2015

2008
2009
Fondationd’entrepriseHermès

2007

2010

First sustainable
development
seminar for
distribution

Group sustainable
development
strategic
framework

2014

Group ethics
charter

2013

First Groupsustainable
development

2017

Petit hmétierSustainable
development
department

2011

2012

● Code of business conduct● Group Sustainable
Development Operations
Committee● Anti-corruption

code of conduct● Hermès commitment● Global Compact

to the Livelihoods Fundcommitment,
Advanced level● Act4Naturecommitment(biodiversity)● Supplier handbooks(social, environmental,
ethics)2023
2019● Structuring of the socialmodel● H-Alert !

2020

whistleblowing
IT system● Fashion Pactcommitment● Water footprint
assessment● Updated strategic
sustainable
development
framework● Sustainable

development page ofthe Hermès Financewebsite● Signature of thesecond Group Disability
Agreement● Updated Act4Nature
International(biodiversity)● Circularity Committee(unsold items)● Updatedenvironmental policy

2021

2022

● SBTi validated● Reorganisation of the Group’s● Animal Welfare● More than 40 “sustainablecarbon trajectory
Policy● Supplier CSR Brief● GBS biodiversity
diagnostic● Launch of the third
Livelihood fund

● Supply Chain
Committee

sustainable development
governancedevelopment wheels”
formalised by the Group’s
métiers, subsidiaries andcross-functional department● Rollout of three training

modules (climate change,
biodiversity, animal welfare)● Construction of three masterplans (climate, biodiversity, SD
training)● Acceleration of the energy
sobriety plan in France● Certiﬁcation of the HaRmoniEsustainable construction
standards● Compliance with therequirements of the AGEC law
in France (zero destruction,
environmental labeling)● Biodiversity impact studyof the goat and cashmere
sectors● Rollout of the Responsible● External commitment ● Internal formalisation● Governance ● Other initiatives

562023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

French Calfskin initiative● Publication of the Forest

policy, the Group healthand safety policy and the
Climate Transition Plan

● Lab Capital Naturel/WWF
commitment (biodiversity
trajectory)● Nearly 20 CSR

commitment handbooks
formalised by the Group’s
entities● H3 Patronage Committee● Sustainable developmenttraining for theSupervisory Board, theExecutive Committee andthe House’s CSR leaders● Renewal of the WWF andSciences Po partnerships

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

EXAMPLES OF AWARDS RECEIVED AND RANKINGS OBTAINED IN 2023

AXEL DUMAS, BEST PERFORMINGCEO IN THE CAC 40 INDEXFOR THE 2ND CONSECUTIVE YEAR
CHALLENGES

GRAND PRIX EMPLOI FRANCE,ALL CATEGORIESHUMPACT

Member of the A List
climate and water

2.1.2

4TH PLACE - WOMEN IN
GOVERNING BODIES IN THE SBF 120

GRAND PRIX
CAC LARGE 60 2023

MINISTRY IN CHARGEOF GENDER EQUALITY

TRANSPARENCY AWARDS

2GRAND PRIX
FOR THE VIGILANCE PLAN

CARBON SCORE A
AXYLIAFRENCH SUSTAINABLE
INVESTMENT FORUM

Memberof the CAC 40 ESG
and FTSE4Good
indices« AA »#2

Textiles and Apparel segment

AN AMBITIOUS AND STRUCTURING CSR STRATEGY

Hermès has remained true to its values since 1837 and continues tothrive as a house where craftspeople are at the fore. By selecting theﬁnest materials, it produces exceptional, useful and aesthetic
objects, designed to last, thanks to their quality and desirability, andto be passed on. Hermès has a world‑wide reputation, but the House
has always been, and remains, an independent company supported
by family shareholders, the sign of pragmatism, stability and longevity.
Promoting French manufacturing, its project is based on the
excellence of the craftsmanship métiers; human hands, savoir‑faireand quality are the keys.
The attention paid to people has a natural place at the heart of theHouse’s craftsmanship business model, both at its sites as well as its
partners and suppliers. Hermès pays close attention to working
conditions, respecting a balance in terms of diversity and inclusion,and more broadly, stringently applying the fundamental principles of
the United Nations and OECD.
The attributes of craftsmanship have shaped the development of theHouse since its founding and, at the same time, its relationship withthe world. Naturally rooted in respect and humility, these attributes,
over time, have become company values.
The presence of these values permeates all employees, suppliers andpartners. They form the platform for the House’s actions in matters ofsustainable development by appropriating the notions of individualand group responsibility, authenticity in the search for excellence, or
acceptance of the long‑term approach as a factor inﬂuencing
performance. Lived and embodied by the Senior Executives and all
employees, today they are the lifeblood of its DNA and represent thefounding pillars of the sustainable development approach that
Hermès shares with its stakeholders:s responsibility: a handmade leather object, for example, is the workof a single person. Following the original principle “one person, onebag”, a single person masters all of the steps necessary for an
object’s creation, and is accordingly responsible for its final quality.

This sense of responsibility also covers the materials used, whichmust not only be the most beautiful but their origin and theconditions under which they have been obtained must also beunquestionable: they must be worthy of serving to create
exceptional objects. This accountability also extends to the
product’s future life: each craftsperson has a view that transcends
beyond the production process and leaves their own hallmark oneach bag. This heightened awareness of responsibility nourishes
the individual and group sustainable development practices;s authenticity: the craftspeople are passionate about emphasisingthe “authenticity” of beautiful materials and eschew the use ofimperfect materials, even when the end result may seem
acceptable. This demanding attitude is reflected in the attention
paid to all the aspects that comprise the handmade object and its
craftsmanship. The inside is afforded just as much care andattention as the outside. Hermès craftspeople, and all employeesof the House, are nonetheless aware of their limits andimperfections, and constantly question each stage, so as toperpetuate the values of excellence. Sustainable development ispursued in this spirit of sincerity, excellence and continuous
improvement. It is built on accomplishments rather than abstract
commitments, with the goal of long‑term efficiency;s acting with urgency while taking the time to do things well: ourcraftspeople do not like to put off until tomorrow what they canaccomplish today. Hermès’ craftspeople, and by extension theHouse, see time as an ally, that enables them to work well, to
integrate the internal or external challenges of all stakeholders, inorder to see things in a balanced perspective. In the making of an
object by hand, it is impossible to skip a step to save time,
everything flows in continuity, everything is necessary. These
modes of operation shape and determine the way projects are
conducted. They encourage the implementation of responsible
policies and practices, using a participative approach, blending
exacting requirements and efficiency to obtain a high‑quality end

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

57

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

result. While considering changing and accelerating contexts,
projects take into account the necessary rhythm for sustainablechange among employees, partners and natural ecosystems.
Urgency to act and hasty execution should not be confused.

2.1.3

MATERIALITY ANALYSISAs every year, Hermès updated the analysis of its priority CSR issues
in 2023 to guide its actions and facilitate understanding of its
strategy.
For the third consecutive year, an analysis was conducted based on
the concept of double materiality, which looks at the two dimensionsof value creation put forward by the European Union and EFRAG:
ﬁnancial materiality and impact materiality, relating to the creation ofenvironmental and social value, which has a broader effect on all the
Company’s stakeholders.
In this way, with the help of its stakeholders, Hermès ranked 15
priority issues from these two perspectives:s the materiality for Hermès – known as the “outside‑in” vision, i.e.
the amount of influence these issues have on the Group’s
economic activity;s the materiality of Hermès and its value chain on the world, known
as “inside‑out”, i.e. the direct and indirect impacts on theenvironment and society.

This materiality matrix is also in line with the continuation of the work
carried out for several years in a collaboration between thesustainable development department and the audit and risk
management department. It contributes to the risk analyses carriedout at Group level and validated by the Executive Committee, with the
double materiality enriching the “impact” pillar of the Group’s risk
mapping.
In addition, for three years now, Hermès has been anticipating thetransparency obligations and the use of the principle of double
materiality required by the European Corporate Social Responsibility
Directive, transposed into French law in December 2023 andapplicable from 1 January 2024. The methodology used in 2023 willchange to take into account these regulatory changes in 2024, which
may lead to changes in the format of the matrix and the results.

58

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Identification, assessment and ranking of issues
The 15 priority issues studied are the result of analyses updated
internally every year since 2015 by a study of the main general CSR
topics speciﬁc to the industry to which the Group belongs. This
selection of issues is reviewed annually prior to the ﬁnancial year.
Thus, in 2023, the list of these issues was updated twice:s the topics “eco‑design and circular economy” and “Innovation
R&D” have been combined in a single issue, “eco‑design, circular
economy and innovative materials” in order to better correspond tothe operational reality of the topic and to specify the scope of thework carried out by the Group on its natural raw materials(optimisation, circularity, exploration of new materials);s the “regional responsibility” issue has been added to the list, inorder to highlight the notions of local anchoring, the revitalisationof regions, and dialogue with our external stakeholders. Previously
included under “socially responsible company”, the latter isrefocused on the Group’s generous and humanist commitment andits philanthropic actions.

In 2023, Hermès took into account the relative ranking of these
15 issues produced by a panel of nearly 140 respondents, in theform of an anonymous interactive questionnaire, which invited
participants to classify each issue ﬁrst in terms of ﬁnancial
materiality, then in terms of impact materiality.
This panel consists of:s internally, the departments of the Group’s cross‑functional
functions and métiers, members of the Sustainable Development
Operational Committee, the network of EHS correspondents, theFrench and international internal control network, and members of
the sustainable development network in foreign subsidiaries;s external partners, who represent 50% of respondents for the firsttime, demonstrating the keen interest of Hermès’ partners in its
sustainability approach.

The Sustainable Development Committee and the Executive
Committee reviewed the results from the consolidation of the panel’s
responses.
Understanding that the notion of risk itself contains an opportunity
factor, Hermès uses the term “issues” to qualify its CSR approach inthis Non‑Financial Performance Statement. These issues are
summarised as part of the CSR strategy, and described in more detailin the following sections of the document.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

The results of the analysis conducted in 2023 are presented in the matrix below:

Eco-design, circular
economy andinnovative materials

Sustainable materials
and responsible
sourcing

Supplier support
AnimalwelfareRegional
responsibility

Materiality on the world

Socially responsible
company

Ethics andhuman rights

Biodiversity

2
Savoir-faire andcorporate culture

ClimatechangeDiversity and inclusion
Institutional andnon-financial
communications

Employee well-being,
health and development

Employer brandand relationships
with educational
establishments

Energy, water andwaste management

Materiality for Hermès
Positioning 2022

Positioning 2023

Comments on results

In 2023, the ranking exercise led to the identiﬁcation of 13 major
issues from the list. These 13 issues (shown in the upper orange
quadrants) are harmoniously distributed within the three pillars of theHouse’s strategy:s People:• employee well‑being, health and development,• diversity and inclusion,• savoir‑faire and corporate culture,• employer brand and relationships with educational establishments;s Planet:• eco‑design, circular economy and innovative materials,• sustainable materials and responsible sourcing,• animal welfare,• climate change,• biodiversity,• energy, water and waste management;s Communities:• ethics and human rights,• regional responsibility,• supplier support.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL59

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

The change in the positioning of several issues is consistent with theinitiatives carried out by the Group for its internal and external
stakeholders over the last two years, as evidenced by the followingchanges in positioning.
Main movements observed:s the issue of animal welfare has increased in terms of financial
materiality and impact materiality. This subject, which is an integral
part of Hermès’ sourcing policy, needs to encourage thecontinuation of the research and collaboration actions alreadyundertaken with the international scientific community andassociations, in order to promote breeding practices that
increasingly take better animal welfare into account;s the impact materiality has also increased for the subject of suppliersupport. This positive change echoes the detailed work carried out
internally that led to the initiatives recently undertaken by Hermès
to support sustainable transformation in its supply chains (forexample, the publication of the forest policy). The uniqueness of our

Issue

60

Part or paragraph in chapter 2of the universal registration document

craftsmanship model and the long‑term relationships forged with
our suppliers promote local support, with a “win‑win” objective;s lastly, the impact materiality of the employee well‑being, health anddevelopment issue is perceived as less significant than before(relative to other issues). This issue is essentially focused on ourhuman capital, so it has less of an impact on our external
stakeholders and our ecosystem.

Most material issues in 2023
The four issues classiﬁed as most material (sustainable materials
and responsible sourcing, ethics and human rights, animal welfare,and savoir‑faire and corporate culture) are of course the subject ofdedicated sections, or even chapters in the Group’s Non‑Financial
Performance Statement. Thanks to their importance in Hermès’sustainability strategy, they are also the subject of policies andpresentation materials distributed internally and externally to all our
stakeholders.

Published documents

Sustainable raw materials
and responsible sourcing§ 2.4.2

CSR brief
Supply chain brief
Forest policy
Supplier code of conduct (drawn up in 2023, published in
2024)

Ethics and human rights§ 2.8

Ethics charter
Code of business conduct
Supplier code of conduct
Anti‑corruption code
Vigilance plan

Animal welfare§ 2.2.4

Animal welfare policy

Savoir‑faire and corporate culture§ 2.3

Presentation platform of the École Hermès des Savoir‑Faire(in French) https://ecole.hermes.com/lecole/2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

2.1.4

ANALYSIS OF NON‑FINANCIAL RISKS

As indicated in chapter 4 “Risk factors and management”, § 4.1, in
2023 the Group carried out an overall analysis of its risks according
to two axes, the magnitude of the multi‑criteria impacts and theprobability of occurrence. The materiality work carried out above
made it possible to update this overall risk analysis, which
distinguishes ﬁve major risk categories, three of which are more

relevant in the non‑ﬁnancial ﬁeld. The cross‑reference table below
illustrates the link between this risk analysis and the 13 priority CSR
issues identiﬁed by the materiality matrix. The non‑ﬁnancial issues
taken into account also include the concepts of positive contributions
and opportunities, which are more difﬁcult to incorporate in the risk
analysis.

Group risks

2

Priority CSR issues

4.1.1 Risks related
to strategy and operations

4.1.1.2 Image and reputation

Regional responsibility

4.1.1.5 Management of talent and savoir‑faire

Employee well‑being, health and development
Employer brand and relationships with educational
establishments
Diversity and inclusion
Savoir‑faire and corporate culture

4.1.2 Industrial risks

4.1.2.1 Supply management

Sustainable materials and responsible sourcing
Supplier support

4.1.4 Risks related to social, 4.1.4.1 Changes in major global climate and biodiversity
societal and environmental issues
responsibility
4.1.4.3 Availability and proper use of natural resources

Climate change
Biodiversity
Eco‑design, circular economy and innovative materials
Animal welfare
Energy, water and waste management

4.1.4.2 Respect for human rights, fundamental freedoms
and ethics

2.1.5

CSR STRATEGY

Developed in 2015 and updated in 2020, the consistency of the“Hermès ambitions” CSR strategy was conﬁrmed by the work carriedout this year, by the subjects taken into account by its stakeholders,and ultimately by the double materiality analysis in 2023. The
underlying premise is: “All artisans of sustainable development”; itconstitutes the CSR reference framework applicable to all Group
employees and entities. It is based on appropriation andimplementation of topics at a collective level, a key factor in its
sustainability. The Sustainable Development Board and thesustainable development department assist the Group’s subsidiaries
and métiers to ensure its proper application.
In 2022, more than 40 Group subsidiaries, métiers andcross‑functional departments used this strategic framework toformalise their own “sustainable development wheel” and highlighttheir speciﬁc sustainability issues, ambitions and objectives. All of theHouse’s Management Committees have therefore increased theirknowledge of this subject, and worked on the operational
implementation for their scope, with the help of the sustainable
development department and third parties, where applicable, on

1.

Ethics and human rights

speciﬁc technical subjects. This work reﬂects greater maturity within
the Group, and forms the basis of an operational approach now fully
deployed within the House.
In 2023, this approach continued with the gradual production ofcommitment handbooks, adapted at entity‑level from the Group’s
sustainable development roadmap presented below. Thus, each
entity of the House is now working on formalising action plans,monitoring indicators and quantiﬁed objectives speciﬁc to its scopeand operational challenges. For example, indicators relating to water
management are included in the commitment handbook of the
Hermès division (which includes tanneries and farms with one of theGroup’s highest water footprints), while the retail subsidiaries include
indicators relating to managing their inventories and unsold goods.
These commitment handbooks, which will be more widely rolled out in
2024 and 2025, will increasingly become sustainable performance
management tools for each entity’s scope, and will align with future
ESRS (1).
2023 was marked by the strategic project on compliance with theEuropean Corporate Sustainability Reporting Directive (CSRD).

European Sustainability Reporting Standards
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL61

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

CSRD: a new non‑ﬁnancial reporting framework and an opportunity to highlight the House’s sustainability
The CSRD is an opportunity to go further in highlighting the House’s CSR performance and the singularity of a responsible craftsmanshipmodel, which places people, the planet and communities at the heart of Hermès’ value creation.
This new regulation represents a lever for the harmonisation of reporting practices at sector level, and facilitates the assessment of theGroup’s non‑ﬁnancial performance and its management in all of the House’s activity sectors.
In 2023, Hermès mobilised all internal teams to prepare for the upgrading of its non‑ﬁnancial reporting and thus better prepare for therequirements of this new directive for the 2024 reporting exercise, published in 2025.
This work, which began with an in‑depth differential analysis, led to the deﬁnition of a roadmap detailing the projects to be carried out in
2024 to ensure the compliance of the Group’s reporting in 2025.
This work, managed jointly by the sustainable development and ﬁnancial consolidation departments, involved several support departments(legal department, audit and risk management department, human resources department, industrial department, ﬁnancial communication
department and information systems department), as well as the Group’s operational departments, subsidiaries and métiers.
Hermès’ sustainable development strategy is also supported by the“Hearts & Crafts” social model, structured in 2023 following
extensive consultative work involving all the Group’s Directors of
Human Resources. This social model provides a frame of reference
for the Group’s initiatives in terms of supporting the people that makeup the House. This social model is described in more detail in § 2.2“People – teams”.

The Hermès Group’s CSR strategy makes a tangible and directcontribution to 10 of the 17 sustainable development goals for 2030
(see § 2.7.6), as deﬁned by the United Nations. Its action is alsoaligned with the responsible principles of the Global Compact, towhich the Group adheres.

In practical terms, Hermès’ CSR strategy is organised around six operational pillars, themselves subdivided into
53 topics that serve as benchmarks for the operational actions of the House’s entities as well as their CSR
roadmaps. This strategic framework can be consulted via the following QR code.
STRATEGIC FRAMEWORKGOVERNANCEPEOPLE

TE

AM

SAV

S

OIR

-FA

IR
E

E

ENV

M

AN

TI

EN

T

&

NI

S

N
IRO

PL

S

MU

ET

RAW

MATERIALS

S A
T
ERS
& T KEHOLD CYRANSPARENCOM

UP
PA PLIRT ERSNE
RS

ETHICSThis strategy provides a comprehensive and speciﬁc framework for allof the Group’s actions, and serves as a common language within theGroup as well as for external communication.

62

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The materiality analysis makes it possible to deﬁne the priority
actions in respect of this strategy on which the Group focused, itsaction and approach. The sustainable development roadmap
presented below summarises the management of the system
according to these priorities, which are broken down into issues,
objectives and results.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

Sustainable development strategic roadmap
People:Priority issues

Strategic commitments

Employee well‑being Ensure the well‑being andand development
fulﬁlment, health and safety of

employees

Main concrete measuresand results for 2023

Ambitions and objectives

Structuring of the ﬁrst major Group employee 100% of employees covered bysatisfaction survey to be launched worldwide measurement of employee engagement,in spring 2024
health and well‑being every two years
Improvement in the engagement rate
Decrease of 1/3 in the severity rate (and of
20% in the frequency rate) of workplace
accidents with lost time over the last ﬁve
years

Zero workplace accident trajectory, with theobjective of halving the workplace accident
rates (frequency and severity) between
2016 and 2025

97% of employees worldwide beneﬁt fromstatutory and/or supplementary healthcare
coverage
97% of employees worldwide beneﬁt fromlegal and/or supplemental pension plan
96% of employees worldwide beneﬁt fromlegal and/or supplemental life insurance
schemes

100% of the permanent workforce coveredby a common basic set of Group social
beneﬁts by 2026

100% of employees covered by a maternity
policy with compensation maintained
78% of employees are covered by apaternity/ second parent leave

Ensure parenthood coverage (maternity andpaternity/second parent) with salary
maintained for 100% of the employees in
2024

Encourage the integration and6.8% employees with disabilities in France
recognition of talent in its diversity (2022)
and promote equal opportunities
and inclusion
68% of the workforce are women
60% of managers are women
70% of the Operations Committee arewomen
47% of the Top 100 are women
40% of the Executive Committee are women

Achieve a rate of workers with disabilities
above 6% each year (calculated worldwide
from 2024, where this is authorised)

Set up social protection systems
that are accessible, as well as
value‑sharing schemes andambitious compensation policies

Savoir‑faire andcorporate culture2

Reach 50% women in the top 100
40% women on the Executive Committee

Develop training that guarantees
83% of employees were trained, with anoperational excellence andaverage of three days of training per person
versatility and consolidate thesavoir‑faire of our employees, bothtechnical and managerial

At least ﬁve days of training per year and per
employee by 2026

Encourage the transmission ofsavoir‑faire to our partners:
schools and training centers

More than 800 learners supported by the
École Hermès des Savoir‑Faire
100% of learners supported by the École
Hermès des Savoir‑Faire obtained theircertiﬁcation
200 people obtained their CAP vocational
qualiﬁcation in leather work

Support 100% of EHSF learners registered
for the 2024 exam session of the CAP
leather work qualiﬁcation in obtaining theircertiﬁcation

21 Meilleurs Ouvriers de France (Bestcraftspeople in France – MOF)

Cultivate the excellence of ourcraftsmanship skills by participating in the
MOF competition every three years

Share the corporate project andits values, which are the pillars ofteams’ identity and long‑termcohesion

100% of employees received training in the
Hermès culture in the ﬁrst year

Train 100% of newcomers in Hermès culture
every year

Integrating sustainable
development issues into
savoir‑faire

More than 10,000 participations in thevarious sustainable development traininge‑learning courses provided by the Group

100% of the workforce trained insustainable development issues by 2025

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

63

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

Planet:Priority issues

Strategic commitments

Main concrete measuresand results for 2023

Ambitions and objectives

Eco‑design andcircular economy

Systematise circularity
approaches

80% of métiers have conducted a life cycle
analysis on their ﬂagship products

100% of the most emblematic items to becovered by a life cycle analysis by 2025

100% of unsold items in France donated or
recycled (Agec law scope)

100% of unsold goods at Group level
donated or recycled between 2025 and2030

Around 2.8 million products incorporating acircular and eco‑responsible approachdeveloped in 2023

Every year, 100% of the House’s métiers
develop products that incorporate a circularapproach

59% reduction in dormant leather
inventories between 2021 and 2023

Reduce dormant leather inventories by 75%
between 2021 and 2024

Extend the life of goods

202,000 repairs in 2023

Guarantee a repair service for 100% of
repairable items brought inby the House’s customers

Commit to sustainable
construction

Certiﬁcation of the internal construction
standards by Bureau Veritas
100% of projects launched in 2023 follow
the standard

100% of new real estate projects alignedwith the standard

Know and trace supply chains

75 active materials, detailed analysis of
74 materials representing 99% of theGroup’s activity

Map all of our supply chains and cover
100% of the Group’s activity

Deﬁne, share and deploy theGroup’s expectations in terms ofsustainable supply chains, inparticular through certiﬁcations
and labels

A distribution rate of 90% for the CSR brief
and 80% for the CSR self‑assessment
questionnaire

100% of suppliers aligned with the CSR brief
and 80% of suppliers self‑assessed via the
CSR questionnaire in 2024

A distribution rate of 88% for the supply
chain brief to suppliers and partners,
formalising the Group’s expectations,particularly in terms of certiﬁcation and/oraward of labels

Implementation of a process leading tocertiﬁcation and/or to award of labels for 54
supply chains by 2030

Deﬁne, share and deploy theGroup’s expectations in terms ofanimal welfare, in particularthrough certiﬁcations and labels

Deployment of the Animal Welfare policy
for 15 priority animal species

Achievement of the objectives set by the
Animal Welfare policy for 100% of theGroup’s animal sectors by 2025

Sustainable
materials andresponsible
sourcing

Animal welfare

Ostrich sector 100% certiﬁed in accordancewith the SAOBC standard
100% of crocodilian hides produced by theGroup certiﬁed in accordance with the ICFA
standard

642023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

Planet:Priority issues
Climate change

Strategic commitments

Main concrete measuresand results for 2023

Ambitions and objectives

Deﬁne a trajectory for reducing
the Group’s GHG emissions
across all scopes and measure
the emission reductions acrossthe various scopes

A decrease of 49.6% in absolute value ofscopes 1 and 2 compared to 2018, and-52.2% of scope 3 in intensity. Emissions arein line with the Group’s 2030 objectives
validated by SBTi
Inclusion on CDP climate A list

-50.4% in absolute terms for scopes 1
and 2

Study climate risks, act to reduce
their impacts, analyse resilience
scenarios and integrate them into
the strategy

Climate risk analyses conducted on 100% ofbuildings in France
Analysis of transition risks in order toanticipate changes in the upstream value
chain and impacts on the activity of our main
supply chains
Participation in the IF initiative, acollaborative approach to strategic foresightand anticipation of physical risks induced bypost‑2050 planetary boundaries

Update of the physical risk analysis for
100% of the scope of our physical sites by2025

Undertaking voluntary carbon
offset actions with highenvironmental, social and societal
value added

Offsetting for 100% of scopes 1 and 2 and100% of the "transportation" item (upstream
and downstream)-58.1% in intensity for scope 3 between
2018 and 2030, objectives validated by the
SBTi, compatible with the 1.5°C trajectory

2

Finalisation of the IF initiative transition risk
analysis by 2025

Maintain and conﬁrm the Group’s
investments in Livelihoods programmes anddevelop regenerative agriculture
programmes, allowing the increase of carbon
sinks in the Group’s value chain.
Achieve offsetting of 50% of our residual
emissions between 2030 and 2040, and100% by 2050

Biodiversity

Diagnose our impacts on
biodiversity across the Group’s
entire value chain and deﬁneambitions on a scientiﬁc basis

Achievement of steps 1 (materiality) and 2(prioritisation) of the SBTN approach acrossthe entire scope

By 2025, validation of steps 1 and 2 by the
SBTN initiative and launch of step 3 (settingof local targets for water and soil issues)

Implement training initiatives for
employees

Training of more than 2,400 employees
since 2021, including 900 in 2023

Train 100% of Group employees
in biodiversity by 2025

Implement actions in the métiers,in the supply chains and on sites

Biodiversity analysis of the cashmere supply
chain with the University of Ulaanbaatar,
WWF France and WWF Mongolia

Continue biodiversity analyses in our supply
chains100% of Leather Goods workshops (whichhave been in operation for more than a year)
carried out an inventory and a biodiversity
action plan (excluding Paris)

Diagnose and implement action plans at
100% of industrial sites in France by 2025

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

65

2CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

Communities:
Priority issues

Strategic commitments

Ethics and humanrightsTrain employees in best ethicalpractices

Nearly 2,800 employees were trained via the 100% of employees exposed to ethics risks“Ethics and anti‑corruption” e‑learning
trained in the Group’s rules of good conduct
module. More than 15,000 training sessions
provided since 2020

Fight against breaches of ethics
and integrity

Update and expansion to external
participants of the H‑Alert! whistleblowing
system. 105 alerts were received throughthis system 100% of alerts resulted infollow‑up

Ensure access to an internal and external
whistleblowing line in the event of breachesof ethics and integrity, conﬁrm receipt ofalerts within seven days and deal with 100%of alerts received

Exercising theGroup’s duty of care

External recognition of the vigilance plan by
the SIF 1
Updating the vigilance plan for publication in
2024

Regularly updating, disseminating andmonitoring the Group’s vigilance plan

Supporting our partners
in changing their practices
and ensuring the applicationof our social, environmental andethics requirements

220 audits carried out at Tier 1 and Tier 2
suppliers in 2023, i.e. a total of 298 days ofauditsAudit at least 150 Tier 1 suppliers anddevote at least 300 days in total to auditsMore than 950 national and international
suppliers invited to complete the EcoVadis
assessment platform (representing morethan 80% of the indirect purchasing volume),with a score 27% higher than the EcoVadis
global average

Maintain coverage of at least 80% of indirectpurchasing expenditure each year and an
average EcoVadis score for our suppliers
that is higher than the overall EcoVadis
averagePursue a policy of manufacturing
development in France by
co‑developing projects with theregions in which it operates anddeveloping harmonious
relationships with local
stakeholders

More than 2,300 jobs created worldwide,
including more than 1,300 jobs in FranceContinue to help ﬁrst and foremost the
French regions reap the beneﬁts of our
growthSince 2018, Hermès has increased its
locations in France by 18
production and training sites

Open an average of one production
workshop per year over the next three years

74% of objects made in France

Maintain mainly French craftsmanshipproduction

Contribute to value creationand its sharing

Cumulative added value distributed over thelast three years:s 20% of added value distributed to
employeess 26% of added value distributed to publicauthorities

Maintain a harmonious sharing of added
value in order to secure the Group’s future
development and contribute to social andsocietal balance

Increase the share of social andenvironmental value‑added
purchases€293 million in social value‑added
purchases (ESS, EA/ESAT, ZRR, QPR) 2
among suppliers for indirect purchases, ofwhich 44% from SMEs

Continue our approach with social andenvironmental value‑added purchases, inparticular from French SMEs

Give back to the world part ofwhat it brings to the Groupthrough generous andphilanthropic actions, undertaken
at all levels of the Group or by the
Fondation

388 social and solidarity actions in morethan 40 countries representing
approximately €13 million

Align on average, over ﬁve years, theamounts of donations and sponsorship
actions carried out directly by Hermès with
the Fondation’s ﬁve‑year budget 3

Socially
responsible
company

Main concrete measuresand results for 2023

Ambitions and objectives

The amounts of all donations andphilanthropic actions carried out directly by
Hermès since 2020 exceed the Fondation’sbudgetContinuation of the 5‑year Fondationd’entreprise programmes

New ﬁve‑year commitment of €61 million
for the period 2023‑2027(1) Sustainable Investment Forum.
(2) ESS: social and solidarity enterprise, EA/ESAT: adapted company/sheltered work establishment, ZRR: rural revitalisation zone, QPR: priority or revitalised
neighbourhood.
(3) Hermès donations and sponsorship spendings are made in addition to the foundation budget

66

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

2.1.6

CSR GOVERNANCE

In late 2022, Hermès updated its internal organisation to improve themanagement of the Group’s CSR performance, with greater
involvement from its governance bodies. The 2023 ﬁnancial year
therefore marks the ﬁrst year of operation of this new organisational
structure, which positions sustainable development as a strategic
priority for the Group. You are reminded that this organisation
provided for:s greater involvement from the Executive Committee, which is now
called upon directly by the Sustainable Development Board toarbitrate on major and strategic issues at dedicated meetings;s the creation of a Sustainable Development Board, made up of theHouse’s main Managing Directors, which is tasked with managing
the major cross‑functional projects and ensuring the progress ofthe operational roadmaps of the métiers and subsidiaries;s lastly, the creation of a Committee of Sustainable Development
Directors to support change within the House’s various sustainable
development departments, and promote sharing between theHouse’s CSR leaders.

2

The House has thus created the conditions to effectively organise andsystematically intensify its ambitions, while remaining faithful to its
decentralised model and its “all artisans of our sustainable
development” approach.

EXECUTIVE MANAGEMENT
Nurture and complement
the Group’s sustainable
development approach

FONDATION HERMÈS

SUPERVISORY BOARD
Determines the main
strategic directions

EXECUTIVE COMMITTEE
AUDIT AND RISKCOMMITTEE

Meeting dedicated to sustainable
development 4 times a year

PHILANTHROPY
COMMITTEEETHICS COMMITTEE

Promote and drive
the sustainability
approach

Allow the sharing
and development
of best practices

Supervises and manages
major cross-functional
projects

GROUP
MANAGEMENTCROSS-CUTTING PROJECT GROUPSCAG-CSRCOMMITTEESUSTAINABLE DEVELOPMENTBOARD

SUSTAINABLE DEVELOPMENT DEPARTMENTSUSTAINABLE DEVELOPMENTOPERATIONS COMMITTEESUSTAINABLE
DEVELOPMENTDIRECTORS' COMMITTEELOCAL COMMITTEESMÉTIER/SUBSIDIARY SUSTAINABLE
DEVELOPMENT DEPARTMENTS

Supervisory Board

Its CAG‑CSR Committee has the role of overseeing sustainable
development issues. It meets with the sustainable development
department twice a year. Nine out of 12 Board members declareexpertise in sustainable development, thus contributing todiscussions with the operational teams and increasing the highstandards demanded for the approach implemented (see chapter 3“Corporate governance”, § 3.4.5.2). In 2023, this body beneﬁted fromthe ﬁrst sustainable development training sessions, which will berolled out more widely in 2024.

Since 2023, the role of the Executive Committee has beenstrengthened, thanks to sessions entirely dedicated to sustainable
development held every two months. Five sessions were held in 2023
in order to validate the major strategic orientations, monitor the
associated objectives and results, and ensure a periodic review of theadequacy of the resources allocated to the objectives. In 2023, thesubjects monitored were submitted to the Executive Committee:

Executive Management and Executive Committees strategy for responding to non‑financial rating agencies;

Group Management plays an active role in the implementation androllout of the approach. The Executive Chairman, Axel Dumas, isinvolved in many subjects. As a reminder, since 2019 (see chapter 3“Corporate governance”, § 3.8.1.2.4), the variable compensation of
the Executive Chairmen of Hermès is partly conditional (10%) on a
“CSR” criterion consisting of three indices (environmental, social andsocietal).

s project to support our suppliers of raw materials;s group decarbonisation and carbon offset strategy;s european green deal (taxonomy, CSRD);s analyses and arbitration of key points within production and raw
materials sectors;s sustainable development training programmes.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL67

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

Sustainable Development Board

The Sustainable Development Board has 16 members from outside
the sustainable development department, who are directors of theGroup’s main central functions and integrated supply chains. This
Board oversees the implementation of the CSR approach, steers
major cross‑functional projects, oversees the roadmaps of theHouse’s main entities, launches and monitors ad hoc working groups,
and identiﬁes key decisions to be submitted to the Executive
Committee. This body met six times in 2023, and has an averageattendance rate of 80%.
Sustainable Development Directors’ Committee (C3D)

To complement the Board’s functions and structure the managementof the sustainable development function within the Group, this new
body now brings together 11 sustainable development directors fromthe métiers, sustainable development functions and subsidiaries
within the House (the Leather Goods, Ready‑to‑wear, Jewellery,
Watches and Home métiers, the Hermès Cuirs Précieux division,
general services department, human resources department andcommunication department, as well as the French and UK distribution
subsidiaries). This Committee monitors the entity’s roadmaps andpromotes discussion on cross‑functional training and internal
communication issues. It is in charge of coordinating the network of
SD contributors and ambassadors in the Group. This committee met
ﬁve times in 2023.
Group sustainable development department

Reporting to a member of the Executive Committee, this proposes
and implements the strategy and oversees the approach taken by thecommittees and all functional and operating departments and Groupsubsidiaries, both in France and internationally. It monitors
accomplishments, coordinates the operation of various committees(the Sustainable Development Board, Sustainable Development
Directors’ Committee and a Group Operations Committee), assists
local committees and manages cross‑functional projects andnon‑ﬁnancial reporting.

Group Operations Committee

Composed of more than 100 members (compared to 45 in 2021 and
83 in 2022) representing the main métiers and central functions, aswell as the French‑speaking distribution subsidiaries, it analyses thetechnical and functional aspects of the projects carried out by thevarious entities of the House and allows its members to sharesustainable development news. It met ﬁve times in 2023, including aface‑to‑face session during an off‑site day devoted to the theme of
circularity. This day enabled all members of the committee to meetwith one of the House’s privileged partners in terms of recycling
unsold items.
Local Sustainable Development Committees

Run by the main métiers and subsidiaries, they initiate and track
actions launched, and share them during regional meetings. For the
10th consecutive year, the heads of the Sustainable Development
Committees in the Asia and Europe regions met, remotely, for ahalf‑day seminar. Environmental initiatives are driven more speciﬁcallyby an “EHS (1) network” in France, run by the industrial affairs
department.
These bodies may be supplemented by management and ad hoc
committees when new sustainable development projects are
implemented by subsidiaries and entities. Cross‑functional
committees, led by Hermès’ head ofﬁce departments, manage issues
that are of common interest and often of a medium‑term nature. They
focus in particular on issues relating to recycling, materials
innovation, the circular economy, sustainable construction andlogistics.
Métier/subsidiary sustainable development departments

These are responsible for leading the approach at their level and forsigning up to a CSR roadmap each year. The Group’s main métiersand subsidiaries, which account for more than 80% of the activity,
have a dedicated or part‑time sustainable development manager.

Reading guide
In order to present the commitments, actions and results for the six pillars of Hermès’ CSR strategy as clearly as possible, the subsequent
chapters have been organised as follows:s an introduction detailing the commitment made by Hermès and how this relates to the Group’s values;s a summary of the key events and achievements of 2023;
s a selection of indicators giving key figures on Hermès’ progress on all of its commitments in 2023;
s a more detailed presentation of the policy implemented and actions carried out at all levels of the Group, as well as the achievements andresults of 2023.

1.
68

Environment, hygiene and safety2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE
BUSINESS MODEL

2

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL69

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

Inauguration of the Sormonne Leather Goods workshop, 2023

© Photography credits: Paul Pintard

702023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

2.2

PEOPLE: TEAMS

Since 1837, Hermès has remained faithful to its craftsmanship model and its humanist values. A responsible family company, Hermès offers
the women and men who are part of it, a collective and human project, with the opportunity to work in an authentic, stimulating and caring
environment and to ﬁnd a real meaning in its professional commitment. This is reﬂected in the attention paid to each of its employees, as aperson and as a member of the House’s collective. Hermès’ sustainable development is thus based on the recruitment, development andwell‑being of its teams and on a human capital rich in its diversity.

2

Introduction
Hermès places People at the heart of its corporate project. This is
reﬂected ﬁrst and foremost by the desire to recruit talents fromvarious backgrounds and ensure their integration; then by thecommitment to preserving the health and protection of all employees
in the face of life’s ups and downs, thanks to a core social protection.
Lastly, Hermès pays particular attention to the professional
development and achievement of each individual in their work.
The Hermès “Hearts & Crafts” social model is based on four strategicpillars providing a common reference framework for the Group’s
initiatives in terms of supporting women and men:s a managerial philosophy anchored in humanist principles,
embodied by managers cultivating a wide range of freedom in an
inclusive and diverse working environment;s special attention to the well‑being and protection of employees,
their physical and psychological health and the balance between
their professional and private lives, particularly during periods ofvulnerability;s the recognition given to employees, through compensation andvalue redistribution schemes, which testifies to the value Hermès
places on the commitment and work of each of its employees,
regardless of their métier and geographical location. This
recognition is also expressed by the development of employability
and lifelong learning, thanks to particular attention paid to humandevelopment, through a wide range of training courses and support
schemes and the transmission of the savoir‑faire of excellence(§ 2.3);s the ability for each person to find meaning in their work, by being
part of communities on a human scale, by forming a true social
collective, by constantly striving to achieve high quality ineverything. The freedom of action, intrinsically linked to thecraftsmanship model, also allows each employee to shape theirwork in their own way and to find meaning and pride in it, whileallowing everyone to be involved and responsible (§ 2.3).

In 2023, the Group made progress on important societal issues, with the aim of making a long‑term difference through steady improvementswith a signiﬁcant impact. Among these, the selected elements below are particularly illustrative of the year for this section:s formalisation of the Hermès “Hearts & Crafts” social model with a participatory approach;s renewal of a strong commitment through the publication of a Group health and safety policy;s exceptional bonus of €4,000 in respect of 2023 for eligible employees across the entire Group (paid for the second consecutive year);s in France, increase in the employment rate of people with disabilities to reach 6.8% (2022 value) despite 12% growth of the workforce.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

71

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSPEOPLETEAMSSDGOBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

SEEKING RARITY AND DIVERSITY, KEY LEVERS FOR OUR GROWTH

Develop tools and use relevant
channels to recruit talent

Visibility and attractiveness ofthe employer brandGlobal recruitment volume

More than 1.3 million visitors to the careers
website
1.4 million followers on the Hermès LinkedIn
page427,000 candidate proﬁles recorded on the
career website talents.hermes.com

new indicator

5,186 new employees hired worldwide in2023, including 2,544 on permanent↗

employment contracts
Ensure the recruitment of suitable
proﬁles for all our métiers worldwide

Promote our métiers throughpartnerships with educational
establishments

Number of positions created in
the production sector

1,169 additional positions created in the

Number of positions created in
the sales sector

825 additional positions created in the sales
sector↗

production sector↗

70 actions carried out with target schools,
with an audience of 4,000 students (inNumber of students reachedby school actions

France)More than 1,000 interns and work‑study
students were recruited in France in 2023↗
new indicator

FACILITATING THE INTEGRATION AND RECOGNITION OF TALENTS IN THEIR DIVERSITY, PROMOTING EQUAL OPPORTUNITIES AND INCLUSION

Promote the participation of womenin company management

Ensure equal opportunities

Ratio of women present overall within
the Company

68% women in the Company↗

Ratio of women on the Executive
Committee

40% women on the Executive Committee=

Ratio of women on the Operations
Committee

70% women on the Operations Committee↗

Ratio of women managers

60% women managers=

Gender pay equality index (France)

The weighted average global gender equality
pay index is 92/100

Percentage of employees working outsidemajor urban areas in France
Percentage of employees under the ageof 30 hired in Seine‑Saint‑Denis
Number of employees who completed a
Diversity and Inclusion training course

Continue to recruit young people
under the age of 30

50.2%

new indicator32%

new indicator

More than 900 employees trained

6.85% : rate of directly employed people withFight against discrimination↘

% of employees with disabilities in
the workforce in France

disabilities in France (2022 ﬁgure) vs. 3.7% at
the launch of the ﬁrst Group disability
agreement in 2017

% of employees under the age of 30

20%

↗
↗
=

MAINTAINING THE QUALITY OF SOCIAL DIALOGUE
Conduct discussions with social
partners or equivalent

96 agreements and amendments signed in
Number of agreements and % of employees
France in 2023, covering 63% of Group
concerned
employees↗

The H‑Alert! whistleblowing system,
accessible to 100% of employees andsuppliers, resulted in 105 alerts in 2023, allof which were followed up.

↘

Allow employees to express themselves % of employees able to use the ethics
freely via an ethics alert line
alert line and number of cases handled722023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSPEOPLETEAMSSDGOBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

ENSURING EMPLOYEE WELL‑BEING AND FULFILLMENT
Ensure good working conditions
for our employees

Group absenteeism rate

2.56%

↗

Group lost‑time work accident frequency
rate

8

=

Group frequency rate for workplace
accidents with lost‑time

0.30

↗

2

Ensure health and safety at work

97% of employees worldwide beneﬁt fromstatutory or supplementary healthcare
coverage.
76% of employees worldwide beneﬁt from ahealth check‑up or targeted prevention
measures
Life insurance: 89% of employees worldwide
beneﬁt from a lump sum, equivalent annuities
of at least two times annual gross basic
salary, paid to beneﬁciaries

Ensure a core social protection for all
employees% of employees beneﬁting from the Hermès Access to a supplemental pension plan: 97%of employees worldwide beneﬁt from legal
core social protection covering the ﬁve
and/or supplemental pension plans.
pillars of social protection (health,protection, retirement, disability,
parenthood)
Disability: 96% of employees beneﬁt fromlegal or supplemental permanent anddeﬁnitive disability coverage

Maternity leave: 100% of employees beneﬁt
from maternity leave of 16 weeks with salary
maintained and childbirth costs paid
Paternity/second parent and adoption leave:
78% of employees worldwide beneﬁt from afour‑week second parent and adoption leave
with salary maintained=
new indicator

new indicator

↗
=
=

↖

ESTABLISHING VALUE‑SHARING MECHANISMS
Amount of incentive and proﬁt‑sharing
schemes in France
Set up additional compensation as asupplement to ﬁxed salary

Exceptional Group bonus paid during theﬁnancial year, for all employees worldwide€207 million (compared to €168 million in
2022)
Exceptional bonuses of €4,000 paid in 2024
in respect of 2023, for the second
consecutive year↗
=

The analysis carried out in 2023 on the living
wage conﬁrmed that our standards applied to
Implement a minimum compensation
policy worldwide% of employees whose compensation
is above the living wage deﬁned locallyﬁxed compensation comply with local salary
regulations and fully integrate the level ofliving wages, the thresholds of which are
determined by independent reference bodies

new indicator% employee shareholding

As at 31 December 2023, employee
shareholding represented 1.09% of the sharecapital, i.e. over €2.2 billion↗

Number of employee shareholders

More than 18,000 employee shareholders or
employees holding rights to free shares under
the new 2023 free share plan, i.e. 80% of theheadcount at 31 December 2023↗

Promote employee shareholding2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL73

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

2.2.1

THE “HEARTS & CRAFTS” SOCIAL MODEL

The “Hearts & Crafts” social model is ambitious. It is broken down into commitments deﬁned for each of these pillars, with the aim of quantifying
and measuring progress.

COMMITMENTS

AMBITIONMANAGERIAL
PHILOSOPHY

Remain true to Hermès’ heritage and uniqueness,while cultivating our managerial culture to support
growth and prepare for the future.
Ensure an inclusive work environment in which
everyone finds their place through the meaning
given by their contribution and thrives while
respecting others.

40% women on the Executive Committee.
50% women in the Top 100 *Equal treatment (equal pay, promotion,
career path).
6%: Group average direct employment rateof people with disabilities.**

HEALTH &WELL-BEING

Ensure a working environment conduciveto the physical and psychological well-being of all
employees, enabling them to reconcile their work-lifebalance.

Zero workplace accidents trajectory, with theobjective of reducing the frequency rate and severity
rate of workplace accidents by 50% between 2016
and 2025.
100 % of the workforce covered by a common
basic set of Group social benefits by 2026.

RECOGNITION

Recognise employees for their contribution
to Hermès’ success, through value sharing,professional fulfilment and employability.
Enable everyone to develop according to their means
and ambitions through tailor-made pathways.

5 days of training per year per employee by 2026.

MEANING AT WORK

Contribute to Hermès’ sustainable growthand grow together.
Retain the freedom to act and undertake, for each
person to shape their work in their own way.
Enable everyone to contribute and be a responsible.
citizen.

Offer each employee the opportunity to undertakea civic commitment for up to five days per year.
Regular measurement of the commitment, healthand well-being of employees - 100% of employees
covered.

*100 positions with the highest levels of responsibility according to the classification used by the Group.
**In countries where this indicator is legally calculable.

2.2.2

OUR TEAMS: GROWING OUR HOUSE, AND GROWING WITH IT

The sustainable development of the House rests on the women andmen who contribute in a harmonious and positive manner to its
functioning and development.

11,037 11,718 12,244 12,834 13,483 14,284 15,417 16,600 17,595 19,686 22,037

At the end of 2023, Hermès had 22,037 employees (1) of 110
different nationalities, an increase of 11.9% compared to 2022. Overthe past ﬁve years, the workforce increased by 7,753 people,
representing nearly one‑third of the total permanent workforce in theGroup today.
Growth is balanced and dynamic in all sectors and regions. Given its
business model and production mainly located in France, 62.3% of
the Group’s total workforce is based there.

1.
74

2013

2014

2015

2016

2017

2018

2019

2020

2021

Employees on both permanent employment contracts and fixed‑term employment contracts of more than nine months as at 31 December 2023.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

2022

2023

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSBREAKDOWN OF EMPLOYEES BYGEOGRAPHICAL AREA

BREAKDOWN OF EMPLOYEES BY SECTOR

2

An artisanal business model

The production workforce represents 9,355 people located in France (68% of employees in France), and 10,395 people worldwide, i.e. 47% of
the Group’s workforce. The number of craftspeople is 7,513 people worldwide, including 7,317 in France.
BREAKDOWN OF EMPLOYEES BY SECTOR AND REGION
Total

Production

Sales

Support31/12/2023

31/12/2022

31/12/2023

31/12/2022

31/12/2023

31/12/2022

31/12/2023

31/12/2022

France13,72312,360

9,355

8,561

1,748

1,554

2,620

2,245

Europe (excluding France)

2,327

2,092

878

760

1,144

1,060

305

272

965

900

2

-

880

821

83

79

Japan
Asia‑Paciﬁc (excluding Japan)

3,498

2,954

101

77

2,832

2,552

565

325

Americas

1,524

1,380

59

71

1,152

1,028

313

281

TOTAL

22,037

19,686

10,395

9,469

7,756

7,015

3,886

3,202

Dynamic recruitment

A “family” business model

Hermès supports the House’s growth and the evolution of its
organisation through dynamic recruitment.

The uniqueness of Hermès lies in its long career paths. 30% of theworkforce has been with the House for more than 10 years (i.e.
6,603 people), illustrating the loyalty and opportunities for careerdevelopment within the House (as a reminder, 10 years ago theworkforce comprised 11,037 people). The number of employees withmore than 15 years of service increased by 6% in one year, a ﬁgurethat is unchanged from 2022.

In 2023, 2,351 net jobs were created within the Group. As of
31 December 2023, Hermès had 22,037 employees worldwide, of
which 13,723 were in France.
Recruitment continued to be dynamic, with 5,186 new employees hired
worldwide, including 2,544 on permanent employment contracts.
Another illustration of the strong recruitment momentum in recent years
is that 50% of the Group’s total workforce has been with the Group forless than ﬁve years, for an average Group length of service of eight
years, reinforced by a low turnover rate (4.78%). In addition, theaverage age of the Group’s employees is 39.

Hermès employees demonstrate their commitment to the Company
through long‑lasting, even exceptionally long, careers.

Highlight of the year – A celebration of employees for the years spent with the House: 25 years, 30 years, 35 years, 40 years, 45 years andsometimes even 50 years.

On 4 December 2023, around 100 people from certain French entities, accompanied by several members of the Executive Committee, were
warmly applauded by 700 employees of the Hermès de Pantin workshops. Of these 100 employees, 10 had celebrated their 40 years ofservice, and three of them their 45 years of service.
A renewed opportunity to share the events that marked the history of the House in the year in which these employees joined. The rest of the
day was full of surprises and anecdotes, triggering a lot of emotions for everyone. In this way, Hermès recognised the loyalty shown by its
employees.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

75

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

A responsible house

A strong player in employment in France, Hermès is committed to its
responsibility as an employer thanks to its proactive approach toanchoring itself in the regions, within which it continues its
development.
In 2023, approximately half of the workforce (50.2%) worked outsidemajor urban areas in France (outside major cities and nearby
suburbs), and 36% of the workforce at Group level.
To illustrate this desire to create jobs outside major cities, it should be
noted, for example, that 32% of new employees in France under theage of 30 in 2023 concerned jobs in Seine‑Saint‑Denis.
Hermès’ policy is to ensure job stability, and 92% of employees havepermanent jobs, in line with its social model.
A symbol of the desire to include and support all of its employees inthe transformation of the Company, non‑voluntary departures remain
limited, the total number of redundancies compared to the Group’s
workforce representing 1.17%. The last 10 years have not required
the Hermès Group to undertake any restructuring efforts for
economic reasons that had any consequences with regard to jobs.

Voluntary

InvoluntaryGroup

Turnover rate 2023

3.61%

1.17%

4.78%

Turnover rate 2022

4.46%

1.53%

5.99%

The workforce dynamic is positive, expressed by the balanced
representation of all age groups. More generally, the dynamic
illustrates and fosters our commitments to diversity and inclusion,both to ensure the wealth of talent proﬁles and to convey the cultureof the House and its exceptional savoir‑faire.
One of the elements of Hermès’ uniqueness lies in its dual
dynamism: that of recruitment, associated with long career paths if
the employee so wishes. In this context, special attention is paid tothe employment of young people and the retention of older workers:
s 50% of employees have less than five years of service. Nearly 20%
of employees have more than 15 years of service;s 20% of employees are under 30 and 19% are over 50.

AGE PYRAMID BY GENDERGROUP LENGTH OF SERVICE

3%
20 and over
15 to 20 years
10 to 15 years

11%

6%

8%

9%
11%

11%

5 to 10 years
3 to 5 years

20%
12%

1 to 3 years
1 year and under

22%
16%

60 and over

50 to 55 years of age

10%

45 to 50 years of age

11%

2.2.3.1

ACTIVELY COMMITTED TO RECRUITMENT

By the very essence of its corporate project, to create, produce andsell high‑quality objects, Hermès needs to choose the talents that join
it carefully. The family business culture associated with humanistic
values, the breeding ground for all interactions and a management
style that is as empathetic as it is stimulating, strongly guides therecruitment criteria.
Hermès is looking for personalities with strong personal qualities tointegrate a project that is above all human, by leaving their mark on
their role while being part of the collective adventure. Thisrequirement drives and structures Hermès’ recruitment policy. This is
to ensure the necessary compatibility with the speciﬁc needs ofHermès.

762023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

14%

18%

35 to 40 years of age

17%

18%

30 to 35 years of age

18%

14%

25 to 30 years of age
25 and under
Women

SEEKING RARITY AND DIVERSITY, KEY
ISSUES FOR OUR GROWTH

8%40 to 45 years of age

15%

6%

2.2.3

4%

55 to 60 years of age

13%
5%

Men

In a market driven by candidates (tensions on skilled proﬁles andheightened requirements from candidates), the strength of thebusiness model and the quality of the candidate experience need tobe differentiating at all stages of the recruitment process.
A bold and constantly reinvented recruitment strategy is implemented
to achieve growth. The key elements of the Hermès employer brandare pillars feeding the language and communication media designed
to attract talent and publicise the employer brand project.
As a priority source of recruitment, internal mobility is favoured in all
recruitments with the aim of developing talent internally. With equal
skills, priority is given to employees in order to enable them to fulﬁlthemselves in a career that offers diversiﬁed experiences, conduciveto their development in terms of skills and openness to newchallenges.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

Sourcing in 2023

Recruitment in 2023

Internal mobility in 2023

427,000 candidate proﬁles registered on the
career website talents.hermes.com
232 job offers are published each month on
the career website talents.hermes.com
1,388,077 visitors to the career website in
2023, an average of 115,673 per monthcompared with 667,501 visitors in 2022, anaverage of 55,625 per month.
1.4 million followers on the LinkedIn page5,186 new hires made in 2023 (all types ofcontracts) including 2,544 on permanent
employment contracts

1,059 positions ﬁlled through internal mobility

2.2.3.2

2

ATTRACTING FOR THE RIGHT REASONSThe Hermès project requires the integration of personalities
compatible with the values of freedom, authenticity, commitment andhigh standards. Finding the right people to join the House for the rightreasons is key. Being part of a strong collective, serving Hermès overthe long term and meeting quality requirements will all contribute to
everyone’s individual achievement.
Hermès uses two essential media to reach out to candidates: its
career website and the professional LinkedIn social network.
In 2023, the Hermès career website – talents.hermes.com – posted
strong performances with more than 400,000 candidate proﬁlesregistered. 232 jobs are published each month on the career website.

The angle of the LinkedIn editorial line, focused on the CSR
dimensions of the corporate project, makes it possible to share theHouse’s news with the community of 1.4 million active followers. It
illustrates the many responsible initiatives and positions Hermès as aplayer in the economy and employment in France. In addition, it
showcases Hermès employees.

2.2.3.3

RECRUITING YOUNG TALENTS TO SECURE
THE FUTURE

Several programmes aimed at new graduates make it possible tointegrate young talent after their training. They are offeredprogrammes aimed at giving them intensive training during the ﬁrst
months and then offering them a role with responsibilities.

Jeunes Tanneurs | Hermès Cuirs Précieux

Hermès baby |Hermès Japan

Pépinière | Holding Textile HermèsThis programme welcomes engineering
students from various engineering schools as
part of their end‑of‑study internship.
The format: 18 months, three assignments,
three tanneries and two countries, anopportunity to experience different
approaches in the ﬁeld and in cross‑functional
areas and to learn about team management.
The aim is to ultimately offer participants apermanent position in which they can make astrong contribution having already been
trained in all tannery métiers.

This programme aims to recruit young people
with high potential and train them on the
ground through experiences as close as
possible to the customer and the product inthe subsidiary’s stores.
In 2023, Hermès Japan welcomed 23 young
talents as part of this programme; 23 young
talents will join the cohort of 2024 in April.

This programme is intended for newly qualiﬁed
engineers or those with a ﬁrst experience. For
three years, they are entrusted with various
assignments of around six months in threemain functions of the textile sector: Supply
Chain, Product Development andIndustrialisation, and Quality. A change ofsubject, team and management will develop
agility, technical skills and a cross‑functional
understanding of the sector in the newly
qualiﬁed engineer. At the end of thisprogramme, depending on the proﬁle,experience acquired and opportunities, they
will be assigned to a permanent position
within the function.

At Group level, a VIE (volontariat international en entreprise,international volunteering within the Company) recruitment strategy
was deﬁned and widely rolled out in 2023. This reﬂects Hermès’desire to offer international career opportunities to prepare young
people to join the House with a longer‑term vision. Following 12 to
18 months of experience in a context requiring adaptation to adifferent culture and teams, the Group has the possibility of further
developing agile, international talents versed in the Hermès culture.
In 2023, the young VIE employees of Hermès were spread out acrossﬁve of our seven Retail regions (Europe, the United States, South‑East
Asia, Greater China and Japan).

Giving meaningful assignments and sharing a sense of permanentcollective exchange is the objective assigned to the recruitment ofinterns and work/study students within the métiers. It is with this inmind that the Hermès Métiers human resources department, forexample, has set up a welcome ritual for interns and work/study
students in the Creation and Collection sectors. This induction took
place in three stages: a launch evening highlighting the issues andparticularities of the creation and collection development métiers,
where attendees were given a discovery diary (carnet d’étonnement),a writing session, and a feedback evening, with candid questions put
to two members of the Executive Committee, the Artistic Director andthe Managing Director of Métiers.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

77

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

To illustrate the care taken in recruitment, the partnership with local
branches of Pôle Emploi for hiring leatherworkers is a good example.
For several years, the House and Pôle Emploi have developed andimplemented a system that makes it possible to recruit the besttalents, of all origins, training and experience, based on an analysis of
their manual skills. The success of this approach, known as MRS(simulation‑based recruitment method), conducted to support
psycho‑technical tests, manual aptitude tests and interviews, isdemonstrated by the fact that the vast majority of the craftspeople
selected using this system successfully complete their initial cycle of
18 months of training.

2.2.3.4

MAINTAINING QUALITY LINKS WITH EDUCATIONSTAKEHOLDERS

An active school relations strategy aims to promote Hermès, to create
and maintain quality links with players in the world of education in linewith its métiers, development issues and recruitment needs.
Privileged links are maintained with art schools, engineering schools,
business schools and management universities.
For example, the “Hermès in the making” event, which presents theHouse’s savoir‑faire throughout the world, stopped in Lille in
July 2023, and was an opportunity to bring together the closest
school partners. For one day, the House allowed some 30 partners toshare in its savoir‑faire in leather goods, watches, decoration on
porcelain, textile printing, and had multiple conversations to cement
the close ties maintained for several years by linking them with thespeciﬁcities of the business model.
Hermès carries out three types of actions:s transformative initiatives for the community and the individual.
These aim to have a positive impact on society. They include, forexample, the commitment to refugees hosted by Sciences Po Parisas part of the certificate in social sciences, or the support for the
Des territoires aux grandes écoles initiative to facilitate access tomajor universities for young people from less privileged rural areas;s initiatives relating to participation in public debates. These open
up initiatives, helping to embrace broader issues than those of theHouse, related to the métiers of the future, or to forward‑looking
reflections, such as involvement in the Paris School of Economics
OSE Chair (Open Economic Science), the financing of the European
Chair in “Sustainable Development and Climate Transition” of782023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Sciences Po Paris, support for the materials library and actions led
by the Campus des métiers d’art et du design, located at theGobelins production unit in Paris. For this project, Hermès’ support
takes the form of the creation of a materials library and thefinancing of a CIFRE (Industrial Research Training Agreement)
project. Hermès Maison was involved in the 2023 Young Designeraward and now in the 2025 and 2026 awards. This award isinnovative in two ways, in that it combines the skills of the teachers
who support students and the skills of Hermès’ employees. In
2023, Hermès took part in the creation of the Chair of drawing with
Ensad, by NID (Nouvel Imaginaire du dessin). Its aim is toencourage young artists to consider careers in the art of drawing.
Hermès also supports the financing of scholarships for IFM
students;s initiatives relating to participation in school life. Hermès intends
to play its role as a socially responsible company throughpartnerships with the Université Dauphine, IFM, ENSAM, Sciences
Po Paris, its involvement in forums, welcoming students andentrusting them with study topics. In 2023, Hermès took part innearly 100 school events to meet higher education students.

In particular, Hermès has developed various programmes with
Sciences Po Paris to train students by inviting them to work on
operational subjects. Under its 2020 partnership with Sciences Po
Paris’ European Chair in Sustainable Development and Climate
Transition, renewed in 2023, Hermès entrusted a group of ﬁrst‑year
students on the International Management & Sustainability Masters
with a study of the challenges of Retail in the luxury goods industry(Capstone project). For the third consecutive year, the House issupporting and coaching students in their thinking for eight months,
in order to help them meet the strategic and international challengesof the chosen topic by giving them the opportunity to immersethemselves in Hermès’ culture and become aware of the House’ssustainable ambition. The topic proposed by Hermès is the issue ofmanagement of packaging in the luxury goods industry. The study
covers different cities (located in Europe, the United States and Asia).
Another collective project was proposed by Hermès for the second
time for Sciences Po Paris’ Executive Master in “Regional Governanceand Urban Development”, focusing on local anchoring as a lever forsustainable economic development for companies and regions. The
aim of this project is to objectively identify the impacts of the Group’s
local anchoring strategy and to characterise its positive contribution.
The project concerns the Rhône‑Alpes sites.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSACHIEVEMENTS IN 2023 | TRANSFORMATIVE INITIATIVES FOR COMMUNITIES AND INDIVIDUALSProgramme d'excellence pour les élites
de nos quartiers (PEEQ)
For the second year, Hermès took part in the
PEEQ programme, which consists ofdeveloping leaders, in addition to their higher
education studies, through a development
path guided by high‑level consultants. Hermès
contributes ﬁnancially to this programme andhosts two students for six months. In the longterm, if an employment opportunity meets
their aspirations, the House may be able tooffer them a permanent position.

Des Territoires aux Grandes Écoles

Sciences Po Refugee Certiﬁcate

Promoting access for young people from rural
areas to the prestigious grandes écoles byremoving barriers related to ﬁnancial fragility,
lack of knowledge of higher education
opportunities and personal obstacles. Hermès
funded six scholarships in 2023 to enablepromising young talents to ﬁnance part oftheir higher education. Departmental
federations were able to hold their meetings in
Nontron and the Maroquinerie de l’Allan.

A curriculum designed to welcome young
refugees, for whom Sciences Po Paris wants
to improve the employability through theacquisition of skills adapted to the world ofwork. They follow a programme of company
visits, which aims to promote theirprofessional integration and help them see
the world of work through a certain number ofcompanies in France. Hermès welcomed themin 2023, immersing them in the worlds ofleather goods craftsmanship and Retail, as
well as organising a workshop to train them inwriting their CVs and giving them theopportunity to experience a recruitment
situation, assisted by recruitment
professionals.

2

ACHIEVEMENTS IN 2023 | INITIATIVES RELATING TO PARTICIPATION IN PUBLIC DEBATES & SCHOOL LIFE

Employer Brand events to attract young
people to manual jobs
By participating in the les de(ux) mains duluxe event at Station F in December 2023,
Hermès wants to highlight the École Hermèsdes Savoir‑Faire to young people looking for a
career path and show them that it offers
training leading to a diploma in the leather
goods métiers, professions of the future, andcreates jobs at many sites around France.
With Viva Fabrica in Lyon in February 2023,
Hermès went out to meet young people
through demonstrations of savoir‑faire in thetannery, leather goods and textile métiers, toawaken them to the richness of its
craftsmanship métiers. More than
18,000 visitors were welcomed over fourdays.

In 2023, the École des arts décoratifs andHermès created the NID – Fabrique desNouveaux Imaginaires du dessin.
Hermès’ ambition is to engage, via thecreation of the NID, in a large‑scale
educational initiative to contribute to giving afair place to drawing by placing it at the heartof education.
Hermès thus intends to play its role as acontemporary house of creation andsavoir‑faire and be recognised as a major
player in the art of drawing.

Within the Group’s various production divisions, La Montre Hermès
took part in recruitment forums throughout 2023 (University of
Lausanne, École Polytechnique Fédérale de Lausanne, École
Hôtelière de Lausanne) to support its recruitment in a context ofsustained growth.
The Cristallerie de Saint‑Louis maintains close relations with the
École Nationale du Verre in Moulins to enrich its teaching and recruit
interns and glass craftspeople.
In the Retail subsidiaries, partnerships have been forged withnumerous universities to promote Hermès and attract candidates to
its hospitality and service métiers. For example, Hermès China has

Participation in schools life
70 actions were carried out in Hermès’ target
schools, for an audience of 4,000 students (inFrance): participation in forums, hosting ofstudent groups to its premises, and casestudies.
More than 1,000 interns and work/study
students were recruited in France in 2023,
some of them through “Open the Orange Box”
recruitment events, promoting an immersive
experience at the heart of Hermès andmeeting managers and HR managers.

established links with nine universities specialising in the ﬁelds oflinguistics, the arts and fashion in order to build long‑term
collaborations and constitute a pool of candidates for internships andjunior positions (such as commercial assistants, operational
assistants, etc.). Partnerships have been extended with universities
in Shanghai and Beijing and other cities.
Hermès Italy has continued to enhance its visibility with a number ofuniversities, such as Bocconi, Luiss University in Rome, Libera
Università Internazionale degli Studio Sociali, the Catholic Universityof Milan and Sapienza University, as well as the Milan Chamber ofCommerce.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL79

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSMEETINGS WITH SCHOOLS IN 2023

Schools of art and design, fashion and textiles

Engineering schools

Business and management schools and universitiess Eindhovens Ensaama – Olivier de Serress ENSP Arles
s FM
s HEADs HEAR Strasbourgs Arts et Métiers Ensams CentraleSupelecs Ecam Lyons ENSAITs Insa Lyons ITECHs Les Miness UTTs UTC Comutecs Audencias CELSAs City University of Hong Kong (EMLV)
s DJCEs EIMLs EM Lyons ESCPs ESSCAs ESSECs GEM (Grenoble École de Management)s IAE Gustave Eiffels IAE Paris Sorbonnes IESEGs ISG Luxes London Business Schools Mod’Arts Rennes School of Businesss Sciences Po
s Skema Business Schools Stanford
s TBS
s Université Paris Dauphines Catholic University of Lille

2.2.3.5

ATTRACTING AND RECRUITING DIFFERENTLY

In 2023, Hermès also organised two “Open the Orange Box” eventsin one of its Paris stores, designed to provide an original experience
for more than 100 executive candidates in work. The purpose of theﬁrst event was to attract engineering proﬁles and show them theextent of and issues facing Hermès’ Craftsmanship division, whichdraws on multiple savoir‑faire and production units located in theregions in France. The second event was dedicated to attracting
proﬁles for the House’s Support functions. Candidates were invited to
discover the uniqueness of the Hermès model for an evening, to talkto managers during a job dating session and to take part indiscussions to learn about the métiers and various players inHermès. Eight other “Open the Orange Box” events were rolled out in
Paris and Pantin within the House to attract and recruit interns andwork/study students.

2.2.3.6

CONTINUOUSLY ENRICHING OUR DIVERSITYTEAMS

The recruitment strategy also reﬂects the Diversity & Inclusion
strategy through its desire to source, identify and attract a variety of
proﬁles. The aim is to offer candidates the opportunity to join a House
that is inclusive, open and welcomes all forms of diversity. This is
reﬂected in practice in four types of actions: the Group Disability
Agreement, social diversity, gender equality and the integration andsupport of seniors.
As part of the Group Disability Agreement, Hermès implements
awareness‑raising actions to change the way its employees view
disability and builds initiatives with partners to promote theemployment of people with disabilities, such that it exceeds the legal
obligation in France for 6% of the workforce to be recognised as RQTH
(Recognition as a Worker with a Disability).

80

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

In terms of social diversity, Hermès is diversifying its recruitment
actions to seek proﬁles from disadvantaged neighbourhoods and rural
areas.
Finally, the recruitment of seniors is a common practice, with Hermès
placing intergenerational transmission at the heart of thedevelopment of its craftsmanship model. The development of theexpertise of employees in charge of recruitment, whether they are
dedicated to recruitment full‑time or whether it is just one of theirfunctions among others, is ensured through recruitment training
modules of ﬁve or three days, according to the proﬁle of participants.
A one‑day module dedicated to Disability Recruitment is offered toopen up the way recruiters look at people with disabilities and learn
to apply best practices for recruiting them. A “Promoting the Hermès
employer brand” module aims to appropriate the dimensions of theemployer brand and illustrate it through evidence to highlight their
beneﬁts for candidates.
“Viens Voir Mon Taf!”

Hermès is involved with the “Viens Voir Mon Taf” association. This
association works to promote equal opportunities by supporting
secondary school students in the priority education network intheir search for internships.
In 2023, around 10 secondary school students were welcomed to
the Faubourg Saint‑Honoré store in Paris, the workshops of our
textile entity HTH near Lyon and the workshops of Hermès Leather
Goods & Saddlery in Pantin.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

2.2.3.7

A HIGH‑QUALITY RECRUITMENT SERVICE

The implementation in 2023 of a structure totally dedicated to therecruitment of managers and interns & work/study students in France
aims to support Hermès entities in their recruitment, providing
expertise in the recruitment business, in‑depth knowledge of theemployment market and a skilled approach to ﬁnding talent. Its
mission is to seek out the unique and diverse, by cultivating the
audacious, and guarantee an authentic candidate experience,reﬂecting our values, our employer promise, and furthering theHouse’s entrepreneurial and inclusive spirit.
Organised from 2024 into four divisions by family of métiers, Hermès
Recruitement department will roll out a range of services, processes
and operating methods to further improve the candidate experienceand offer managers faster and even more efﬁcient services, in linewith changes in the House’s métiers and expertise: a reinvented
approach to the recruitment business with a view to responding
reactively and with an obligation to allocate resources, meetdeadlines and achieve results and meet the needs of the entities.
Hermès, employer of choice, recognised with several awards in 2023

For the second consecutive year, Hermès was ranked second in
the Universum ranking of the most attractive companies forstudents in 2023.
On Tuesday 5 December 2023, Hermès won the Grand Prix Emploi
for the third time, awarded by Humpact, a non‑ﬁnancial rating
agency (ESG) dedicated to social issues. This award recognises
companies for their outstanding social policies, in particular theirachievements in terms of job creation, gender parity andintegration of people with disabilities, young people and seniors.

2.2.3.8

INDUCTION PROGRAMME

Each year, the induction programme for everyone, regardless of their
type of contract, in France and abroad, is developed and is enhancedwith new elements. It is becoming multimodal and aims to offer
experiences that assist the understanding of and acculturation to theHouse, its history, the various métiers, its organisation and its people.
From day one, each employee has access to a new digital induction
programme that includes the new Histoires d’Hermès e‑learning todiscover the identity, foundations and history of a family House,
regulatory e‑learning modules and, coming soon, a local integratione‑learning module for each subsidiary, as well as training courses intools related to each métier.
Then, within two months of arrival, each new employee is invited tofollow a new remote programme “Bienvenue au 24 !” to get a better
understanding of the House, its organisation and its values.
This system is supplemented by face‑to‑face induction training ineach subsidiary (Premiers pas, Tous en selle, Himmersion for Retail,Au ﬁl de HTH, Dans la peau d’HCP), as well as the “Mosaïque” Group

programme, which brought together 1,000 employees on permanent
employment contracts in 2023 (France & Europe) in several sessions,and the “H Keys” Group training, which supports new managers
joining the House in taking up their position and in theirunderstanding of Hermès’ managerial culture.
Finally, each new employee on a permanent employment contract is
supported in his or her ﬁrst few months by an internal mentor tobetter understand the informal nature of the House (Attelage
programme).

2.2.4

OUR MANAGERIAL PHILOSOPHY –MANAGING DIVERSITY, EQUITYAND INCLUSION

2.2.4.1

AMBITION

2

The sustainability of the business model relies on the contribution ofeach employee to a collective project. The humanist culture andsocial model, which are passed on from generation to generation,
nurture fundamental values, one of which is freedom: freedom tocreate, to act and to undertake, to be who you are and for each
person to bring their own unique perspective.
The Group’s managerial philosophy, in this humanist model, is uniqueand singular. Respect for men and women, savoir‑faire and the historyof the House are passed on by example, exchange and dialogue, anda detailed understanding of what comprise the fundamentals ofHermès.
Faced with the challenge of transmission in a context of strong
growth, and convinced that humanist values are at the heart ofcollective success, Hermès entrusted an academic study to a team of
INSEAD researchers in 2023, with the aim of formalising the House’smanagerial philosophy. This large‑scale study, carried out in France
and abroad, enabled employees of all métiers and all levels of
responsibility to explain and show in a very concrete way what theessential elements of this philosophy are and the way they are
embodied. In 2024, this study will lead to work on a summary that willserve as a compass enabling everyone to act in a balanced, precise
and responsible way, while leaving essential room for freedom andautonomy.

Managing diversity, equity and inclusion
Through the House’s métiers, creations, savoir‑faire, distribution
network and customers, diversity is deeply rooted within Hermès. Our
uniqueness is based on the Group’s ongoing commitment to recruit
and integrate employees from all backgrounds.
Hermès’ humanist values help create an inclusive work environment
in which everyone ﬁnds their place and thrives in respect for others.
This strong sense of belonging and collective working together is aninvitation to join the House’s families and share a unique collective
adventure.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

81

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSThe Diversity & Inclusion ambition for the entire House is built arounda shared commitment and the development of speciﬁc actions thatmeet local needs.
Each Hermès entity is asked to commit to a “common foundation”
action programme based on three areas:s eradicate all forms of discrimination;s achieve gender equality;s promote the inclusion of people with disabilities.

In order to extend this approach internationally, a network of 28 D&I –Diversity & Inclusion ofﬁcers (covering 100% of the Group’s
workforce) – was set up in 2022 to provide local visibility, roll out joint
actions and develop their own initiatives according to their local
Diversity & Inclusion issues. This network was strengthened in 2023
with the organisation of a seminar for the ambassadors and reﬂection
on a common roadmap.
Each entity has deﬁned a Diversity & Inclusion action plan, included
in its roadmap, which was shared with the entire community ofofﬁcers so that they can beneﬁt from the discussions and share bestpractices.

2.2.4.2

FIGHTING AGAINST ALL FORMS
OF DISCRIMINATIONThe responsible employer policy implemented in the Group consists ofestablishing conditions that provide equal opportunity in terms ofrecruitment and employment, under its various components, andﬁghting all forms of discrimination.

For this, a common approach has been structured, enablingawareness to be raised and stakeholders to be trained on diversity,
unconscious bias and micro‑inequalities, in order to neutralise
stereotypes in decision‑making.
The entire community of the Group’s D&I contacts was trained on theissues of diversity and inclusion through the Diversity Fresk inpartnership with ESSEC in March 2023, as well as on unconscious
bias.
Employee representatives also beneﬁted from training on
unconscious bias, in order to facilitate their awareness and enable
them to play their role fully.
An e‑learning awareness module on “unconscious bias andmicro‑inequalities” was set up and translated into 11 languages inJune 2023. It is mandatory for managers and the HR community inFrance and internationally, and open to all employees.
At the same time, Hermès is continuing to roll out the Alterego training
programme in its subsidiaries, with the aim of promoting inclusion,
explaining the value of difference for the Company and thus
strengthening the equitable management of access to employment
and career management. Since its launch in 2017, 946 managers
and members of the HR teams have followed this programme inFrance, including 196 in 2023.
The aim is to share the Hermès culture as a responsible employer
and an actor and to pass on the ambition of inclusion, particularly
with regard to disability, religion, gender equality andintergenerational management.

An international network of contacts

Raising awareness of unconscious bias

Promoting inclusion

28 D&I ofﬁcers

1 e‑learning module rolled out worldwide(translated into 11 languages) in June 2023

946 managers and HR followed this programme
in France, i.e. nearly 50% of this population,
including 196 in 2023

Hermès of Paris has developed the “HOP Hiring Programme & Toolkit” promoting inclusive recruitment to welcome talents from various
backgrounds, develop recruitment practices focused on the search for uniqueness and attract candidates by talking about the House’svalues. For this, managers and HR in charge of recruitment are trained and have access to an inclusive recruitment kit.
Some entities (Hermès Distribution France, Hermès Group Services, Hermès Japan, Hermès Switzerland, Hermès Brazil) aim to build
partnerships with specialised recruitment agencies to source various proﬁles.

822023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

2.2.4.3

PROMOTING GENDER EQUALITYThe Group’s policy is to promote gender diversity and equality at alllevels of the organisation in all entities and countries.
Particular attention is paid to gender equality within the House, withwomen comprising 68% of employees overall, 60% of managers, 70%of the Operations Committee and 47% of the Top 100 (see § 3.3.4.2.
"Gender balance of governing bodies").
Furthermore, special attention is also paid to equality, particularly inthe awarding of equal pay for equal work and ensuring equal
opportunities at all levels of employment. The 2023 gender equal pay
index, implemented in France, resulted in a score of 92/100.
Promoting professional equality also involves building networks andcommunities to support this ambition. In 2021, 13 women fromdifferent horizons in the House took the initiative to create “Hécate”,
the network of Hermès women whose objective is to create a spacefor listening and trust, to give everyone the means to express
themselves, nurture, connect and develop. Since its creation, thisnetwork has brought together more than 100 women around various
events.
In 2023, the network met for three afterworks and ﬁve morning
discussions on themes such as mentoring, parenting, careers,vulnerabilities and burnout. During these meetings, which represent
opportunities for discussion, inspiring women from different horizons
are invited to share their experiences. An Inspiration that Hécate also
shares through its cultural newsletter.

GENDER BREAKDOWN BY SECTORGENDER BREAKDOWN –MANAGERS AND NON‑MANAGERS

2.2.4.4

The Group Disability Agreement, created in 2017, has helped a
network of disability ofﬁcers, which has gradually been expanded andprofessionalised. Today, it is made up of 16 Disability Ofﬁcers
representing each métier to help all sites make progress in integrating
and retaining those with a temporary or permanent disability. The
network of Disability Ofﬁcers meets on a regular basis to share bestpractices, visit sheltered work establishments (ESATs) and promoteskills development.

PROMOTING THE INTEGRATION OF PEOPLE
WITH DISABILITIES

True to its humanist values, the Group has always been concernedwith the integration and retention of people with disabilities. Wishing
to further mobilise the entire organisation, a ﬁrst group disability
agreement was signed with the social partners in 2017 for the period
2018‑2020, and was renewed by the signature of a second disability
agreement for 2021‑2023. This agreement made it possible to deﬁnea structured policy, the allocation of a dedicated budget, theimplementation of communication tools intended to increase thiscommitment, supported at the highest level of the Group, with asponsor member of the Executive Committee, generating steadyprogress. A third Group Disability Agreement was signed at the end of
2023.

2

In order to promote the commitment to disability as close as possible
to employees, a network of 130 Disability Ambassadors has been set
up. Trained in disability, these employees with varied proﬁles(craftspeople, support functions, sales associates, etc.), who are notnecessarily disabled, have volunteered to promote actions in favour of
disability on their site. Working closely with their site disability ofﬁcer,
their role consists of informing, communicating, advising andproviding guidance, while contributing to awareness‑raising actions.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

83

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSPOLICY AND COMMITMENT
As part of the second agreement approved for the years 2021‑2023,
the Group is pursuing its ambitions in terms of inclusion, in particularon the following issues:

The Group Disability Agreement anticipated the scheduled end of theapproved collective agreements by signing a third Group Disability
Agreement on 29 November 2023 in order to continue working topromote the inclusion of people with disabilities in all regions beyond
2023. This agreement came into force on 1 January 2024.

s promoting the employment and integration of people withdisabilities;

At constant legislation, the direct employment rate for 2022 was
6.85% versus 3.5% at the launch of the Group’s ﬁrst Disability
Agreement in 2017. The number of people with disabilities has morethan doubled in six years, exceeding 760 employees recognised at
the end of 2022. In 2023, more than 55 French employees took theirﬁrst steps to having their disability recognised.

s structuring a genuine job retention policy;s strengthening indirect employment through collaboration with the
sheltered and adapted sector and self‑employed disabled workers;
s strengthening the fight against decision‑making biases caused bystereotypes or bias in terms of disability and changing views within
the Company through information and communication.

7.0
6.5

6.8
6.4

6.0
5.5

5.7

5.0
4.9

4.5
4.0

4.2

3.5
3.0
2019

2018

2020

2021

Direct employment rate of people with disabilities
In %Directemployment
rate ofpeople withdisabilities
in France

2018

4.2

2019

4.9

2020

5.7

2021

2022

2023

6.8

To be
publishedin June2024

6.4

Hermès is committed to continuing its efforts to include people
with disabilities, for all its entities around the world, with theobjective of achieving a 6% average direct employment rate ofpeople with disabilities in the Group.
Promoting the employment and integration of people with disabilities

The ﬁrst objective of the agreement being recruitment, Hermèscontinued its participation in recruitment fairs dedicated to
candidates with a disability, such as Hello Handicap or Open ForumESSEC. All job offers in France appearing on the Hermès Talent
website are automatically sent to the AGEFIPH recruitment site andthe applications received via AGEFIPH are thus identiﬁed to ensure
the best possible processing.
Since the ﬁrst agreement, 87 recruitment and human resources
players as well as managers, including 19 in 2023, have been

842023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

2022

Legal thresholdtrained in the recruitment of people with disabilities, to help themfeel more comfortable in recruiting and supporting people withdisabilities throughout the hiring process.
Structuring a genuine job retention policy

More than €200 thousand of the Group Disability Agreement budget
was devoted to workstation adjustments or the ﬁnancing of individual
equipment (workstation studies by ergonomists, adaptations of workorganisation, skills assessments or mediation coaching). The
agreement also allows for an adjustment over the ﬁnal two years of
someone’s career by moving to part‑time work (80% of full time) while
maintaining compensation at 100%.
Strengthening indirect employment through collaboration with the
sheltered and adapted sector and self‑employed disabled workers

The House also has a societal commitment to responsible
purchasing, in particular by providing work to adapted structures (EAs
and ESATs) that welcome workers with disabilities.
The use of the external sheltered work sector can also be a gateway
to the employment and integration of people with disabilities within
the House.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

The success of this inclusion model is also enabled by a committed
managerial culture open to diversity, as well as by long‑term
partnerships established with EAs (adapted companies) and ESATs(sheltered work establishments).

was held in early September, in virtual form, and brought together
nearly 250 new managers and new HR, essential levers for theeffective implementation of the Disability policy, with an openness tothe international through the involvement of all the world Diversity &Inclusion ofﬁcers.

Since 2013, Hermès has been supporting the Equiphoria
Hippotherapy Institute to design a saddle that does not hinderinteractions between animals and patients. The Hermès saddler
craftspeople have thus used their savoir‑faire to assist the teamsof doctors and caregivers of this foundation, as illustrated in theﬁlm “Footsteps Across the World” broadcast for the ﬁrst time in2022 in La Canourgue and viewable on our website.

The Group was very active during the 2023 DuoDays operation,
launched by the French government, by hosting 140 DuoDays. This
involves changing attitudes by welcoming people with disabilities who
are looking for work or who come from ESAT‑type support structuresand over the course of a day, showing them the work of employees sothat they may take a look behind the scenes of the production or
support function métiers.

Strengthening the fight against decision‑making biases caused bystereotypes or bias in terms of disability and changing views within
the Company

2Hermès continued to produce episodes of the new series “In fullagreement” which clearly illustrates the four pillars of its Groupdisability agreement approach through inspiring encounters andinitiatives implemented within various Group entities.

The 6th edition of the Handi’Cap forum in 2023, an annual highlight,
2023 key ﬁgures

2023 key initiatives

6.85%: direct employment rate for people with disabilities in France
in 2022 (vs. 3.5% at the launch of the ﬁrst Group Disability
Agreement
in 2017)
16 Disability Ofﬁcers representing each of the House’s métiers
130 Disability ambassadors
760 employees in France with disability recognition (+55 employees
applied to be recognised in 2023)

Week for the employment of people with disabilities in France andabroad140 DuoDays
6th edition of the Handi’Cap forum“In full agreement” series

Entities and subsidiaries engage through local initiatives
LeatherHermès Leather Goods & Saddlery’s commitment to disability is part of a global purchasing policy structured and anchored locally, where
each regional division has developed an EA/ESAT partnership in order to increase the skills of these structures adapted to the Company’s
leather savoir‑faire as required for the manufacture of our objects. Some EA/ESAT partners become manufacturers for the House, to whom it
entrusts the production of objects from our collections.

Distribution subsidiary France
Disability is an important aspect of Hermès Distribution France’s Diversity & Inclusion policy, with two major goals:s integrate at least one person with a disability in each of our stores, regardless of the type of contract;
s at the same time, increase recruitment on permanent employment contracts to integrate and develop people on a long‑term basis.

The development of partnerships with ESATs is an essential lever for achieving these commitments. Hermès Distribution France has
partnerships in the form of “off site” services or provision with ESATs in 11 stores across France: in the North, West, South, Rhône and Paris
regions. The aim is to extend these partnerships to all stores. ESAT workers generally take on positions in reception, inventory, sales support,ironing and retouching.
In 2023, all countries were invited to act in favour of people with disabilities by participating in the week for the employment of people withdisabilities, or by participating in the DuoDays programme.

Watches
In June 2023, Hermès Horloger organised its second edition of the Week of Disability in partnership with a local foundation through a rangeof activities: multi‑activity visits to discover the métiers, sports activities, and a new event: “round trip” DuoDays (in a reciprocal vis‑ma‑vie
approach: Hermès Horloger employees hosted workers with disabilities for a day; and in turn, the employees were able to discover the
professional environment of the foundation’s workers).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

85

2CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

2.2.5

HEALTH & WELL‑BEING

2.2.5.1

AMBITION

2.2.5.2

Hermès aims to guarantee all its employees a working environment
conducive to their physical and psychological well‑being, and enablingthem to reconcile their professional activity and their personal life. In
addition to the work environment, and in line with the House’s
protective vision towards its employees, Hermès has launched a
project to roll out universal social protection for all its employees
worldwide, based on ﬁve social protection pillars, which should enable
everyone to face life’s uncertainties with more peace of mind.
The conduct of a “Hermès à l’écoute – Hermès Hears” survey on thehealth, well‑being and engagement of all our employees worldwide in
the ﬁrst half of 2024, will enable an inventory of our strengths andareas for improvement on these subjects to be drawn up, before
undertaking new concrete actions in a cycle of continuous
improvement.

Preventing risks

Protecting
employee health

These four areas are broken down into 13 commitments, which are
tailored to the particular nature of each activity and each country. For
example, at the instigation of the Managing Director of the Cuirs
Précieux sector and the Group Management Committee, an adapted
version of the Health, Safety and Environment policy speciﬁes thecommitments of the sector to 2024 based on six objectives:
guarantee and maintain regulatory compliance of sites; eliminate
major risks and aim for “zero workplace accidents”; preserve thehealth of employees over the long term; control and reduce the impact
on the environment; sustainably embed a Health, Safety andEnvironment culture at all levels of the organisation; guarantee thechemical compliance of the leathers over time. This policy leads to thedevelopment of the EHS roadmap for the sector, reviewed quarterly bya dedicated Management Committee in which the Industrial Director,
the Director of Operations and the EHS team participate. Anotherexample is the speciﬁc EHS policy of Hermès Manufacture de Métaux
(HMM), which is based on six major objectives: preserve the health of
our employees; prevent workplace accidents and aim for “zeroworkplace accidents”; reduce the environmental impact of ouractivities; comply with applicable EHS legal and regulatory
requirements; verify the ethics of our supply chains; create anddisseminate an EHS culture at all levels of the organisation. Locally,
EHS managers adapt the HMM policy to the speciﬁcities of each site.

HEALTH AND SAFETY GOVERNANCE
The themes of prevention, Health and Safety are led by two membersof the Executive Committee, each with an additional dimension: theGroup Director of Human Resources, who is a signatory of the policy,
monitors the consolidated indicators, presented by commitment, andthe Executive Vice‑President Manufacturing Division & Equity
Investments, to whom the industrial department reports, is currently
in charge of most of the action plan.

862023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

MEASURING AND PROMOTING EMPLOYEESAFETY, HEALTH AND WELL‑BEINGHEALTH AND SAFETY POLICY
The diversity of the Group’s métiers, from production to retail, notforgetting the support functions, involves taking into account andmanaging different issues. Committed to the House’s humanist values,
Hermès has initiated a “Zero Accidents” trajectory and formalised aGroup Health and Safety policy in 2023 to support this dynamic.
This policy, prepared by a working group made up of representatives of
the French stores, the métiers, support services, the Group humanresources department and the industrial department, was signed by theGroup Director of Human Resources and validated by the Executive
Committee. It will be updated every three years and its monitoring isalready the subject of an annual presentation to the CAG‑CSR
Committee within the Supervisory Board. This policy aims to create acommon strategic framework that helps preserve the health and ensure
the safety of employees. It is structured around four areas:

Advancing the Healthand Safety culture

Managing Healthand Safety performance

Each métier and support function is committed to eliminating andpreventing the risk of injury, preserving health over the long term andprotecting the environment by controlling the risks and reducing theimpacts identiﬁed. Any new Hermès industrial site, and any
renovation, is designed and built with the health and safety of thecraftspeople and partners working there as a primary concern. New
or existing industrial practices, as well as processes and products,
are constantly analysed to minimise their risks and effects on healthand safety.
Since 2003, the Group industrial department has managed an EHS
network, made up of EHS managers from the House’s various
métiers. With around 20 people, this network meets face‑to‑face
twice a year to work on common topics, learn from the progress ofother métiers and continue to receive training. This network has
gradually been enriched by the presence of employees from retail,general services and the sustainable development department. In
2023, three webinars were rolled out in addition to face‑to‑facemeetings to strengthen the network within the EHS community andsupport the teams. On a one‑hour format open to all, the webinars
highlight certain local initiatives with strong cross‑functional potential.
At the level of industrial sites, the EHS organisation of the métiers
was strengthened in 2023 at Hermès Leather Goods & Saddlery,both centrally at the level of the coordination team and in eachleather goods division. Thus, each division has a prevention teammade up of an EHS division director, and, for each site, an EHS
manager and an occupational health nurse (IDEST). Through his
presence on the division’s Management Committee, the EHS Director
brings occupational health and safety issues to the forefront. The
central team leads the community of EHS directors with monthly
updates on operational issues. In addition, priority topics common to
the leather métier are managed in project mode and quarterly
meetings are organised to share their progress.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSAt Cristalleries Saint‑Louis, a Safety Committee bringing together all
department heads, health departments and the production unit
management meets monthly. EHS indicators are reviewed at this,action plans are updated and new actions are presented bydepartment. EHS topics are included in all site management routines,
starting with daily production meetings.

RESULTS RELATING TO ACCIDENTS TO THE GROUP’S WORKFORCE
In 2023, the frequency rate of workplace accidents with lost‑time for the Group as a whole stood at 8, with a severity rate of 0.30 (respectively 8
and 0.33 in 2022). This calculation is based on the total number of actual hours worked.

GROUP FREQUENCY RATEGROUP SEVERITY RATE

16

0.7

14

0.6

12
10

10.1

8

10.0

0.63

0.5
9.1

9.1
8.0

8.4

8.0

0.46
0.46

0.4

0.45
0.40
0.34

0.33

0.3

6

2

0.30

0.2

4

0.1

2
0

0.0
2017

2018

2019

2020

2021

2022

2023

In France, the frequency rate was 10.2 with a severity rate of 0.48
(respectively 11 and 0.51 in 2022). As the industrial workforce
represents more than 68% of the workforce in France, it isconsequently more directly affected by the risk of workplace
accidents.

2016

2017

2018

2019

2020

2021

2022

2023

Looking solely at the international ﬁgures, the frequency rate is up
slightly (4.91 compared with 3.79 in 2022). These employees, who
mainly occupy positions in sales and support teams, are neverthelesssigniﬁcantly less affected by systemic exposure to at‑risk situations.

Group

FranceInternational only

Frequency rate of workplace accidents with lost time in 2023

8

10.2

4.9

In 2022

8

11

3.8

Severity rate of workplace accidents with lost time in 2023

0.30

0.48

0.05

In 2022

0.33

0.51

0.08

2021

2022

2023

0

0

0

In %

Number of fatal accidents

RISK ANALYSIS AND PREVENTION
In view of Hermès’ activities, the risk in terms of workplace accidents
is highest on its industrial sites. Hermès International’s industrial
department manages an EHS programme organised according tosuccessive cycles. The ﬁfth cycle of this programme began in 2018
and ended in 2023. It has three components:s provision of EHS regulatory monitoring for all industrial sites. The
frequency of newsletters is adapted to changes in the regulationsof the countries in which the sites are located: in France, themonitoring is shared quarterly. For the rest of the world, it ispublished half‑yearly or annually;s elimination of hazardous situations. Thanks to two Group
standards, the proper management of work at height and thecontrol of water discharges are ensured by an annual
self‑assessment;s development of a safety culture. The level of maturity in the sites’
Health and Safety culture is assessed annually using an internalframework structured into 13 pillars, relating to the fields ofleadership, organisation or operations. The framework is designed
to facilitate the identification of key actions enabling progress to bemade in the Safety culture, and thus makes it possible to enrichoperational roadmaps.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

87

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

The industrial department audits the achievements of the industrialsites with the support of an external ﬁrm and regularly reports on the
progress made in meeting Hermès’ commitments. In 2023, 23 sites
were assessed as part of this programme. The best practices
identiﬁed during these audits are distributed annually to the métiers
through an illustrated booklet.

In order to strengthen the safety culture of the HMM teams, monthly
communication campaigns were rolled out in 2023, culminating inWorld Health and Safety Day. These prevention campaigns rolled out
in each plant address a variety of speciﬁc topics: personal protective
equipment, working at height practices and the importance ofgestures and postures.

In 2023, to go further in managing Safety risks on industrial sites, aninternal framework of major risks was prepared by a multi‑métier
working group led by the industrial department. Thus, 11 major risks
were targeted: Working at height; Safety of equipment; Managementof hazardous energy; Fire/ATEX risk; Chemical risk; Level falls;
Conﬁned spaces; Road risk; Lifting, storage, coactivity of trolleys/pedestrians; Management of external companies; and Lone Worker.
These risks have been broken down into 108 key requirements, forwhich the compliance of each site will be assessed as part of thesixth EHS cycle (2024‑2026).

A two‑day Safety training course, alternating between theory andpractice, was provided to all members of the Watches métier’s EHS
Committee, with the aim of strengthening safety fundamentals anddeveloping safety leadership. In addition, the teams were trained inrisk prevention for any interventions including working at height.

MEASURES IMPLEMENTED AND RESULTS
Numerous approaches and initiatives implemented within the Groupillustrate the commitments made in the Group’s Health and Safety
policy: some examples of implementation are presented below.

In 2023, all managers of the two sites of the Home function beneﬁted
from a two‑day training course on Safety Leadership.
Internal audits

As an extension of the Safety culture assessments led by HermèsInternational’s industrial department, actions have been taken todevelop this culture for all employees.

Number of cross‑visits – Shared vigilance

2023

HMS

800

Raising employee awareness

1,000 Hermès Leather Goods & Saddlery craftspeople were trainedin ergonomic skills in 2023, bringing to 4,800 the number ofcraftspeople who have completed this module since its creation in
2011.
The Textile sector (HTH) launched new initiatives in 2023. All
employees of the Pierre‑Bénite site took part in a day on the theme ofvigilance and at‑risk behaviour, enabling a collective culture to becreated on this theme. The sector also offered ﬁrst aid training inmental health to prevent psychosocial risks. Thus, 23 people
beneﬁted from this two‑day training course in 2023. This approach
will continue in 2024. Furthermore, in order to improve themanagement of external companies, the sector has designed training
for contractors to better identify and communicate risks whencarrying out work. Inspections during works are also becoming morewidespread.
At Perfume and Beauty, the initiative to develop the EHS culture
continued in 2023 with a ﬁrst‑level EHS awareness action for all
employees (50% of employees trained by the end of 2023 with atarget of 100% at the end of the ﬁrst quarter of 2024), and a training
event dedicated to managers in June 2023. In addition, gestures andpostures training sessions were rolled out in 2023 for the logistics,
packaging and quality teams.
In 2023, the safety meeting support documentation for craftspeople
and crystal manufacturing employees was completely revised toincrease its impact and make it more attractive. This illustrates thedesire to strengthen the culture of prevention in terms of health andsafety at work through information and training for all employees.
Moreover, awareness‑raising campaigns for craftspeople andemployees are distributed every month in the form of EHS news andcommented on in the managerial routines of the departments.

882023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

In addition to the certiﬁcation audits conducted in certain sectors,
internal Health and Safety audits are gradually being rolled out in thevarious métiers. At HTH, EHS managers audit their peers from othersites on culture and risk topics. At the Cristalleries and on the sites of
the ceramic sector, Safety visits involving managers, department
heads and employee representatives are organised throughout theyear. At HMM, audits are carried out on each site based on a detailed
grid of 121 fundamental EHS questions.
Signature actions

LEATHER GOODS & SADDLERY
In line with the Group’s Health and Safety policy, Hermès Leather
Goods & Saddlery’s commitment is based on six pillars: regulatorycompliance, safety culture, well‑being at work, aiming for zeroaccidents, avoiding serious injuries and preserving the health of
employees. A roadmap has been drawn up and four priority projects
deﬁned for 2023. One of these projects concerns the ﬁght against
musculoskeletal disorders (RSIs, repetitive strain injury), identiﬁed aspart of the risk mapping, which is broken down into ﬁve major areasof action:
1. presence of internal “ergonomics contacts” at each site, leading
working sessions in each workshop with their colleagues. These
intermediaries are becoming more professional in their role
through training and by leading this community;

toreplacetraditional
workbenchesby
2. programmeheight‑adjustable electric workbenches. In 2023, more than 900
such workbenches were installed. Several Leather Goods
workshops are now fully equipped with adjustable workbenches;

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

3. continued rollout of the “Un Corps pour la Vie” ergo‑motor skills
training module. Since 2011, more than 4,800 craftspeople havebeen trained, including nearly 1,000 in 2023. This module aims toprovide exercises that can help prepare the body and support thedemands inherent in the specific activities of saddlers‑leather
workers;
4. continuation of the ergonomic analysis method, co‑developed with
doctors in biomechanics. This method, which makes it possible toidentify the level of strain on the muscles associated with thevarious work operations, is used to feed into the action plans;
5. introduction of weekly on‑site osteopathy slots, enabling
craftspeople to benefit from these services more easily. This
experiment was enthusiastically welcomed, encouraging sites tocontinue and increase the initiative over the coming years.

CUIRS PRÉCIEUX
To develop leadership in EHS, and in line with the training of the
Supply Chain Management Committee in 2022, the tanneries
directors followed a training course on leadership and safety culture,
which was then rolled out to the Management Committees of eachtannery.
At the end of 2023, the six tanneries were certiﬁed according to the
Leather Working Group (LWG) standard, which, inspired by
ISO 14001, contains 17 sections and more than 300 requirements
relating to regulatory compliance, subcontracting, monitoring ofproduction, traceability, safety, Health and Safety, wastewater andenergy management, waste management, chemical productmanagement and the EHS management system. Certiﬁcation isrenewed through annual or two‑yearly audits. In addition, in 2023, theJullien tawery was also audited according to the Group Safety Culture
standard.
2023 was marked by the implementation, in all tanneries, ofessential Health and Safety rules, following the collaborative work
undertaken since 2021. Thus, a major communication campaign was
conducted, supported by posters highlighting the golden rules andthe seven pillars (training, protection, circulation, machines,
behaviour/responsibility, posture and coactivity). These rules are alsopresented during Safety meetings and are discussed between
management and employees, particularly during managerial safety
visits.

TEXTILEThe HTH textile sector maintains its strategic commitment toimproving the safety performance of its sites, in particular through the
Safety charter.
In 2023, each site identiﬁed and communicated in a simpliﬁed
manner the four major risks and the associated golden rules. These
include musculoskeletal disorders, chemical risk and the
management of external companies.
In terms of actions to prevent RSIs, numerous investments have madeit possible to improve the ergonomics of workstations through newhandling solutions (e.g. trolleys, hoists, pallet trucks, custom furniture,inspection machines, storage structures). An automated degreasing
module was introduced at the Gandit workshop, signiﬁcantly reducing

the number of frames handled. In addition, on the HTH site, the“ergodays” initiative was launched to enable administrative employees
to beneﬁt from support at their workstations: posture correction,
supply of adapted ergonomic equipment (screens, stands, mice orchairs).
With regard to chemical risk, the chemical storage areas at SIEGL and
AEI have been redesigned, standards deﬁned and regular inspections
carried out. At the AS and SIEGL workshops, a substitution project
was carried out to avoid the exposure of printers to the glue solventsused to hold the parts on the tables. Now, 100% of the cashmere
yarns printed on the new lines use adhesive ﬁlms. This process isbeing rolled out for silk.

2

HOME
The sites of the ceramics sector have formalised their EHS vision
through site policies, which highlight the development of the Safety
culture, the improvement of working conditions and workstation
ergonomics.
During the Site Committee’s daily update, feedback from the groundis shared and the necessary actions are added to the EHS action
plan which is examined weekly.
From an RSI prevention point of view, workstation improvement
initiatives have affected different sectors at the two sites. Joint work
between the sites has made it possible to introduce height‑adjustable
control‑packaging stations and new handling tools in the logistics
areas in order to limit difﬁcult postures. Daily warm‑ups have also
been introduced before each shift.
In 2023, Puiforcat rolled out an EHS policy based on ﬁve areas:
reduce risks by combining traditional savoir‑faire and new technicalresources while changing behaviour; preserve the health and integrityof craftspeople; develop a Health and Safety culture; assess andimprove the impact on the environment; and ensure the regulatorycompliance of its facilities and practices.
The strengthening of the EHS organisation has made it possible toaccelerate measures to prevent risks and improve working conditions.
Thus, 10 collaborative mini‑projects were carried out in 2023, led by
the various departments with the involvement of craftspeople.

LOGISTICS
Hermès Commercial’s EHS roadmap was consolidated by the Healthand Safety culture assessments led by Hermès International andcarried out in April 2023 at the two logistics sites.
From an organisational point of view, the EHS team has beenstrengthened to face the challenges of growth and transformation
projects.
In terms of preventing RSIs, the entity has set up daily muscle
warm‑up sessions at its sites. They are led by in‑house coaches, whohave been speciﬁcally trained in the movements to effectively prepare
the body for the effort. In 2023, 17 employees were trained by theexternal organisation. In addition, a test protocol for exoskeleton andergoskeleton technologies was carried out in the shipping
department, to facilitate handling operations. In order to build on theinitial positive feedback, a new experimental session will be
conducted in 2024.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

89

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

2.2.5.3
PROVIDING PLEASANT WORKINGENVIRONMENTS
With the new Leather Goods workshops already boastingstate‑of‑the‑art equipment, some of Hermès Leather Goods& Saddlery’s older Leather Goods workshops have been adapted to
improve working conditions. This is the case for the Belley Leather
Goods workshop, which changed the lighting in the workshops toimprove the visual comfort of the craftspeople. In 2023, this site also
built two extensions that beneﬁt from natural light in these spaces.
The Manufacture de Haute Maroquinerie (located in Aix‑les‑Bains)
has begun the development of a central space that will allow
employees to get together and relax or can be used for collective
information meetings.
Rehabilitation and asbestos removal work continued at the Tanneries
du Puy, making it possible to improve working conditions, particularlyin the “river” building, in terms of lighting and ventilation.
Prompted by LWG certiﬁcations, 5S‑type initiatives accelerated at thesix tanneries of the Precious Leathers sector. The programmes forstorage, rearranging spaces and markings on the ground haveresulted in a safer and more pleasant working environment.
In the HTH textile sector, major renovation work on the living andworking spaces was carried out at the ofﬁces and workshops of
Pierre‑Bénite and on the Bourgoin‑Jallieu site in 2023. Signiﬁcantrenovations and improvements have increased the safety of theteams. Thus, interior and exterior markings have been positioned on
the ground, and speed bumps and signs have been added to reduce
the risk of collisions. At the AEI site, the asbestos removal from roofs
started in 2022 continued in 2023. The remaining 30% will becompleted in 2024. Furthermore, the dye mixing area was completelytransformed in order to reduce the exposure of craftspeople tochemicals (suction and area depressurised) and the risk of hot water
burns (automatic activation of supply). The sites carried out noise
exposure and awareness‑raising campaigns among employees. For
example, the HTH cutting workshop was subject to a complete noise
mapping. The moulded earplugs were renewed to optimise employee
protection. Events and awareness‑raising actions were provided forthe well‑being of the teams. At SIEGL, a QLW week was organised inJuly 2023. During this week, various activities were offered to
employees: massages, Laughter Yoga workshops, Smoothie bike,discussions with a physiotherapist, etc. Finally, the sector
emphasised the involvement of employees in major organisationalchange projects. Thus, the transition to 3×8 for the HTH cutting teamled to the drafting of a night shift agreement focusing on the safety
and working conditions of employees, through precise measures.
In 2023, the Hermès Manufacture de Métaux (HMM) sector carried out
actions relating to ergonomics, involving employees at each plant. La
Fabrique de Roye rolled out a collective warm‑up routine. In Cœuilly andRoye, ergonomic furniture was installed to improve the posture andcomfort of employees. In Champigny‑sur‑Marne, workshops werereorganised, using on‑the‑ground surveys, to optimise workstations anda freight lift was installed to reduce the carrying of loads.

902023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

In addition to the work on the New Manufacturing extension project
started in 2022 at Perfume and Beauty, interior redevelopment work
was carried out in the historic building in 2023 to improve working
conditions in the face of growth: optimisation of connections between
the manufacture of perfumes and their packaging, improvements topackaging lines, addition of a quality control system. Furthermore, a
study conducted with the product development teams made it
possible to reduce the exposure of certain employees to chemical
agents by replacing an adhesive classiﬁed as hazardous to healthwith an adhesive that is innocuous for craftspeople, while maintaining
the quality of the ﬁnished product.
The ergonomics of the “main square” within Cristalleries Saint‑Louis,
a workshop that concentrates large and prestigious items, have beenreviewed to limit difﬁcult gestures (assistance with mallet‑use),
reduce load carrying through the use of handling aids and rethinkwork organisation. The quality controllers also beneﬁted from newworkbenches that improve the control conditions of these large items:
table height adjustment, lighting adjustment and pneumatic
movement of the parts. A 5S project was also conducted in the
Maintenance division, and included the prevention of chemical risks.
A product inventory was thus carried out, followed by an update of thechemical risk assessment and the implementation of risk reduction
actions (for example: implementation of a secure cabinet and storage
rules).
On the CATE site, the project to renovate the air conditioning unit in
the kiln room has signiﬁcantly improved the working conditions of thekiln operators, by better evacuating the heat from the kiln andintroducing fresh air to targeted areas.

2.2.5.4

ADDRESSING THE RISK OF HARASSMENT

Raising awareness, preventing and alerting

Hermès does not tolerate any conduct that takes the form of
behaviour, words, actions, gestures or writing likely to harm thepersonality, dignity, physical or psychological integrity of a person,
thus undermining his or her personal balance or employment, or
degrading the social climate. Preventing and combating harassment,
whether moral or sexual, is one of the House’s priorities.
s PreventIn the French entities, 55 pairs of “Harassment and sexist behaviour”
ofﬁcers, representatives of management and the Social andEconomic Committees (SEC), were set up to prevent sexist behaviourand situations of sexual and moral harassment. They continue to be
trained in adapting these concepts to their legal framework and being
able to characterise a situation.
This training also makes it possible to identify at‑risk behaviours,
promote the implementation of prevention measures and react in theevent of a whistleblowing, by demonstrating empathy and distance.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

Furthermore, in order to prevent reprehensible behaviour, ane‑learning module “Understanding in order to prevent sexist
behaviour and situations of harassment”, dealing with the subjects ofmoral and sexual harassment, sexist behaviour and sexual assault,
was rolled out on a mandatory basis for all managers andrepresentatives in France and is available for all employees. In
France, 86% of managers completed this module, bringing thenumber to 2,066 managers trained.
As this focus applies in all the countries in which Hermès operates,
this module is also rolled out internationally.
s Whistleblowing

Any employee who believes that he or she is a victim or is a witness tosuch a situation is invited to inform their manager or a humanresources manager as soon as possible or to report it through the
H‑Alert! professional whistleblowing system, which guarantees the
conﬁdentiality of exchanges. Group rules provide for mechanisms thatmake it possible to examine and deal with any situation, withcomplete neutrality and impartiality (for example, the establishmentof an internal joint commission of inquiry with a representative ofmanagement and a representative of the SEC). To support them intheir role, an internal investigation procedure has been drawn up. It
describes the different stages of an investigation, the precautions to
be taken and the role of the various stakeholders.

Parenthood

2.2.5.5

ABSENTEEISM

The low level of overall absenteeism, all causes combined, reﬂects inparticular the good working conditions of employees. It was 2.56%,
down to a lower level than in 2019 (2.9%).

2.2.5.6

OFFERING SOCIAL PROTECTION AND
PREVENTIVE MEASURES FOR ALL EMPLOYEES

2With the aim of protecting and supporting its employees in the face of
life’s uncertainties and in line with its social model and the Group’s
values, Hermès has created a basic level of universal social
protection for all its employees worldwide, based on ﬁve pillars:parenthood, healthcare, retirement, death and disability. The
objective is to cover 100% of employees worldwide by 2026.
This ambitious base aims to ensure a decent quality of life for
employees and their families, to enable them to be covered in theevent of a personal accident, and to build up savings in order to beable to plan for the medium and long term with peace of mind.
As a priority, the House’s entities ensure that each of these pillars
beneﬁts their employees, taking into account the legal provisions that
may already exist locally.

Group basic level2023 coverage

Commitments

Maternity leave with salary
maintained for 16 weeks, with nolength of service conditions, andpayment of childbirth costs

Maternity leave: 100% of
employees are covered
Second parent leave: 78% of
employees are covered

100% of employees to be coveredin 2024

Second parent and adoption leave
with salary maintained for fourweeks with no length of service
conditions.
Health coverage

Coverage of healthcare costs
including the risk of hospitalisation
A health check‑up (physical oron‑line) or speciﬁc prevention
actions

97% of employees are covered
Health check‑up or targeted
prevention measures: 76% of
employees are covered

100%of employees to be covered in 2025

Life insurance(Family protection in the event of
the death of an employee)

A lump sum paid to beneﬁciaries
equal to twice the annual salary.

89% of employees are covered

100%of employees to be covered in 2025

Retirement

Access to a pension plan

97% of employees are covered

100%of employees to be covered in 2026

Disability

Replacement income and/or lumpsum in the event of invalidity

96% of employees are covered

100%of employees to be covered in 2026

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL91

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSSOCIAL PROTECTION SCHEMES
Beneﬁts of various kinds complete the overall compensation package
for the House’s employees. These include health protection, death,accident, incapacity and invalidity schemes, supplemental pensions,supra‑legal leave and other recognition schemes.
The Group operates a comprehensive and ambitious social protection
policy in all countries and aims to encourage the implementation ofsocial beneﬁts within a framework that is:s collective, targeting all employees;s ambitious with respect to benchmark market practices;s adapted to the Group’s
locally‑identified needs.

values,local

regulations

andProviding social protection to its employees wherever the Group ispresent against the risks of death, sick leave and healthcare costs(and indirectly to their families) is essential for Hermès. Employees
are protected against the major risks of everyday life. Beneﬁts cover
medical and maternity care, retirement, as well as long‑term illness
and mortality risks.
Hermès’ aim is to protect the families of its employees, in the event ofdeath, by paying a lump sum or equivalent annuites of at least two
times gross annual basic salary. This protection covers 89% of
employees worldwide. In France, the scheme is supplemented by aneducation allowance to enable the children of the deceased employee
to continue their studies.
The cover put in place by Hermès supplements, where applicable, themandatory legal plans and make it possible to protect and retain
employees. These schemes are mainly ﬁnanced by the Company andare very popular with employees.
Medical concierge and health check‑up:

In 2023, Hermès set up a medical concierge service in France for
entities enrolled in the Group plan (for employees and theirfamilies) and a health check‑up regardless of age.
Some foreign subsidiaries – Hermès China, Hermès Japan,
HMESA in Singapore, Hermès of Paris – also have these medical
check‑up systems, the Group’s ambition being to offer this type ofphysical or on‑line system to all employees worldwide.

2.2.5.7

SUPPORTING EMPLOYEES IN BALANCING THEIRVARIOUS TIMES OF LIFE AND PROVIDING THEM
WITH APPROPRIATE SUPPORT (CAREGIVERS,
PARENTHOOD, VULNERABILITY)BALANCING THE VARIOUS TIMES OF LIFE
The House of Hermès pays constant attention to the well‑being andphysical and mental health of all employees, in particular by helping
them to balance their professional activity and their personal life.

922023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

As part of this ambition, on 19 July 2023, Hermès signed a Groupagreement with all of the representative trade unions at Group level(CFDT, CFE‑CGC, CGT, FO) on balancing the various times of life. The
main measures of this agreement came into force on 1 January 2024
in all Group companies in France.
These measures aim to better support those who are faced withcertain personal situations impacting their daily professional life
(caregivers looking after a loved one with a loss of autonomy, due toillness, disability or age; parents; people in vulnerable situations).
For these three aspects, various measures were negotiated, taking
care to provide responses adapted to the diversity of the situations
encountered:s For caregiver employees:

By providing an information and assistance platform for the mostcommon situations, offering flexibility in more demanding
situations, and freeing up time through financial support in themost difficult situations.
s For parent employees:

By supporting parenting support measures in all their facets(traditional parenting, adoption, homoparentality, single
parenthood, blended families, etc.) before and upon arrival andafter the birth of the child. Measures taken include in particularleave of absence as part of a medically assisted procreation
programme, return to work part‑time following parental leave,breastfeeding facilitation and support for single parents.
s For employees in vulnerable situations:

By preventing and supporting employees faced with vulnerable
situations including long‑term illnesses such as cancer,
professional burnout, bereavement, domestic violence, addictions
or over‑indebtedness.

FLEXIBILITY AND WORKING TIME ARRANGEMENTS
About 96% of employees work full‑time, and 915 employees work
part‑time. Both beneﬁt from the same social beneﬁts in proportion totheir presence.
Through its philosophy and its activity with a strong craftsmanshipcomponent, the House values the presence of the teams andattaches particular importance to working together, which necessarily
involves a presence on sites. However, practices may vary from one
métier to another and many systems promote ﬂexible working, both interms of on‑site presence and in terms of hours.
For example, in 2023, as part of a collaborative approach, HermèsDistribution France initiated a four‑month pilot project relating to afour‑day week in two of the French stores. The other stores will also
test this in 2024 and employees will then be invited to say how they
feel at the end of the test period, to deﬁne the possible follow‑up to
this initiative.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

2.2.6

RECOGNITION & REWARD

2.2.6.1

AMBITION

The success of the House of Hermès is above all a collective
success, made possible by the quality of work and the commitment ofall. The recognition given to employees is an essential pillar of theHouse’s social model, enabling everyone to feel an actor andcontributor to collective success.
This recognition is expressed in particular through compensation andvalue‑sharing methods in which the collective plays a large part.
Hermès wishes to continue this ambition, by reinforcing the pedagogy
and transparency around its systems in order to allow a goodunderstanding of them.
The recognition that the Group wishes to give to its employees is not
only ﬁnancial, it is also expressed through the promotion of lifelong
employability, through training and transfer of savoir‑faire.

2.2.6.2

RECOGNISING OUR EMPLOYEES FOR THEIRCONTRIBUTION TO HERMÈS’ SUCCESS

True to its values of sharing, Hermès pays constant attention to therecognition of its teams and the conditions of compensation anddevelopment of all its employees. The objective is to offer them full
protective compensation and to recognise their contribution to thedevelopment of the House throughout their working life.
The House’s policy is to offer all its employees, in all countries where
the Group operates, competitive overall compensation that is higher
than the legal minimum salary or that deﬁned locally, and which
provides a protective framework in the short, medium and long term,
not only for employees but also for their families.
The overall compensation policy is composed of a wide range ofindividual and collective schemes, salary components and beneﬁts
that cover:s the fundamental needs and achievements of employees, inparticular health, safety, education, social inclusion, access toleisure and personal and professional development, through fixedsalaries, individual and collective bonuses, paid leave, and various
profit‑sharing schemes, additional social protection schemes interms of health costs and collective insurance;s the need for recognition and belonging of employees in themedium and long term – through employee shareholding plans
awarded to all employees worldwide, the celebration of employees
exceeding a certain length of service within the Group;s the need to look forward to the future with confidence, including
when a career comes to an end – through the provision of
post‑employment benefits via retirement benefits andsupplemental pension plans set up voluntarily by Hermès for thevery large majority of employees and in accordance with local
market laws and practices.

As a responsible employer, Hermès is committed not only to offering
ambitious and generous individual and collective compensation, butalso to contributing to the economic and ﬁnancial education of its
employees so that they can take full advantage of these measuresand make best use of their speciﬁcities and interests in the short,medium and long term. The presentations and the discussions, given
in particular during the “France Beneﬁts Week” with the teams of theGroup human resources department and the scheme partners, arevery much appreciated by employees and were offered once again in
2023 in order to enable everyone to acquire or develop theireconomic and ﬁnancial culture with the aim of autonomy and theability to look to the future with peace of mind.

2

Compensation
The Group’s compensation policy is that all of its employees should
receive compensation that competitively meets best market
practices, complies strictly with applicable standards and regulations,and is higher than the minimum legal or locally‑deﬁned salaries.
The House pays particular attention to the compensation of its
employees in order to offer them a living wage that is not limited to
the legal minimum wage. The analysis carried out in 2023 on theliving wage conﬁrmed that our standards applied to ﬁxed
compensation comply with local salary regulations and fully integrate
the level of living wages, the thresholds of which are determined byindependent organisations of reference.
Hermès remains committed to an ongoing approach that consists ofoffering employees overall compensation that is rewarding,competitive and protective over the short, medium and long term.
By reference to the Universal Declaration of Human Rights, Hermès’policy is that each of its employees “has the right to just andsatisfactory compensation ensuring for himself and his family an
existence worthy of human dignity, and supplemented, if necessary,by other means of social protection”.
As a responsible employer and in line with the values intrinsic to its
social model, the House aims to go beyond a living wage and provide
a good level of compensation and enable quality of life and long‑term
personal and professional development.
The compensation paid to Corporate Ofﬁcers is shown in chapter 3“Corporate governance”, § 3.8 of this document.
The Group’s payroll (excluding proﬁt‑sharing and incentive schemes)
was €1,251 million in 2023, to which shall be added €406 million insocial security charges paid in 2023, which amounts to a total of€1.7 billion. Payroll costs (excluding exchange rate and scope
impacts) reﬂect increases in both workforce and salaries in all
geographical areas.
In millions of euros

Payroll – excluding social charges

2022

2023

1,129

1,251

Social charges

370

406

Total payroll

1,499

1,657

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

93

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSThe compensation of each employee according to the level of skills
and the work carried out is in full compliance with the conventions of
the International Labour Organization (ILO) and the laws of all thecountries in which the House operates. Each entity complies with theregulations on working hours and minimum wages, and thesystematic issuance of a payslip at regular intervals, explaining all
legal deductions. Compliance with these various measures also
makes it possible to combat all forms of forced labour. The vast
majority of employees work in OECD countries, where these concepts
are incorporated into the legal framework.

The Executive Management once again wished to express its belief
and pride in this authentic family spirit that permeates the bonds
between the House and its employees and to recognise the strengthof their commitment because each employee makes his or her
personal contribution to the success and inﬂuence of the House.
Under this collective plan set up on 15 June 2023, each eligible
employee worldwide – i.e. more than 18,000 employees in theHouse’s entities in more than 35 countries – was awarded rights to12 free shares. At the end of the acceptance period by employees, a
total of 210,168 shares were allocated.

The annual change in compensation is based on individual andcollective performance, in accordance with the Group’s budget
guidelines and trends observed in the local compensation markets.

At the same time, on 3 July 2023, more than 10,500 employees
acquired the ﬁrst tranche of 12 shares resulting from the grants by
the Executive Management on 1 July 2019. Becoming an employee
shareholder of Hermès is a source of great pride, a gesture of thanks
but also of conﬁdence: it is an opportunity for everyone to express
their talent and make their personal contribution to the collective
dynamic that will create Hermès’ future success.

The desire to reward both collective and individual performance canbe seen in the development of variable compensation at bothindividual and collective levels for many years. The objectives andassessment criteria are clearly shared with employees with the aim oftransparency, motivation and commitment.
For example, in addition to the dynamic changes in ﬁxed salaries fromwhich all employees beneﬁted, additional and exceptional measures
were also decided by the House in 2023, in a spirit of recognition of
the commitment and contribution of each employee to the Group’s
performance and success. Thus, a bonus of €4,000 will be paid once
again during the ﬁrst half of 2024 in respect of 2023 for all eligible
employees worldwide, in order to demonstrate the House’s deep
appreciation for the commitment of its employees. A similar bonus
was already paid in 2023.
Particular vigilance is paid to the respect of the principle of genderequality and any gaps in relation to the market are addressed duringsalary reviews with the aim of fair treatment in the allocation of salary
increases, including with respect to maternity leave. Speciﬁc budgets
are systematically granted if adjustments are necessary. In France,
agreements or action plans relating to gender equality have beenrenewed in order to reafﬁrm the guarantee of balanced salary
positioning between men and women. The monitoring of equal pay
indicators and the measures to remedy the situation, if necessary,are overwhelmingly included in the agreements signed by the House’s
subsidiaries.

Employee shareholding plans
True to its family tradition and wishing to involve all its employees
worldwide in the Group’s sustainable and responsible growth over the
medium and long term, Hermès distinguished itself again in 2023
with a free collective share allocation plan. This is a unique system interms of its scope and generosity, renewed several times since theGroup’s ﬁrst plan in 2007.

942023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

All of these employee shareholding plans serve three purposes:s to show the confidence of the House in the long‑term commitmentof its employees and unite them around the Hermès Groupstrategy;s to acknowledge the contribution made by all employees, whatever
their role, to the development of the House, by providing a single
compensation component to share the benefits of our growth,enabling employees to identify more closely with the long‑term
Hermès growth decisions;s to consolidate the strong links between employees and the House.

In order to promote, on the one hand, the loyalty of employees overthe medium and long term, and on the other hand, collective
performance, the free share award plans include vesting periods of atleast four years, conditions of presence and, lastly, performance
conditions (for a portion of the grants).
The Group conﬁrms its ambition to continue to involve all its
employees in its corporate project in a single way by strengthening
employee's shareholding. These free share awards plans, in terms of
their scope and generosity, have no equivalent on the market, either
in France or abroad. The vast majority of employees who become
shareholders through these employee shareholding plans keep theirshares well beyond the mandatory vesting and holding periods (inFrance, where applicable). At the end of 2023, 80% of employees
held shares or rights that were vesting and accordingly, continue to be
involved in the Hermès Group’s governance and operations over thelong term, in a spirit of mutual trust with the House.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMS

Vesting of the free share plan granted
on 1 July 2019

More than 18,000 employees in 35 countries
received rights to 12 shares. At the end of theacceptance period, 210,168 shares wereallocated

More than 10,500 employees acquired thefourth tranche of 12 shares granted by the
Executive Management on 1 July 2019

Profit‑sharing and incentive schemes (France)
Since 2012, a special proﬁt‑sharing agreement signed with all of therepresentative unions has enabled all employees of the companies inFrance to share in the proﬁts of the Hermès Group in a harmonisedmanner.
Incentive scheme agreements are in place at all Group companies inFrance. These agreements, concluded for a period of one to three
years, aim to involve employees in the development oflocally‑determined indicators that are relevant with regard to theactivity and environment of each of these entities, notably, quality,
safety (for example, work accident rate at Hermès Sellier), productivity
and sustainable development objectives (for example, water
consumption in the Textile division). Incentive schemes are thus an
opportunity for Hermès to involve its employees in the achievement of
its sustainability objectives. In France, more than 88% of theworkforce is covered by an incentive agreement including objectives
related to sustainable development (improvement of safety, frugal use
of materials, protection of resources, etc.).
Employees of international entities (38% of Group employees in2023) also beneﬁt from a range of regular additional compensation
initiatives in line with performance and local customs.
In France, €207 million in incentive schemes and proﬁt‑sharing inrespect of 2023 (amount including expenses) will be distributed to
the Group’s employees, compared with €168 million respectively forthe previous ﬁnancial year. In total, the increase in these two amounts
is more than 23%. These have a signiﬁcant positive impact on theoverall compensation (short, medium and long‑term) of the House’s
employees and reﬂect its desire to share the fruits of its growth witheveryone.
The amount distributed in 2023 in respect of employee support
activities was €5.1 million (€4.5 million in 2022).

Incentive schemes and proﬁtsharing in France (in €m)

At 31 December 2023, employee
shareholding represented

New free share plan on 15 June 2023

Incentive
schemes

Proﬁtsharing

Total

In respect of 2022

64

104

168

In respect of 2023

79

128

207

Pension schemes
In terms of supplemental pensions, the aim is to help employees build
up additional income at the end of their working lives. Hermès isoften a pioneer in the proactive implementation of these systems. For
example:s in France, more than 15 years ago, Hermès set up a supplemental
defined‑contribution pension plan for all employees under a

1.09% of the share capital,
i.e. more than €2.2 billion.

collective agreement. In 2023, this plan represented total
contributions of €10 million, of which over 91% financed by theemployer;2s these supplemental pension plans for all local employees are also
set up in the United States, Canada, the United Kingdom,
Germany, Switzerland and Belgium, as well as in Asia -China,
Singapore and Korea- where these mechanisms are notwidespread. Implementation continues for example in Spain and
Poland.

Everywhere in the world where these deﬁned‑contribution
supplemental pension plans have been set up, the Group ﬁnances
the majority share (in accordance with legal rules and/or local
agreements). The management of these systems is entrusted to
specialist external partners (insurer, bank or other).
The Group’s total commitment in terms of deﬁned‑beneﬁt pensions
and other employee beneﬁt obligations was €279 million in 2023.
Thanks to these proactive and ambitious social protection policies,
more than 97% of employees worldwide are able to beneﬁt fromhealth coverage, 96% are covered by disability plans, and 97% of
employees worldwide are able to beneﬁt from pension plans. Thesesystems are amended as necessary (regulatory, Group decision,
market practice, ﬁnancial equilibrium, etc.) to contribute to the qualityof the overall compensation package for Hermès’ teams.

Supra‑legal leave to support parenthood
The granting of supra‑legal leave, in particular to support parenthood,is an important issue for the House, which is very attentive toproviding its employees with good working conditions and a balance
between their professional and personal lives, particularly whenwelcoming a child.
Since 2019, the Group has therefore decided to roll out a common
maternity leave policy for all its subsidiaries worldwide. In particular, it
includes full maintenance of basic compensation for a minimum
period of 16 weeks’ leave and coverage of the costs related tochildbirth.
The parental leave including paternity, adoption and second‑parent
leave scheme subsequently evolved rapidly to offer employees of theHouse four weeks of leave with salary maintained without any lengthof service condition. This system was initially rolled out in France andhas gradually been implemented around the world. To date, 78% of
the House’s employees have the opportunity to access this leave towelcome their children under favourable conditions.
To support the choice of part‑time working after a birth or adoption,pension contributions are paid by the employer on a full‑time basis(these measures apply in the vast majority of entities in France, in
accordance with the provisions of the collective agreements in force).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

95

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSThe effective application of this policy is monitored as part of theGroup’s procedures.
As a further example, several companies in France (across all
business divisions) have signed agreements with social partners that
include measures aimed at:s ensuring equity in terms of compensation before and aftermaternity, paternity, adoption or education leave;s adjusting, on a full‑time basis, the payment by the employer ofpension contributions on a full‑time basis for employees who havechosen to work part‑time, and allowing parents to benefit from aleave of absence in the event of the serious illness of a child (up to
10 hours per week, to be adjusted in agreement with their
manager);s offering employees the opportunity to donate their days off (up to
5 days per year and on an anonymous basis) for the benefit of
their colleagues whose children are seriously ill.

In order to fully deploy this commitment and support the development
and fulﬁlment of its employees, the House also allows international
solidarity leave, business creation leave or, more traditionally,sabbatical leave.

2.2.6.3

CREATING THE CONDITIONS FOR
PROFESSIONAL DEVELOPMENT AND
EMPLOYABILITY

A proliﬁc source of long careers, tailor‑made career paths andexceptional savoir‑faire, Hermès is convinced that its ability topromote lifelong transmission, learning and training is an essential
source of the professional fulﬁlment of its employees. Hermès iscommitted to developing the employability of its people, throughaccess to training adapted to all, by undertaking to providing ﬁve daysof training per employee per year by 2026.
These elements are discussed in more detail in § 2.3.

2.2.7

FOSTERING AND PROMOTING QUALITY
SOCIAL DIALOGUE

It is Hermès’ policy to constantly ensure that it implements andguarantees both high quality social dialogue and freedom of
expression for all its employees. This social dialogue is essential to
the smooth running of company life. It takes the form of close
relations with the teams and through employee representatives andcollective bargaining.

2.2.7.1

SOCIAL DIALOGUE IN FRANCE

In order to strengthen social dialogue, an agreement to renew social
dialogue was signed on 25 November 2021 with the representativetrade unions in France. This agreement includes numerous measuresintended to encourage and promote social dialogue through:962023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

s better knowledge of the players in social dialogue

For example, communication campaigns are carried out aroundprofessional elections to share information on the essential role ofemployee representatives, professional elections and the practicalmethods of voting;s enhanced interaction between social dialogue players

Highlight of 2023, the second “H‑Day” provided for by theagreement was organised, bringing together management andemployee representatives. During the morning, discussions took
place to explain Group agreements, discuss best practices insocial dialogue and receive training on unconscious bias in labour
relations. In the afternoon, each trade union organisation had theopportunity to meet and hold discussions with its representatives;s better coordination of the mandate and professional activity

For example, three meetings were provided for by the agreement,
upon appointment, during and at the end of the mandate in orderto promote specific discussion between an employee
representative and his or her manager on the performance of hisor her mandate and the reconciliation of this with professional
activity;s development of the skills of social dialogue players

A training pathway throughout the term of the mandate, paid for by
Hermès, was created to promote the development andenhancement of the skills of employee representatives through two
aspects:• training in “The Fundamentals” on taking office, which
includes regulatory and specific training such as “The Art of
Negotiation”, which brings together union representatives andHR managers; or the “Reflex” training course on day‑to‑day
employment law management, jointly intended for managers
and employee representatives to strengthen links and achieve
higher quality social dialogue,• “a la carte” training throughout the term of the mandate, inparticular on public speaking, project management, sustainable
development, cross‑functional management, time management,etc.

In summary, this agreement recognises the essential role of social
partners and aims to bring together the players in social dialogue in a
climate of reciprocal trust and mutual respect.
In France, i.e. 62.3% of the Group’s employees, social dialogue isorganised company by company, through the employee representation
bodies (such as the Social and Economic Committees, the various
joint committees or local representatives) set up according to theorganisation of the various divisions or sites. These bodies are
regularly consulted in relation to projects relating to the Company’sbusiness activity.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: TEAMSIn the various French companies, social dialogue also involves fruitfuland active collective bargaining. Collective agreements have beenconcluded in all companies that have union representatives or with
the Social and Economic Committees authorised to negotiate certain
agreements. In France in 2023, agreements and amendments weresigned, testifying to the vitality of these discussions; they break down
as follows:

Agreements signed in France

2022

2023

88

97

Compensation

57

58

Social dialogue

14

18

QVT/CSR

8

12

Working conditions

99

In addition to these information‑consultation periods with the SECs,
regular meetings take place between human resources, managers
and employees in order to discuss the expectations and working
conditions of employees on a daily basis. These discussions may leadto the establishment of joint working groups.

Hermès’ ethics charter and practices conﬁrm its commitment to theconventions of the International Labour Organization (ILO). In all thecountries concerned, the policy is to ensure that the principles of
freedom of association and collective bargaining are implemented, incompliance with local regulations.

2.2.7.2

INTERNATIONAL SOCIAL DIALOGUEInternationally, social dialogue takes various forms, depending on
local customs and regulations. It can take place through regularmeetings and discussions with employee representatives (Taiwan,
Korea, Türkiye, Japan, Germany, Italy) or directly with employees inorder to gather their expectations, solicit their opinion and participate
in decisions, or through direct investment in projects on various
themes (CSR, working hours, working conditions, transport, etc.).

2

In general, the quality of social dialogue requires the implementationof systems to gather employee expectations and respond to themthrough speciﬁc action plans.

Some examples of international social dialogue mechanisms
BodiesCollective measures implemented throughnegotiations in 2023

Other dialogue mechanisms

Hermès Taiwan | quarterly council meeting
bringing together employee representatives andmanagers to discuss the operation of the entity
or working conditions (salary increase, social
beneﬁts, etc.).
Before each council meeting, employee
representatives send an anonymousquestionnaire to employees, so that they canfreely share their ideas.

Hermès Spain | negotiation of a Gender
Equality Plan
Hermès United Kingdom | negotiations
started on social dialogue
Türkiye | salary increase, improvement ofcontribution to transport and food costs

Hermès Of Paris (United States) | Let’s Talk
(tool for formulating questions, issues) and the
HOP Suggestion Box, Employee Resource
Group and Roundtables
Hermès Spain | “Company Mood”: monthly
anonymous feedback on all topics
Asia‑Paciﬁc | Town hall meetings and H Talk

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

97

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR-FAIRE

Hand-rolling of silk scarves, Textile division© Photography credits: Jérémie Leon

98

DOCUMENT D’ENREGISTREMENT UNIVERSEL 2023 HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIRE

2.3

PEOPLE: SAVOIR‑FAIRE

Hermès’ sustainable development involves preserving its savoir‑faire and ensuring that it will be maintained over time thanks to the various
mechanisms put in place. One of its key assets is the acquisition, enrichment and transmission of the savoir‑faire of its employees. More
broadly, Hermès contributes to the preservation and sustainability of multiple types of craftsmanship savoir‑faire, particularly in the
manufacturing sector, which is conducive to a more responsible and sustainable local economic development.

Introduction
Savoir‑faire lies at the heart of the House of Hermès, whether
craftsmanship, commercial or managerial. Recognising, strengthening
and transmitting savoir‑faire, enabling everyone to ﬁnd the conditions
for their personal development throughout their career within the
Company are fundamental elements of our humanist culture.
This commitment to employee training is reﬂected in all métiers and ina multimodal approach with the creation of digital pathways. For
production and distribution activities, training programmes are
tailor‑made and rolled out locally or by the Group in Paris. This can beseen, in particular, in the acquisition of savoir‑faire in an employee’s
ﬁrst job as a leather worker, in the engineering incubator within the
École des Tanneurs and the École du Textile, and the qualiﬁcations
gained through certiﬁcation or diplomas.
Hermès contributes to the preservation and sustainability ofcraftsmanship savoir‑faire through its École Hermès des Savoir‑Faire
and its training centres, in particular, as well as its partnerships withvocational schools throughout France (whose expertise is also used2

by other economic players). Naturally, this savoir‑faire is consolidated
and developed by its daily practice, without compromising on quality
and which promotes continuous improvement. Promoting its métiers
externally and with younger generations in particular is a key aspectof its actions. By bringing the wealth and excellence of craftsmanshipto the attention of a large number of stakeholders, and by expressing
future needs, particularly in the manufacturing sector, Hermès
contributes to motivating people to join its industry and offers
rewarding careers.
The constant recognition and valuation of this savoir‑faire, whatever
kind it may be, contributes to the construction of a strong meaningthat everyone can ﬁnd in their work and activity. In addition to daily
and individual activity, collective experiences, through communities
and work collectives, contribute to the development of meaning atwork, which goes beyond individual visions and brings together all
employees around the same pride in belonging. This is reﬂected ineveryone’s commitment and very strong attachment to the House ofHermès.

In 2023, the Group made progress on the main issues relating to transmission, with the aim of making a long‑term difference through steady
improvements with a signiﬁcant impact. Among these, the selected elements below are particularly illustrative of the year for this section:s 855 learners supported as part of the École Hermès des Savoir‑Faire, more than 400 candidates for the CAP vocational qualification inleather goods;s launch of the Hermès Bijouterie Académie and CSR Morning Briefs (in sales subsidiaries);s more than 391,000 hours of training, a training rate of 83%, giving around 21 hours of training per person;s more than 10,000 employee connections to our sustainable development e‑learning training courses;s rollout of a CSR 3 course in partnership with École Polytechnique for the Group’s CSR leaders.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

99

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIREPEOPLESAVOIR‑FAIRE
SDG

OBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

FOSTERING NEW CAREERS AS CRAFTSPEOPLE AND VALUING MANUFACTURING SAVOIR‑FAIRE

13 partnerships with écoles demaroquinerie in France
École Hermès des Savoir‑Faire: eight
integrated training schools with more than
150 trainers; 855 learners supported in
diploma courses

Number of learners supported
Developing and preserving historical
Number of people receiving diplomas/
savoir‑faire through integrated training
certiﬁcations
schools offering learning paths,
Number of vocational schools managed or
diploma or certiﬁcation training
École des Artisans de la vente: 1st
supportedcertiﬁcation class=-

Hermès Bijouterie Académie: launch of
HBA with three courses, available in six
languages

Continue voluntary actions relating totraining for our historical métiers anddevelop manufacturing savoir‑faire

Demonstrate the excellence of oursavoir‑faire

Promote craftsmanship businesses

21 Meilleurs Ouvriers de France (Bestcraftspeople in France – MOF)

Ten Entreprises du Patrimoine Vivant(Living Heritage Company ‒ EPV)=-CREATE THE CONDITIONS FOR PROFESSIONAL DEVELOPMENT AND EMPLOYABILITY: LONG‑TERM, TAILOR‑MADE PATHWAYS

Train employees in the House’s values

Number of employees reached by induction
actions% of employees having followed
at least one training course

More than 600 employees attended theﬁrst two editions of “Bienvenue au 24”
sharing the key elements of Hermès culture
new indicator
More than 1,000 participants in theMosaïque induction training

83% of employees having beneﬁted from atleast one training action in 2023

new indicator

Ensure access to employee training
Number of days training per employee
trainedThree days of training per employee
trained=Number of employees with more than
15 years of service in the Group

6% increase in the workforce of people
with more than 15 years of service=

Total number of internal transfers

1,059 internal mobilities Group‑wide-

Set up long‑term career development
programmes within the Group

100

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIREPEOPLESAVOIR‑FAIRE
SDG

OBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

2

INCLUDE SUSTAINABLE DEVELOPMENT AMONG THE GROUP'S SAVOIR‑FAIRE

Develop training on sustainable
development topics for all métiers

Create and lead a network ofambassadors to generatea training impact and ensure
it is relayed at local level

Number of people taking part in training
sessions related to sustainable
development issues, accessible in theGroup catalogue

More than 10,000 people taking part inGroup e‑learning training on sustainable
development (Fundamentals of sustainable
development, Climate change, Biodiversity
and Animal Welfare)↗

Launch of morning CSR briefs for in‑store
sales associates
Number of employees trained in the CSR
programme

Nearly 500 employees trained↗

Number of employees responsible for SD
within the Group

More than 50 employees responsible forSD↗

Number of SD ambassadors
around the world

350 SD ambassadors around the world↗

2 international SD seminars (Europe‑Asia,
Number of network management events

United States)

1 weekly publication on Sustainable↗

Development topics

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

101

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIRE

2.3.1

CREATING THE CONDITIONSFOR PROFESSIONAL DEVELOPMENTAND EMPLOYABILITY

2.3.1.1

AMBITION

Hermès has a considerable heritage of savoir‑faire. The Company’s
craftsmanship model highlights the importance of gestures on a daily
basis and contributes to the continual development of craftspeople
through even greater mastery of their knowledge and savoir‑faire.
This model creates for each craftsperson the conditions forresponsible work, low consumption of resources, rich in links with thecollective to which they belong, enabling learning, improvement, andalways with the quest for excellence as an objective. This stimulating
and caring environment allows everyone to give the best ofthemselves and to ﬁnd meaning in their work.
With the aim of supporting its employees throughout long andsustainable careers, Hermès aims to train its employees throughout
their life, and to enable them to grow with the Company.
To preserve the sustainability of their career paths, Hermès iscommitted to developing the employability of its people, throughaccess to training adapted to all, by undertaking to providing ﬁve daysof training per employee per year by 2026.

2.3.1.2

OUR CRAFTSMANSHIP MODEL: FOSTERINGNEW CAREERS FOR CRAFTSPEOPLE,
DEVELOPING AND PRESERVING HISTORICALSAVOIR‑FAIRE

Hermès’ sustainable development involves preserving the savoir‑faireof its employees, who constitute a key part of its heritage. More
broadly, Hermès contributes to the preservation and sustainability ofmultiple types of craftsmanship savoir‑faire in their region of origin,thus contributing to responsible and sustainable local economic
development.
Hermès is professionalising, supporting and strengthening its
craftsmanship model with three major modelling initiatives for othersubsidiaries in the coming years: the École Hermès des Savoir‑Faire
for production, the École des Artisans de la vente for Retail, andHermès Bijouterie Académie for the métiers.

L’École Hermès des Savoir‑Faire
In 2021, Hermès created the École Hermès des Savoir‑Faire (EHSF),
which aims to encourage art craftsmanship métiers and promote

1.
102

apprenticeship through work/study contracts in the associated CFA’s
excellence métiers. This organisation has included in its corporate
purpose “the preservation of all the House’s art métiers”. In July
2021, it obtained all approvals from the public authorities to train its
future saddler‑leather goods workers in‑house, assess their skills andissue the state vocational qualiﬁcation (CAP) in leather goods incollaboration with the French Ministry of Education.
The École Hermès des Savoir‑Faire is pursuing its aim of promoting
and showcasing its métiers and savoir‑faire throughout the country,
providing quality diploma training to people wishing to become
craftspeople, setting up certiﬁcation courses aimed at recognisingchanges in certain professions within the House.
An ofﬁcial training organisation, it also conﬁrms Hermès’ role as asocial player and responsible employer committed to the education ofable‑bodied people or people with disabilities, with initial experiencein a manual métier or in professional retraining.
United around social and educational responsibility, the teachingteams and external partners have enabled this school to expand its
regional presence and its diploma offering. Following the CAP
vocational qualiﬁcation in leather goods, new diplomas are now being
delivered, such as the certiﬁcate of professional qualiﬁcation (CQP) in
cutting, the CQP in stitching and the validation of acquired experience(VAE). More than 150 in‑house trainers support the transmission inthis way, on a daily basis.
Hermès works closely with the French Ministry of Education, theMinistry of Labour and joint bodies on orientation, the content of
diplomas, and the creation of courses that are lacking. At the sametime, action with local employment and training partners such as Pôle
emploi, OPCO (1), the regional departments and local missions allows
Hermès to strengthen its anchoring in the regions.
In 2023:s the EHSF supported 855 learners during the year in eight training
schools in the regions, of whom 441 are registered for the 2024
CAP exam session;s 202 people obtained their CAP in leather goods and 25 their CQP
in cutting and stitching;s 100% of people registered obtained their certification (as in 2022);
s 89% of people were confirmed on permanent employment
contracts at the end of their training courses;
s confirmation of Qualiopi certification during the surveillance audit.

Skills operators, government bodies responsible for supporting vocational training.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIRE

Paris-Val-de-Seine division
Lycée Jean Monet
Lycée Turquetil
Lycée Flora Tristan

Normandy

Ardennes (Planned for 2022)

Lycée Augustin
Boismard
Les Haras du Pin

Lycée Charles de Gonzague
CAP Maroquinerie
Ardennes2

Normandy

Franche-ComtéParis-Val-de-Seine

École Boudard
Lycée Professionneldes Huisselets

Franche-Comté

South West

Nouvelle-Aquitaine
Lycée Jean Rostand
Lycée Charles Péguy
CFA Le Vigean

Alpes

Auvergne

Maroquinerie
de Guyenne

Pierre-Bénite
production unit

AuvergneRhône-Alpes
Lycée Danielle
Casanova
Lycée Desaix

In 2024, Hermès will support the deployment of the EHSF in two newschools: one located in Allanjoie for the Franche‑Comté division andanother in Pantin, for the Paris‑Val‑de‑Seine division. 1,100 learners
on three certiﬁcate courses will also be supported.

culture and sales procedures. New training courses on managementof emotions and personal development were offered. The team of
in‑house trainers has been expanded to roll out coaching sessions insales situations, a tailor‑made experience for employees.

Hermès craftsmanship employs more than 7,300 people in France. It
is the foundation of the House’s vocation as a creator of high‑quality
sustainable objects. To continue recruiting in all métiers and tosupport the growth momentum of the leather goods segment, Hermès
has forged long‑term local partnerships with high schools and further
education establishments, which are committed to understanding its
speciﬁcities, culture and development.

The EAV, accompanied by an external partner, awarded the ﬁrst
“Customer Relations” certiﬁcates, a title registered in the France
Competences Speciﬁc Register. The ﬁrst six employees were awarded
their certiﬁcates in 2023.

École des Artisans de la vente
The École des Artisans de la vente (EAV), in charge of training
distribution teams in France, consolidates its ambition based on fourpillars: Emotional intelligence, Networking and transmission, Growing
without standardising, A school of uniqueness.
In 2023, the initial training (less than 18 months of service) was
expanded. It combines e‑learning and in‑person training in the historyof the House, the diversity of our objects, the Hermès customer

The ambition of the Hermès Retail France subsidiary is to make the
École des Artisans de la vente a tool for attracting, and professional
and personal development for its employees, offering continuous
training, certiﬁcations and diploma courses.

Hermès Bijouterie Académie
In 2023, the Jewellery métier launched its “HBA” academy, Hermès
Bijouterie Académie, mainly for sales teams in Hermès stores aroundthe world. The aim of the métier is to create a training and support
structure linked to the world of Jewellery, over the long term, used ona daily basis and taking into account the reality on the ground.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

103

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIRE

The HBA also offers an educational system consisting of threeprogressive courses that will allow sales associates to ﬁrst acquire
the fundamentals of the métier and then deepen their knowledge andskills through two other courses, advanced and specialist, in areas
such as: gemology, jewellery savoir‑faire or CSR.
École Hermès des Savoir‑Faire

École des Artisans de la vente

Hermès Bijouterie Académie

8 training schools
More than 150 trainers
202 people obtained their CAP vocational
qualiﬁcation in leather work
25 people obtained their CQP vocational
qualiﬁcation in cutting and stitching
855 learners were supported in their diploma
courses, of whom 441 are registered for the2024 CAP exam session
89% of people were conﬁrmed on permanent
employment contracts at the end of theirtraining courses

1st graduating class

Launch of HBA withthree courses, available in six languages

The House is proud to count some of the Meilleurs Ouvriers deFrance among its craftspeople
This prestigious title is awarded only in France by category ofcraftsmanship métiers, as part of a competition between
professionals. It takes place every three years. The goal is to reward
excellence and savoir‑faire, which are the required criteria for theawarding of the title. The House is proud to count some of the

Meilleurs Ouvriers de France among its craftspeople. They guarantee
the excellence of the savoir‑faire in addition to arousing the interest ofyounger generations. Hermès supports those who wish to obtain thisprestigious title by ﬁnancing their registration to the competition,
providing them with the materials necessary for the creation of theirﬁnal piece and by granting them extensive access to the various
production sites. The House has 21 MOF, broken down as follows:

John Lobb

Holding Textile Hermès

Cristalleries Saint‑Louis

Leather Goods & Saddlery

2 craftspeople awarded MOF
Master bootmakers

10 craftspeople awarded MOF
for the excellence of theirsavoir‑faire in drawing‑engraving,“velours au sabre” (velvet cut)technique, weaving, printing andﬁnishing

7 craftspeople awarded MOF
Master cutters on crystal
Master glassmakers by hand
Master glassblower using a
blowtorch2 craftspeople awarded MOF
Master saddler‑leather workers

Entreprises du patrimoine vivant (EPV) - Living Heritage
Companies
The Group is honoured to have 10 companies recognised by the“Entreprises du patrimoine vivant” (Living Heritage Companies) label(the list drawn up in early 2024 shows eight companies holding thelabel, and two companies engaged in a renewal process): Hermès
Sellier, Holding Textile Hermès (Bucol), Ateliers AS, Ateliers de tissage
de Bussières et de Challes (ATBC), Cristalleries Saint‑Louis,
Établissements Marcel Gandit, Puiforcat, Société d’impression surétoffes du Grand Lemps (SIEGL), the Vivoin tannery, and theTanneries de Montereau. These distinctions bear witness to Hermès’commitment to the safeguarding, preserving and promoting of
heritage savoir‑faire.

2.3.1.3

GROWING OUR HOUSE AND GROWING WITH IT:
LONG‑TERM “TAILOR‑MADE CAREER PATHS”

In order to ensure the sustainability of the House’s values and uniqueculture and to meet the strategic issues of today and tomorrow, theHermès Campus initiated and strengthened new multimodal andinternational development career paths in 2023 for buyers, industrial
managers, collection development positions, store managers, sales
associates and managers; with a dual ambition to develop technical
104

These courses, available in six languages, will offer an appropriatebalance between digital and face‑to‑face with educational, fun andinteractive tools. In addition to these three courses, the Academy will
also offer access to seasonal training and news from the jewellery
sector.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

skills related to the evolution of their jobs and transform theirpractices and behavioural skills using, in particular, emotional
intelligence.
At the same time, Hermès continues to develop multimodal
programmes for everyone (more than 400 programs in France), in theareas of corporate culture, management, expertise and personal
development.
In 2023, 83% of the Group’s employees beneﬁted from at least one
training course, with a total of three training days per employee
trained. In total, 391,050 hours of training were provided, compared
to 341,689 hours in 2022. Worldwide training costs amounted to€13,435 thousand for the ﬁnancial year, compared with
€11,600 thousand for the previous ﬁnancial year.
For 2024, 62% of employees on permanent employment contracts inFrance issued an average of 2.2 training requests, demonstrating thestrong individual involvement of employees in order to develop.
Campus Hermès is also strengthening its learning content with My
Campus, a digital learning platform available to all employees andwhich offers more than 200 training modules in different languages.
Lastly, monitoring indicators were rolled out this year for nine regulatory
and mandatory in‑house training courses or e‑learnings in order to ensure
regular individual and collective monitoring of this coverage.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIRE

To organise, develop and manage this ambition, the Hermès Campus
created the L&D Council, which brings together the training anddevelopment managers of the main subsidiaries, which put into
practice and roll out this strategy.

Tous artisans, tous talents (All artisans, All talents)
Hermès is by nature a house of talent. At Hermès, Tous artisans, tous
talents expresses the idea that our culture of craftsmanship is based
above all on talents, whether these are talents in expertise orleadership. The high quality of the objects created, manufactured andsold calls on solid expertise and savoir‑faire. It also requires the
support of inspiring leaders who are aware of the importance of theirrole in bringing the corporate project to life in line with our values.
Two approaches with consistent objectives are combined, that ofsupporting all employees so that they grow with the Company and canregularly update their skills, and that of supporting people withparticular qualities and recognised by those around them. Closer
support is provided to these employees in order to help them grow inthe short term so that they can take over the top management
positions of Hermès in the long term.

Preparing the Hermès of tomorrow with the talents of today
More selective talent management involves the annual talent review
exercise, a strong process driven by the Group, which sets theframework and the rules of the game, in particular the criteria for
identifying and selecting talented employees. The support for talents
and their career paths is based on coordination between Group andlocal players, a desire to ensure the best match between talent andsenior positions, as well as the desire to make bold decisions inrelation to young talents.
Internal and external development programmes are offered to talents
and development actions are closely monitored based on thedevelopment plans deﬁned for each individual.
Various internal programmes are in place to develop managers
identiﬁed as being able to take on Senior Executive positions within
the Group in the short or longer term:s in 2023, the Leading with Art programme benefited 60 seniortalents. Since its launch, this programme has supported
110 leaders in line with the managerial philosophy and the aim ofcreating and inspiring a community of leaders who are stimulatedby their role and demonstrate solidarity. Through two sessions ofseveral days, it aims to make them leaders who know each otherwell and are ready to have a positive impact on those around themand on the world and to accomplish this through the success of
their employees. In 2023, two alumni days of this programme were
offered to participants from four cohorts, i.e. to 90 leaders, tocontinue to raise their awareness of their role as agile leaders,equipped to ensure the balance between care and high standards,
and to share meaning and vision on a daily basis to drive theirteams’ motivation;s in 2023, the Cavaliers programme enabled 12 young talents tospend more than eight months exploring a strategic issue assignedby the Executive Committee. This enables them to put their
teamwork skills into practice and deepen their understanding of
the Hermès model through a subject on which they make concrete
proposals. This programme has been in place for several years.

The Digital makers programme was created in 2022 to train
high‑potential managers to manage digital transformation projects. In
two week‑long sessions, they learn project management, creativity
and design thinking skills, in particular through a “case study”
entrusted by Hermès. At the end of the programme, they submit theresults of their thoughts to a few members of the Executive
Committee. The concrete proposals they formulate through a “proof ofconcept” will then be implemented, which is an additional element ofmotivation and pride.

2

This attention paid to talent is also exercised in the distribution
subsidiaries, through the deﬁnition and monitoring of individual
development plans for talents, career interviews and individual
coaching, 360° assessment tools, contributions to cross‑functional
projects or temporary assignments to expose talents to various
situations and challenges and thus enrich their experience andexpertise. Human resources managers are trained in the assessment
tool in order to bring the approach in‑house.
At Hermès China, the H Galop programme supports promising young
talents for two years. It aims to attract talent from outside, andprepare for the future with talented people and encouragecross‑functional cooperation and exchanges. Hermès China thus
hires and trains 20 employees through four modules promoting
exposure to others, internal coaching by their manager, mentoring byother managers and peer mentoring. Knowing oneselfbetter,understanding one’srole and taking ownership of it and achieving
goals are the three steps to be taken during this training. A very
empowering programme that creates strong internal ties, awakening
people to the role of manager.
The Web school factory’s CFEE programme invites four young talents
to develop skills speciﬁc to digital professions such as project
management, design thinking and creativity.
With One Young World, 13 young talents were invited to join morethan 2,000 young leaders from 190 countries for four days in Belfast.
The meeting focused on the ﬁve greatest challenges facing humanity,
an opportunity for young leaders who have to invent the future byadapting to immense challenges.
In addition to this offering of internal programmes, talents also takepart in external programmes. In 2023, the Group involved more than
70 employees in the programmes designed and offered by Danone:
Eve, Octave and Noé.
Other programmes such as an Executive MBA or Crozamento with the
École de Guerre or the Institut de l’École normale supérieure are alsopart of the talent development programmes. In 2023, the Colbert
Labo, a system designed and led by the Comité Colbert, invited young
people and seniors to reﬂect on the theme “How can we better
integrate young people into a reﬂection on the future of luxury goods
to create the world of tomorrow?”. Hermès offered six employees theopportunity to contribute to this reﬂection.

Constructing “tailor‑made” career paths
Constant attention is paid to internal mobility, the primary lever for
talent development, in particular through the distribution of internal
newsletters in addition to the MyMobility platform on the internal
digital site MyClickH. Vis ma vie (“Live my life”) sessions offered in alldivisions and regions and mentoring initiatives facilitate internal
mobility and accelerate the process of taking up job openings.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

105

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIREIn France, an internal event, the k’(H)ermès des métiers, is organised
twice a year to meet the goal of making internal mobility a collective
and shared issue rather than an individual project. The objectives ofthis half‑day meeting held in Pantin are promoting knowledge of theentities, positions, inspiring career paths, the internal mobility policy
and its associated tools, and employees. All management employees
in France are invited to take part in an experience to better
understand the methods used in internal mobility, to ﬁnd out about
the opportunities and possible bridges between divisions. More than
120 people are taking part in the experience based on one of thefour Hermès divisions– Upstream, Métiers, Retail or Support
functions – a new way to build conﬁdence in opportunities to change
jobs, entities or divisions and to encourage ambitious challenges.
In addition, a Group Career Committee bringing together the Directorsof Human Resources in France every two months makes it possible toﬁnd a match between job opportunities and the development
priorities of employees at a certain level of the organisation, in orderto stimulate their development. Offering development opportunities
through diversiﬁed paths in terms of challenge, experience andacquisition of new skills is a source of value for both employees andthe Company.

Interaction to achieve progress
Hermès places interaction at the heart of the managerial relationship.
Men and women are the key ingredients in the success of each team,each project, each activity, etc. to reconcile the demanding model andthe differentiating human dimension of the House’s culture. Hermès’managerial philosophy gives each employee a strong place.
Reconciling attention and high standards, supporting thedevelopment of each employee: this is the key role of the manager.
This requires a regular, precise and clear assessment of each
person’s contribution as well as the sharing of continuous anddetailed feedback, conducive to a positive employee experience andpunctuated by milestones that are sources of constant progress. The

106

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

end‑of‑year interview is designed to make it possible to continue theon‑going interaction between the employee and his or her manager on
the occasion of an annual review, to consider and objectively assess
the contribution of the employee to the activity, to detect any factorsthat may be hindering the employee’s performance in their position,
share constructive feedback to co‑build trust and sincerity. The
feedback given by employees on the quality of the relationship with
their manager is encouraged to prompt managers to adjust theirpractices and maintain a healthy and fair relationship with eachmember of their team, a guarantee of joint progress.
The annual interview is managed by the Group Director of Human
Resources in coordination with the local Directors of Human
Resources. It is shaped by multiple training sessions aimed at making
the exchange a pleasant moment dedicated to taking stock of theyear, looking at objectives for the coming year and putting
improvements in perspective.

2.3.1.4

TRAINING IN SUSTAINABLE DEVELOPMENT
ISSUES“All artisans of sustainable development” involves raising theawareness, empowerment and skills development of all of theHouse’s employees, who are the ﬁrst agents of change.
Structured in 2022, the Group training programme combines twocomponents:s an acculturation approach, which allows both an understanding of
the Group’s sustainable development strategic framework and anawareness of the major social and environmental challenges oftomorrow, which is essential as a citizen;s a skills‑improvement approach, for the major categories of jobs
within the Group that will manage the environmental and socialtransition (industrial, creative and product development positions,etc.).

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIRE

What?

How?

Who?

POSSIBLE
CERTIFICATIONS?

SKILLS DEVELOPMENTMÉTIERS IN CHARGE
OF THE TRANSITIONWhy?

SPECIALISE

In addition to knowledge, providing
the technical and functional skills
necessary to “start” new and moresustainable ways of doing things.

2

Areas of expertise establishedfor each of the House’s main functions

ASK QUESTIONS

What?

share and challenge preconceived ideas
through a group experience

ACCULTURATIONWho?

DISCOVER THE KEY CONCEPTS
OF THE HERMÈS SD APPROACH

ALL AUDIENCES

climate change, animal welfare,circularity, diversity, etc.

Why?
Focus on acculturation,
experimentation, discussing
ideas, to make every-one
an informed ambassadorof the approach

LEARN ABOUT SUSTAINABLE DEVELOPMENT
Concept, principles, Hermès’ approach

To transform this strategic approach into mobilising projects, the Group is working on training teams around ﬁve major projects, presented below
and gradually rolled out in 2024:

1

5Construction of the “Hermès, sustainable
development and me” day and a Train theTrainer programme

Skills upgrading pathway
Offered from 2025

2

Developmentof a digital training offer

4

Developmentof podcast learning

3

Integration of sustainable
development into the main
Group training programs2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

107

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIRE

In addition, in 2023, many awareness‑raising and acculturation
actions were launched or continued, via various levers:s a new Climate change e‑learning module was added in early 2023
to the catalogue of available e‑learning training courses onsustainable development (fundamentals, animal welfare,biodiversity). In total, this catalogue of e‑learning courses hasrecorded more than 10,000 connections since its launch. The
module on the fundamentals of sustainable development is now
mandatory in several subsidiaries and métiers and is an integral
part of the arrival at the House;

Cultivating interaction and quality of connections, encouraging
curiosity and openness to the world, being an actor and initiator makeit possible to anchor our values and contribute to leaving a socially
responsible footprint on the world.

s sustainable development is now the subject of dedicated time in
the Group’s main training courses, which are intended to welcome
all employees on permanent employment contracts in France;

2.3.2.2s the CSR 1 and 2 training programmes, reserved for employees ofthe House’s various métiers (excluding leather goods), were
supplemented by the CSR 3 programme, a certification module inpartnership with École Polytechnique, reserved for the House’s
leading functions;

Creating the conditions for adherence to the corporate projectand promoting commitments launch of a training programme for the Supervisory Board and the
Executive Committee;
s rollout of CSR Morning briefs.

CSR Morning briefs: sustainable development acculturation for
Hermès sales associates

Launched in 2023, the CSR Morning Briefs include, in less than
10 minutes, the presentation of a sustainable development themein the daily morning brieﬁng received by in‑store sales associates.
Composed of 14 sheets covering all the major themes of thestrategic framework (preservation of savoir‑faire, management ofmaterials and savoir‑faire, relations with suppliers, etc.), these
Morning Briefs provide a summary and impactful way of the main
information and key ﬁgures to remember on each subject, so thateveryone feels equipped to discuss sustainable development
topics in their daily lives, with their colleagues or customers instores. Rolled out in several European subsidiaries (United
Kingdom, Switzerland, etc.), they will gradually be distributed
throughout our distribution network in 2024 and 2025.

2.3.2

MEANINGFUL WORK

2.3.2.1

AMBITION

Hermès’ craftsmanship model is by nature a model that has meaning
for its employees. Working with materials, the promotion andtransmission of savoir‑faire, and the importance given to the gestures
made by hands help to bring to life the notion of respect that emerges
from our managerial philosophy.
Employees are part of human‑scale teams, each site is sized so thatmanagers remain close to and support their teams, in order to makethe human project real.

108

Hermès’ growth commits it to its employees, in order to ensure thatthey grow and ﬂourish within the House, by continuing to feel like they
are contributors and actors in the collective success. Hermès’ambition is to create conditions such that each person, participating
in a collective adventure, within working communities on a humanscale, ﬁnds meaning in their work and their career path.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

UNITING AROUND VALUES, CREATING LASTINGTIES AND NURTURING PRIDE IN BELONGING
TO A RESPONSIBLE HOUSE

Hermès takes care to create all the conditions so that employees canbe actively involved in the corporate project, passing on culture andvalues, and growing in a family House. Throughout their professional
careers, Hermès strives to provide them with unique experiences andcultivates curiosity and amazement.
In order to unite around the strategy and the issues and to supportchange, several systems mobilise different targets each year.
On 15 February 2023, Hermès Middle East South Asia organised its
ﬁrst HMESA Forum. 300 managers from the South Asia region met in
Singapore to learn about both the Group’s strategy and that of theregion, as well as the successes of certain local projects: thetransformation of the Sydney Trust store in Australia, the scale ofcommunication events in Singapore, the development of Hermès in
Thailand, etc.
On 5 and 6 July 2023, a seminar dedicated to the internal
communication community took place for the ﬁrst time in Paris. 26
internal communication players from subsidiaries, sectors andmétiers met on the Sciences Po Campus to share the new ambition
for internal communication and rally around the challenges ofamplifying networking activity.
In Oslo, from 3 to 6 October 2023, all the Management Committeesof the Group’s entities, the Artistic Directors, as well as some leadersof the Group’s central functions were invited to meet for three days toshare the Group’s vision and issues and to discuss thecharacteristics of the managerial philosophy.
On 12 October 2023, to mark the 40th anniversary of Hermès Japan,
the Japanese subsidiary organised a meeting of more than
150 managers, including the Executive Committee, around threethemes: the Group’s development issues, distribution and theimportance of creation.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIRE

Enhancing the employee experience
An integral part of Hermès’ social model, networking is a uniqueactivity. Its purpose is to make the Company a place of respect fordifferences, to enrich employees through strong and meaningful
human experiences and thus create something in common.
Since 2001, more than 4,000 employees have taken part in at least
one networking programme, whether professional or philanthropic.
Permanent professional programmes such as the “Parcoursd’adresse” offer the discovery of savoir‑faire, by exploring all stagesof the life of a product, from the raw material to the object. In 2023,
100 employees from all production sites in France, Switzerland and
Italy set off on a ﬁve‑day discovery of the leather, crystal, silk,
perfumes, porcelain and ready‑to‑wear métiers.
The philanthropic programmes open to all Group employees promote
openness to the world, cultivate curiosity, encourage encounters andthe building of relationships.
In 2022, Hermès offered a third major philanthropic networking
programme: “Sur les ailes d’Hermès”, which attracted more than
8,200 registrations.
This new programme, which will last until July 2024, allows many
employees from all Group entities to take action by making
themselves useful. Based on different themes: environment, culture
and savoir‑faire, 23 projects were proposed, giving employees theopportunity to make concrete contributions to the projects ofassociations or organisations supported locally by the Group’s
subsidiaries.
To make these contributions tangible, each project requiring between
two and six groups, a draw took place to select 11 employees eachtime from different entities.
These groups spend ﬁve days of their working time on their project inorder to understand its meaning and the issues and to work towards
concrete achievements.
17 groups in 2022 and 39 in 2023 headed off with missions as
varied as carrying out masonry work to save castles in Occitanie,
working alongside the keepers at the Taronga Zoo in Australia for thepreservation of fauna and ﬂora or learning about the preservation of
frescoes in Italy to become ambassadors of this heritage which needs
to be protected.
Since September 2022, more than 600 employees, with multiple
proﬁles, have thus set out to discover another reality, contributing to
the realisation of a tangible project for the beneﬁt of the host entity.
They live human experiences in this way that are rich in meaning, inline with their deepest aspirations.

Bringing family values and spirit to life
Preserving the family spirit in a House that is expanding is reﬂected innumerous rituals that make it possible to energise various groups: thelaying of the ﬁrst stones, the inaugurations and the anniversaries ofthe production sites are an opportunity to create energy by involving
employees in inspirational highlights. All forms of celebration place
employees at the heart of a unique experience.

On 7 April 2023, 500 employees were invited to the inauguration of
the Maroquinerie de Louviers, in Normandy, in the presence of
certain members of the Executive Committee and local stakeholders.
The same attention was paid to our employees during theinaugurations of the Maroquinerie de la Sormonne in the Ardennes on
13 May 2023 as well as the Maroquinerie‑Ganterie de Saint‑Junien,
in Haute‑Vienne on 7 June 2023, bringing together 570 and
360 employees respectively.

2

On 13 July 2023, the Textile division was in the spotlight for theinauguration of the “Passerelles” project, a real transformation andexpansion of its historic site in Pierre‑Bénite, in the Rhône. A day ofastonishment for the 1,200 employees of the sector, gathered thatday on the theme of a village festival: a choreography performed byprofessional dancers and employees of HTH, a fresco retracing thehighlights of the four years of work and various activities to celebrate
the event to the sound of a brass band.
On 13 November 2023, around 600 employees from Hong Kong and
Macau celebrated the 50th anniversary of the subsidiary.
All these rituals, which are numerous within the Group’s various
entities, nurture employees’ pride in belonging to a family House.

2.3.2.3

OFFERING EVERYONE OPPORTUNITIES TO TAKEACTION INTERNALLY AND ACT
AS A RESPONSIBLE CITIZEN

In order to embody its commitment as a socially responsible employer
and to “Give back to the world what it gives us”, Hermès encourages
its employees to be involved in the social and solidarity economy, withthe aim of strengthening its local anchorage in the areas where it
operates, according to the public interest needs expressed locally.
To do this, skills‑based sponsorship with partner associations
identiﬁed in conjunction with the sustainable development teams, theFondation d’entreprise Hermès and the Group Disability Agreement
team, as well as with local structures in the context of long‑term
partnerships, is regularly proposed to employees.
This approach enables the Group to nurture its values by supporting
projects related to its identity, to strengthen pride in belonging, butalso to leave employees free to choose the cause in which they wish
to get involved. It also addresses an increasingly expressed desire tocontribute to the common good. The projects supported must
naturally be aligned with the values and priorities deﬁned by Hermès,
which relate to education and the transmission of savoir‑faire,solidarity, environmental protection and cultural development. They
are generally long‑term. Employees involved in these projects, inareas of activity that are often little known, show real personal
satisfaction, motivation and increased skills. Operations carried out
by several people also reinforce cohesion within the teams and unite
the group.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

109

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIRE

A network of more than 80 skills sponsorship ambassadors
facilitates the rollout of this approach as closely as possible to theteams in France. Thanks to this volunteer programme, which has
been formalised in a Group methodology since 2017, employees inFrance can beneﬁt from a maximum of ﬁve paid working days to
get involved with charitable associations. In Switzerland and Spain,each employee is allocated one paid day per year to carry out
charitable actions.

Organisation
Since 2020, under the leadership of the Hermès Foundation and the
Hermès International cultural action and solidarity department, allsponsorship policies have been structured and formalised, including
most recently skills‑based sponsorship.
Each sponsorship operation is subject to a transparent selection
process, which includes the necessary prior checks to ensure thatthe operation complies with local laws and regulations. An
assignment sheet is drafted for each skills‑based sponsorshipintervention. Supported associations studied: governance, ethics andhuman rights, transparency, etc.

1102023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

In this context, each division has set up a sponsorship monitoring
system, including a Sponsorship Committee in charge of selecting
and approving the entity’s sponsorship activities. This committee ismade up of the Management Committee of the division, métier or
subsidiary. All decisions taken by this committee are recorded in aformal report kept for a period of ﬁve years.
Within the framework of a dedicated budget allocated annually by thesubsidiary, each division deﬁnes its priorities according to its activity
and location, as well as the eligibility criteria (reputation, soundnessof the project, history of the beneﬁciary, strategy of the entity,
prevention of potential conﬂicts of interest, etc.) and control ofsponsorship projects supported.
Most of the actions are subject to a conﬁdentiality clause thatprohibits their disclosure in this document.
In 2023, in order to increase the internal visibility of sponsorship
actions and strengthen their effectiveness, skills‑based sponsorshipjoined the H3 (Heart, Head, Hand) programme of the Fondationd’entreprise Hermès. H3 is now home to, on the one hand, ﬁnancial
sponsorship – enabling employees to provide ﬁnancial support toprojects that are close to their heart – and, on the other hand,skills‑based sponsorship, co‑managed by the Fondation and theGroup Director of Human Resources.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEPEOPLE: SAVOIR‑FAIRE

22023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

111

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

Leather inventory at the Louviers Leather Goods workshop© Photography credits: Anne Soullez

112

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE  SOCIAL  RESPONSIBILITY  AND  NON-FINANCIAL  PERFORMANCETHE PLANET: RAW MATERIALS

2.4

THE PLANET: RAW MATERIALS

Sustainable development at Hermès is based on exceptional raw materials, from renewable natural sources, which enable it to create
long‑lasting objects. They are obtained with the aim of controlling their environmental and social footprint, both in terms of biodiversity andhuman rights, and are used with respect by optimising their use. More broadly, Hermès is committed to sustainably developing its supply
chains, by going beyond compliance with environmental, ethical and social regulations, and contributing to the future availability of theseresources. Lastly, Hermès is committed to measuring its impacts on biodiversity and undertaking action to preserve it.

2

Introduction
Hermès’ ﬂagship materials – leather, silk, cashmere and wood –are all natural, renewable and obtained in such a way as tominimise their footprint. The model and values of craftsmanshipguiding the House have always promoted the careful and respectful
use of these rare and precious materials. Craftspeople take greatcare not to waste resources, to use only what they need and to
optimise the use of materials. Recycled materials are increasingly
used in manufacturing. In all métiers, channels are also identiﬁed torecover and recycle manufacturing offcuts, in addition to theemblematic activities of petit h, a pioneer in this area since 2010.
The materials are selected and supplied in each of the métiers within
the framework of a rigorous process set out in the “supply chain
brief” and detailed in technical speciﬁcations, complying withregulations, respecting biodiversity and best practices, in theconstant quest for the highest quality and ethical integrity. These
regularly updated supply chain briefs are intended for all suppliers
and manufacturers involved in supplying Hermès’ métiers. They arealso accessible on the Group’s corporate website. For decades, theHouse’s approach has been to ensure it has in‑depth knowledge of its

supply chains, to share its requirements with its suppliers – often
long‑standing partners – and to develop them in order to achieve thehighest quality and thus prepare for future growth while committing tointegrating the issues involved in combatting climate change.
As stipulated in these “supply chain briefs”, materials or species
threatened with extinction (identiﬁed in Appendix I of CITES –Convention on International Trade in Endangered Species of Wild
Fauna and Flora) or whose trade is illegal, are not used by the Group.
The creation of Hermès objects depends on a quality ecosystem, able
to provide it with exceptional materials. It is therefore fundamental forthe sustainability of Hermès’ business model to respect and protect
biodiversity, and to implement science‑based objectives in its direct
and extended sphere of responsibility. For the Group, this involves
voluntarily engaging beyond its sphere of inﬂuence and aligning its
action plans with international standards such as SBTN
(Science‑Based Targets for Nature) or TNFD (Taskforce on
Nature‑Related Financial Disclosures).

THE MAIN COMMITMENTS OF THE PLANET PILLAR: MATERIALS

2022• 100% non-mined gold andsilver in all our products
100% of unsold items• recycled or donated (France)

2024

2030

• 100% of suppliersaligned with the CSR brief
and the supply chain brief• Monitor the Group’s biodiversity footprint on its main value
chains and implement action plans• 100% of unnecessary single-use plastics* eliminated• 100% of unsold items recycled or donated (globally)• Certification and/or award of label status for 54 supply chains*Not having an essential technical function such as to protect the health and integrity of transportation products or regulatory information documentation.

In 2023, the Group made progress on the main issues relating to materials, with the aim of making a long‑term difference through structural
improvements with a steady and signiﬁcant impact. Among these, the selected elements below are particularly illustrative of the year for thissection:s improvement in the level of coverage of the sectors (90 sectors in total, including 75 active sectors, enrichment of all sector briefs (six new
subjects integrated, 66 in total);s structuring of a team dedicated to life cycle analyses. 20% of the métier division’s sales volumes covered by an LCA;s “zero destruction” of unsold goods in France and operational launch of the extension of this target to unsold goods worldwide;s more than 80% of the Leather division’s leather supplies are LWG‑certified, and 74% at Group level;s renewal of RJC CoP certification;s acceleration of in‑house biodiversity work (SBTN project, employee training, blueprint);s updating of the Forest policy and strengthening of actions to raise awareness of deforestation.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

113

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSPLANET
MATERIALSSDG

OBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

SEEKING THE HIGHEST QUALITY FOR ALL THE MATERIALS USED, GUARANTEEING THE OBJECTS’ DURABILITY
Number of different leathers
Have the highest quality materials andused by the House
those best adapted to thefunctionalities and uses of the
Number of raw materials identiﬁed
products
Strengthen vertical integration
to ensure mastery of savoir‑faire andProportion of certiﬁed livestock farms
the quality of materials and develop
long‑term relationships with producers

35 different leathers used by the House=

74 exceptional raw materials used↗

100% of raw crocodilian hides purchasedby the Tanneries division comply with ICFA
certiﬁcation standards
100% of ostrich farms SAOBCS‑certiﬁed↗

OPTIMISING THE USE OF RAW MATERIALS THROUGHOUT THE LIFE CYCLE BY INTEGRATING THE PRINCIPLES OF THE CIRCULAR ECONOMY
Identify eco‑design levers andopportunities for all products% of métiers having implemented an LCA
approach on their emblematic products

More than 80% of the métiers carriedout at least one LCA on theiremblematic products

100% of métiers have included a section
Establish a circular economy roadmap Proportion of métiers that have formalised
dedicated to the circular economy in theirin all métiersa Circular economy roadmap
roadmap==

Engage in a process ofrecycling co‑products from otherindustries

Proportion of leathers from hides recycled 98% of leathers used by Hermès comefrom agri‑food channels
from agri‑food channels

Favour the use of recycled materials
when relevant

100% recycled gold and silver for Jewellery

100% non‑mining gold and silver used in
Hermès Bijouterie workshops=

Quantity of recycled materials

24 tonnes of textile materials recycled for
the Textile division in 2023↗

Length of partnership with the leading
association for the circular economy

Several thousand items donated to the
Agence du Don en Nature in 2023,
partner since 2016=

Develop upcycling, recycling anddonation processes to improve andmanage product end‑of‑life

Implementation of processes to achieve
0% destruction in France from 1 January
the target of 0 destruction of unsold items 2023 (Agec law scope), target extended
from 2022 in France (Agec law scope)
worldwide between 2025 and 2030↗

=

Incorporate a circularand eco‑responsible approach intocreation

Number of products put on sale thatincorporate a circular approach

Approximately 2.8 million products
incorporating a circular approachdeveloped in 2023↗

Carry out product repairs

Number of products repaired

202,000 products repaired in 2023↗

FINDING ALTERNATIVES TO THE USE OF CERTAIN MATERIALS, INCLUDING PLASTICS

114

Improve the impact of all packaging,from production to customers totransportation% of packaging (customers andintermediaries) made fromrenewable, recyclable and/or recycledmaterials

Eliminate single‑use plastics% unnecessary single‑use virgin plastic by
100% of plastic hangers recycled2025

Consolidate the use of natural
materials

Naturalness indicator (Perfume andcosmetic derivatives)

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Integration of 500 tonnes of our
cardboard waste in the manufacture ofrecycled cardboard for our orange boxes

76% of ingredients used in perfumery areclassiﬁed as natural or of natural origin, as
are 59% of ingredients used in Beauty
products

new indicator=↗

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSPLANET
MATERIALSSDG

OBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

CONTROLLING THE ENTIRE VALUE CHAIN WITH OPERATIONAL TRACEABILITY AND PARTNERSHIPS
Analyse all purchasing categories
and supply chains% of purchasing categories where risks
74 supply chains analysed representing
have been mapped and number of supply
99% of revenue
chains subject to in‑depth analysis↗

In 2023, 60% of the calf hides tanned in
the two calf hide tanneries of the HCP
division were marked to ensure theirtraceability↗

100% of crocodilian and 100% of ostrich=% of calf hides traced to the livestock farm

% of exotic hides traced to the farm
Use leathers from geographical areas % of materials sourced in Europe forwith low social and environmental risks leather

hides are traced back to the livestock farm

91% of hides sourced in Europe

2=

CONTRIBUTING TO THE DEVELOPMENT OF THE MOST DEMANDING STANDARDS ON THE MANAGEMENT OF SUPPLY CHAINSIN TERMS OF ENVIRONMENTAL, SOCIAL AND ETHICS CRITERIA, PARTICULARLY IN TERMS OF ANIMAL WELFARE
Participation in the ICFA
(International Crocodilian Farmers
Association) since its creation in 2016

Contribute to the creationof certiﬁcations and standards
with exacting requirements

LPPS (Lizard Procurement and Processing
Standard) since 2016
Contribution to industry or sector working
groupsSAOBC (South African Ostrich Business
Chamber) since 2016
Commitment within the LWG(Leather Working Group) since 2020
Participation in the work of the CVRF
(French Responsible Calfskin)

Implement an Animal Welfare policy
by promoting the highest criteria

Number of animal sectors coveredby the Animal Welfare policy

100% of purchases related to animal
supply chains are covered by the Animal
Welfare policy% of Group métiers with an Animal Welfare 100% of métiers comply with the Group’s
roadmap
Animal Welfare policy==

INTRODUCING CERTIFICATIONS SCHEMES WITHIN OUR SUPPLY CHAINS
Number of supply chains integrating
certiﬁcation targets by 2030

Distribution of the supply chain briefplanning the implementation of certiﬁcationor the award of label status for 54↗

selected supply chains
1st luxury house to receive RJC

Obtain and maintain supply
chain certiﬁcations

COP certiﬁcation in 2019 and renewalof certiﬁcation in 2022
Number of supply chains certiﬁed
and renewed=

74% of the Leather Goods
division’s supplier tanners are
LWG‑certiﬁed, as well as 100% of ourin‑house tanneries (HCP)↗

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

115

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSPLANET
MATERIALSSDG

OBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

SUPPORTING AGRICULTURE THAT IS MORE RESPECTFUL OF NATURE
Contribute to research and ﬁeld
initiatives

Supported projects

Livelihoods: 25 agricultural projects
supported and more than 149,000
hectares planted or preserved

Increase the share of supplies
certiﬁed according to criteria
guaranteeing sustainable agriculture

Implementation of certiﬁcation schemes
by sector

Holding Textile Hermès continues to roll out
GOTS‑certiﬁed silk products
48% of cotton supplies for packaging
elements are GOTS‑certiﬁed↗

new indicator

DIAGNOSING OUR IMPACTS ON BIODIVERSITY ACROSS OUR ENTIRE VALUE CHAIN (FLORA AND FAUNA) AND DEFINING OUR AMBITIONS ON A SCIENTIFIC BASIS(SBT)

Measure our biodiversity impacts
across the entire value chain

Assessment and monitoring of the impact
on biodiversity by 2025 (Act4Nature)

92% of activities assessed according to a
GBS (Global Biodiversity Score) study in
2021, with an update underway in 2023
on the leather goods activity.

=

Achievement of steps 1 (materiality) and 2(prioritisation) of the SBTN approachacross the full scope
Conduct dedicated Biodiversity
studies in certain supply chains

Supply chains studied

Biodiversity analysis on the cashmere
supply chain with the University of
Ulaanbaatar, WWF France and WWF
Mongolia

IMPLEMENTING BIODIVERSITY TRAINING ACTIONS FOR ALL EMPLOYEESDevelop training to raise employee
awareness

Number of employees trained

4,105 people, or 74% of the HMS
workforce, had their awareness of theculture of living things raised
450 participants in the 2023 conference
cycle co‑hosted by WWF France
Training of more than 2,400 employees
since 2021, including 900 who took the
Biodiversity e‑learning module in 2023↗
new indicator↗

WORKING IN PARTNERSHIP WITH STAKEHOLDERS WHO ARE EXPERTS IN BIODIVERSITY

WWF France since 2016, renewal of theEstablish partnerships with leading
expert organisations on the subjectof biodiversity

partnership in 2023 for three years,
member of Laboratoire Capital Natural
since 2023
Number and duration of relationships

EPE (Entreprise pour l’environnement)
since 2018

Orée since 2023
CDC Biodiversité since 2020
IMPLEMENTING ACTIONS TO PROMOTE BIODIVERSITY IN THE MÉTIERS, SUPPLY CHAINS AND SITES, ACCORDING TO IMPACTS

Measure biodiversity impacts
at production site level

Involve the value chain in actions topromote biodiversity

116

Number of production sites on whicha Biodiversity assessment has been
carried out

100% Leather Goods workshops (whichhave been in operation for more than ayear) and ﬁve production sites in other
métiers carried out: an inventory and abiodiversity action plan (excluding Paris)↗

Distribution of a CSR brief to supplierswith a biodiversity component

Biodiversity section of the CSR brief
updated in 2023
80% of suppliers received the CSR
self‑assessment questionnaire, including
biodiversity↗

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

2.4.1

ECO‑DESIGN AND CIRCULAR ECONOMY

Each métier and each production unit is committed not only toapplying the principles of eco‑design to use materials wisely, but also
to reduce waste and promote reuse and recycling to move towards a
circular economy. The Group works to reduce the impact of its objects
by focusing its approach and actions on their sustainability,
circularity, reparability and traceability.

GOVERNANCE
The industrial transition & quality department, created in 2022,
provides cross‑functional support for the Women’s and Men’s
ready‑to‑wear, Shoes, Fashion Accessories, Silk and Textile, Home,Internet of Things (IoT) and Jewellery métiers, as well as on
eco‑design and the circular economy. This approach is also underway
in the Leather Goods, Hermès Horloger and Perfume andBeauty métiers.
The team that makes up the industrial transition & quality department
has been ramped up from seven employees at the end of 2022 to 20
in the course of 2023. It is structured into four departments tocoordinate sustainable development initiatives, namely:

reuse, repair and recycling”. This preventive approach, based on
dedicated tools, in particular LCA (2), contributes to minimising theenvironmental footprint of products over their entire life cycle, withoutcompromising on their properties in use.
The House’s ambition is to offer sustainable, eco‑designed productsthat respect nature, and which retain their technical characteristics
over time. The House’s creative excellence, and the often timelessnature of the collections also allow Hermès objects to remain
desirable over the long term, thus extending their period of use.

2

Hermès’ circular approach follows the principle of the 9Rs, a system
proposed by the European Union. It begins with the design of theobject, seeking to minimise its impact on the environment throughoptimised use of resources: reuse dormant materials, integrate
recycled materials and reﬁllable products, etc. It applies to all of the
products of the House, which produces more than 55% of its objects
in‑house, and is gradually being rolled out to our suppliers and ourvalue chain, in particular for the regeneration of raw materials
channels, with the clear objective of reducing the consumption of raw
materials and the generation of waste.

s quality & innovation department to coordinate cross‑functionalinnovation and adapt processes to growth;s continuous improvement department to manage industrial projects
common to the métiers, in particular traceability;
s métiers Italy operations department/under construction, tostructure the relays in the métiers with Italian partners;s environmental impact department to support the reduction ofenvironmental impacts, drive repairability, circularity andresponsible purchasing.

Thanks to this organisation, the métiers, supported by expert internal
resources, now conduct precise life cycle analyses with more andmore speciﬁc data on their ﬂagship products in order to be able toreduce their environmental impact. More than 80% of the métiers did
so in 2023.
This approach is built in line with the Group’s carbon strategy
managed by the industrial affairs department. For example, thecarbon data from the precise LCAs carried out by the métiers will
make it possible to reﬁne the scope (1) 3 calculations of the carbon
footprint assessment related to the life cycle of the raw materials in
our products (§ 2.5.6.2.1). The action plans will contribute to theGroup’s decarbonisation (§ 2.5.6.2.1)

POLICYThe Group’s policy is to go even further in terms of the eco‑design of
its products, by using “non‑renewable resources as little as possible,
preferring the use of renewable resources, and which are used while
respecting their renewal rate, as well as being combined with recovery
processes for surplus materials and production offcuts that promote

1.

Definition established by the French Agency for Ecological Transition (ADEME)

2.

Life Cycle Analysis

Remanufacture& Refurbish

s Rethink: this involves rethinking the design of objects using theprinciples of eco‑design (§ 2.4.1.1).
s Reduce: all métiers adopt sober approaches in the use of
exceptional materials, which are often difficult to source(§ 2.4.1.7).
s Reuse: reuse production materials within our métiers (more than
35,000 products reuse materials) (§ 2.4.1.3) and recovermaterials from unsold goods (§ 2.4.1.4).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

117

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSs Repair/maintain: Hermès objects can be passed on from one
generation to another, due to their durability. After‑sales services
make it possible to maintain objects and extend their life(§ 2.4.1.5).
s Refurbish: this principle means refurbishing and/or modernising
an old product, so that it can be used in its original function. At
Hermès, this means specific repairs known as “renovation”.
s Remanufacture, remake, rework: this involves recovering
components from a product with a similar function but with thequalities and specifications of a “new product”. This principle isbeginning to be rolled out in the House, for example, in fashion
accessories or ready‑to‑wear.
s Recycle: in France, unsold products are either donated or recycled(§ 2.4.1.6). This recycling is carried out in either an internal loop(the métiers use recycled materials) or an open loop (the materials
are a resource for other industries).

2.4.1.1

SYSTEMATIC LIFE CYCLE ANALYSES AMBITIONAMBITION
Hermès teams have always worked on the design of aesthetic,
high‑quality objects that have very long lives. An object that lasts andis passed on from generation to generation is implicitly an
eco‑designed object. The Life Cycle Analysis (LCA) method,
implemented for a number of years, supports this responsible design
approach through more standardised and quantiﬁed calculations, andprovides a complementary scientiﬁc perspective. This subject has
been structured in order to be able to follow the ISO standard for theenvironmental footprint method in the métiers based on three axes;
preparation of future environmental labelling (see § 2.7.3.2), theprecise measurement of the impact of materials, processes andproducts in order to work on a holistic impact reduction starting withemblematic and permanent projects and lastly, awareness‑raising of
the development and studio teams to integrate eco‑design in thecreative process as early as possible.
For the leather goods workshop, for example, the calculation includes
farming, tanning, extraction of metals used, product manufacture,
and all transportation until their arrival in stores and packaging
elements (orange boxes, pouches, ribbons, and shopping bags). The
calculations are based either on internal analyses or on reference
databases in the LCA sector, such as the ADEME footprint databaseor the EcoInvent database. With regard to livestock farming, forexample, data are taken from the Agribalyse® database and the LCA
are conducted according to a selection of criteria derived from theassumptions of the European PEF regulations (environmental score,
Product Environmental Footprint). For tanning, the speciﬁc emission
factors of the Group’s tanneries were used. This increasingly involves
making use of actual and unitary metrics, which make it possible toset concrete improvement targets, rather than more descriptive
sectoral averages.

GOVERNANCE
The subject of the environmental footprint and eco‑design is overseen by
the Sustainable Development Board and implemented by operational
bodies as closely as possible to technical realities. In addition to the
manager in the industrial department, a team of ﬁve people is dedicated,for example, to the calculation of the LCAs of the Group’s eight métiers.

118

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The Tanneries and Leather Goods divisions are also responsible for thesecalculations. A community has been set up and constitutes an internal
LCA network, in order to ensure consistency in the work and the sharingof best practices. It works closely with the House’s other networks,
including that in charge of decarbonisation.

APPROACH
The Group project was introduced in 2021, in collaboration with the
Leather Goods, Women’s and Men’s Ready‑to‑wear, Shoes, Fashion
Accessories, IoT (Internet of Things), Silk and Textiles métiers andHermès Maison. Each métier presented between one and ten
references of emblematic products, such as the Birkin bag, thewomen’s cashmere coat, porcelain tableware or a piece of furniture.
The various stages of these 50 LCAs involved several dozen
employees over a period of six months, grouping the studies by majorfamilies of objects: textiles, multi‑material products, complex
products, etc.
The initial lessons led the industrial transition & quality department toformalise a three‑step Group‑wide approach:s first of all, the teams must be trained so that these new
approaches can be concretely integrated into their operations, butaccording to a harmonised approach and in line with bestpractices;s in a second step, they will undertake pilot studies, for example in
the regulatory framework of environmental labelling in the clothing
textiles and shoes sector. Thus, the teams participate in the“supporting studies” for the European PEF (Product environmental
footprint) to test the European methodology on two productspresent in all our collections (leather dress and Oran sandal).
Internally, additional tests are carried out to assess the robustnessof the tools. Hermès has also been involved in testing analternative method for assessing and displaying the environmental
and social performance of products in the fashion sector, led by
the FHCM (Fédération de la Haute Couture et de la Mode) as partof ADEME’s Xtex call for projects. More holistic, based on an
LCA foundation, it includes social criteria as well as a savoir‑fairedimension. This work should make it possible to stabilise aqualitative Group methodology.

In 2023, under the aegis of the LCA network, a Group tool was tested.
The objective is to have one LCA tool common to all of the Group’s
métiers. The assessment method is consistent with the European
Product Environmental Footprint methodology and makes it possible
to calculate 16 impact indicators that tend to transcribe humanhealth issues (toxicity, particles, etc.), impacts on natural resources(depletion of water, depletion of fossil resources, etc.) and impacts on
ecosystems (climate change, soil eutrophication, etc.).

RESULTS
20% of the Métiers division’s volumes (which includes the Clothing,
Shoes and Accessories, Jewellery and Art of living activities, seechapter 1 “Presentation of the Group and its results”, § 1.6) werecovered by representative LCAs in 2023. This work is part of astrategy to prepare the métiers to meet the requirements of French
environmental labelling, which is planned to be voluntary in 2024 andmandatory in 2025. In this short‑term approach, a mapping of items
critical to this obligation has identiﬁed clothing products as a priority.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

Hermès objects are mainly composed of raw materials of natural
origin (mineral, animal or vegetable), the production of which canhave very different environmental impacts, thus giving rise to very
diverse studies. These materials, noble and of the highest possible
quality thanks to careful sourcing, contribute to the long life of the
products. This durability has to be taken into account in theassessment of the environmental footprint, which is assessed as theratio between a sum of impacts and the life of the object.
These calculations make it possible to conﬁrm major trends, as wellas to identify less intuitive issues. For the vast majority of the
products studied, freight, for example, represents only a relatively
small part of the carbon impact (less than 5%). On the other hand,due to the very high number of hours of craftsmanship required to
manufacture Hermès objects, employees commuting to and fromwork (included in the methodology on a voluntary basis) cansometimes represent a signiﬁcant part of a product’s CO2 impact (forexample, for a leather goods item requiring two days of craftsmanshipwork, the carbon emissions of four commuting trips are allocated to asingle item). This calculation illustrates the speciﬁcity of Hermès’craftsmanship model, and the need to have a global vision of the
impacts of the activity in relation to the expected quality anddurability over time of the objects.
The Tannery division’s teams have been conducting LCAs since 2021
to assess the environmental impact of the leathers tanned by theHouse. The scope of these LCAs extends from the breeding ofanimals to the leathers leaving the tanneries, such that the data canbe reused directly in the LCAs of the métiers using the leathers.
Access to speciﬁc data on a product’s value chain is crucial in
carrying out a pertinent environmental analysis. Hermès Cuirs
Précieux’s approach is to associate each emblematic and strategic
item with an environmental footprint, in accordance with theregulatory references and eco‑design approaches that the House
applies. They therefore take into account each species (crocodilians,
lizards and calves at this stage), each production site (farms andtanneries) and the various manufacturing processes of emblematic
items (for example, the Himalaya Box leather or Epsom leather bag).
In accordance with ISO 14040‑44, the LCAs carried out by theGroup’s tanneries follow the methodology of the ProductEnvironmental Footprint Category Rules (PECFR), a European
environmental labelling project, for Leather, whenever possible. The
latter is applicable to the hides of cattle, sheep and goats. The LCAsof exotic leathers also closely follow the guidelines of thismethodology intended to inform the end consumer.
In 2022 and 2023, approximately 40 leathers have been subject toan LCA and several types of tanning have been studied in order tomeasure their beneﬁts from an environmental point of view. The
lessons learned from these LCAs are examined by the HCPManagement Committee and the tanneries in order to identify
eco‑design actions. The approach was also presented to the Hermès
métiers and to the HMS teams exploring chemical or material
innovations related to leather. The division also contributes to theleather sector initiatives initiated by the Centre Technique du Cuir
(CTC) and to those of the crocodilian breeding sector initiated by theInternational Crocodilian Farmers Association (ICFA).
In 2023, the rollout of LCAs as an eco‑design and regulatorycompliance tool continued within the Tanneries division. For example,
HCP was one of the drivers of the call for tenders for the selection
and testing phase of an online LCA tool for the Group. As part of thework to respond to French environmental labelling, a mapping ofitems critical vis-à-vis this regulation (clothing items) was carried out.
Thus, 14 speciﬁc LCAs were carried out in 2023 on crocodilian, lizard
and calfskin leathers used more speciﬁcally for ready‑to‑wear, shoesor accessories such as belts or gloves.
Hermès watches are durable, repairable objects intended to bepassed on from generation to generation. Hermès Horloger
nevertheless wishes to minimise their environmental footprint overtheir entire life cycle. With the help of an external ﬁrm, the métier
launched an approach in 2023, based on the LCA of the Heure H, anemblematic watch with high volumes, using the methodology of theEuropean PEF regulations (Product Environmental Footprint). The
results highlighted the phases and materials with the most impact
over the life cycle and will be used to assist eco‑design objectives.
Hermès Horloger is also working with its stakeholders (competitors,
professional associations, etc.) on the creation of an LCA
methodology speciﬁc to the Swiss watch industry.

2

The Group also calculates LCAs outside its production chain. For
example, the material intended for point‑of‑sale advertising for
Perfume and Beauty products has also undergone an LCA, enabling
identiﬁcation and implementation of modiﬁcations to limit its
environmental impact: ﬂat‑pack delivery is now widespread, in order
to limit the volume transported and thus reduce the LCA impact by
47%, lamination has been eliminated to facilitate cardboard recycling,
and recycled plastic is systematically used in certain parts.

2.4.1.2

CIRCULARITY, ANCHORED IN THE DESIGNOF OBJECTS

Thanks to its artisanal dimension, the Group has always followed theprinciples of the circular economy, with the central concern ofreducing production scraps as much as possible and reusing them,as well as the application of its expertise in repair and After‑Sales
service. The emblematic agenda leather covers were originallydesigned to use materials from the manufacture of saddles in the
1930s. Today, the aim is to continue along this path as much as
possible by leading more systematic recycling projects for allmaterials and upcycling projects for objects, not forgetting the subjectof packaging.
Several circularity loops have been put in place within the House.
These may involve the recycling or reuse of materials or the recyclingof products, in addition to the approaches presented in § 2.4.1.3,
2.4.1.4. and 2.4.1.5. Materials recovery can be carried out by apartner, or within the Group, between the various métiers, when, forexample, a yarn composed of 20% recycled silk from Hermès scarvesis used in the knit of a mufﬂer.

GOVERNANCE
Given their strategic issues, these subjects are monitored at a higher
level by the Executive Committee, to take into account their creative,
industrial, cooperative and image aspects. The numerous
cross‑functional circular projects within the métiers are monitored
operationally by two experts from the industrial transition & quality
department. This department facilitates for each métier the provisionof unused materials for the beneﬁt of the Group’s other métiers andcoordinates recycling operations for all categories of products andmétiers subject in France to the deadlines set for 2022 & 2024 by
the Agec law. Given the maturity acquired by the teams, the Circularity

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

119

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

Committee, which had led these topics in 2021, was replaced in
2022 by speciﬁc bodies within all the métiers, working as a network,
which allow the exchange of best practices and dedicated technicalsolutions in a more restricted network. The organisation is operational
to achieve the “zero destruction” objective between 2025 and 2030
at the global level, taking into account the Group’s quality
requirements, and complies with the various regulations to which it issubject in the medium term.

APPROACH
The CSR training courses provided to the House’s various métiers
include a module dedicated to circularity in order to disseminate theprinciples widely. They also make it possible to identify the sources ofmaterials that can be recycled and reused.
For the sake of pragmatism, the Group works with independent
service providers, often start‑ups, who have developed and acquired
highly specialised savoir‑faire in order to carry out studies with themon the recyclability of products. The lessons learned from thesestudies are incorporated into the design of products to facilitate any
eventual dismantling and help improve the level of maturity of thesevarious sectors, as well as developing internal skills in this area. Like
its partners, the Group is working to improve its recycling processes,
avoid downcycling (1) and to move towards greater added value. It isalso trying to promote use of the shortest loops, avoiding themodiﬁcations and additional processing steps that are present in thelongest loops.
In order to avoid waste and promote this circularity, human andmaterial resources are being mobilised to identify and recover all
surplus raw materials and offer them internally to the métiers, as apriority, and then either as a donation or for recycling.

Engaging our métiers and creators aroundcircularity in a fun way – the Recycl’H award
In order for employees to take ownership of the concepts ofcircularity, the recycl’H award was created, with a pilot award
conducted in 2022. This circularity challenge between the métiersof Hermès aims to reward the creation of a useful object forinternal use by upgrading unused materials. The ﬁrst teams tocompete for the award chose leather scraps as their main sourceof material and made cases (for an access badge holder or small
piece of equipment). More than 2,000 of these small objects were
produced at the end of this ﬁrst edition, and were used internallyas gifts with such success that the operation is likely to be
renewed.

120

1.

Devaluation, transformation into a material or product of lesser value

2.

The Internet of Things.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The métiers have integrated this philosophy and several projects werelaunched in 2023:
s this year, women’s Ready‑to‑wear offered several capsules
including the upcycling of dormant materials and components, forexample with the reuse of silk scarves;s the men’s Ready‑to‑wear clothing line has designed shirts
embellished with silk patches using dormant materials;
s hats designed caps and headbands made from scraps of exotic
hides;s silk imagined products called “happy encounters” which are
created from the association of unsold cashmere shawl designs;
s in the Shoes métier, recycled materials are incorporated into
certain training shoes and exotic leather upcycling is carried out oncertain flat and high‑heeled sandals;s some of the throws in the Home métier integrate 10% fine wool
instead of cashmere to reduce their overall environmental impact;s the metal buckles of our IoT objects (2) can be repolished if they
have a quality defect, and if their reuse is not possible the metalparts are systematically reused elsewhere or recycled;s some of the herringbone fabric covers that wrap our objects now
include, in addition to cotton, silk from the recycling of our silk
products, which makes it possible to recycle and not destroy thematerial, as well as to reduce the consumption of cotton. A
high‑quality industrial approach, requiring several years of work,
was put in operation at the end of 2023 (see § 2.4.1.6 for moredetails).

Within the “Fashion accessories” studio, a stylist is entirely dedicatedto upcycling projects and offers each collection products
incorporating dormant materials and manufacturing scraps byenhancing them thanks to her creativity and the House’s savoir‑faire.
Circularity is also implemented in the industrial world, for example
through two projects in the Tanneries division (see § 2.5.3): one forthe use of water from a sugar cane factory on our farms and thenwastewater to be returned as fertilizer for ﬁelds, and a second for theuse of farm water to irrigate a sandalwood plantation to be operated
by Hermès Parfums.

2.4.1.3

PETIT H AND THE REUSE OF MATERIALSIN‑HOUSE

Petit h is above all a unique approach to recreation: inventing objects,
using materials that Hermès has not used in the production of theHouse’s collections, intertwining the excellence of its savoir‑faire andthe creativity of the artists and designers. Petit h has existed for morethan 10 years, having developed expertise derived from theexperience that permeates all métiers. Each petit h craftsperson
works from available materials, brought together in a single, abundant
location, where each resource is catalogued and awaits nothing morethan the inspiration of a guest artist.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

These reverse creations, rather than creations from a preconceived
idea, make it possible to develop a new typology of original, quirky,
fun objects that retain the singularities of Hermès creations, namely,
useful, repairable and sustainable over time. All of the Group’s
métiers are involved, and given creative freedom. The end ofcollections, accessories, obsolete items (e.g. a whole collection of
pommels dating from the 1960s, etc.).
Scraps of leather, fabrics, silk, porcelain… All these materials which,adapted, enhanced and sometimes relieved of a tiny initial defect, aregiven a new life thanks to the unique savoir‑faire and talent of theartists. They are often combined, either with each other or with raw
materials (terracotta, cane, etc.). Scenography elements with
untapped potential can also be kept while awaiting a new purpose.
Each material awakens the creativity of the artists and thereby
assists innovation. The teams seek to give all the material fragmentsa chance so that they can become a new object thanks to the
exceptional savoir‑faire of the craftspeople.
Thus, in 2023, thanks to techniques developed in the workshop, theleather pieces will be shaped into crystal counterforms, ﬁnely cut
chandelier rings or unused pieces of porcelain, all leaving theirimprints. Two materials meet, leather and crystal or porcelain
depending on the inspiration of the craftspeople, in a totally artisanal
manufacturing process from which, in the end, the leather emerges
as a container, with original subtly worked decoration, with neither
seams nor cuts.
These innovative upcycling approaches have been extended topetit h’s own circularity. Scraps from the petit h creative process are
kept and used. Leather confetti has become delicate handles forunique pottery.
To date, this process of circularity is limited only by the artist’s
imagination, since the craftsperson who brings the object to life uses
their savoir‑faire to give free rein to the process of creation.
It is with this respect for materials and savoir‑faire, this spirit ofcommon sense, that petit h naturally participates in reusing
exceptional materials.
Some creations are manufactured as unique pieces, depending on
the availability of existing materials. Others are also produced inlimited and controlled production runs. This creative and singularapproach resonates through an original and inventive distribution
channel that veers off the traditional paths, with a permanent base at
the Sèvres store in Paris, and pop‑up sales abroad. In 2023, Osakaand Beijing hosted these stopovers.
For more than 10 years, petit h has been a pioneering laboratory thathas encouraged the métiers to identify original upcycling solutions,which are then marketed in larger series.

2.4.1.4

MANAGEMENT OF UNSOLD STOCK

GOVERNANCE
The Sustainable Development Board closely monitors the issue of
unsold items, for the proper application of the Agec law in France andfor its application to the entire Group scope. In 2023, a newcommittee was created, bringing together everyone responsible fordelivering Hermès’ “zero destruction” ambition, enabling the sharingof best practices and the continuous improvement of all operations
aimed at achieving the target set. Within this body, a continuous
improvement approach has been initiated for all processes related tothe end of life of products, making it possible in particular to predictthe volumes to be processed according to the possible outlets and to
anticipate the action plans needed. As the recovery ecosystem is still
under construction, new outlets are regularly appearing and being
identiﬁed by the teams.

2

STRATEGY
The Hermès business model, based on the stores’ freedom topurchase and the desirability of the House’s products, means unsold
stock volumes are naturally very low, signiﬁcantly below the sector
averages. In recent years, and in particular in 2023, having also beenmarked by difﬁculties in meeting the strong demand from ourcustomers, the level of unsold items was low on account of theeconomic environment, which has favoured the Group’s transition inthis area.
The in‑store offer is directly and freely deﬁned by each manager, who
is responsible for choosing the right assortment for his or her local
customers. In addition, to optimise sales at regional level, thesubsidiaries arrange inter‑store transfers, leaving only a small numberof unsold products.
The management of unsold items is organised around various
successive and complementary actions. In some 15 countries,
exceptional sales intended for our customers are organised as often
as necessary by all distribution subsidiaries in order to enable thesale of products that have not been sold in stores, and in particular,
seasonal products. Regular sales to employees of unsold goods andseconds provide an additional channel that can be used to avoid
waste, in compliance with local and tax laws. Employees in the main
countries now have access to a secure online sales tool.
In addition to these schemes, a “new chances for products” team has
been set up to manage the collection of products that can be donatedto partner associations, an approach introduced more than ten years
ago. In this way, several thousand unbranded and anonymised
products are donated each year to these partners, who distributethem to people in difﬁculty. These partners ﬁght against the material
insecurity of their beneﬁciaries and rely on a circular andsolidarity‑based economy approach while guaranteeing redistribution
to the most vulnerable people they care for. This approach can rely on
the collaboration of internal volunteers, and in 2023, 130 employees
were mobilised in this way to unbrand the items eligible for donation,
remove and replace identifying features such as buttons, and checkthe items before handing them over to the partner in charge of theirdistribution. This operation was launched in 2016 and has alreadyinvolved more than 600 employees in total.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

121

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

2.4.1.5

AFTER‑SALES: MAINTENANCE TO EXTEND
THE LIFE OF OBJECTS“Luxury means items that can be repaired”, as one of the Group’s
former Senior Executives used to say. Through their design, thequality of the materials and the savoir‑faire, Hermès objects can be
maintained, repaired and renovated in order to extend their life. Fromsaddles to silk to watches, all owners of Hermès objects worldwide
can request their repair. With 202,000 interventions orservices (1) carried out in 2023, representing a 13% increase inactivity, this commitment is an operational reality in all our stores.
Customers, particularly in Asia, are increasingly receptive to this anddo not hesitate to ask the dedicated teams to give a second life, inparticular to an old object.

GOVERNANCE
With more than 1,000 service lines, Hermès unusually offers its
customers a tailor‑made After‑Sales service, with no time limit, acrossall its métiers and throughout the world. The House makes a point of
ensuring the maintenance and restoration of its objects, made bycraftspeople, in order to prolong their life as much as possible.
A strategic focus for Hermès, this activity involves more than
90 craftspeople in four workshops, including a new one that opened
in Paris in 2023. The objective is to support the Group’s growth andto develop the number of craftspeople and the infrastructures
dedicated to this. The After‑Sales activity also employs more than70 people at the headquarters, who helped to process
82,000 products in France in 2023. The main aims of this expert
service are: management of maintenance requests sent by stores,
management of interventions in workshops and supplier relations,
support for the métiers on quality and reparability issues, as well as
store support for customers.

STRATEGY
The House’s strategy is to make these maintenance and repair
operations as easy and efﬁcient as possible for all our customers
around the world. The ﬁrst contact for these interventions is thein‑store salesperson, who is trained to be able to pass on the key
messages regarding the maintenance of products. In 2023, forexample, the opening of a dedicated new After‑Sales area in the
Chicago store helped to strengthen their actions by taking advantageof the reopening of the store in November. Store renovations are an
opportunity to create a special reception area, where customer
requests are taken care of in optimal conditions. Details of the repair
request are thus facilitated, whether for one‑off services (over‑dyeingof scarves, restoration of trunks, etc.), standard services (re‑sizing ofrings, supplying ties and cords, etc.) or essential maintenance forleather products to extend their life. Logistics for this department are
unique because they involve the dispatch of individual products.
Moreover, in order to offer a local service to customers and reducethe carbon footprint associated with product returns, the After‑Sales
department also develops and coordinates local repairs around the

1.

122

world. It ensures the selection, testing, auditing and approval of acertain number of workshops in most countries where the stores arelocated, as well as the monitoring and support of the subsidiaries. In
this vein, the House is also continuing to set up local internal
workshops dedicated to Leather repairs close to its ﬂagships. These
workshops are run by expatriate craftspeople who enable local
customers to beneﬁt from their expertise in the upkeep of all Hermès’leather goods articles.
Thus, in 2023, more than 120,000 repairs or services were carriedout locally, of which 26% on leather goods, by 40 craftspeople
expatriated to subsidiaries. Before departing, they undergo a
dedicated seven‑month training course in order to enhance theirsavoir‑faire and expertise speciﬁc to the maintenance and restorationof leather goods.
The ﬁrst After‑Sales seminar, bringing together several dozen
members of the community, took place in June 2023 and was anopportunity to share an internal certiﬁcation framework. The aim of
this is to ensure the same level of service in all stores and offer ourcustomers excellence in After‑Sales. Madrid was spotlighted during
this seminar as a pilot store that obtained its certiﬁcation in June,following several months of preparation and a ﬁnal audit carried out
by the central After‑Sales teams. The objective is to gradually certify
all stores. The Lille store has already embarked on this certiﬁcation
process in France, and Singapore and Belgium will be the next
countries in 2024.

2.4.1.6

RECYCLING INTERNALLY AND WITH
SPECIALISED PARTNERS

All the operations implemented aim to come as close as possible toachieving the speciﬁcations of a new material and thus create a true
closed materials loop in order to reduce the use of natural resources
as well as chemical inputs.
When a material or a ﬁnished product cannot be reused and must be
recycled, Hermès always favours the reintegration of the recycledmaterial in‑house, i.e. “in a closed loop”. Since any recycling operationtransforms the raw material, it is sometimes difﬁcult to reuse it forexactly the same purpose as when it was originally used. In addition
to the technical difﬁculties of obtaining this new processed material,
the issue is to identify a product or co‑product in‑house that can
integrate this recycled material in a sustainable way and ensure that
this operation effectively reduces the environmental impact of theentire system, while guaranteeing the traceability of the recycledmaterials used. In 2023, unsold items and silk production offcuts
were recycled in this way: following various stages of sorting, cutting
and transformation, allowing the recovery of the silk ﬁbre, it isintegrated as 20% of the materials used for the manufacture of weftyarn for protective herringbone covers. Similarly, it was possible todevelop a yarn composed of 20% recycled silk and 80% virgin
cashmere. Lastly, felt, used to protect leather goods, was also
produced from cotton ﬁbres and cashmere ﬁbres from production
offcuts. These initiatives are designed to lead to industrial processes
aimed at recycling most of the textile production scraps.

Change in the repair operations monitoring methodology: exclusion of alterations associated with an initial sale. The transactions recognised are those that
contribute to the extension of the life of a product already sold.
2022 data reviewed: around 180,000 interventions or services.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSWhen the “closed loop” is not an option, particularly in view of thematurity of recycling technologies, the material will be directed to an“open loop”. This means that it will be sold to a professional in therecovery of this material, who will direct it once transformed to an
application at another manufacturer. An illustration of this type ofopen‑loop recycling is the melting down of surplus metal parts by
specialised reﬁners, which then supply the European market forrecycled metals.
Without waiting for the publication of the French Agec law (anti‑waste
and the circular economy), the métiers had accelerated theirinitiatives through numerous working groups, which have designed
recycling solutions that are now in widespread use. In its circular
economy approach, the Textile division (HTH) has intensiﬁed its reuseor upcycling actions aimed at optimising the rate of use of materials.
Thus, in 2023, 24 tonnes of textile materials were recycled throughinternal and external projects, representing 28% of all textile waste
produced by this division. This percentage has been growing in recent
years.

2.4.1.7

RESPONSIBLE MATERIALS MANAGEMENT,AT THE HEART OF THE STRATEGY

Hermès objects are designed to last because their technical design
and manufacturing methods favour robustness, in the tradition of
saddler craftspeople. The famous “saddle stitch”, still used in Leather
Goods workshops, was born out of the need for seams to resist thepressure from the harness. The quality of the raw materials used is
the ﬁrst guarantee of the durability of Hermès objects. Their selection
is subject to a rigorous process, guaranteeing the sustainability of theHouse’s products.
The Group therefore only uses the best quality materials, andoptimises their use through its production methods. It develops thereuse or recycling of any production waste. Purchases are adjusted as
closely as possible to needs in order to limit waste. The integrated
artisanal approach is an advantage in this respect, ensuring close
proximity between buyers and craftspeople. Each métier works toconstantly improve the use of these rare and precious materials,
consuming only what is necessary.
The materials used come from natural, renewable sources, taken
while respecting their potential for regeneration, such as in the caseof hides from farmed animals, or for the main textile materials (silk,
cashmere and wool). The House’s historical preference for leather
and natural ﬁbres avoids the use of synthetic and non‑renewable
resources based on petroleum.

2.4.1.7.1

Leathers

Leather tanning

Leather is an animal product, specially tanned and madeimputrescible, either in a tannery for lamb, sheep and goatskin or in
traditional tanneries for hides from cattle or reptiles. Hides used inleather goods are primarily by‑products of livestock farming for food.

People occasionally refer to hides as the “5th quarter”, with tanningsometimes being referred to as one of the oldest recycling industries
in the world. Hermès uses only “full‑grain” leather, the top part of thehide, without altering it in order to improve its appearance. The
leathers used by Hermès are thus rare and of exceptional quality. The
hides come from our own tanneries or from long‑standing partners.
Buyers check these hides purchased from our suppliers individually,in order to verify their quality. For cowhide leather in particular, thelong‑standing relationships with our partners maintained by ourtanneries have made it possible to develop real expertise, which is
supported by the use of technology whenever necessary.

2

Concerning exotic skins, the management of crocodilian breeding on
the alligator mississippiensis and crocodylus porosus farms (operated
by the Group itself), close and constant relations with suppliers of
exotic raw hides, and the control of all tannery processing operations(river, tanning, dyeing and ﬁnishing) enable the House to control as
precisely as possible its purchases, quality, ethics issues and use ofmaterials in manufacturing processes. Several projects are beingrolled out in farms and tanneries to improve quality control andoptimise the use of raw materials. For example, digital systems fortaking images of hides at the start of the tannery process are alreadyin use or are being rolled out. They allow the identiﬁcation of defects,
facilitate sorting and thus maximise the use of hides while reducing
waste.
Leather work

The frugal use of leathers has always been a key concern of the
production units: thus, cutter craftspeople are trained, from themoment they join the House, in how to cut leathers as sparingly as
possible. Coordination among production units is managed on a daily
basis to optimise the use of hides and offcuts: the analysis of the rateof use of hides is a management indicator used in the workshops. For
this reason, new production managers and new cutting workshop
managers are systematically trained in the analysis tool to ensure
optimal management of this consumption, in order to assimilate bestpractices more rapidly and optimise the use of hides.
In addition, a guide to best cutting practices is followed on each site.
This guide is gradually updated with new practices that have beensuccessfully tested by cutter craftspeople and shared with all sites.
An assessment of these best practices was carried out on 22 sites
and demonstrated the proper application of the guide.
With the aim of maximising reuse within the workshops, coordination
between sites was strengthened in 2023 thanks to theimplementation of an internal software application allowing thedigitisation of the stock of offcuts. Given the expansion of the activity,with site openings every year, it is important to promote the visibilityof these inventories and the possibilities of exchanges between sites
to preserve and recycle the material. The application was rolled out toall sites in 2023. It has met with real support from stakeholders andmaximises the reuse of leather. Thus, the manufacture of small
items is increasingly carried out using these scraps.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

123

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

Thanks to this approach, which is being strengthened, and thecomputer visualisation of the data, these scraps are optimised andalso make it possible to create products without the need to use newwhole hides, reducing by the same amount the destruction of nature.
In 2023, substitution and eco‑design operations resulted in
88,500 products being made from these scraps, without additionalpurchases of leather, i.e. an increase of 40% compared to 2022.

2.4.1.7.2

Silk and cashmere

The level of integration of the Textile division through all processing
operations (weaving, printing, ﬁnishing and manufacture) ensures thatthe raw materials supplied are used as frugally as possible. All
production units carry out monitoring and actions to reduce scraps
and waste, as part of the quality approach.

In leather goods, innovations in the ﬁeld of hide tanning have also
made it possible to produce leathers that are increasingly adapted toa creative offering, more ﬂexible, with different grains and speciﬁccolours, while optimising the use of inputs and reducing theenvironmental footprint of materials.

At the weaving stage, a working group made it possible, following
analysis and technical tests, to identify and launch new ways toreduce cashmere waste by resizing the widths of the material to
improve the ratio of printed surface to the area of the material. Partial
lengths have been optimised to reduce material waste.

The use of 3D technology reduces paper printing and patterns whenmanufacturing ready‑to‑wear collections, which are increasingly
worked using more responsible materials.

At the printing stage, the widths of silk are selected according to their
speciﬁcations in order to adapt the material to the printing techniques
and products being made. This approach makes it possible toincrease the rate of use of the widths and avoid rejection ofnon‑compliant widths.
For the Silk métier, the management of “lean” planning has made it
possible to reduce production waste since 2018. Some silk
accessories are now made from very wide pieces, which reduces theamount of cutting waste and limits energy and water requirements
throughout the process. In the same way, the lengthening of printing
tables at Ateliers AS enabled substantial savings in dye and textiles,
thereby reducing offcuts.

2.4.1.7.3

Other materials

Hermès, a creative house, has always been on the lookout for new,innovative materials, according to speciﬁcations that are constantand very demanding: physical quality and resistance, external
appearance and aesthetic quality, durability over time andreparability, and controlled environmental footprint over the entire life
cycle. This research is carried out on traditional materials as well as
newer possibilities.
Thus, a new material was created using the Fine Mycelium
biofabrication technology, which is made from the vegetative part ofmushrooms, developed by the US start‑up MycoWorks. Biodegradable
and strong, the sheets of this material are then treated and ﬁnishedby Hermès tanners in France to further reﬁne their resistance anddurability. They were then used by our craftspeople to create theVictoria bag unveiled in March 2021. The House is continuing its work
to integrate this new resource into its productions.

124

The designer, who has been in charge of accessories and jewellery
collections for three years, has further integrated the reduction ofenvironmental impact into her creations, in an eco‑design approach.
One initiative consisted in creating a new material called
Vulcanium™ from the grinding of leather scraps or downgradedhides for use in fashion jewellery (Chaîne d’ancre pendant in2023). In 2023, the métier also offered a larger number of parts intitanium, a metal with a lower environmental impact than thosetraditionally used for fashion jewellery (brass, stainless steel, etc.).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Metals and stones

The “zero waste” principle is intrinsic to the manufacture of precious
metal jewellery. Historically, it is the cost of these metals that has led
industry players to develop strategies for saving materials, maximising
their use and recovery of all offcuts, down to the smallest dust
particles. Today, this expertise in collection and reprocessing
contributes signiﬁcantly to limiting the impact of the sector.
At HMM, brass is one of the main materials used to make metal partsfor Hermès objects. Particular attention is paid to this alloy in order tomeet the environmental issues related to the extraction of its metals(mainly copper and zinc). HMM is working on the implementation of
circularity initiatives, such as the recycling of rejected parts after
grinding in order to make new ones.
True to the Group’s ambition to limit the use and extraction of virginresources, Hermès Horloger has set up a workshop speciﬁcally
dedicated to working with gold in order to recover as much as
possible from production offcuts. The latter is then sent back to the
supplier in a closed loop. A similar project is planned for 2024‑2025
on 80%-recycled steel.
Perfumed compounds and cosmetic materials

Hermès Perfume and Beauty continues its trajectory of classiﬁcationand optimisation of raw materials for its perfumes and cosmetics.
More than 400 different raw materials are in its catalogue. Some
76% are natural or of natural origin for perfumes (a 15‑point
increase) and 59% for beauty. In order to reduce our recycling rates
for expiry, safety inventory levels have been reduced and all materials
are stored in the best possible conditions, including nitrogen inertingof containers for 100% of inventories.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

2.4.1.8

PACKAGING, OPTIMISED TO PROTECTEXCEPTIONAL OBJECTSAND THE ENVIRONMENT

Packaging is used at different levels throughout the life cycle of a
product: during its manufacturing phase (packaging of materials,
inter‑site packaging) and during its sale in stores. In exclusive stores,
100% of orange bags are FSC‑certiﬁed. The cardboard of theemblematic orange boxes is made of 100% recycled material. The
bags, made of 40% recycled materials, are recyclable, except for thehandles. Hermès has implemented frugal packaging management:
the orange box is used both as packaging for internal ﬂows, but also
for sales and customers. The boxes often have a long lifespan, as
customers tend to keep them beyond purchase (they even lead to asecond‑hand market, etc.).

2

For the sake of transparency, this packaging is also presented on the House’s website:

Orange Cardboard Box with foam insert

Orange Cardboard Box

E-Commerce packaging

Orange Bag.-This product contains at least 47% recycled materials.-This product contains at least 75% recycled materials.-Mostly recyclable product.-This product contains at least 80% recycled materials.-Mostly recyclable product.-This product contains at least 40% recycled materials.-Mostly recyclable product

RibbonOrange Box

Leather Box.-This product does not contain recycled materials.-This product does not contain recycled materials.-This product is reusable.-This product does not contain recycled materials.-This product is reusable

Single‑use plastic packaging

The comprehensive inventory of plastics throughout the production
chain is continuing. Single‑use plastic packaging used by Hermès iseither the result of external purchases (packaging for articles ormaterials received), or used in internal processes to transport articles
between the various sites and to the exclusive stores.
A working group initiated in 2020 brings together around50 stakeholders, with representatives from all métiers, logistics,
purchasing, sustainable development and industrial affairs. With thehelp of experts, it is working on opportunities for plastic substitution
and circularity. This working group, which meets biannually, is now aprivileged space within the House for the sharing of initiatives, thereview of sector benchmarks, and regulatory monitoring on plastics
issues.
The inventory of packaging plastics purchased by the Group by weightis complicated by the fact that invoices do not necessarily all include
the same unit (weight, volume, quantity). According to an estimate for2022, the Group purchases less than 900 tonnes of plastic

packaging, of which half is for its perfume and cosmetics activities.
Excluding cosmetics, the most signiﬁcant items are: hangers, foam fortableware, logistics items (wedges, strapping, ﬁlms, adhesives) andponchos for bags.
Hangers

The Group is continuing its work to ﬁnd an alternative to the use ofplastic and ensure its recycling. Plastic hangers are already madefrom recycled plastic. In addition, the hangers used for in‑store
display are made of wood, making them more durable and easily
recyclable.
Tableware

The foams for wedging objects meet very demanding speciﬁcations,particularly in the context of the growth of e‑commerce. The Group
works with its suppliers, who are some of the most expert in the
sector, on cardboard solutions that meet quality expectations andvolume and weight constraints (so as not to generate new carbon
emissions during transport). The foams used are gradually evolving
towards recycled polyethylene and hollowed‑out foams to reduce theirvolume and weight.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

125

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

Logistics

Pending the development of a non‑plastic solution that is satisfactoryin terms of care for the packaged product and handling in the logistics
ﬂow, Hermès has undertaken to replace its virgin plastic bags withrecycled plastic, an approach that will be fully completed in 2024.
Numerous projects are being carried out in the House at the sametime to identify uses and reduce the use of plastic.
After working on the elimination of plastic ﬁlms in 2021 and 2022, in
2023 Hermès Commercial, which manages central logistics,
identiﬁed and validated other alternative solutions to the remaining
single‑use plastic. One of the ﬁrst changes was the use of paper
instead of air cushions, to wedge the orange boxes in the shippingboxes. The second is the replacement of adhesive tape by sticky
paper strips: traditional adhesive tape will be replaced by a gummed
strip, and reinforced tape by reinforced kraft paper tape. Lastly, theﬁnal solution is the strapping of the supplier returns that are currently
wrapped in plastic, reducing plastic consumption and improving
ergonomics. These solutions are in the process of being implemented
and will be in place in early 2024 for all logistics.
Work is continuing on clothing covers and the packaging of fragile
items (silk).
In 2024, studies will continue to include changes in methods toeliminate remaining plastic consumables while taking into accountergonomic issues and physically difﬁcult tasks.
Métiers

The Leather métier is also taking action to limit the use of plastic.
Thus, in 2023, rain ponchos, historically systematically given to
customers in sets of two to protect certain bags purchased, are now
only distributed at the customer’s request. This approach made it
possible to halve the plastic used between 2021 and 2023 in thisoperation, i.e. 14 tonnes. With the help of its logistics partner, thismétier has also replaced disposable tarpaulins that protect leathers
during transport to the workshops with reusable tarpaulins. The
project was initiated in 2023 with the gradual deployment of
tarpaulins between the sites and the logistics platform and will becompleted in 2024. This substitution approach should ultimately
reduce consumption by 90% for this operation, i.e. 12 tonnes.

Year

2018

After mapping the single‑use plastics used in the production process
in 2022, Hermès Horloger is continuing its zero‑plastic policy with the
installation of a new machine for shipments and the replacement ofplastic cushioning wedges with crumpled recycled paper. The processof streamlining watch cases is also continuing and will beaccompanied by a complete dematerialisation of the productenvironment planned for 2025.
New packaging in the Textile division is entirely or partially made fromrecycled or biosourced materials.
The distribution subsidiaries are also involved in the project toeliminate the use of plastics, particularly in their supply chains andfor inventory management (covers, hangers, etc.).
Cosmetics packaging

To reduce the use of plastics, a majority practice in the sector, theGroup is working on various areas: extending the life of containers
with the promotion of reﬁllable fragrances (new perfumes will now be
reﬁllable), reducing the use of plastic for containers (with as a ﬁrst
step, priority given to the use of plastics from recycled and recyclable
sources), reducing the use of plastic for packaging (both for the
products themselves and for logistics operations).

2019

2020

2021

2022

2023

Plastic consumption of the Perfume and Beauty métier
(expressed in base 100 from the 2018 value)

100

110

82

87

100

92

Plastic intensity compared to the revenue of the métier

1.54

1.63

1.49

1.14

1.17

0.95

For more than 10 years, Hermès Perfume and Beauty has launchedreﬁllable perfumes: Voyage d’Hermès, Jour d’Hermès, Galopd’Hermès and H24. In 2023, the entire Jardin collection became
reﬁllable, followed in 2024 by Hermessence.

126

The use of plastic for jewellery boxes is gradually being phased out infavour of medium‑density ﬁbreboard (MDF). In 2022, this project
concerned all cases for the silver range. 33 tonnes of plastic were
thereby avoided. In 2023, the same approach was continued for theleather cases used to package the gold jewellery ranges. In addition,
the overwrapping elements identiﬁed in 2022 are gradually being
eliminated, with their complete disappearance planned for 2024
(bubble or shipping envelopes, for example, etc.). A packaging guide
was sent to the manufacturing workshops to help them move towards
more sustainable packaging, which consumes less plastic. The
implementation of this solution is being rolled out across the entire
Hermès Bijouterie range. In the long term, these projects will make itpossible to reduce the consumption of plastic in the activity ﬂow by
50%. At the same time, work is continuing in the haute joailleriesegment to build circularity into the packaging used and create reuse
loops. These exceptional products are fewer in number and requirevery speciﬁc packaging, which can nevertheless be reused.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Hermès Perfume and Beauty has carried out substantial work on
perfume bottle caps. The caps of the Colognes have been made from
100% recyclable polypropylene since 2023. Changing theHermessence cap reduced its environmental impact by 85% andmade it possible to stop using neoprene glue in the range. The
recyclability of this cap increased from 0 to 80%.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

The ﬁlm covering the product packaging has been replaced by a ﬁlm
made from 100% polypropylene, a highly recyclable plastic. Over a fullyear, this initiative makes it possible to replace 20 tonnes ofmaterials with recyclable alternatives. Ten tonnes have been replacedsince June 2023.

2.4.2

SUPPLY CHAINS

The sustainability of Hermès’ activities is based on its ability tosecure the availability of the exceptional raw materials used. Hermès
is also committed to sustainably developing its supply chains, bygoing beyond compliance with environmental, ethics and social
regulations, and contributing to the future availability of theseresources.

POLICYThe Group’s strategy is to better understand its supply chains,strengthen them with high expectations to ensure their quality, ethics,
environmental and societal sensitivity, and develop them to anticipate
future growth.
This approach is based ﬁrstly on compliance with the regulations
concerning the various materials. This notably means legislative
provisions: ensuring compliance with the Washington Convention(CITES), an agreement between States for the worldwide protection of
species of ﬂora and fauna threatened with extinction. This can havean impact on the materials used in the leather goods workshops,
certain tanneries, or certain perfume ingredients. The Group mustalso comply with health regulations (hides from cattle and sheep thatwere raised for meat) and regulations on animal welfare.
The policies used to implement this strategy are, on the one hand,
the implementation of supply chain briefs to manage the entire value
chain and co‑construct sustainable development action plans, and on
the other hand, a CSR brief for all suppliers and manufacturers
involved in supplying Hermès’ métiers, and ﬁnally, an Animal Welfare
policy formalised in 2021 and updated in 2023. All of these
documents are available on the Group’s website (1) and updated
regularly as knowledge advances.

GOVERNANCE
Hermès has long initiated a management approach for its raw
materials sectors, using a local approach with operational staff andspeciﬁc sector experts. This approach was organised in adecentralised manner and made it possible to lay the foundations fora more comprehensive approach. Since 2019, the direct purchasing
department has accelerated this process with the following
ambitions:1.

s commit to in‑depth knowledge and management of all the House’s
raw materials supply chains;s meet risk management commitments, in particular with regard tohuman rights and fundamental freedoms, health and safety ofpeople and the environment, in line with future duty of carerequirements;
s capture value creation opportunities for the House, the supply
chain, local authorities and the environment;2

s develop more virtuous supply chains in which CSR issues are apriority, guaranteeing that 100% of raw materials used in the
manufacture of products come from sustainable and responsible
channels.

Thus, with the support of an independent expert ﬁrm, since the endof 2019, Hermès has set up a systematic approach to analysing its
supply chains, to map each of them, take stock of traceability, assess
inherent and speciﬁc risks, avail of opportunities and deﬁneinsurance and certiﬁcation procedures, and accordingly implement
ambitious action plans managed by the métiers. Over the past four
years, more than 90 raw material supply chains have been analysed
in detail, starting with the main ones used by Hermès (calfskin,cowhide, cotton, cashmere, etc.), not forgetting those used in smaller
quantities (straw, wicker, mother‑of‑pearl, etc.) or temporarily not
used, for the sake of completeness.
The management of the supply chains is one of the points ofattention of the Purchasing Board. The Purchasing Board decides on
strategic orientations and any arbitration points. It reviews the métier
risk mapping. Supply chain operational governance was put in placein 2021 with, in particular, the creation of a Supply Chain Committee,
which, twice a year, brings together the direct purchasing department,
technical and innovation industrial department, sustainable
development department, legal department and the Senior
Management of all the métiers. This body makes it possible to obtainan overview of the management of the supply chains and theprogress of the action plans and, if necessary, arbitrate on certain
points. To support this Supply Chain Committee, purchasing networks
and supply chains speciﬁc to certain sectors have been set up,
managed by the direct purchasing department, to share with thebuyers of the métiers concerned the issues common to these sectors,
in particular in terms of CSR and traceability. The risks of each sector
are studied by this committee and, if necessary, are discussed by the
Executive Committee for decisions to be made. In 2023, a carbon
task force was created with an ofﬁcer for each métier. This steeringcommittee meets every three months and monitors the roadmap
aimed at collecting accurate carbon data within each supply chain
and integrating them into the Group’s scope 3.

https://finance.hermes.com/en/responsible‑sourcing/2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

127

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSHERMÈS SUPPLY CHAIN GOVERNANCE
SUPPLY CHAIN COMMITTEE – twice a year

Direct purchasing department, industrial affairs department, sustainable development department,
legal department, Metier executive management: overall vision, progress of action plans, arbitrage

PURCHASING BOARD - Quarterly

PURCHASING NETWORKS AND SUPPLY CHAINS - Quarterly
Direct purchasing department and métier purchasers
Collaborative sharing of common purchasing and supply chain issues: supplier news,
purchasing volumes, quality, costs, timeframes, capacity, developments, savoir-faire,innovation, CSR, safety, traceability, monitoring, etc.
Metal parts network, Leather network, Textile network,
Cashmere Committee, Cotton Committee, manufacturers…

Direct purchasing department and métier purchasers
Sharing of Group purchasing policy and procedures,métier purchasing strategies, purchasing risk
mapping by métier, etc.

WORKING GROUPS - As needed
Direct purchasing department and métiers departments heavily involvedin a supply chain
Deepening of a specific supply chain, implementation of action plans.
Pearl/mother-of-pearl working group…

STEERING AND MANAGEMENT OF SUPPLY CHAINS - Monthly

Each métier – Implementation and monitoring of action plans

2.4.2.1

SUPPLY CHAIN BRIEF AND TOOLS

Since 2019, buyers have had a “supply chain toolbox” to use instructuring their supply chain analyses, provide a methodology andensure a cross‑functional Group approach. It enables:

90 supply chains in total,
active and discontinued
75 materials useds the supply chain to be mapped, listing each link in the supply chain
and the stakeholders;s identification of the risks related to this sector, by assessing therisks with respect to human rights and fundamental freedoms, thehealth and safety of people, the environment (carbon, water,
deforestation, biodiversity), and the risk of corruption;

74 materials analysed

represents 99%of the Group’s activity

66 materials includedin the supply chain briefs value creation opportunities to be seized for the House, the supply
chain, local authorities and/or the environment;s action plans to be defined that will sustainably improve the supply
chain and make it more ethical and responsible.

Of the 75 materials used by the Group, at the end of 2023,
74 materials were subject to a detailed analysis, and 66 of these areincluded in the supply chain brief, i.e. more than 99% in terms ofpurchase value. Six new supply chains were analysed in 2023. These
multi‑criteria analyses notably include the assessment of CSR risks
related to the duty of care (see § 2.8.4), and have made it possible inparticular to establish the categories below and their methods formonitoring the supply chains.

1282023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

These analyses of supply chains also gave rise to a supply chain brief,
the roadmap in this area) co‑constructed by the métiers, thesustainable development department and the direct purchasing
department, with the support of an independent ﬁrm of experts. The
ﬁrst version, including around 10 supply chains, was published at theend of 2020. In November 2023, version 10 was released; it now
includes 66 materials. The materials presented in the supply chain
brief include all of the materials analysed, sometimes proposing
groupings when relevant (for example, the cowhide leather section

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

includes different types of leather: cow, bull calf, etc.). A summary
version of the Animal Welfare policy has been added to the supply
chain brief for the sake of transparency. These supply chain briefs areavailable online and shared with our partners and suppliers.

• respect human rights and fundamental freedoms: in addition tocompliance with benchmark conventions, the House’s vigilance
plan includes respect for human rights, fundamental freedoms
and employment conditions for both its suppliers and their own
suppliers and subcontractors,• ensure animal welfare: anchored in a multi‑stakeholder

PRIORITY SECTORS
Quarterly monitoring, at each supply chain point(textiles, leather network, etc.)

collaboration and continuous improvement approach, Hermès’policy ensures compliance with the fundamental principles ofanimal welfare (five fundamental freedoms of the World
Organisation for Animal Health – WOAH). Hermès favours
observation of animals to demonstrate results and improveanimal welfare in pragmatic ways and based on science,2• respect and protect biodiversity: materials from species
STRATEGIC SECTORS
Annual monitoring, for example
in preparation for a supply chaincommittee or a supply chain network

NON-PRIORITYSECTORS
Monitoring at least
every 3 years,
when the toolbox
is updated

The supply chain brief is intended for all suppliers involved in the
supply of raw materials used in the manufacture of the House’s
products. It allows Hermès to share with them its ethics andsustainable requirements and those relating to the protection ofpeople, animals and the environment.
It provides a reminder of the four principles of Hermès’ responsible
purchasing policy:s transparency: knowledge of its supply chains through its network of
manufacturers and partners, is at the heart of Hermès’ concerns.
It aims to guarantee the highest level of quality, the best
traceability and the careful use of raw materials. Hermès wants tohave a transparent vision of each link in the supply chains of its
métiers, in collaboration with the players in each sector;s high standards: Hermès rigorously selects materials, in compliancewith regulations and best practices, according to the following
fundamentals:• promoting exceptional supply chains, built locally as close as
possible to the raw material: breeders, farms, cooperatives,
etc. Hermès listens to the players involved in the field, todevelop partnerships, improve operating conditions andgenerate long‑term improvement projects,

threatened with extinction or whose trade is illegal are strictly
prohibited. Risks related to natural materials of animal origin
need to be controlled through internal audits and/or audits byindependent third parties and are the subject of targeted actionplans,• protect the environment: managing the environmental impact of
its entire value chain is a core preoccupation for Hermès.
Respecting natural resources, promoting regenerative
agriculture and forestry, controlling energy resources, favouring
the cleanest technologies in its production processes, limiting
waste and having ambitions EHS objectives are all pillars of theenvironmental policy implemented;
s caring: the House believes that a long‑term relationship is built withrespect and a balanced vision of human and commercial relations,in a caring spirit. In addition to these fundamentals, Hermès iscommitted to taking advantage of the best available standards andworking to improve them, while always integrating respect forpeople, animals and the environment;s fairness: through their informative purpose, these guidelines arepart of the Hermès métiers’ desire to provide long‑term support totheir partners and co‑construct responsible sectors. This alsomeans promoting the virtuous initiatives already undertaken.

All the recommendations and requirements formulated in the
cross‑functional recommendations and in the briefs for each supply
chain are communicated to the parties concerned via thespeciﬁcations, purchasing terms and conditions but above all throughdedicated discussions thanks to the buyers and the corporate
functions responsible for the subject. All or part of these points may
be subject to control visits, internal audits and/or audits byindependent third parties. Targeted action plans will be drawn up
jointly following these discussions, visits and/or audits.
This supply chain brief then presents, for each sector, the short‑term
objectives and the trajectory for 2024, the points requiring particularattention and those that are prohibitive. In particular, it includes
certiﬁcation objectives for most of the sectors according to the best
existing standards. It is regularly updated according to the Group’s
progress in risk analysis and new issues identiﬁed.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

129

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSMAIN SUPPLY CHAIN CERTIFICATION COMMITMENTS

Types of certiﬁcation and/or speciﬁc procedures

Supply chain coveredby the Animal Welfare policy

Wool and fur

RWS/RAS/RMS/SFA certiﬁcations

Yes

Feather/down

RDS certiﬁcation

Yes

Leather

LWG certiﬁcation

Yes

Precious leathers

IFCA certiﬁcation for crocodile farms
SAOBCS certiﬁcation for ostrich farms
LPPS certiﬁcation for the lizard sector

Yes
Yes
Yes

Silk

GOTS certiﬁcation

Yes

Mother‑of‑pearl/pearls

ASC/MSC certiﬁcations

N/A

Cotton

GOTS certiﬁcation

N/A

Linen

“Master of Linen” certiﬁcation

N/A

Animal supply chains

Plant‑based supply chains

Cellulosic ﬁbres

Sources of FSC ﬁbres

N/A

Wood

FSC certiﬁcation

N/A

Rubber

FSC and GOLS certiﬁcations

N/A

Palm oil derivatives

RSPO certiﬁcation

N/A

Stones

RJC certiﬁcation

N/A

Gold/silver

RJC certiﬁcation and use of recycled materials

N/A

Other metals

ASi certiﬁcation

N/A

Mineral and metal sectors

In order to constantly align itself with the most demanding certiﬁcation standards, and to gradually support its métiers in the sourcing ofsigniﬁcant volumes of certiﬁed raw materials, Hermès has extended its objective of certiﬁcation of the supply chains: the Group is targeting
certiﬁcation and/or award of labels for 54 supply chains by 2030.

2.4.2.2

ANIMAL WELFARE POLICYThe Group has set up a strict and ambitious policy in terms of animal
welfare for all the animal supply chains concerned, both within its direct
sphere of responsibility and for its external partners. Formalised in
2021, then updated in 2023, this policy, and all the concrete objectives
it sets, have been shared with Hermès’ suppliers and partners. It is
published on the Hermès website (1). This policy is part of a process ofcontinuous improvement of practices. The update of the policy in 2023
aims to better take into account the latest scientiﬁc and operational
advances. Hermès’ Animal Welfare policy is based on the following
principles:s a commitment to the fundamental principles of animal welfare (“thefive freedoms (2)” defined by the FAWC (3)), based on the most recent
observations and knowledge of scientists and university experts on
the subject according to the species. In order to ensure proper
animal welfare, Hermès’ approach focuses on the observation ofanimals and their behaviour. This therefore means an obligation of
results (“outcome‑based”) to be compared with more traditional
approaches,

130

which are limited solely to a material analysis of resources, without
taking the animal into account;s adoption of the “One Welfare” concept. This holistic approach
recognises interdependency links between animal welfare, humanwell‑being and the environment, and promotes interdisciplinary
collaboration;s a multi‑stakeholder collaboration to ensure that the results obtainedon animal welfare correspond to the expectations and analyses of awide range of stakeholders, including several international andnational associations (NGOs) involved in the Group’s issues;s a formal governance framework: created in 2019, the Animal
Welfare Committee brings together members of GroupManagement, the purchasing departments of the various
métiers, the technical and sustainable development
departments. An independent expert, a specialist in animal welfare,is also a member of this committee, which meets regularly to discuss
the strategy to be followed, the validation of the policy and thestandards, measure the progress made and ensure that theresources made available are adequate;1.

https://finance.hermes.com/en/animal‑welfare/2.

Absence of hunger, thirst and malnutrition, absence of physical or thermal discomfort, absence of pain, injury or disease, ability to express normal behavioural
patterns, absence of fear or distress.

3.

Renamed the Animal Welfare Committee (AWC) in 2019.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

s implementation of strict standards detailing best practices,
specific to each supply chain, covering, depending on the species,
a broad range of areas such as farming and slaughtering
practices, transportation, traceability, employee working conditions
and training, the environmental performance of farms and theirsafety, the promotion of biodiversity, conservation of species andassistance to communities and populations;s a monitoring system adapted to each sector allowing progressionof best practices by conducting regular internal, or external,
controls and audits in the supply chains.

An animal welfare roadmap has been drawn up for each species
concerned by the sale of products, in all of the Group’s métiers, andthe House is working with its suppliers to draft operational roadmaps.

2.4.2.3

RESPONSIBLE SUPPLY CHAINS

2.4.2.3.1

Leathers

Leather reﬂects the animal’s life. Only an animal that is well treatedand cared for, growing in a controlled environment (water, food,infrastructure), will provide a beautiful hide. Hence, the HermèsGroup’s demand for high quality hides helps to improve the industry
by encouraging livestock farming methods that respect the animals.
All leathers used for leather goods manufacturing are purchased
directly from tanneries, with no intermediaries. The vast majority of
the needs are covered by the French, Italian, German and Spanish
tanneries, all of which must adhere to European standards, which aresome of the highest in the world for the industry.
Hermès uses more than 35 different types of leather to make its
goods, most of which come from calves raised in France (including
our ﬂagship “Box” leather, made using an English tanning technique),but also natural cowhide in our equestrian leather product line and“exotic” hides such as crocodile, lizard and ostrich.
Since February 2020, Hermès has been a member of the LWG(Leather Working Group). LWG is a multi‑stakeholder group that
promotes sustainable environmental practices in the leather industry.
It has developed rigorous audit standards and protocols comparable
to industry best practices. These protocols have been reviewed byseveral NGOs, including Greenpeace, NWF, WWF (United States),sustainability organisations and academic institutions. LWG veriﬁes
compliance through independent audits conducted by approved third
parties. Its approach is holistic, both on environmental aspects, thesearch for best practices and by deﬁning guidelines for continuous
improvement.
Since February 2020, all Hermès Leather Goods & Saddlery tannery
suppliers have been encouraged to undergo assessment using the
LWG audit protocol. At the end of 2023, 81% of leather suppliers in
the Leather Goods division had already been certiﬁed (an increase of
5% compared to 2022) and represented 90% of the division’s totalpurchasing volume, either internal to the Tannery division or external
to the Group.

1.

The Tanneries division has also deﬁned an LWG audit programme forits sites. In 2022, the Cuneo tannery obtained LWG Silver Levelcertiﬁcation during its re‑certiﬁcation audit following its ﬁrst audit in2020, while the Vivoin tannery was certiﬁed LWG Bronze Level. In
2023, the Annonay Tannery and the Montereau Tannery werecertiﬁed Bronze Level and Silver Level respectively during their ﬁrst
audit. At the end of 2023, 100% of the tanneries in the Cuirs
Précieux division had been audited according to the standards
prescribed by LWG.

2

At Group level, at the end of 2023, 74% of leather suppliers were
LWG certiﬁed. The objective is to reach 100% of suppliers certiﬁedby 2024.
Lastly, in 2023, the CDP Forests awarded an A- rating to Hermès for
its performance in the “cattle products” sub‑category.

CalfskinIn 2023, the Group continued its long‑term work to better understandand improve its supply chain through numerous concrete actions.
In order to have a holistic view of one of its main supply chains, in
2023 HMS conducted a multi‑criteria study with AgroParistech, sothat it can better understand the issues and associated economic,
human and environmental impacts of the Calfskin sector in France.
The results of this study, ﬁnalised at the end of the year, will be taken
into account internally and in discussions with the various
stakeholders. Hermès, along with other luxury brands, was alreadyparticipating in the “Cuir de Veau Français Responsable” (CVFR)
collective initiative. The approach, started in 2020, aims to pool androll out animal welfare veriﬁcation audits across the entire Frenchcalfskin production sector in collaboration with players in the Calfskinsector (breeders, integrators, slaughterers) in France. The objective isto support the players in the sector in improving the living conditionsof animals and people, with the provision of training and investment
programmes.
In 2023, as part of this initiative, 280 third‑party audits wereconducted based on the Audit Protocol (1), a joint venture
co‑constructed by all members of the initiative, veterinary experts andIdele (Institut de l’Élevage), increasing the number of farmers having
beneﬁted from a third‑party audit to 400 since the start of theinitiative. This collective initiative aims to roll out this audit programme
nationally to 1,200 farms by 2025.
The support of integrators who are members and the training efforts
deployed in 2023 made it possible to achieve a rate of 76% of audits
with satisfactory results. The results of audits and discussions withplayers in the sector will make it possible to continually improve thelevel of performance and better adapt the resources made available
in terms of ﬁnancial investment and training provided by experts.

The CVFR audit protocol is built on the principle of the five freedoms (absence of discomfort, absence of hunger and thirst, absence of disease, absence of stressand fear, appropriate behaviour), covers 63 points to be verified and in particular includes points related to calf observation. This audit is valid for three years.
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

131

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSThe constructive dialogue between brands and players in the sector,
ensured by the Imagin’Rural association, has led to the gradual
adoption of the approach and the support of several integrators
representing nearly 60% of French calf farms.
Furthermore, Hermès is involved in the association FECNA (Filière
d’Excellence des Cuirs de Nouvelle‑Aquitaine), which brings together
several luxury French brands, the region, abattoirs, tanners,
agricultural cooperatives and independent breeders of “suckling
calves”. The programme includes various components: animal healthand welfare, environmental conditions, etc. Hermès wishes toparticipate in the implementation of best livestock farming practices,not only as part of its environmental policy, but also because it isaware that the quality of the farming has a direct impact on thequality of the hide. Raising awareness among farmers of bestpractices and training for farmers is currently being rolled out. The
next step will be to implement health treatments (against ringworm
and lice) on a large scale. The project also includes an approach thatwill ensure “end‑to‑end” traceability.
Convinced that the traceability of hides is essential to improve
farming practices and the quality of the hides, in addition to the steps
taken with suppliers to implement the marking of hides, the House’sTanneries division continued its direct laser marking of raw hides at
the Annonay and Le Puy sites. Developed in partnership with theCentre Technique du Cuir (CTC – Leather Technical Centre), it ensures
the traceability of hides from the farm to the ﬁnished leather. The
number of hides traced has increased: on average over the whole of2023, 60% of tanned leather was laser‑marked by suppliers and by
the tanneries themselves.
Looking ahead, a working group made up of the Tanneries division,
the Leather Goods division, and the Group’s sustainable development
and direct purchasing departments, was set up to select pilot projects
in France in the Calfskin sector. These projects, focused on “OneWelfare” and regenerative agriculture, take into account the overall
carbon footprint (including animal feed), water, biodiversity, animal
welfare, working conditions and fair and appropriate compensation forfarmers. Thus, a partnership with a dairy cooperative was signed in
2023 and the implementation of actions on the issues of animal
welfare, livestock farmer welfare and the environment will begin inearly 2024. This approach is an opportunity to work with stakeholders
at the very beginning of the chain.
Goat

The Group’s supplies come partly from Europe, with long‑standing
players and the framework of EU regulations, and partly from India.
In order to identify potential risk in terms of deforestation inconnection with the farming of goats as “subsistence” farming inIndia, Hermès commissioned a study by the Cambridge Institute for
Sustainability Leadership (CISL) in 2022. It concluded that the risk on
this subject was low.

A study is also underway at the veterinary University of Tamil Nadu
(TANUVAS) with the aim of analysing goat farming practices insouth‑east India and drawing conclusions on the evolution of the
population in recent years, documenting livestock farming practices,
assessing animal welfare, socio‑economic impacts for farmers andimpacts on water and biodiversity. The publication of the results is
expected in early 2024.
Our commitment is also to roll out the entire LWG certiﬁcation to our
Indian tanning partners, with a target of 100% by the end of 2024.
Exotic hides

Crocodilians

The crocodilian hide industry has developed since the 1970s as ameans of protecting endangered species by prohibiting the hunting ofthese animals in the wild and by organising a system that makes it
possible to combine the preservation of the species and natural
spaces with local economic development. This innovative and highly
regulated organisation has helped to protect the species and allow
wild populations to increase signiﬁcantly. The system is based, inparticular, on very controlled scheme for the harvesting of eggs,
which are hatched and reared on specialised farms. Local
administrations (often part of the Environment ministries) strictly
control the management of populations through harvesting
authorisations revised each year according to the size of the wild
congregations.
Virtually all of the crocodilian hides the House uses come from farms
in the United States, Africa and Australia. All Hermès partner farms
must comply scrupulously with the rules drawn up under the aegis of
the UN for the Washington Convention, which deﬁnes protection for
endangered species. Hermès requires that its partners meet thehighest standards for the ethical treatment of alligators and crocodile,in accordance with recommendations by expert veterinarians andlocal authorities such as the Fish and Wildlife Service in the UnitedStates, a federal nature protection agency, or the departments ofenvironment and natural resources in Australia (Northern Territory
and Queensland). In addition to strict compliance with the
Washington Convention, in 2016 Hermès initiated a study with WWF
France to assess respect for animal welfare and measure theenvironmental footprint of alligator hides in the United States. The
progress plan drawn up at the end of this study is still ongoing.
All operational improvement work was carried out by structuring
standards and procedures and implementing systematic audits.
The Tanneries division had drawn up a charter of best breedingpractices in 2009 (an innovation for the profession at the time),
which was updated in 2016. These best practices encompass inparticular CITES regulations, animal welfare, the farms’ environmental
management, employee labour conditions, safe working conditions
and infrastructure.
They were all subject to one or more audits carried out by internalteams between 2016 and 2018.

1322023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSThe Tanneries division then outsourced these audits to the breeding
farms and the meat processing and hide inspection sites. These
audits, carried out by local Bureau Veritas auditors trained in thespeciﬁcities of crocodilian farming, are part of a broader process of“Bureau Veritas Group Recognition” of sites. The audit protocol
associated with this best farming practices charter was also reviewed
by this organisation, using its expertise in the assessment of farming
conditions in other animal sectors. In 2023, 100% of the crocodilian
farming sites with which the Tanneries division has commercial
relations signed the best breeding practices charter.
Given the maturity of the profession’s standards, the Group decided
that its audits would be carried out using this standard, and stilloverseen by an external auditor.
To capitalise on the internal work carried out for nearly 15 years, theGroup had contributed to improving the standards of the profession
and their dissemination. Since 2016, Hermès has participated in the
ICFA (International Crocodilian Farmers Association) alongside themain players in the industry (farmers, tanners, manufacturers andbrands). This association aims to develop and improve sustainablecrocodilian breeding practices in farms and draw up standards by
combining the experience of its members and a scientiﬁc community
specialised in crocodiles, which has gathered together all practices
and existing scientiﬁc studies.
In 2018, the ICFA accordingly deﬁned a standard aligned withinternational best practices in the ﬁeld. A panel of scientists,
veterinarians, farmers, brands and specialists in the area of
regulations or in ISO compliance participated in the approval of thisstandard. This was then reviewed and amended by the CSG(Crocodile Specialist Group), an NGO member of the IUCN’s Species
Survival Commission and working under the aegis of the UN. The
Group is continuing to work with the ICFA to support scientiﬁc
research and the ongoing improvement of crocodile farming systems.
The practices thus deﬁned are backed by scientiﬁc studies. The
founding principle is to evaluate animal welfare throughout thebreeding process in a manner that is both objective and measurable.
The certiﬁcation process for the livestock of its founding members
was introduced in 2019, with the help of the independent certifying
body BSI. All farms that join the ICFA adopt its standard and areaudited. As such, all farms in the division have already been audited
and certiﬁed by ICFA. In addition to the issue of animal welfare, asdeﬁned by the FAWC (Farm Animal Welfare Council) and the ﬁveanimal freedoms, these audits also cover various topics such as best
breeding, transportation and slaughter practices, compliance with

CITES requirements, personal safety, compliance with social criteria,
environmental management and site safety.
In addition, special attention is paid to biosecurity rules on farms, inorder to protect livestock from the introduction of infectious agents.
This includes compliance with strict requirements when transferring
animals on farms or between farms, the implementation ofdisinfection instructions and pest control or animal vaccination
programmes. These different protocols were established incollaboration with veterinarians specialising in the species
concerned.

2

In 2023, all HCP tanneries were thus members of the ICFA and100% of raw crocodilian hides purchased by the Tanneries divisioncame from farms that have been subject to an external audit by BSI
as part of the ICFA certiﬁcation process.
Focus on porosus

The Australian farms are a strategic link in the crocodylus porosus
hide supply chain. After several years of signiﬁcant investment inanimal breeding facilities and the improvement of savoir‑faire, thequality of supplies has continued to improve.
These farms are all ICFA‑certiﬁed by the independent control body
BSI. As part of a continuous improvement approach, research
projects are conducted in the division in partnership with scientists tostudy the behaviour of animals on farms.
LizardIn collaboration with experts in animal welfare (also members of theWorld Organisation for Animal Health) and in standardisation, the
LPPS (Lizard Procurement and Processing Standard) was created forthe “Lizard” sector (varanus salvator) in Malaysia. The purpose of thisstandard is to ensure compliance with current regulations and bestpractices throughout the supply chain. It covers the following topics:
management of animal welfare, compliance with permits andauthorisations, environmental management, employee social
conditions, and safe working conditions and infrastructure as well as
CITES regulations and unit traceability of hides. The certiﬁcation of
the Malaysian supply chain was carried out in 2022 via audits carriedout by third parties which validated the compliance with the deﬁned
standards.
In total, 43% of the lizard hides purchased by Hermès in 2023 are
LPPS‑certiﬁed, including 100% for hides purchased in Malaysia.
Control and certiﬁcation work on the supply chain, carried out jointly
by the Leather Goods divisions, the Tanneries and Hermès’ partner,
continued with the audit of the sector by BSI in November 2023.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

133

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

Ostrich

In partnership with the South African Ostrich Business Chamber(SAOBC), Hermès contributed to positive changes in the Ostrich
sector (animals mainly raised for their meat and feathers, and used in
the production of leather goods), through:s the creation of a standard with all stakeholders (breeders,processors, scientists, government regulators, non‑governmentalorganisations specialising in animal protection, and customers);s financing and participation in the training of farmers andprocessors;

The Hermès silk supply contributes to the development of materials
with a low environmental impact. More broadly, it is part of its global
strategy for biodiversity.

In 2023, as has been the case since 2021, all of Hermès’ supply of
ostrich hides came from certiﬁed sites.

In 2022, Holding Textile Hermès tested the ﬁrst GOTS‑certiﬁed
production for the silk division and set itself the target of reaching
30% of its production by 2025. This objective will be achieved inaccordance with the ability of our suppliers to gradually comply withthese new requirements.

2.4.2.3.2

2.4.2.3.3

s a certification process conducted by an independent body since
early 2020.

Silk

Silk is an essential resource for Hermès, and its production reﬂects
the House’s values of sustainability and ethics. This material isrenewable and biodegradable. Its production uses less water,
chemicals and energy than that of most other ﬁbres, including cottonand synthetics.
For decades, Hermès has sourced silk through a local partnershipwith smallholders in the state of Paraná, in Brazil. The supply ofBrazilian silk represents more than half of the Group’s supplies of thismaterial.
Hermès’ local partner ensures it works in harmony with nature
through a production system based on low‑intensity, regenerative andcircular agriculture. The ecosystem thus maintained generates
income for small local farms and more than 2,000 families. There is a
dedicated annual budget to develop knowledge, qualitativetechniques, and the sustainability of the activities and supply chainsof these silkworm farms. According to a study conducted in 2018 by
an expert ﬁrm for Intersoie (Union of Silk Producers), the carbon
footprint of Brazilian silk is 30% lower than that of Chinese silk. The
growth of the worms involves a diet based exclusively on mulberryleaves. Mulberry plantations sequester carbon, prevent erosion andcontribute to soil regeneration. Mulberry cultivation uses far fewer
agrochemicals than those in the surrounding agricultural land where
they grow soybeans and sugar cane. Hermès’ partner supports
research into the rational use of pesticides and is positively engaged
in a local dialogue to reduce their use in other more intensely
managed neighbouring crops, as they are harmful to silkworms. The
reduction of agrochemicals in the environment is potentially beneﬁcial
to the silk industry, but also to local biodiversity, in particularpollinators and soil fauna. Hermès provides ﬁnancial support to its
historical supplier so that it can adapt to climate change, such as
irrigation and mechanisation, as well as carry out tests of mulberrytrees that are more resistant to climatic hazards, with a view toadaptation.
Much of the waste from mulberry growing and silkworm farming is
recycled locally. Each part of the cocoon as well as the otherco‑products of the industry have multiple uses, from ﬁsh food tofabric. Such circularity reduces the demand for raw materials, whichleaves more uncultivated spaces conducive to biodiversity.

134

In 2020, Hermès worked with the Institute for Sustainability
Leadership (CISL) at the University of Cambridge, a leader in the ﬁeldof biodiversity, to undertake a study to conﬁrm the environmental
value of this local partner’s approach and to identify actions that
could further enhance the beneﬁts of this system. This study states:“We believe that Hermès’ silk production in Brazil can be celebrated
for its positive environmental beneﬁts.”

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Cashmere

Cashmere comes from the capra hircus laniger goat, known as the
Cashmere goat, which lives in High Asia. Particularly well adapted toharsh climates, at the beginning of winter, the Cashmere goat
develops an extremely ﬁne and dense down beneath its permanent
coat of hair, which allows it to effectively insulate itself from the cold.
When temperatures rise again, this down is shed naturally during thespring moulting season. It is this extremely ﬁne and soft down
harvested by breeders that is commonly called cashmere.
For weaving, Hermès selects the most beautiful ﬁbres. At the sametime ﬁne, long and extremely white, and boasting unrivalled softness,they come from the very best farms. The House’s historic yarn
manufacturer has built strong, long‑standing relationships of trustwith raw material suppliers, thereby ensuring supplies of an
exceptional quality. Most of Hermès’ supplies come from Inner
Mongolia, in the People’s Republic of China, where farming practices
are strictly controlled by the authorities in order to preserve theresources.
Thanks to a high degree of integration, through the Holding Textile
Hermès division, the Group has a signiﬁcant level of expertise andcontrol of processing operations such as weaving, printing, ﬁnishingand manufacturing. This integrated process ensures the use ofexactly the right amount of raw materials, the streamlining ofcontainers and packaging, facilitating the transport of products, andoptimisation of transport.
A programme aiming for the sustainable development of the sector
has been ongoing for several years with the support of NGOs present
in the breeding areas in question. In 2019, an audit of practices wasnotably conducted in Inner Mongolia, with the support of
WWF France. The conclusions, positive on the local practices
implemented, led to an action plan and improvements, for example on
the traceability of livestock farming practices, and optimisation ofwater use on hide processing sites. The monitoring of these actions
has since continued. In 2023, a new study was launched by Hermès
and conducted by WWF France, WWF Mongolia and the Mongolian
University of Life Sciences on the biodiversity issues of the cashmere
sector in Outer Mongolia. This ﬁeld study made it possible to better
assess the risks of the local industry and highlight best sector
practices and levers for progress.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSIn addition, the Group’s collaboration with AVSF (1) continued, with aprogress report communicated at the end of 2023 to identify ways tohelp maintain more sustainable livestock farms in the region.
The objective is ultimately to monitor and support breeders’agro‑pastoral practices in order to preserve the resource and thebiotope. These studies and on‑site trips by the teams are also an
opportunity to verify that the local populations and communities arefree to make their own choices in terms of economic trajectory.
Since 2021, Hermès has deﬁned the 2024 trajectory of its cashmere
supply chain as regards ethical, social, environmental, animal welfare
and traceability aspects. This trajectory has been communicated toall of its partners. As such, since 2021, Hermès has participated in
the piloting of the implementation of a code of practice for theaccreditation of animal welfare and the environmental sustainabilityof cashmere production in China under the supervision of ICCAW(International Cooperation Committee of Animal Welfare) and the SFA(Sustainable Fibre Alliance).
In 2023, our partners and suppliers also continued their certiﬁcation
initiatives, and already, 33% of the cashmere they purchase is SFA
certiﬁed. In 2023, 35% of Holding Textile Hermès’ supplies met thisstandard. This proportion will continue to increase in the coming
years and will be rolled out to the entire Group with the aim ofgradually reaching 100% as farmers are trained and adhere to thisstandard.
A Cashmere Committee, dedicated to this material used in several
métiers, meets twice a year for cross‑functional coordination of thesector.

2.4.2.3.4

Other materials

CottonHermès uses a very small volume of cotton in its collections. As for allmaterials, the cotton supply policy is guided by the search for the best
quality and the guarantee of traceability.
The cotton supply chain, based on long‑standing partnerships,
favours low‑risk sources, using an analysis based on the Verisk
Maplecroft database: in 2023, 71% of cotton ﬁbres used in Hermès
products came from countries mapped as low risk or controlled risk.
For other origins, speciﬁc control procedures are in place.
Hermès has implemented a control approach to ensure respect forhuman rights throughout the supply chain, from production to dyeing
and spinning.
In 2020, work was undertaken with the main suppliers to switch all
supplies to organic or GOTS (Global Organic Textile Standard) cotton
for protective covers and ribbons. These improvements will take place1.

gradually until 2024, which will signiﬁcantly reduce the environmental
impacts and, in particular, the corresponding water consumption. Thiscertiﬁcation also includes a mandatory criterion for the ethicaltreatment of workers. In 2023, the supply of GOTS‑certiﬁed cotton forour packaging elements (protective covers, which represent asigniﬁcant part of the Group’s needs) covered 48% of its cotton
supplies in this segment. A working group speciﬁc to the cotton
sector, including representatives of the various user métiers, wascreated in 2023 to continue the work of managing the sector. In thisway, for example, the 2023 target of making 50% of covers from
cotton that is GOTS certiﬁed or using recycled silk was achieved. The
Group is aiming for 100% achievement of the target for the2024‑2025 period. The Cama shirts and leather workshops(suppliers to Men’s ready‑to‑wear) obtained their GOTS certiﬁcation in
2023, thus becoming the ﬁrst Hermès Sellier sites to be awarded thislabel. This result is the fruit of the joint work of the workshops, themétier’s sustainable development team and the Métier division’s
industrial transition team. This was an opportunity to rethink allprocesses, and to create an excellent collective dynamic among thecraftspeople. The subject is now better understood and will in turnmake it possible to support manufacturers in obtaining theircertiﬁcation.

2

Horsehair

The Group uses horsehair for its textile production and for certain
objects in its collections (leather goods, homeware, etc.). In 2023, aspart of the supply chain analyses, a special study was conducted onhorsehair used in leather goods. To make exceptional bags composedof horsehair, HMS sources its supplies in Mongolia, a major pastoral
country with a population of more than 4 million horses. Horses bredin Mongolia are an integral part of the country’s multi‑herd systems,
in which they are considered the predominant species by many
Mongolian families and an extremely important part of their culture.
The horsehair does not come from the wild horses of the Mongolian
steppes (the Przewalski horse), which is also found in this region of
the world.
HMS works closely with the NAERC (Northeast Asian Environmental
and Agriculture Centre), a training and research institute in Mongolia,
and, in partnership with local herd breeders, to promote animal
welfare, the preservation of the environment and self‑sufﬁciency of
populations (One Welfare approach). The NAERC supports a scientiﬁc
approach to pastoralism and works with NGOs specialising in the
management of the vast expanses of grassland whose ecosystems
are rich in biodiversity. Hermès offers its complementary expertise inanimal welfare in order to improve the requirements related to thewelfare of horses in this country.

Agronoms and Veterinarians without Borders.
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

135

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSThe horses live in extensive herds (nomadic breeding) and havepermanent access to a natural diet. They are not conﬁned and arefree to roam throughout the year. They are also an important sourceof food for Mongolian families, both for the milk and the meat they
provide.
HMS works closely with its suppliers to promote horsehair as aby‑product, ensure proper compensation for breeders, reduce thenumber of intermediaries and, lastly, guarantee full traceability of its
purchases. An audit of the sector was carried out in 2023.
Wood

The supply chain briefs were updated to include the issue of
deforestation, whenever this subject was a concern (wood, straw,etc.). More than 50% of the woods used for Hermès objects are FSC,PEFC or SVLK‑certiﬁed. SVLK certiﬁcation is a local certiﬁcation
implemented in Indonesia. In addition, on‑site audits guarantee thepreservation of forests and the absence of deforestation.
Some partners, in addition to sourcing FSC‑certiﬁed timber, haveensured their entire value chain is FSC‑certiﬁed, guaranteeing that
supplies for Hermès’ products are 100% certiﬁed.
In 2023, in conjunction with WWF France, an in‑depth study was
carried out on plant species from Africa. The sustainability of eachspecies was analysed in detail in order to classify the species
according to their impact on biodiversity, country and social risks. This
work led to ﬁeld audits enabling the end‑to‑end traceability of certain
tropical species. Additional work was initiated at the end of 2023 toobtain scientiﬁc values and an additional perspective from athird‑party organisation.
Work to replace low‑volume species that could carry risks was
initiated jointly by Hermès Maison and WWF. The changes in species
will be effective in 2024.
In addition to the implementation of certiﬁcations, the House collects
information to better manage this natural resource. For the purposesof supply chain traceability, data on country of origin, species used,
forest type (plantation or natural forest) and supplier certiﬁcates aremonitored and recorded. A risk assessment is conducted, looking inparticular the level of corruption in the country, as well as species
appearing on the IUCN (International Union for Conservation of
Nature) and CITES red lists.

In addition, true to the Group’s ambition to always exceed therequired level, and in accordance with its sustainable development
roadmap, Hermès Horloger has chosen to source only recycled COC(“Chain of Custody”) gold. Les Ateliers Hermès Horloger, based in
Le Noirmont, Switzerland, and producing the watch cases and dials,
have applied for and obtained the RJC COC certiﬁcation. It can thus
guarantee the traceability of this recycled COC gold throughout the
supply chain, via a strict management system and a rigorous ﬁnal
audit conducted by a third party. Through this certiﬁcation,
Hermès Horloger underlines its commitment to transparency and ismoving towards its objective: to offer watches with fully traceable
precious metal components.
PRECIOUS METALSThe commitment to use recycled precious metals is also found within
Hermès Bijouterie: Hermès jewellery is mainly made of gold andsilver, from shot or prepared elements such as plates or wires. This
gold and silver comes from the European metal recycling sector, fromthe jewellery sector itself or from other industries such as electronics.
Hermès does not therefore use gold from mines in its jewellery.
More broadly, the analysis of the origin of the metal of thecomponents (chains, clasps) and gold salts used for electroplating,initiated in 2020, conﬁrmed that they come from similar recycling
channels. On this basis, the granularity of the knowledge of reﬁners
and the various sources of gold – in particular recycled – available on
the market, was improved through systematic questioning. Lastly, aseries of audits took place between 2021 and 2022, covering thevast majority of physical supplies of precious metals.
A new material, titanium, has been developed by the Fashion
accessories innovation team, due to it having a lower LCA than theother metals conventionally used by the Fashion jewellery métier
(brass, stainless steel).

Metals and stones

PRECIOUS STONESThe precious materials used by Hermès Watches, Hermès Bijouterie
and Hermès Leather Goods & Saddlery are mainly gold, palladiumand diamonds. Hermès has implemented very strict procurement
practices that make it one of the leaders in the sector.

Both as part of and as an extension to the Group’s audit and supply
chain management programmes, the Jewellery métier has honed theoperational mapping of its value chains. For stones, the identiﬁcationof the origin of the gems has been required for several years. Eachsupplier must declare where it obtains its supplies and comply withthe risk analysis grid for the regions of origin. The métier’s teams
audit or visit not only its direct partners, but also further upstream in
the value chains. In 2022, the Jewellery métier audited several
diamond and coloured stone cutting plants. In cooperation with other
métiers that use sapphires, a detailed analysis of the sector was
carried out.

RJC

The Group has been a member of the Responsible Jewellery Council(RJC), an international benchmark for the profession, since 2012,and obtained RJC COP (Code of Practices) certiﬁcation in 2013. The
audit for the renewal of this certiﬁcation took place in 2019 and wasvalidated in 2020.

136

This certiﬁcation guarantees best environmental, social and ethicalpractices, from extraction to retail sale. Initially covering only gold,
platinum and diamonds, the new certiﬁcation rules now include silver
and certain precious stones (emeralds and sapphires). Hermès has
become the ﬁrst luxury house to be certiﬁed across the whole of thisscope and according to the strengthened criteria of the new COP
standard. In 2022, the Group’s certiﬁcation was renewed for an
additional three years.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSThe House’s Diamond sector abides by the Kimberley Process and its
corollary, the World Diamond Council (WDC) System of Warranties.
The Kimberley Process, which came into force in 2003 and has been
adopted by 81 countries including France, has prevented the arrivalon the legal market of “conﬂict diamond”, the sale of which funded
guerrillas in unstable countries. The World Diamond Council’s systemof warranties incorporates broader issues, including working
conditions and the ﬁght against corruption.
All diamonds used by the House are natural and selected inaccordance with the Hermès Group quality and ethics criteria. At thetime of purchase in stores of an object containing diamonds, acertiﬁcate attesting to this commitment is given to the customer.
Compliance with the aforementioned principles concerns thediamond trade, from mining to the cutting of the 57 facets, but also
the trading of polished stones, as well as the setting of watches, their
quality control, delivery and sale in store. The mapping of the value
chain of sapphires, emeralds and rubies was completed andstrengthened in 2023 with the aim of knowing the origin of 100% of
the individual stones as well as in mass balance for melees. Teamstravelled to Thailand and India to meet rough stone brokers tradersand cutters to ensure the House’s requirements were being followed.
Steel

Hermès Horloger has chosen to source 85% recycled steel for all its
material and component purchases. Discussions are underway to set
up a closed circuit to recover watchmaking steel production offcuts
and reinject them into the watchmaking circuit.
Hard stones

Finally, the market for ornamental stones and marbles is also acomplex sector, with the presence of intermediary players and wide
geographical diversity linked to the various mineral materials desired.
In 2021, Hermès Maison and Puiforcat carried out an in‑depth audit
and study of the supply chains, identifying and tracing the stones in
the collections, supplemented by points of attention. The analysis of
the 13 stones present in the Hermès Maison collections makes it
possible to guarantee Hermès’ level of social and environmental
commitment. In its new developments, Hermès Maison favours theuse of stones extracted, machined and worked in Europe.

100%
non-mined goldand silver processedin the workshops

2

Perfume and Beauty

During 2023, the mapping of environmental and social risks was
carried out on 100% of the raw materials used in perfumery.
Ambitious actions have been launched for the main raw materials
used and at risk: 30% of alcohol purchases are made using certiﬁed
French organic alcohol, and the commitment to growth of 10% peryear should make it possible to achieve the target of 100% organic
alcohol by 2030. For vetiver, contracts were renewed with all
supplies coming from a Fair For Life certiﬁed supply chain. The Houseis participating in an action plan for a living wage and the ﬁght againstchild labour in the Pink peppercorn sector in Madagascar, involving
tier one and two suppliers and a local expert from a responsible
purchasing ﬁrm established locally.
At the same time, the ﬁeld audit grid for agricultural supply chains has
been modiﬁed and enhanced to improve feedback to suppliers. These
audits are carried out by a design ofﬁce with expertise in agronomy,
with support from métier in the preparatory phase prior to
implementation in the ﬁeld. Action plans, if necessary, and any
follow‑up thereto, are drawn up and implemented by the métier.
For the 20 perfume raw materials that represent 81% of purchases,
35% of the supply chains were audited at the end of 2023. The 2024
audit plan has been set and that for 2025 is being drawn up in orderto reach 100% of supply chains audited, within the same scope, by
2026.

2.4.3

BIODIVERSITY

Maintaining an environmental setting conducive to our lives and thedevelopment of activities requires respect for and the protection of
biodiversity. However, according to the recent WWF “Living Planet”
report, there has been a very worrying decline in the populations ofbirds, mammals, amphibians and reptiles on the planet’s surface
since 1970, and more broadly, one after another, diagnoses aredemonstrating the erosion of biodiversity.
Hermès is working to protect biodiversity in its direct sphere of
responsibility, in its extended sphere of inﬂuence, and throughvoluntary commitments reaching beyond its economic sphere of
inﬂuence.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

137

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSPOLICYIn December 2022, the 196 parties (195 countries and theEuropean Union) that have ratiﬁed the Convention on Biological
Diversity (CBD), an international treaty on the conservation,
sustainable use and fair sharing of biological diversity, adopted attheir 15th Conference of the Parties (COP 15) the Kunming‑Montreal
Global Biodiversity Framework.
This framework provides the global community with a roadmap for2050 including four goals and 23 targets to protect and restore
nature and use it in a sustainable way, for current and future
generations. In particular, Target 15 requires its parties to take legal,
administrative or policy measures to encourage business andﬁnancial institutions to monitor, assess and disclose their risks,
dependencies and impacts on biodiversity, throughout their value
chains, to provide information to their consumers and align withregulations and measures relating to access to and the sharing of the
beneﬁts offered by biodiversity.
In November 2023, the French government presented its National
Biodiversity Strategy for 2030 (SNB), to halt and then reverse thecollapse of biodiversity. This national strategy focuses on four areas:
reducing the pressure on biodiversity, restoring degraded biodiversity
wherever possible, mobilising all stakeholders and ﬁnally ensuring themeans to achieve these ambitions.
To meet the current challenges regarding the loss of biodiversity,
Hermès has made a concrete commitment with a strategy formalisedin 2018 and updated in 2020 around four structuring elements:
train, collaborate, assess and act. These commitments are madewithin global, European and national frameworks.
To achieve this biodiversity strategy, the Group has a six‑component
blueprint:s vision;s governance and organisations;s the four pillars of its commitments:• 1. train,• 2. collaborate,• 3. assess,• 4. act.
Keen to contribute to global action, and to base its objectives onscience, Hermès has included the major market benchmarks in its
biodiversity strategy, as detailed in the rest of this section:
Act4Nature International from 2018, SBTN and TNFD
(cross‑reference grid in § 2.7.2.4.3).

VISION“Nature has been inspiring us since 1837. Protecting biodiversity is awonderful opportunity. This wealth must be passed on to future
generations. It’s a challenge we must win today.” Axel Dumas,
Executive Chairman of Hermès.

1.
138

By identifying its nature‑related risks and dependencies andunderstanding the interrelationships between its value chains, natureand climate change, Hermès can better integrate the subject into its
operations and seeks to anticipate and mitigate the upheavals related
to the erosion of biodiversity. By calculating its biodiversity footprint
and reducing it through concrete actions, Hermès wants to guarantee
the sustainable use of nature, by maintaining ecosystem services, totake advantage of its opportunities. Hermès anchors its action and its
biodiversity footprint trajectory in the major global frameworks andrecognised standards, aiming for harmony with nature that isappreciated at its true value, conserved, restored and used in areasonable manner.

GOVERNANCE
The subject of “Biodiversity” is overseen by the Executive Committee,
which relies on the work of the Sustainable Development Board. In
addition, this issue is driven by speciﬁc competence present on the
Supervisory Board (see § 4.5.2). For this highly complex subject, theGroup surrounds itself with experts and uses specialist NGOs.

COMMITMENT PILLARSThe purpose of the four pillars chosen is to guide the Group and its
métiers in measuring the biodiversity footprint of value chains, toco‑construct corrective and positive actions, or to support theorganisation’s skills development. They include speciﬁc commitmentsthat describe clear objectives and dedicated time horizons and arerecognised by external observers, such as the French Sustainable
Investment Forum, which announced in its 2023 commitment
report (1) “A single player leads the pack: Hermès” for its
consideration of biodiversity issues in the discretionary consumption
sector.
Hermès took advantage of the update of its biodiversity strategy in2020 to renew its individual commitment to Act4Nature International.
The strategy and the related objectives have therefore been validated
by a committee of stakeholders inherent to the governance of thismulti‑stakeholder alliance (companies, public authorities, scientists
and environmental associations).
The House’s commitments are also based on the best methodologies
and tools available, such as SBTNs (§ 2.4.3.5), and are summarised
according to the following four strategic areas:
thisinvolvesincreasing
internal
biodiversity
s Train:awareness‑raising actions and training on biodiversity issues andstrategy for all employees, with a particular focus on issues where
the Company has action levers (from creation to purchasing realestate, for example).
Objectives: continue the ongoing training of management bodies,sustainable development committees, site and supply chain
employees, with the aim of extending this to all employees by
2025;(in French only) https://www.frenchsif.org/isr_esg/wp‑content/uploads/FIR‑RapportCAC40Responsable‑AG2023_13fev.2024.pdf

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSs Collaborate: the Group has renewed its partnership with WWF
France until 2026 and works with other specialist NGOs andhigh‑level players in the field of biodiversity. This collaborative
approach is crucial in the development of transformative practices
and relies on the expertise of our partners to contribute to theother three pillars of the biodiversity strategy. Hermès is always
looking for new collaborations with stakeholders who are experts inthese subjects.

Objectives: continue work with these recognised organisations in
2024;
s Assess: Thanks to double materiality and the application of steps 1
and 2 of the SBTN method, Hermès is building a robust impact
analysis matrix based on the mapping of value chains.
Measurement of the Group’s biodiversity footprint according to thefive pressures of the IPBES (Intergovernmental Science‑Policy
Platform on Biodiversity and Ecosystem Services) allows theresulting priorities to be assessed.

Objectives: measure the biodiversity footprint, particularly of themain supply chains (leather, silk, cashmere, wood, cotton) by 2025with WWF France and CDC Biodiversité using the Global
Biodiversity Score (GBS) and integration of the issues identified
into the reporting tools by 2025;
s Act: action plans proportional to the level of impact on all sites andraw materials supply chains must be carried out and becompatible with a science‑based approach. At the same time, theGroup is committed to continuing its positive actions beyond its
area of direct responsibility.

Objectives: establish action plans for 100% of French
manufacturing sites and for its main supply chains by 2025.
Continue to invest in biodiversity projects via partnerships,
investment in the Livelihoods fund and the Fondation d’entreprise.

2.4.3.1

IMPLEMENT TRAINING INITIATIVESFOR EMPLOYEESIn order to spread knowledge about biodiversity issues, and topromote decision‑making and the achievement of ambitious results,
Hermès aims to train all its employees.
A training cycle is being rolled out for management bodies such as the
Executive Committee and the Supervisory Board (two meetings in2023). Management committees and various experts in sustainable
development were trained thanks to a panel of educational tools, aConservation International training course, a master class led by CDC
Biodiversité, speciﬁc WWF training, GBS methodology training or aseminar to raise awareness of the IPBES report. These technicaltrainings were a great success. In 2023, a cycle of four technicalconferences on nature (biodiversity, water, forest and climate), in
partnership with the WWF, brought together a total of
450 participants, including members of governing bodies andmobilised eight external and four internal experts.
More broadly, an e‑learning module dedicated to biodiversity has
been available to all employees of the House since 2021, with
2,411 participants trained, including 900 in 2023. For the production
sites, an introduction to biodiversity, launched by HMS, was widelyrolled out to our craftspeople in 2023. Thus, 4,105 people, i.e. 74%of the HMS workforce, were made aware of the culture of living things
and this resulted in numerous local initiatives based on this theme(local management of sites, organic markets, planting of bulbs, plantfair, etc.)
Small actions on the ground help this awareness to take off. Locally,
the 2023 Sustainable Development Week at the Île‑de‑France sites
was an opportunity to offer employees presentations by scientists,“Entreprendre pour le vivant” workshops led by the Fondationd’entreprise Hermès, visits to beehives equipped with innovative
systems for monitoring local biodiversity, and the discovery of internal
projects that contribute to the preservation of biodiversity.

2

Numerous distribution subsidiaries have taken action in this area. For
example, in Switzerland, Hermès Horloger’s Environment andBiodiversity Week in September 2023 was an opportunity for
45 employees to participate in volunteering actions, in partnershipwith four associations, carrying out a total of 320 hours ofvolunteering. On the programme, a guided tour and maintenance workin an apiary, repair of a dry‑stone wall and cleaning of the shores of
the Neuchâtel and Bienne lakes. In the United States, HoP’s
sustainable development ambassadors met in California tounderstand and participate in replanting work in the Santa Monica
Mountains National Park. In July 2023, two groups of employees
made a stopover in Okinawa, Japan, in order to participate in thepreservation of the archipelago’s marine ecosystems by recoveringand planting corals. They had the opportunity to discover the different
facets of the coral reefs, to contribute to the strengthening of thehealth of the oceans and to experience the cultural heritage of
Okinawa. The restoration of the Japanese coral reef ecosystem wasachieved through the planting of 400 young corals which, via
photosynthesis, will develop into adult reefs within a year.

2.4.3.2

WORKING IN PARTNERSHIPWITH STAKEHOLDERS

Hermès wants to surround itself with the best skills to make progressin the ﬁeld of biodiversity.
The partnership agreement with WWF France, signed in May 2016
and renewed in 2020, was renewed for a further three years in 2023
(2024‑2026 period). The aim is to continue to work together topreserve ecosystems by analysing interactions with the Group’s
supply chains. The work streams were deﬁned to adapt to the rapidchanges in expectations around biodiversity and make thispartnership even more ambitious:s technical support: rolling out concrete and proactive projects. Thisis the historical axis of the partnership that has in recent years
seen projects such as the Water Risk Filter analysis on theassessment of the freshwater footprint and water risks on theGroup’s activities, and the field study on the cashmere supply
chains in Inner Mongolia and the tripartite collaboration with CDC
Biodiversité on the global measurement of Hermès’ biodiversity
footprint;s internal awareness‑raising: promoting awareness among
employees of the main issues related to biodiversity and aiming foracculturation on this complex subject in order to facilitate its
consideration in internal processes;

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

139

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSs critical friends: picking up weak signals from civil society anddiscussing with society in a spirit of solution‑oriented dialogue;s visibility and communication: showing how the partnership shifts
the lines through the collaboration of an economic player and an
NGO and highlighting it results.

In 2023, Hermès concluded a study with an innovative andcollaborative multi‑stakeholder governance between WWF France,
WWF Mongolia and the Mongolian University of Life and Sciences inorder to analyse the cashmere sector in Mongolia on amacroeconomic level and asses its impact on nature. This study
mobilised a multidisciplinary team made up of three professors and adoctor from the Mongolian University of Life and Sciences, together
with the involvement of 40 families of nomadic herders, eight
Mongolian agro‑specialists and 10 cashmere traders. It focused on
six case studies with cashmere farming and processing companies
and herder families. It highlighted issues for nature around theoverpopulation of nomadic herds, competition between domestic andwild animals and the pressure on regional ecosystems (grasslands).
Thanks to its local anchoring and a scientiﬁc approach that is as
close as possible to the ﬁeld, solutions and opportunities have been
proposed to develop the Mongolian cashmere sector in harmony withnature while improving the quality of life of farmers. These
conclusions are in line with the pilot solutions already implemented by
Hermès with local partners and the association AVSF (Agronomes etvétérinaires sans frontières).
In 2023, Hermès joined the Laboratoire Capital Natural (“Lab”),
founded by WWF France and the Chair of Ecological Accounting, led
by the AgroParisTech Foundation. This Laboratory supports andexplores the implementation of conceptual and methodologicalframeworks in favour of strong sustainability such as the SBTN and
CARE methods. In this context, Hermès has chosen to apply the SBTN
method, while remaining open to the opportunity to test the Chair of
Ecological Accounting’s CARE method. In addition to the application of
methods, the Lab is a catalyst for pioneering French companies infavour of the preservation of natural capital and Hermès actively
participated in the 2023 workshops.
Hermès extended its links with CDC Biodiversité in 2023 with its
participation in the Value Chains and Biodiversity Credits/Certiﬁcatesworking groups of the B4B+ Club, created to co‑construct and test the
GBS (Global Biodiversity Score) and to feed into discussions on
biodiversity footprints.
The Group also continued its highly operational work with NGOs on
the ground, involved in the protection of biodiversity: in South Africa,
with the SAOBC, on the subject of ostriches but also that of local
ecosystems (water). The South African hydraulic network isthreatened in the south of the country by invasive plants that dry up
watercourses, with a potential impact on crops and therefore ostrich
food sources. As has been the case for many years, the Group works
on these issues with the ICFA for crocodilians, as well as with the UK
NGO RSPCA on animal welfare more broadly.
The Group also provides support to its suppliers. Hermès Leather
Goods & Saddlery brought together 150 of its partners and suppliersof materials under the banner of sustainable development. This day
was an opportunity to raise their awareness of CSR and to offer
12 workshops, two of which were dedicated to the biodiversity fresco.

140

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Thus, seven classic leather tanners, two exotic leather tanners, four
jewellery on leather manufacturers, one ﬁnisher and two partners
from the textile world were able to follow this fresco under theleadership of the supply chain CSR department of Hermès Leather
Goods & Saddlery.

2.4.3.3

ALIGNING WITH INTERNATIONAL FRAMEWORKS
AND THE BEST STANDARDSThere is no single monitoring system for biodiversity yet. The Group
has selected a few systems, based on their pragmatism, theirscientiﬁc relevance and their visibility with the stakeholders
concerned. All the approaches described below are based on thesame strategy, each providing a speciﬁc angle that is interesting.
Cross‑reference tables indicate the link between their speciﬁcfeatures.

ACT4NATURE INTERNATIONAL
Act4Nature is an initiative launched in 2018 by EpE (Entreprises pourl’Environnement) and signed by 65 players in the French economy,
including Hermès, before becoming Act4Nature International in 2020
by joining the global Business for Nature initiative. This initiative aims
to mobilise companies to protect, promote and restore biodiversity
through shared commitments set by scientiﬁc institutions andassociations, and through individual commitments speciﬁc to eachpartner.
Hermès is committed to the collective “Act4Nature” commitments,
supplemented by an individual Hermès roadmap. A notable point of
the mechanism is that this roadmap (detailed in the commitments of
the Planet pillar of this report) was validated by a set of stakeholders
inherent in the governance of this multi‑stakeholder alliance including
not only companies, but also public authorities (OFB), scientists andNGOs and environmental associations. In concrete terms, thestrategy presented by Hermès was examined by a panel of NGOs
before being validated. Among the Group’s Act4Nature commitments,
four were completed before 2023: training of CEOs, experts &Sustainable Development Committees, certiﬁcation of the entire
ostrich supply chain (completed in 2021 and renewed), assessmentof freshwater at manufacturing sites (completed and renewed) anddiagnostic (operations and corporate functions) of the use of
single‑use plastics (completed in 2022).

SCIENCE‑BASED TARGETS FOR NATUREThe Science‑Based Targets Network was created in 2019 and brings
together more than 50 organisations.
This network deﬁnes ﬁve steps for setting Science‑Based Targets for
Nature (SBTN), namely: (1) assess, (2) interpret and prioritise,(3) measure, set and disclose, (4) act, (5) track.
In 2023, Hermès joined the SBTN Corporate Engagement Programme
and WWF France’s Capital Lab Naturel with the aim of implementing
the method across all of the Group’s activities. In 2023, the Groupapplied the SBTN method to the ﬁrst two steps, with the help of its
external partners. Once again, the Group is one of the pioneers on
the subject of biodiversity by joining the 130 companies that areofﬁcially applying this with a scientiﬁc approach.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSSTEPS 1 AND 2 OF THE SBTN APPLIED TO HERMÈS

Step 1 A

Step 1B

Step 2

Materiality analysis
at sector level

Assessing pressures and the state of naturein locations associated with Hermès' activities

Interpretation and prioritizationof projects to be carried out

Previous biodiversity
impact analyses(GBS)

Pressuresexerted by Hermès'
activities
Exclusion of
non-material
activities

2

Land use andtransformation
Water
withdrawal

Purchases
Nature ofof materials
materials
purchases

HICL List (SBTN)
IUCN Red List
CITES Appendices

Volumespurchased
Supply chain
toolboxes

Water
and air
pollution

LCA data(pressurefactors)

Greenhousegas emissions
Métiers
ISIC categories
associated withmétiers

MST tool
ENCORE
database

Operational
sites

Consolidatedsite data

State of nature in relation to pressures
Vulnerability of nature to a given pressure
BII : Biodiversity Intactness Index
CBF : Corporate Biodiversity Footprint
CITES : Convention on International
Trade in Endangered Speciesof Wild Fauna and Flora
ENCORE : Exploring Natural Capital
Opportunities, Risks and Exposure
GBS : Global Biodiversity Score®
HICL : High Impact Commodity List
ISIC : International Standard Industrial
Classification of All Economic Activities
UICN : Union internationale pourla conservation de la nature
MST : Material Screening Tool
STAR : Species Threat Abatement
and Recovery Metric

GLOBIO
Global Forest
Watch

Locations
Supply chain mapping

SBTN
Water

Verisk2

SBTN Water

State of nature in relation to biodiversity
Information on the importance/richnessof biodiversity in a given location
Biodiversityof species

1Specificpressuresexerted by
Hermès on thebiodiversity ofthe operating
areas

Intrinsic
criticality of
local
biodiversity(species andecosystems)

Specificpressures/
geography
ranking ofHermès' activities(upstream anddirect) on
biodiversity

Biodiversity

BII of ecosystems

States of naturein the locations where Hermès operates

Upstream of step 1, a preliminary scoping step made it possible toprecisely deﬁne the scope of the study. In accordance with the
expectations of the SBTN approach, the 16 Hermès métiers and all
raw materials supply chains were taken into account in the analysis.
The objective was to best cover these sectors and their speciﬁcfeatures in step 1, according to the availability of pressure andlocation data and to have the most exhaustive vision of the impacts ofHermès’ activities on nature.
Step 1 of the SBTN is a step to assess the pressures exerted bycompanies on biodiversity, which is broken down into two sub‑parts:s (1A) identify the main pressures that the company is likely to haveon nature, according to its sector of activity;s (1B) estimate the pressures on nature and identify thegeographical areas in which these pressures are particularly
harmful with regard to the state of nature.

Hermès constructed the list of material pressures of Hermès’ 16
métiers by cross‑referencing information from the MST sectormateriality tool proposed by SBTN with the ENCORE tool, the footprint
measurement exercise carried out (GBS®) and expert opinions. The

sector materiality analysis highlights materiality issues located mainly
upstream of the Hermès value chain, in particular in connection withthe degradation of habitats for the production of agriculturalcommodities (crops for textiles, food for livestock farming) and climatechange. For direct impacts, the sector analysis revealed an issue
relating to water consumption and pollution.
For all activities thus identiﬁed as material (i.e. all production unit,
farm and logistics sites, as well as purchases of animal, plant‑based,mineral and synthetic materials), pressures and the state of nature
were modelled using site reporting data, LCA data and state of nature
databases identiﬁed by SBTN (BII, STAR‑t, Global Forest Watch,
GLOBIO, etc.). In total, 53% of purchases, representing 90% of thepressures on biodiversity, were thus covered by the SBTN
methodology.
Step 2, which is highly technical, consisted in combining andinterpreting the pressure and state‑of‑nature data modelled during
step 1B in order to rank the priority sites and supply chains. Thisranking will subsequently make it possible to set objectives for Nature
based on science, pressure by pressure, and on priority scopes(step 3 of the SBTN framework).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

141

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

Hermès’ data was collected and processed for supply chains,company structure, site locations, sourcing practices, their locationand previous analyses (toolbox and supply chain mapping) for use in
the value chain assessment. These initial results obtained at the endof 2023 are being validated by the operational teams to conﬁrm thatthe scientiﬁc calculations are consistent with the physical realities
observed in the ﬁeld.

FOCUS ON CERTAIN MATERIALS ASSESSED ACCORDING TO SBTN

Focus on calfskin(France)

Focus on cashmere(Mongolia)

Focus on crocodiles(Australia)

Priority pressures according to SBTN

Priority pressures according to SBTN

Priority pressures according to SBTN

Land use
Transformation of natural
habitats

Transformation of natural
habitats

Water consumption

Water pollution

Water consumption

Water pollution
Air pollution

Some specific issues

Some specific issues

Some specific issues

Calfskin, and more broadly the cowhidecategory, has an impact on several IPBES
pressures due to its significant share inpurchasing volumes.

Studies on Mongolian cashmere underline
the pressure on ecosystems due inparticular to the size of farms, theircomposition and pastoral practices atthe level of cantons (soums).

Given its strong vertical integration,
the measurement of pressures is basedon field data.

In addition to its French origins,
subsequent work can be documented
by taking into account the complex
traceability up to the birth of the animals
and the differences in the various
livestock farming methods.

Traceability of the origin of the fibre is also
complex. In addition, sector databases
remain imprecise and are being updated.

To summarise, the SBTN steps overlap with Hermès’ strategic
framework for sustainable development and, more speciﬁcally, steps(2) interpret and prioritise, (3) measure, set and disclose and (4) act,
which are integrated into the Assess and Act pillars of the Hermès

The farms have long taken into accountthe issue of discharges into the aquatic
environment through actions thatsignificantly reduce the net impacts on
biodiversity, which will be noted in step
4 SBTN.

biodiversity strategy, whereas steps (1) assess and (5) track arefound in the Group’s strategic framework for sustainable
development. Hermès shows its uniqueness by supplementing its
SBTN biodiversity strategy with the Train and Collaborate pillars.

CROSS‑REFERENCE BETWEEN SCIENCE‑BASED TARGETS FOR NATURE AND THE HERMÈS STRATEGY

Hermès Biodiversity Strategy

Train

Collaborate

Measure1
ASSESS

2

INTERPRETAND
PRIORITISEAct

3

MEASURE,SET ANDDISCLOSE

4

5

ACT

TRACK

Hermès sustainable development strategic framework
SBTN milestones achieved

1422023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

Science‑Based Targets for Nature cross‑reference grid:

SBTN steps

Sections in the universal registration document

Correspondence

AssessConduct a materiality analysis§ 2.1.3 Materiality analysis§ 2.6.1.2 Risk mapping§ 4.1.4.1 Changes in major global climate and biodiversity issues

Map the value chain
Interpret and prioritise

Identify spheres of inﬂuence
Prioritise places

Measure, set and disclose

Measure baseline
Develop a monitoring plan

“Assess” – § 2.5.5.3 Diagnosing impacts across the entire value
chain

2

“Assess” – § 2.5.5.3 Diagnosing impacts across the entire valuechain

Set targets
Disclose baseline and targets
Act

Avoid
Reduce“Act” – § 2.5.5.4 Implementing actions in the métiers, sectors andsites

Restore and regenerate
Transform
Track

MonitorMonitoring table – § 2.5

ReportVerifyTASKFORCE ON NATURE‑RELATED FINANCIALDISCLOSURESThe Taskforce on Nature‑related Financial Disclosures (TNFD),
created in 2021, is composed of 40 members representing ﬁnancial
institutions, companies and market service providers. The TNFD’s
mission is to develop and provide a reporting framework for risks andopportunities related to the evolution of nature and to act accordingly,
with the ultimate aim of supporting a reorientation of global ﬁnancial
ﬂows towards projects with positive externalities for nature.
In September 2023, the TNFD published the ﬁnal version of its
framework. Hermès applies these recommendations, in particular
those relating to disclosure of information on governance (role andmonitoring by governing bodies of nature‑related dependencies,
impacts, risks and opportunities), details requested on strategy(actual and potential impacts of nature‑related risks andopportunities on activities, and associated ﬁnancial planning),
expected pressures on risk and impact management as well as on
measurement tools. Hermès proposes a cross‑reference grid between
its work and the TNFD framework in § 2.7.4.3.

In addition to the basic TNFD recommendations, the work undertaken
by Hermès as part of its Planet pillar, and in particular in 2023 with
the SBTN approach, already makes it possible to meet a large
number of the main indicators proposed for the Apparel & Textile
sector, such as GHG emissions, the footprint of activities, water
consumption, waste management and supply chains.

GLOBAL BIODIVERSITY AGREEMENT OF THE CONVENTION
ON BIOLOGICAL DIVERSITY
Voluntarily, without waiting for the implementation of the Convention
on Biological Diversity as a French national biodiversity strategy orother binding mechanism, Hermès is already considering, with its
partners such as WWF France, the concrete responses to be provided
by companies under the Kunming‑Montreal Global Biodiversity
Framework, in particular on targets for Hermès’ activities. They aresummarised in the table below:

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

143

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

Targets of the Kunming‑Montreal Global
Biodiversity Framework

Correspondence with Hermès’ strategy

Sections in the universal
registration document

Objective A – Reducing threats to biodiversity
Target 1: Regional planning

Harmonie real estate benchmark to limit artiﬁcialisation of land

§ 2.5.2

Target 2: Restoration

Projects to restore sensitive ecosystems via Livelihoods and the replantingof 20,000 trees in Seine‑Saint‑Denis§ 2.5.7.3.2

Target 4: Endangered species

Compliance with CITES regulations§ 2.4.2.4.1

Target 5: Trade of wild species

Sustainable supply chain & CSR briefs updated and improved in 2023

§ 2.4.2.1

Target 6: Invasive species

Ostrich sector: protection, with local NGOs, of the South African hydraulicnetwork by combatting invasive draining plants
Removal of invasive plants from operated sites (e.g. Japanese knotweed)§ 2.4.3.2 and § 2.4.3.6

Target 7: Pollution

Target of phasing out unnecessary single‑use plastics, chemicals
management policy§ 2.4.1.4 and § 2.5.5

Target 8: Climate change

SBTi 1.5°C trajectory validated§ 2.5.7

Objectives B & C – Meeting people’s needs through sustainable use and beneﬁt‑sharing
Target 9: Sustainable use

Promotion of the sustainable management and use of wild species insupply chains via sustainable supply chain & CSR briefs
Eco‑design, promotion of circularity and sustainable and repairable
products, reducing pressure on nature thanks to a longer life cycle with less
impact§ 2.4.2.1

Target 10: Resource exploitation

Promotion of the application of biodiversity‑friendly practices in supply
chains via sustainable supply chain & CSR briefs§ 2.4.2.1

Target 12: Urban areas

Management of tertiary sites to increase the surface area, quality andconnectivity of green and blue spaces in urban areas§ 2.5.2 and § 2.5.6

Target 13: Access to and sharingof beneﬁts

n/a

Target 14: Integrationand normalisationn/a

Objective D – Tools and solutions for implementation and mainstreaming
Target 15: BusinessMeasurement of the biodiversity footprint of the value chains of 92% ofHermès’ revenue via the GBS and communication of major results,
implementation of SBTN steps 1 & 2§ 2.4.3.4

Target 16: Sustainable consumption

Actions to promote circularity and reduce waste production§ 2.4.1.2 and § 2.5.4

FRENCH NATIONAL BIODIVERSITY STRATEGY 2030
The National Biodiversity Strategy 2030 (SNB) is the expression ofFrance’s commitment to the Convention on Biological Diversity for theperiod 2022‑2030, succeeding two previous strategies covering theperiods 2004‑2010 and 2011‑2020. It also falls within theframework of the European Green Deal. Its major objective is to
reduce pressures on biodiversity, protect and restore ecosystems, aswell as initiate fundamental changes to reverse the trajectory of
biodiversity decline.

1442023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALFRENCH NATIONAL BIODIVERSITY STRATEGY 2030
Pillar 1: Reduce pressure on biodiversity
Pillar 2: Restore degraded biodiversity wherever possible
Pillar 3: Mobilise all stakeholders
Pillar 4: The means to achieve these ambitions

The SNB is the result of a collaboration involving local authorities,
citizens and companies, reﬂecting the expectations of French society
in terms of consultation and inclusion. It takes the form of
40 measures divided into four pillars: reducing pressure on
biodiversity, restoring degraded biodiversity, mobilising all
stakeholders and ensuring the resources necessary to achieve theseambitions.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSThe philosophy of Hermès’ biodiversity strategy (train, collaborate, measure, act) is closely aligned with the four pillars of the SNB:SNB key measures

Sections in the universal
registration document

Correspondence with Hermès’ strategy

Pillar 1: Reduce pressure on biodiversity
Limiting changes in land and sea use –Measures 1 and 2

The Harmonie standard includes an objective of reducing land use in the Group’s realestate projects§ 2.4.3.6 and § 2.5.2

Combatting the overexploitation of
species, in France and abroad –Measures 3 and 4

66 supply chain briefs deﬁne the Group’s requirements for raw materials, including
certiﬁcations. In particular, the Group does not use materials or species that are
threatened with extinction (CITES – appendix 1) or are sold illegally§ 2.4.2.1

Reducing the impact of climate change
on biodiversity through climate policies Measure 5

1.5°C trajectory validated by SBTi on scopes 1, 2 and 3.

§ 2.5.7

Reducing pollution - Measures 6, 7, 8
and 9

Deployment of diagnostics and biodiversity measures on operated sites, including zerophyto. Objective of eliminating unnecessary single‑use plastics. Installation of own
efﬂuent treatment plant and reduce water discharges. Group regulated substances list
(RSL).

§ 2.4.3.6, § 2.4.1.8 and§ 2.5.6

Combatting invasive alien species –Measure 10

Combatting invasive alien species in supply chains (draining plants in South Africa, in
the ostrich sector), and on operated sites.

§ 2.4.3.2 and § 2.4.3.6

Stepping up the ﬁght against
environmental damage - Measure 11

EHS audit programmes and Vigilance plan

§ 2.6.1.1 and § 2.8.4.4

More speciﬁcally supporting priority
sectors to reduce their impacts on
biodiversity – Measures 12, 13, 14, 15,
16, 17 and 18

Offering suppliers support on energy and carbon, water and biodiversity aspects§ 2.6.1

2

Pillar 2: Restore degraded biodiversity wherever possible
Restoring ecological continuity andbringing nature back to the city –Measures 20 and 21

Biodiversity plan on operated sites, particularly in urban areas (creation of gardens,
bio‑monitoring using beehives) and participation in the project to replant 20,000 trees
in Seine‑Saint‑Denis§ 2.4.3.6§ 2.7.1.2

Strengthening the resilience of forest
ecosystems – Measure 22

Publication of the Group’s Forests policy, certiﬁcation of the wood and paper/
cardboard sectors.

§ 2.4.3.5

Maintaining and restoring speciﬁc
ecosystems (hedges, permanent
grasslands, wetlands, soils) –Measures 23, 24, 25 and 26

Investment in Livelihoods projects since 2012: restoration and preservation of natural
ecosystems (mangroves), agroforestry and soil restoration through sustainableagricultural practices, access to rural energy to reduce deforestation.

§ 2.5.7.3.1 and § 2.7.2.1.4

Reversing the decline in endangered
ﬂagship species, in particular endemic
species in the French Overseas
Departments and Collectivities – Measure
27

Preservation of natural crocodilian habitats by breeding farms§ 2.4.3.5

Pillar 3: Mobilise all stakeholders
Ensuring the exemplary nature of the Stateand public services – Measures 28
and 29n/a

Supporting the action of local authorities –Measure 30

n/a

Supporting companies’ commitment tobiodiversity – Measure 31

Implementing biodiversity training actions for all employees§ 2.4.3.1

Mobilising citizens throughout their lives –Measures 32, 33, 34 and 35

Mobilisation of the Fondation d’entreprise Hermès in favour of the preservation of theliving world§ 2.4.3.7

Developing and enhancing knowledge of
biodiversity data and issues – Measure 36

Hermès has been measuring and publishing its footprint since 2021 using the Global
Biodiversity Score tool§ 2.4.3.4

Mobilising public and private ﬁnancing forbiodiversity, in France and abroad –Measures 37, 38 and 39

Investment plan for industrial projects to reduce environmental pressures (energy,
water, carbon, waste, pollution)§ 2.5

Establishing inter‑ministerial governancefor the oversight and accountability of the
SNB – Measure 40

n/a

Implementing detailed oversight using
indicators – Measure 40

Application of the SBTN method to implement a science‑based method for managing
biodiversity issues

Pillar 4: The means to achieve these ambitions§ 2.4.3.52023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

145

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

2.4.3.4

DIAGNOSING IMPACTS ACROSS THE ENTIREVALUE CHAIN

métier carried out this analysis because it is the métier with thehighest impact according to the analysis conducted in 2021. The
scope of the study covers scopes 1, 2 and 3 upstream (i.e. excluding
the use phase). This scope is called the “Vertically Integrated Scope”
by CDC Biodiversité.

In 2021, Hermès measured its footprint using the Global Biodiversity
Score (1) tool developed by CDC Biodiversité (a subsidiary of
Caisse des Dépôts), implemented with the support of WWF France
and based on ﬁeld, ﬁnancial and theoretical data from 2019, apioneering initiative at the time. This biodiversity footprint
measurement approach is part of Target 15 of the Kunming‑Montreal
Agreement. The work was renewed in 2023, using a signiﬁcantly morecomprehensive methodology, by extending the results of the Leather
Goods activity further for leather and related sectors.

Hermès has chosen to steer the Group’s actions and investments byfocusing on the terrestrial dynamic impact, which reﬂects the annual
deterioration. The majority of the footprint measured for Hermès isrelated to the upstream part of the value chain. The main pressureson land biodiversity are linked to land use (crops, livestock) andgreenhouse gas emissions (scope 3 upstream), demonstrating astrong relationship between climate and biodiversity and guiding our
supply chain actions. These analyses are also gradually used by theGroup to reﬁne its real estate development strategy, in addition to thecriteria set by French (zero net artiﬁcialisation (ZAN)) and European(taxonomy) regulations.

The GBS is a tool for assessing the biodiversity footprint ofcompanies, which measures scientiﬁc results taken fromobservations, and not a quantiﬁcation of actions that have been
undertaken. The results are expressed in MSA.km2, where MSA is theaverage abundance of species (Mean Species Abundance), a metriccharacterising the integrity of ecosystems.

Although calculations of the impact on biodiversity are still notwidespread, initial comparisons suggest that Hermès’ activity has aless intensive impact on biodiversity than that identiﬁed in available
inter‑sector data.

In total, 92% of Hermès’ revenue is covered by the 2021 Groupanalysis, and 43% of the revenue is covered by the in‑depth analysis
of 2023 (Leather Goods & Saddlery revenue in 2022). The leather

Scope 1

2%

LAND DYNAMIC IMPACT INTENSITYINDEX IN MSA.M2/€ (BASE 100)

Perfumeand Beauty

Other
Hermèsmétiers

Silk and Textiles

Distribution

SupportBREAKDOWN BY MAJOR CATEGORIESBREAKDOWN OF HERMÈS'TERRESTRIAL DYNAMIC IMPACTBY SCOPE

Scope 2

3%
Chemicalindustry 1

325

Ready-to-wear and Accessories
Leather Goods & Saddlery:more than 50% of the land
dynamic footprint
95% pressurein the supply
chain

Scope 3

Leather Goods & Saddlery

Medium-sizedcompany 2

Hermès 3

100

46

Priority levers:
animal feed
and breeding

95%(1) Vertically Integrated Scope.
(2) All sectors, world, scope 1.
(3) Vertically Integrated Scope.

Main results of the Global Biodiversity Score (2021)

1.
146

https://www.cdc‑biodiversite.fr/publications/2024_dossier49‑global‑biodiversity‑score‑2023‑update/

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

Focus on the Leather Goods & Saddlery métier

In 2023, particular attention was paid to the Leather Goods &Saddlery métier, which represented 45.5% of Group revenue in 2020,
while contributing more than 50% of the dynamic land footprint. The
work made it possible to identify two priority action levers within our
supply chains: livestock farming and animal feed. To clarify theseGroup results, an in‑depth study of this activity was launched in
2023, focusing in particular on a selection of the House’s emblematicleathers (calfskin, lamb, goat, pig, cattle, crocodilian and ostrich) with
their breeding systems and food rations, speciﬁc to each situation, inorder to better understand the action levers of its supply chains andthus be able to act effectively on the biodiversity footprint of these
sectors. This work is being ﬁnalised, which will guide the strategic
biodiversity brief for 2024.
At the same time, ﬁeld projects were initiated in 2023 for the cattle
supply chain in France, with cooperatives, to be implemented in
2024.

2.4.3.5

IMPLEMENTING ACTIONS IN THE MÉTIERS,
SUPPLY CHAINS AND SITES

Together with the partners supplying it with natural materials, theHermès Group is continuing constructive efforts incorporating
biodiversity protection. The Group is collaborating with internationalNGOs in this area, as appropriate, in order to better assess thevarious biodiversity components that concern it and to assess theimpact on its supply chain.
Through their location in rural areas, the production sites are involvedin various biodiversity initiatives, while tertiary or mixed‑use sites also
carry out initiatives. These are presented in § 2.4.3.6. For the supply
chains, the actions are presented in § 2.4.2.3.

Farms (crocodilians)
The vast majority of the animals bred on the farms come from eggs
collected in the natural environment, according to quotas set eachyear by the local authorities. Several players ensure the smoothrunning of the farming industry in Australia and the United States, inparticular local governments and their conservation departments,
landowners, hunters and egg collectors and incubators from which
the breeding farms buy the eggs or hatchlings.
As such, the income earned by landowners from the collection of eggs
contributes to the upkeep of these wetlands, and therefore to themaintenance of biodiversity in these natural areas. In addition, CITES
tags, the use of which is made mandatory by the Washington
Convention, and egg collection permits generate beneﬁts for local
authorities (such as the US Fish and Wildlife Service or the
Department of the Environment and Natural Resources of theNorthern Territory in Australia). These resources are then devoted tothe operation of the services involved in the management of species
conservation programmes, the monitoring of animal populations in

1.

the natural environment, the control of compliance with regulatory
requirements and research programmes on crocodilians.
In addition, speciﬁc actions are decided at local level. This isparticularly the case in Louisiana, where farmers must reintroduce
into the natural environment at least 5% of alligators – in good healthand having reached a minimum size – raised on their farm. This
reintroduction is carried out in areas deﬁned by local authorities andunder their control. The alligator industry, considerably reorganised inline with the Washington Convention, has contributed to protecting
the species and its unprecedented development in the areas inquestion and, as a result, to protecting and maintaining themarshlands where these animals live and reproduce. According to the
US Fish & Wildlife department, an area of 1.2 million hectares of
wetlands is thus better maintained. The objective is to continue tosupport farmers in their development, and thus perpetuate theseeffects. The population of wild alligators now exceeds 3 million
individuals in Louisiana, which is a real success for the conservationof this species.

2

The production sites, by their activity and their location, therefore,play a key role in the preservation of species, the protection of
biodiversity and the local economy. The effectiveness of their actions
comes from strong local integration thanks in particular to
relationships with the various authorities in charge of nature
protection, egg collectors and landowners.
Most operating farms are now turning to solutions to not only reduce
their footprint in terms of environmental water resources, but also for
its reuse. To this end, studies and projects are being launched to
produce organic fertilizers and develop irrigation projects for treesthat can in turn produce vegetable tannins.
Actions are underway on Australian farms to reuse previously treatedwastewater through the establishment of forest plantations. Thus,
120 hectares of mixed commercial species have been planted andare irrigated using all the wastewater from one of the farms, in an
agricultural circularity approach. On another farm, 10 hectares ofsandalwood that were planted with the aim of reusing previously
treated wastewater as well as enabling Hermès to secure its supply of
precious wood and essential oils.
Biodiversity studies are also underway in Australia in order to qualifyand quantify the animal species present on sites and to monitor theevolution of this fauna in parallel with the creation of habitats.

Fight against deforestation
Hermès is aware of its role in maintaining forest ecosystem services.
Hermès announced its Group Forests policy (1) in 2023, which applies
to all areas of procurement of a selection of materials that comedirectly or indirectly from forests, with potential impacts on theseecosystems and their management methods. Although this material
represents a small portion of its activity, the Group seeks to be
exemplary, as evidenced by its A- rating on the CDP Forest
questionnaires.

(in French) https://assets‑finance.hermes.com/s3fs‑public/node/pdf_file/2023‑07/1690458496/politique‑forets‑hermes.pdf.
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

147

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

These raw materials have been prioritised based on an analysis of
the social and environmental risks associated with their production,
their weight in Hermès’ chains and the Group’s capacity for action.
Hermès distinguishes between priority raw materials: cowhide, woodfor the Home métier and production units, paper and cardboard for
packaging used for Hermès objects, natural rubber, palm oil andderivatives, viscose and cellulose (textiles), and soy for farm animal
nutrition.
In concrete terms, Hermès is implementing a policy whose aims arefor the raw materials purchased to be produced in a responsible
manner, in line with the Group’s commitments and respecting thefollowing criteria:s regulatory (including the legality of production and compliance withapplicable laws in the country of production as well as internationallaws);
s environmental (such as “no deforestation, conversion ordegradation of natural ecosystems”, particularly areas with High
Conservation Value and High Carbon Stock);s social and human rights (respect for the rights and health & safetyof workers, farmers and smallholders; recognition and respect of
the rights of indigenous populations and local communities).

By 2025, Hermès will adopt the appropriate measures for priority raw
materials to:
1. source from supply chains without deforestation from thereference date of 31 December 2019, for raw materials used inboth products and packaging by the entire Hermès Group;
2. pursue its duty of care and ensure respect for the Human Rights ofstakeholders in its supply chains;
3. restore and remedy proven harm (environmental and social,including human rights) directly related to these raw materials andcaused directly by its activities.

By 2030, Hermès has the following ambitions:
1. broaden the scope of actions to include other raw materials in its
portfolio, known as “secondary” materials, such as certain
perfume ingredients or particle board;
2. explore investment opportunities beyond its supply chains toaccelerate sector transitions and finance conservation andrestoration projects at the landscape and/or jurisdictional scale.
The decision as to whether or not these investments will be madewill rest with Hermès.

To ﬁght concretely against deforestation, Hermès takes into accountits risks related to its upstream value chain. Within this, three main
topics were identiﬁed: land use for animal feed, use of wood species
for Hermès Maison objects and use of cardboard/paper in packaging.
s The GBS analysis of the terrestrial biodiversity footprint of leather
at Hermès made it possible to become aware of the relative
importance of cattle feed (even in absolute value, the share ofimported soybeans in the feed of European livestock is low, and
the

148

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

implementation of European regulations for feed suppliers should
significantly reduce the risks).
s By requiring certified wood (FSC for oak, SVLK for mahogany),
Hermès ensures that wood from forests is sourced with greater
consideration for biodiversity, while maintaining the quality ofwater and ensuring soil erosion is reduced. The House conducts abiannual assessment of its suppliers taking into account thevulnerability identified by the IUCN. In 2023, analysis of theportfolio with a critical review of the vulnerability of species andcountry risk was carried out by Hermès Maison with the help of an
independent firm, and with the support of WWF.
s As a reminder, in stores, 100% of orange bags are FSC‑certified.
The cardboard of the emblematic orange boxes is made of 100%
recycled material.

Furthermore, in the various Hermès Métiers, the identifying ofgeographies, sub‑geographies, including the GPS coordinates offorestry operations used for the manufacture of wooden objects andfurniture, makes it possible to strengthen the demand for FSC
certiﬁcation or, failing that, PEFC or other local certiﬁcations
incorporating a zero deforestation policy. 90% of Hermès Métiers’
woods are certiﬁed, compared with 50% in 2022. To ensure properuse of the material, production waste is classiﬁed according to its
end‑of‑life.
Moreover, an impact study incorporating issues relating to animal andplant life and the preservation of natural environments is carried out
prior to establishing any new manufacturing site.

2.4.3.6

BIODIVERSITY MANAGEMENT AT OPERATEDSITESThe study of the impacts on biodiversity conducted in 2019 showsthat the preservation of biodiversity on its operated sites is not theGroup’s biggest issue. Nevertheless, out of a concern for ethics andto be exemplary, Hermès wishes to implement the best standards
possible to respect nature there.
In accordance with the principles of the Harmonie standard § 2.5.2,
any new manufacturing site is subject to an impact study. This
includes issues related to fauna and ﬂora and the preservation ofnatural environments. As a reminder, most of the production sites arelocated in France, and are therefore subject to some of the strictest
regulations in the world. The framework goes beyond these legal
constraints.
In order to integrate the protection of biodiversity into theconsideration of the establishment of future Leather Goods
workshops, a guide listing best practices was drawn up in 2020 andincluded in the Harmonie standard. The following principles havebeen adopted: at plot level, ecological management of green spaces
should be promoted. At the landscape level, the aim is to promoteecological connectivity of sites with their surrounding environment.
The sustainable construction standards used for each new site
project have therefore been enhanced and now enable architects andlandscapers to best integrate this dimension into their projects.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALSAs explained in § 2.4.3.4, for the location of new leather goods
workshop sites, Hermès now favours the conversion of brownﬁeld
sites or wastelands whenever possible. For example, theMaroquinerie de Montereau is located on the former site of an energy
sector company, that of Guyenne on a road construction aggregate
site, and those of Louviers and Saint‑Junien are also reconverted
manufacturing sites. The future Leather Goods workshop at Riom
follows this same approach, which greatly limits the artiﬁcialisation of
surface areas while continuing the activity’s growth. With regard to
the Sormonne site, biodiversity has been preserved and restored on
the green spaces surrounding the site.
In 2023, 19 Leather Goods workshops were assessed with the helpof an independent expert and 16 indicators based on the ﬁve erosion
factors deﬁned by IPBES were retained; they are intended to measure
the pressure on biodiversity, integrating at the same time the impactof activities on the sites, the resulting state of the environment andthe responses or corrective actions taken. These indicators assess
the implementation of the best practices guide of the Leather Goods
division with, for example, no use of phytosanitary products. For all
the green spaces at the Leather Goods workshops, the level ofachievement of these best practices was 68% in 2023 compared to
60% in 2021. For example, the average mowing frequency per m2
and per year decreased from 6.5 in 2021 to 5.3 in 2023. The special
attention paid to these green spaces has also made it possible todetect several invasive alien species for which a speciﬁc treatment
will be carried out over the coming years.
The actions carried out by the Leather métier have been extended to
all production sites in France, making it possible to target 100% ofsites involved in biodiversity actions by 2025.
The Group’s textile supply chain also pays close attention to theseissues. In 2023, an eco‑management plan was drawn up with apartner of the SIEGL textile site to promote and enhance local
biodiversity; this plan should also lead to the planting of new trees
and shrubs around the site. The natural rain catchment of the ITH
textile site and its drainage bed were dredged to return the ﬂow toprevious levels. During this work, pollution related to previous
activities external to Hermès was discovered and treated; it alsoenabled the removal of Japanese knotweed seedlings, an extremely
invasive species, from the area.
Hermès Horloger, for its part, assessed its two Swiss production sites
with the assistance of independent experts (landscapers or
biologists): water use, use of phytosanitary products, frequency ofmowing, invasive alien species, habitats favourable to biodiversity,
etc.
After ﬁnalisation of the diagnostics of the manufacturing sites, actionplans were rolled out. These plans must include a series of actions topromote green spaces, fauna and ﬂora (installation of insect hotels,beehives, etc.) and water conservation. Thus, CATE’s Tableware site
has planted ﬂower meadows in the parking areas and alongside thebuilding, installed six beehives and planted around 40 trees,
including fruit trees. In this spirit, late mowing is practiced at the
Beyrand printing tableware site.
With regard to tertiary and mixed‑use sites, a pilot project was rolled
out at the Pantin site where, as the Cité des Métiers was built, ﬁve

1.

gardens were created covering an area of 8,000 m² and beehives
were installed. A meeting with a company specialised in biomonitoring
led to the idea of a project promoting urban biodiversity. Two
ambitions have emerged thanks to the data likely to be collected in
the context of this project: to promote biodiversity, in addition topreserving it, with the help of plant surveys and to contribute to aregional approach to environmental protection, beyond the sites, by
sharing pollutant readings with local authorities. The implementationof bio‑monitoring is spread over several years. It consists of using thediversity and pollution markers identiﬁable in the pollens broughtback by bees to their hives, and taking advantage of their radius ofactivity of around 2 km. This approach involves ﬁtting collectors on
the beehives, collecting pollen and conducting scientiﬁc analysis of
the data. The initial lessons conﬁrmed the richness of Pantin’s plantvarieties, 39 compared to 18 on average at the French sites studied
by the scientists. The results of the analysis also led to theidentiﬁcation of pollution and the substitution of antifungal treatment
practices on the sites (although without synthetic chemical inputs)
and the adoption of manual treatment actions.

2

The information collected was shared with local stakeholders toensure that their planting projects were consistent with biodiversity
needs. 2023 will mark the continuation of this dialogue with local
stakeholders in the “Est ensemble” region in the Seine‑Saint‑Denis
department, by exploring new areas of application for the coming
years. This ﬁrst successful experiment led to the development ofbio‑monitoring practices at other Group sites, such as the Vaudreuil
Perfume and Beauty site in 2022.

2.4.3.7
CONTRIBUTING TO POSITIVE ACTIONS OUTSIDEHERMÈS’ SPHERE OF RESPONSIBILITY
Fondation d’entreprise

Since its creation in 2008, the Fondation d’entreprise Hermès has
been committed to the preservation of the living world. The protectionof biodiversity and natural ecosystems is one of the four pillars of its
action and today takes shape through a variety of projects, directly
led or supported by the Fondation, aimed at maintaining or restoringfragile ecological balances. Driven by the desire to perpetuate therichness of the various environments of our planet in order to passthem on to future generations, the Fondation acts through several
levers: raising awareness and training, research, and support for
those who carry out concrete actions on the ground.
In September 2023, a third edition of the Manuterra programme (1),learning from life, initiated and supported by the Fondationd’entreprise Hermès in close collaboration with the Compagnons duDevoir and the Tour de France, was rolled out in 10 partner academies
with 24 classes of students from primary to high school. Around
600 students were taught about the beauty of nature and the necessityof preserving it. Alongside professional gardeners and their teachers, theyoung citizens of tomorrow can discover the diversity of species and learn
the savoir‑faire related to gardening métiers and permaculture. In 12
two‑hour sessions, together they imagine and create a garden richin biodiversity, which they continue to take care of afterwards. In
synergy with this programme, the Fondation d’entreprise Hermès
has been supporting a participatory science programme also
intended for schoolchildren since 2019: the Vigie‑Nature École

https://www.fondationdentreprisehermes.org/en/program/manuterra
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

149

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: RAW MATERIALS

programme rolled out across France by the National Natural History
Museum. Wishing to reach out to young adults, in 2023 the Fondation
contributed to the L’Intelligence verte association’s student cooperative
vegetable garden project in Blois (Loir‑et‑Cher), with the aim of helping
young people to reappropriate savoir‑faire related to food autonomy andthe regeneration of ecosystems.
Since its very ﬁrst edition in 2020, the Fondation d’entreprise Hermès
has been supporting the forward‑looking and trans‑disciplinary Agirpour le vivant festival. In 2023, it also supported the “Vivre le Rhône”
project led by the association LEAST – Laboratoire écologie et art
pour une société en transition: co‑creative processes (walks, surveys,
mapping, writing workshops) between artists, scientists and civilsociety (associations, ﬁshermen and women, young people who have
dropped out of school or who are marginalised, students, etc.) aroundthe Rhône as a living element.

150

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Lastly, in 2023, the Fondation contributed to the development of a
new biodiversity space of 12,000 m² in the Parc de la Villette. This
space, a living showcase accessible to everyone, includes, forexample, an educational farm and several spaces designed for
mediation activities for young people and adults.
The Fondation d’entreprise Hermès is committed to supporting those
who work closely with biodiversity on a daily basis. Several projects
supported by the Fondation on a long‑term basis illustrate thistangible attention paid to the living world: the preservation of theancient forest of La Massane, with support for research teams within
this national nature reserve in the Pyrénées‑Orientales; thetransmission of agro‑ecological practices in the rural world with the
L’Atelier paysan cooperative; the ﬁght against the trafﬁcking ofprotected species with WWF.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE

2

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

151

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Maroquinerie de la Sormonne, in the Ardennes, awarded the E4C2 label (energy positive and low carbon)© Photography credits: Maxime Verret152

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

2.5

THE PLANET: ENVIRONMENTThe Group’s sustainable development involves knowing, controlling and reducing its environmental impacts, as part of a responsible
approach to its operations. More broadly, Hermès contributes, through its commitments and actions, to the ﬁght against climate change for a
responsible and sustainable development.

2
INTRODUCTION
Respect for nature, the source of its exceptional raw materials andthe living environment surrounding its sites, is one of the Group’s
strong and unwavering values. In 2002, the Group drafted anenvironmental policy, last updated in 2020, which aims to limit the
impact of its activity across all areas. Pragmatic but ambitious
solutions preserving the environment in the long term aresystematically sought, trying to go further than regulatory
requirements wherever possible. The priority is to control the impact
across the entire value chain, from upstream agricultural production
to distribution, and from purchases to internal operations.
In 2023, the Group continued to signiﬁcantly decouple its water andenergy consumption from the growth of its activity. The Group’s

energy mix is changing, with an increase in the proportion ofrenewable energies, which now stands at nearly 70% (compared to
55% in 2022).
Formally committed with the SBTi to follow a trajectory aligned withthe 1.5°C objective since 2022, the Group continues to reduce its
emissions in absolute value on scopes 1 and 2, and in intensity on
scope 3, while contributing carbon offset actions with a local impact.
This mindset in favour of the environment requires the involvement of
everyone, from investment decisions to everyday eco‑actions,
together with a robust Environment, Health and Safety (EHS) cultureon all sites. It is structured around policies, procedures, tools andmajor commitments.

The main commitments of the Planet pillar: Environment
2025

2030

2050

• 100% of employees
trained on biodiversity• Carbon targets
Trajectory 1.5 °C/SBTi,-50.4% on scopes 1 & 2
and -58.1% in intensity
on scope 3• Net zero CO2 emissions,minimizing of grossemissions vs. 2018
and offset of 100%of residual emissions• 100% renewableelectricity in our own
operations• 100% renewableenergy in our own
operations (unlesstechnically impossible)• Reduce water
consumption by 5% peryear in intensity between
2018 and 2030

In 2023, the Group made progress on the main environmental issues, with the aim of making a long‑term difference through steady
improvements with a signiﬁcant impact. Among these, the elements selected below are particularly illustrative of 2023 for this section:s confirmation of the reduction in carbon emissions;• scopes 1 and 2 market‑based: -49.6% in absolute value since 2018 (-29.5% compared with 2022);• scope 3: -52.2% in intensity since 2018 (-13.3% compared with 2022);s obtaining an A score on the CDP climate change questionnaire, and maintaining an A on the water questionnaire;s 9% decrease in absolute value in industrial water consumption, and 62% decrease in consumption intensity over the past 10 years;s maintaining a notional carbon price;s formalisation of a Group approach to responsible IT, aimed in particular at better controlling energy consumption;s certification of the Harmonie standard for responsible and sustainable real estate.
s offset of 100% of scopes 1 and 2 emissions and transportation emissions (upstream and downstream);s 100% of the Group’s tanneries are LWG certified;s continued use of the ZDHC protocol (chemicals) in the Tanneries division.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

153

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTPLANET

ENVIRONMENTSDGOBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

APPLYING THE HIGHEST STANDARDS IN SUSTAINABLE CONSTRUCTION
Deﬁne an internal sustainable
construction standard guaranteeing
Benchmark certiﬁcation andan environmental performance aligned
implementation rate in projects
with the best existing certiﬁcations
and implement it
Limit the CO2 emissions of our mostrecent buildings

Limit emissions/m2 below the 1,000 kg/
CO2 per m2 markCertiﬁcation of the external sustainable
construction standard by Bureau Veritas
100% of projects launched in 2022 follow
the standard=

776 kg CO2/m2 for Louviers and810 kg CO2/m2 for Sormonne=

CONTROLLING THE CONSUMPTION OF NATURAL RESOURCES BOTH INTERNALLY AND WITH SUPPLIERS: WATER, ENERGY

Change in industrial water consumption
Reduce the intensity of industrial
water consumption by 5% per year

Reduce the intensity of energy
consumption-62.2% in water consumption intensity
over 10 years and -9.3% in absolute value↗

compared to 2022
Deﬁnition of a notional water priceNotional price set at €1.5/m3=

Change in energy consumption by typeand by geographical area

-65.1% in industrial energy intensity over
10 years and 8% decrease in stores’
electricity consumption since 2020↗

DEFOSSILISING ENERGY CONSUMPTION

100% renewable electricity in France since
2021
Implement renewable energy
programmes by 2025

In‑house renewable energy production

Achieve 100% renewable electricity by2025 and 100% renewable energy by
2030

Total self‑generated renewable energy
at production sites=

Globally, 92% renewable electricity (+3%increase compared to 2022) and 70%
renewable energy↗

+3.9% self‑generated renewable energy↖

at Hermès sites between 2022 and 2023

IMPROVING PRODUCTION PROCESSES BY FAVOURING THE CLEANEST, MOST ECONOMICAL TECHNOLOGIES AND THE MOST ENVIRONMENTALLY FRIENDLY SUBSTANCESUse energy‑saving equipment

Implement energy sub‑metering solutions
at sites and stores

46 production sites and 14 stores
equipped with energy consumption
monitoring solutions↗

REDUCING OUR FOOTPRINT AND CONTROLLING WASTE AND DISCHARGES, REDUCING
THEIR PRODUCTION AS MUCH AS POSSIBLE AND RECOVERING THEM WHENEVER POSSIBLE

18 manufacturing sites equipped with
Use water treatment equipment
to control waste

Number of tanneries having installed
speciﬁc puriﬁcation equipment

wastewater puriﬁcation plants=

100% of the HCP division’s tanneries havetheir own water treatment plants

Develop production, transportationand sales waste recycling154% of waste recycled and recovered

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

50% of manufacturing waste is recovered(recycling, reuse, energy recovery)↗

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTPLANET

ENVIRONMENTSDGOBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

2

REDUCE GREENHOUSE GAS EMISSIONS IN ABSOLUTE TERMS (SCOPES 1 AND 2) AND IN PROPORTION TO ACTIVITIES (SCOPE 3), IN LINE WITH THE PARIS AGREE
MENT
Reduce greenhouse gas emissions
in absolute value (scopes 1 and 2)

49.6% reduction in scopes 1 and 2 GHG% decrease in emissions in absolute valueemissions since 2018 (in absolute value)
for scopes 1 and 2
and 29.5% since 2022↗

Reduce greenhouse gas emissions
in intensity (scope 3)% reduction in emissions intensity forscope 3-52.2% in scope 3 carbon intensity since
2018 and -13.3% since 2022↗

STUDYING CLIMATE RISKS AND ACTING TO REDUCE THEIR IMPACTS, ANALYSING RESILIENCE SCENARIOS AND INCORPORATING THEM INTO THE STRATEGY
Study on physical risks and adaptation toclimate change carried out on 100% of
French buildings
Anticipate the risks related to climatechange=Studies of physical risks and climatetransition and of the evolution of systems
Participation in the IF Initiative project
launched at the end of 2021 (post‑2050
risks)FORMALISING A CLIMATE CHANGE STRATEGY AND GOVERNANCE, DEFINING OBJECTIVES AND MONITORING INDICATORS

Align with global initiatives to reducegreenhouse gases

Validation of our carbon trajectory by
the SBTi: reduction of 50.4% in scopes 1
and 2 (absolute value) and 58.1% in
scope 3 (intensity) between 2018 and2030

Deﬁne an internal carbon priceScience‑Based Targets initiative
validation of scopes 1, 2 and 3 emission
reduction targets in 2021

Notional price set at €40 per tCO2eq(industrial and real estate investments,
transportation)=

UNDERTAKING HIGH VALUE‑ADDED VOLUNTARY CARBON OFFSET ACTIONS

Offset emissions corresponding
to signiﬁcant emission items% of offset for scopes 1 and 2
and transportation

100% scopes 1 and 2 GHG offset
and 100% for upstream and downstream
transportation GHG=

CONTRIBUTING TO POSITIVE ACTIONS, INCLUDING BEYOND THE SPHERE OF RESPONSIBILITY

Number and duration of biodiversity
awareness programmes
Forge partnerships around biodiversity
to support projects with a tangible
impact on biodiversity

Through the Fondation: Vigie‑Nature
École (National Museum of Natural
History) since 2019, Agir pour le vivant
festival since 2020, Espacebiodiversité in the centre of the Parc dela Villette since 2020 and Manuterra

Through the Fondation: Africa‑TWIX(WWF France) since 2016, Atelier
Number and duration of biodiversity action
Paysan since 2019 and Forêt de laprogrammes
Massane (Federation of Catalan Nature
Reserves) since 2021
Number of projects supported throughLivelihoods
Continue developing our participationin the Livelihoods project

25 extensive projects with concretesocial and environmental results

More than 149,000 hectares restored
Number of hectares restored and number(LCF1 and LCF2 funds) and more thanof trees planted
173 million trees planted by Livelihoods↗
=2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

155

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

2.5.1

ENVIRONMENTAL ACTIONS FRAMEWORK

2.5.1.1

ENVIRONMENTAL POLICY

Hermès’ environmental policy is based on several principles:s comply with Environment, Health and Safety (EHS) regulations,working conditions, and prepare for changes in these regulations
whenever possible. The industrial department coordinates a
network of EHS Officers at the manufacturing sites;s respect natural resources and favour the cleanest, mosteconomical technologies and the most environmentally‑friendly
substances;s manage energy resources by reducing energy consumption andfavouring the use of renewable energies;s manage water responsibly and sustainably. Reduce volumes ofwater withdrawals, recycle and improve the quality of discharges inrelation to ecosystems, particularly in areas with high water stress.
Engage alongside stakeholders in watersheds to preserve thisshared resource;s minimise waste production and recycle it as much as possible;s resolutely commit to a low‑carbon world, implement
scientifically‑based objectives and actions compatible with a
trajectory limiting global warming to 1.5°C by 2050, across theentire value chain and beyond Hermès’ sphere of influence;s increase the resilience of the Hermès model in the face ofenvironmental changes. Study their effects, inform and collaborate
with our partners and suppliers to adapt the entire value chain.

2.5.1.2

GOVERNANCE“Global warming, its impact on biodiversity and theindustrialisation of raw materials are areas of concern, which we
address through our climate strategy, our concrete initiatives interms of responsible supply chains and our policies to preserve
natural resources.” Axel Dumas, Executive Chairman of Hermès.

Environmental topics are supervised by a member of the Executive
Committee in charge of the Manufacturing Division & Equity
Investments, who is supported by the industrial department, and theGroup real estate department. These topics are clearly at the core of
the Group Sustainable Development Board’s discussions. An annual
analysis is conducted by the main métiers of the House when thestrategic plans are being prepared to identify issues in terms ofenvironmental protection. These various challenges go hand‑in‑handwith practical objectives shared with the Executive Committee.
From a regulatory perspective, the Hermès Group’s policy is toestablish action plans that are adapted to the various métiers, inorder to understand and comply with regulations but also to monitor
progress made. Each métier is responsible for monitoring andimplementing the applicable regulations. The industrial affairs andGroup real estate departments are responsible for alerts, oversightand control in this area, along with the Group’s legal department,
where appropriate. More speciﬁcally, the industrial department,
together with the métiers and all players in the production entities, is

1562023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

pursuing an environmental policy formally approved by the Executive
Committee and, with the support of the commercial and real estate
departments, coordinates the House’s energy programmes(construction, consumption, transportation).

2.5.1.3

METHODOLOGY: TOOLS, ANALYSIS AND
MONITORING

Since 2012, in order to monitor environmental data from its
manufacturing sites, Hermès has been using a reporting software
accessible as a web resource to collect data about consumption ateach site. The software also provides access to documentation
explaining how the performance indicators are organised and deﬁned.
A consistency check is carried out automatically when the ﬁgures areentered, and again when the global consolidation is performed by theindustrial department, as well as for audits carried out by the
independent third party and the Statutory Auditors. Since 2018, allindustrial environmental indicators are reported for a period runningfrom November through October. For methodological reasons, someof the activity data used in the scope 3 carbon emissions calculation
cover a calendar year.
For internal sites, oversight of environmental actions occurs in
different ways. The industrial department and its EHS Ofﬁcers exert aﬁrst level of control within the context of a “water, energy, carbon,
waste” plan that is updated each year. In the context of this effort, theaudit and risk management department conducts audits on thecritical topics included in the Group’s risk map (see chapter 4 “Riskfactors and management”, § 4.1). Lastly, external controls are
performed on the Hermès Group’s suppliers to ensure all entities arecovered. The industrial affairs department consolidates the results ofthese audits as part of an ongoing process of improvement.
For external suppliers (§ 2.6.1), the Purchasing Committee reviews
the results presented by the direct purchasing department as well as
those of the indirect purchasing department several times a year. It
monitors the number of audits conducted per year as well as thequality of the results. The industrial affairs department, under thecontrol of the audit and risk management department (A&RMD),
crafts action plans with the relevant métiers and monitors theirprogress.
In 2023, the reporting of environmental indicators covered 100% ofHermès sites (manufacturing sites, stores, tertiary sites). However,some of them were unable to report their consumption due to recently
joining the Group. In the event of difﬁculty in accessing information,certain activity data were calculated from representative data.

2.5.1.4

COMPLIANCE, ENVIRONMENTAL PROVISIONSAND FINANCIAL GUARANTEESIn 2023, no sites were subject to a formal notice. As part of theprevention and control of risks, the following measures were taken:
The Pierre‑Bénite Leather Goods workshop submitted a technical ﬁlein March 2023 relating to work to bring the building allowing water
management in the event of ﬁre into line with regulations. This ﬁle,validated by the prefecture in August 2023, follows the formal noticereceived from the DREAL in May 2022. The work is scheduled for2024.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

The amount of provisions for environmental liabilities at Hermès Cuirs
Précieux comprises provisions for the cost of asbestos removal workon the roofs of an industrial building at a tannery and remediation
work on a manufacturing site for a total of €1.5 million. In accordancewith Article R. 516‑1 of the French Environmental Code, the Annonay
and Le Puy tanneries, the only tanneries within the scope of thesystem, have provided ﬁnancial guarantees. The latter were updated
at the end of 2023 in agreement with the authorities and inaccordance with the legal requirements for the period 2024‑2028.

2.5.2

RESPONSIBLE REAL ESTATE

With a wealth of real estate assets of around 500 buildings, Hermès
ensures that these and construction projects meet the highest
environmental standards. This real estate portfolio covers a wide
range of buildings: production sites, logistics centres, exclusive
stores, ofﬁces. Since 2016, this scale has motivated the development
and updating of a speciﬁc real estate standard, the Harmonie
standard, allowing a more accurate measurement of theenvironmental issues of all of the House’s construction, development
and renovation projects, aligned with its values of high standards anduniqueness. This standard, which is signiﬁcantly more demanding
than the market standards, was awarded a label in November 2022
by the independent third‑party veriﬁcation body, Bureau Veritas. Some

52 projects were being assessed with the Harmonie standard at theend of 2023.

GOVERNANCE
Responsible Real Estate Committee

In 2022, a Responsible Real Estate Committee was created,composed of members of the Group’s industrial, commercial,
ﬁnancial, human resources, sustainable development and real estate
departments. This committee aims to ensure that the real estate
portfolio is in line with the best environmental, social and societal
performance. To achieve this, the committee initiates actions that fallwithin its four missions:2s take decisions on and augment the Responsible Real Estate
roadmap;s examine the choices made in the projects and formulate
recommendations to project managers;s monitor environmental, social and societal performance;s communicate on relevant indicators.

In 2023, the committee identiﬁed the points of contribution to theenvironmental performance of new projects in order to deﬁne anenvironmental proﬁle, with the following main indicators, grouped by
performance area:

The main indicators are detailed below, for the relevant performance areas:

KPI

OBJECTIVE

CO2eq/m2 weight per subsidiaryand per zone

Alignment with the Group’s
carbon trajectory

Biodiversity

Degradation of BCS *Striving for zero degradation

Local sourcing

Local sourcing rate(% cost of works)

Move towards 100% local

Indoor air quality

Number of projects meetingthe thresholds set by the WHO

100% of projects meetingthese thresholds

Carbon footprint*Biotope coefficient by surface.

Harmonie: the strategic expression of the real estate of tomorrow atHermès (1)Awarded a label for the ﬁrst time in 2022, the Harmonie standard
ensures a level of requirement aligned with the highest real estate
standards existing today. In 2023, Bureau Veritas conﬁrmed the label
awarded to Harmonie.
As indicated in the report on the standard’s label awarded by
Bureau Veritas:“We are able to issue an opinion validating the alignment of the1.

Harmonie standard with the highest standards of the market andits integration of the points of excellence of the main internationalsustainable real estate standards. Our opinion also validates thequality of application and operational control of the standard suchthat it allows a fair assessment of the environmental performance.”
The standard incorporates environmental sustainability issues in all
their dimensions and across the entire real estate value chain. It isbased on ﬁve pillars: Carbon footprint, Biodiversity, Air quality, Local
sourcing and Environmental health.

https://assets‑finance.hermes.com/s3fs‑public/node/pdf_file/2023‑08/1692976774/guide‑referentiel_harmonie_en.pdf
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

157

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Harmonie includes more than 80 demanding criteria, equivalent to or
superior to most market standards. The House has chosen not to – orto barely – address certain criteria, as these are either naturally
applied in the reﬂection process or are not relevant to Hermès. This
helps to ensure a balance between ambitions and reality.

It also sets binding targets for the ﬁght against climate change, bysetting a target of halving the carbon footprint per m² built andrenovated by 2030 (compared to 2018).

CARBON FOOTPRINTHARMONIE VS

AMERICAN LABELENGLISH LABELFRENCH LABELENGLISH LABELFRENCH LABELENGLISH LABELFRENCH LABELENGLISH LABELFRENCH LABELENGLISH LABELFRENCH LABEL

Sustainable construction: reducing the carbon impact
Reducing on-site emissions
Control of energy consumption
On-site energy recovery
Emissions from energy consumption during operations

AIR QUALITYHARMONIE VS

AMERICAN LABEL

Control of indoor emissions
Control of incoming air quality

LOCAL SOURCINGHARMONIE VS

AMERICAN LABEL

Savoir-faire and local products
Development of existing buildings

BIODIVERSITYHARMONIE VS

AMERICAN LABEL

Smart waste management
Protection of local biodiversity
Promotion of biodiversity
Integration of buildings into their environment

ENVIRONMENTAL HEALTH
HARMONIE VS

AMERICAN LABEL

Mitigation of nuisances
Comfort of use
Services
Natural light
Managing water resources
Operational efficiency
Non-existent criterion or lessstringent than Harmonie

158

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Criterion as stringent
as Harmonie

Criterion more stringent
than Harmonie

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Harmonie is implemented via an online platform enabling project
managers to monitor their actions, consolidate the environmental
performance of all projects and contribute to the Group’s carbon
trajectory. In particular, it is possible to compare gross carbon
emissions per m² of surface area.

therefore takes this constraint into account, in particular through land
treatment and speciﬁc planting. The exterior landscaping, inconsultation with an ecologist, aims to facilitate the circulation of
rainwater by ensuring the ground is permeable and activating thesite’s biodiversity by enhancing the river banks and creating wetlands.

This standard, due to its technical requirements, its wide scope andits label, is one of the best practices in the real estate sector.

2.5.3

The Harmonie standard is continually being improved. Thus, aroadmap was deﬁned by the Responsible Real Estate Committee inorder to enhance the following pillars as a priority over the coming
years:s indoor air quality, with the aim of guaranteeing pollutant
concentrations in the House’s sites below the maximums of themost demanding standards and regulations;s biodiversity, with the aim of a sober land use in the Group’s
projects;
s circularity, a new pillar aimed at integrating the circular economy
into real estate projects, in particular the use of materials ormaterials from deconstruction.

In 2023, the objectives of the European taxonomy concerning eligible
real estate Capex were integrated into the Harmonie standard, which
will eventually make it possible to monitor their alignment, knowingthat all of the Group’s real estate projects represent methodologicallyeligible projects.

ACHIEVEMENTS IN 2023
s 2 production sites delivered: Ganterie‑MaroquinerieSaint‑Junien and École du Cuir de Franche‑Comté.

des 21 stores opened: 6 new locations, 13 expansions, 2 relocations.
Saint‑Junien: 2023 rehabilitation with a positive impact

RESPONSIBLE IT

A community of around 40 stakeholders supported by a dedicatedcentral team of experts in responsible IT (four people) supports thedevelopment of a consistent approach aligned with the Group’s
strategic sustainable development framework.
The House’s responsible IT programme aims to develop an approachto the ethical and controlled use of digital technology and data. Thismeans being able to encourage frugal consumption and sober use of
equipment, to measure the environmental and spatial footprint of IT,
but also to promote actions with a measurable positive impact for theHouse and its communities (suppliers, associations, etc.) such asaccessibility or helping to reduce the digital divide.
HSI’s ambition for the House is therefore structured around three key
approaches:s Green IT reflects the ambition to limit the increase of the carbon
footprint of information systems, in a context of growing digitalneeds within the Group. This involves measuring this footprint,
identifying actions to reduce it, and setting up and coordinating an
operational organisation to act to reduce environmental impacts;

The Ganterie‑Maroquinerie de Saint‑Junien has moved to a newlocation, located a short distance from the former workshops
inaugurated in 2017. This new building is a refurbishment of a former
brownﬁeld site, located on the banks of the Vienne and covers an
area of more than 4,700 m².

s IT for green aims to make digital technology available to reduce
the environmental footprint as part of a broader ambition for the
benefit of society. The solutions supported by IT (pooling,virtualisation, Internet of Things, artificial intelligence, etc.) can be
virtuous and help to reduce the energy impact or even decarbonise
other activities;

This extension and brownﬁeld rehabilitation project includes thepreservation of existing elements. The conservation of most of thewalls of the old main building, and the reintegration of stones fromthe demolition of ancillary buildings make it a unique architecturalproject.

s IT for sustainable corporate functions provides support forcorporate functions in acquiring the right tools and the right data to
carry out the various activities required to consolidate regulatory
reporting, as well as to support the House in its efforts to achievetransparency and good management of planetary resources.

Regarding energy, the project achieves the level BBC (1) renovation(corresponding to the RT 2012 level – 43% for the extension and to
the RT (2) existing – 40% for the renovation).

The scope of this programme covers information systems for all of theHouse’s entities, all geographical areas and all functions and métiers.
Whenever the consumption or use of digital equipment, identiﬁed as
falling within the scope of responsibility of information systems, ismeasured and monitored, Hermès’ responsible IT approach applies.

In terms of local anchoring, the companies involved in theconstruction were 95% local. The land that historically housed thisGanterie‑Maroquinerie is located in a ﬂood zone. All exterior work

1.

BBC: Low consumption building.

2.

RT: Thermal Regulation.

2

Following two years of reﬂection and analysis concerning responsible
IT, in September 2023, Hermès launched, through Hermès Systèmed’Information (HSI), its CSR programme with the aim of structuring
and implementing a responsible IT approach applicable to the entire
Group.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

159

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTPROGRAMME STRUCTURE
HSI’s CSR programme is structured around four pillars broken down
into 30 initiatives aligned with the Group’s sustainable development
framework.

Gouvernance

Policy &Guidelines• Programme structure• Sponsor• Teams & Network• Comitology• Watch• Budget

The four pillars make it possible to structure and manage theprogramme consistently on a daily basis:
1. Governance;• Responsible IT• Life cycle analysis• Responsible purchasing• Frugality• Eco-design• Accessibility

2. Policy & Guidelines;
3. Transformation;
4. Change management.

The 30 initiatives are the result of a materiality analysis of
responsible IT issues. This exercise enabled the identiﬁcation ofoperational projects to be launched to carry out concrete actions on
the following topics: Strategy, Certiﬁcation, KPI, Carbon Footprint, Life
Cycle, Responsible purchasing, Frugality, Accessibility and Eco‑design.

Transformation

Change• Tools (benchmarks
and catalogues)• 30 initiatives• Footprint calculation• Collaboration withother entities• Communication• Awareness• Education

For each of these initiatives, a document outlining the deﬁnitions,best practices and associated HSI guidelines is drafted in order toprovide clear and self‑supporting “implementation kits”.

5

Guidelines

Life cycle analysis

Responsible purchasing

Manage the life cycle of equipmentin the most virtuous way, by combining
an increase in lifetime and the proper
management of end-of-life.

Internally and from suppliers, implementa responsible IT purchasing policy froma socio-environmental point of view.

Frugality

Accessibility

Eco-design

Provide an information systemand equipment that meets needs
for sober and efficient consumption.

Have accessible, distinct,
usable and comprehensible
digital services within HSI.

Design digital services within HSI
that are as close as possible
to needs and have a controlled
socio-environmental impact.

They will be rolled out between 2024 and 2026 with the following
objectives:s obtain Responsible IT certification from the Institut du Numérique
Responsable at the end of 2024;
s drafting of a responsible IT purchasing policy, implementation ofsocio‑environmental criteria in supplier calls for tenders andcreation of an IT supplier maturity assessment grid;teams concerned and to ensure their long‑term involvement, a seriesof committees was organised to cover topics relating to expertise(e.g.: responsible digital purchasing), regions (with speciﬁc culturalissues), or speciﬁc functions.
The list of committees already in place is presented below:
TYPES OF COMMITTEES IN THE HSI CSR PROGRAMME
With other Group departmentss drafting of an equipment end‑of‑life management policy;s launch of a global awareness campaign for all House employees
and an “expert” training campaign for key HSI players.

PROGRAMME GOVERNANCE
Implementation of a dynamic governance process
A governance process has been deﬁned to formalise the participationof key players in the House’s priorities. In order to bring the subject of
responsible IT to life, maintain a good level of mobilisation of the1602023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Dedicated committeewith the Group sustainable
development department
HSI CSR

SDD

Responsible
Digital Purchasing
Committee
HSI CSR

Purchasing

At HSI level

With subsidiaries

HSI CSR Committee

One committee
per subsidiary

HSI CSR

Sponsor

HSI CSR

Subsidiaries

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTTOOLS AND RESOURCES
Establishment of a technical and standards monitoring unit
IT technologies are evolving fast, and responsible IT is undergoing
rapid development. Regulations are gradually being introduced,
accompanied by a collective awareness of the socio‑environmental
issues of the sector. Companies and their suppliers are adapting andbecoming attentive to technical, methodological and regulatorychanges. The interconnection between the House’s business ethics
model
and
the
growing
regulatory
pressurearoundsocio‑environmental impacts on the value chain is encouraging
intensiﬁed collaboration with all stakeholders. As a result, HSI has
structured a watch activity, aimed at monitoring both external
movements (publications, reports, etc.) and internal news.
The issue for HSI is to remain attentive to best market practices while
being able to contextualise the regulatory expectations and theHouse’s DNA, which imposes a form of exemplarity in the use ofresources, whether they are physical or digital.

To meet the challenges of responsible IT and reduce the digital
carbon footprint, some members of HSI will participate in the rollout
of several responsible IT initiatives. These initiatives address various
topics: monitoring of KPIs, recycling of waste electrical and electronicequipment, deletion of data and supplier challenges.

2.5.4

The approach of Maison Hermès, as for many other subjects, favours
reasoned choices adapted to its actual needs over the long term, as
responsible IT does not currently offer a single, comprehensive or
exhaustive solution.

TRANSFORMATION AND CHANGE MANAGEMENT
The majority of Hermès’ employees today use IT solutions, andtherefore potentially contribute to limiting the Group’s digital
environmental footprint.
The challenges of change management are numerous, in particularcollaboration between the various entities in order to avoid blind
spots and duplication of solutions, and to provide the rightinformation to the right people.
To support Hermès employees in learning about and implementing
the HSI CSR programme, a communication plan and a training course
were created. They consist of awareness‑raising elements on
responsible IT, events and documents to encourage acculturation on
the subject, as well as meetings on expertise relating to speciﬁc HSI
métiers.

2

The control of water and energy consumption, closely linked from anecological and economic responsibility to the major global challenges
faced today, is a goal shared by all the House’s entities. Thanks to its
craftsmanship model, Hermès distinguishes itself by a moderateenergy and water footprint as well as the generation of only small
amounts of waste in absolute terms. This is even more true in relativevalue. Furthermore, the métiers are working to limit their respective
consumptions through actions described in more detail below andthus contribute to the energy transition.

2.5.4.1

LIMITING THE CONSUMPTION OF NATURALRESOURCES: WATER, ENERGY

2.5.4.1.1

Water

Implementation of tools to equip the House to achieve its
sustainable development goals
The House invests signiﬁcantly in analysis of the market in terms oftools for the implementation, monitoring and management ofsustainable development issues, reporting and measurement of the
carbon footprint.

RESOURCE MANAGEMENT

Hermès sites draw water from natural environments and municipal
water for their sanitary, industrial and agricultural uses. Farms in thePrecious Leathers métier, located in Australia and the United States,
draw most of the water used by the Group for livestock farming
purposes (agricultural water). Behind these volumes, the other
Hermès métier sites, located in Europe, and more speciﬁcally inFrance, draw water for industrial uses: in the materials transformation
processes used to make Hermès objects: tanning, ﬁnishing andprinting of textiles, polishing and ﬁnishing of metals, crystal cutting,the addition of decoration to porcelain, etc.
The Group Industrial Director, who reports directly to the member ofthe Executive Committee in charge of the Manufacturing Division &Equity Investments division, coordinates water, manufacturing andagricultural issues. The objectives are validated and theachievements monitored by the Sustainable Development Committee.
Each métier draws up action plans and presents the investment
plans and resources required to achieve the Group’s objectives to theindustrial department. Major investments are approved by the
Executive Committee, in particular the new wastewater treatment
plants.

Objectives:s continue the decoupling of industrial water consumption from business growth;3
s reduce water consumption by 5% per year in intensity (m /€M of revenue, like‑for‑like scope) on a voluntary basis over the period from2018 to 2030, with increased attention on sites located in areas of water stress;s implement a multi‑stakeholder approach and construct with external stakeholders (regional departments, municipalities or professional
associations) strategies to optimise water management and the quality of discharges.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

161

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Industrial water

Most of the water for manufacturing use (86.2%) is used by twométiers, tanneries and textiles. The total volume withdrawn atmanufacturing sites worldwide corresponded to 608,452 m³ in 2023,
mainly in Europe.

Over the past 10 years, the Group has maintained its aim of
decoupling, with industrial water consumption increasing by a factorof 1.2 while activity grew 3.3‑fold.
Over 10 years, water consumption (excluding farms) in intensity has
fallen by 62.2%.
In 2023, overall water consumption for industrial use decreased(-9.3%) compared to 2022, despite the impact of the integration of
new sites in the reporting scope (decrease of 10% at constantscope). This is the result of continued reduction efforts on all theGroup’s manufacturing sites.

BREAKDOWN OF INDUSTRIAL WATER CONSUMPTION BY MÉTIER IN 2023
(EXCLUDING FARMS)-62%

water consumption
in intensity
in 10 years* Crystal, Logistics, Perfume and Beauty, Porcelain, Beyrand, Watch division,
Bootmaker, Silversmith.

This year, the level of water stress was again assessed for all of the
Hermès Group’s 75 manufacturing sites and farms using the
Aqueduct tool’s new version 4.0 developed by the WRI (World
Resources Institute) in 2023. Nine sites operate in areas withidentiﬁed water stress. The water consumption of these nine
manufacturing sites (11% of the total number) represents a very small
proportion of the Group’s water abstraction (0.1% – 8 ML). Thesesites mainly use water for domestic purposes and are regularly
monitored by the group’s industrial department.

INDUSTRIAL WATER

Industrial water consumption

2018

2019

2020

2021

2022

2023

In megalitres

719.7

668.5

580.3

627.5

671.0

608.5

INTENSITY

Water consumption – Group

2018

2019

2020

2021

2022

2023

Objective - 5%/year

Intensity m3/revenue €M

121

97

91

70

58

45

✓

As part of the operational implementation of the strategy to reducewater consumption, the Group has decided to implement an internal
water price mechanism to reinforce decisions favourable to reducing
the volumes abstracted. It is made available to the métiers in notional

162

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

form for capital expenditure calculations. This price was set at€1.5 per m3 in 2021. It may change depending on economic
conditions.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Water resource management is based on monthly monitoring of
consumption, preventive maintenance programmes for facilities,
frequent checks and calibration of meters, installation of new smart
individual meters, and programmes to raise employee awareness.
Signiﬁcant discrepancies unrelated to production differences areanalysed and veriﬁed in order to locate and repair any possible leaks.

The métiers work on a daily basis to minimise water consumption, ﬁnd
innovative solutions to increase the proportion of recycling (rainwater
recovery, rainwater treatment, wastewater treatment, innovative
efﬁcient water and energy systems, implementation of valves that
adjust the water ﬂow, etc.). As an illustration of this approach, in the
textile sector, the reduction of water consumption is one of the criteriaof the incentive scheme agreement.

2

ANALYSIS OF CHANGES IN INDUSTRIAL WATER CONSUMPTION BY MÉTIER

Change 2019/2021

Change 2020/2021

Change 2021/2022

Change 2022/2023-13.5%

+2.7%

+3.7%

-7.2%

-1%

+19.3%+10.5%-14.5%+26.3%

1+6.1%

First year ofobservation-19.3%

Tanneries (six in France
and one in Italy)
Activities with high water
consumption by processes:>90% of total consumption

TextileLeather goods
HMM-14.8%-8.7%(1) Including water consumption at the leather logistics centre.

Tanneries / 7% reduction in consumption in 2023 compared to 2022
and reduction of 15% in the ratio of water consumed/hides put inwater over the same period

Hermès operates seven tanneries, including six in France (Annonay,
Le Puy‑en‑Velay, Vivoin, Montereau, Bellac and the Mégisserie Jullien
in Chabris) and one in Italy.
Water consumption and efﬂuent treatment are major issues for thetanneries. Historically located close to rivers, they use this resource
for the tanning, dyeing and hide ﬁnishing processes. A total of 61% of
the water for the division’s tanneries comes from waterways orboreholes. The rest comes from municipal sources.
In accordance with the Group’s commitments to reduce water
consumption by 5% per year in intensity, the tanneries have launched
ambitious programmes to reduce water withdrawal. These
programmes are based initially, if necessary, on the modernisation ofwater treatment plants and secondly on the development ofapproaches for reusing wastewater for certain process operations.
The implementation of the Tannery division’s roadmap, together withthe sobriety efforts, is directly reﬂected in the division’s performance,
exceeding the Group’s objectives with a 7% reduction in water
consumption in absolute value compared to 2022 in a context ofincreasing production. Each site has been able to optimise andreduce its water use to produce leathers while maintaining their
quality, with reductions in the ratios of water consumed per product of
between 6% and 22%. In 2023, more than 25,000 m3 of water
were saved.
2023 was also marked by a period of severe drought. Concerned
about their environmental impact and in order to contribute locallybeyond the Group’s objectives, the division’s tanneries have put inplace hydric sobriety plans (HSP). These plans have made it possible
to improve the operational control of water use, ensure daily

monitoring of consumption and anticipate measures to raise
employee awareness or reduce use according to the crisis thresholdsof the water basins. The local authorities checked some of the plans.
Thanks to consumption reduction and anticipation measures, no site
was subject to regulatory restrictions during this period.
Construction work on the new tannery treatment plant at the
Tanneries du Puy continued in 2023 and the ﬁrst stages of treatment
have begun. As a reminder, this work aims to roll out circular water
management with the target of reusing more than 60% of treatedwater by 2028. Full commissioning is planned for July 2024 and is on
track, thanks to substantial investments.
Other modernisation projects were also undertaken during the year,
such as at the Montereau tannery, where a pilot test was installed tovalidate an additional abatement solution, and at the Mégisserie
Jullien, where an activated carbon ﬁlter solution has been installed.
In 2023, reuse solutions were also explored: in Annonay, a project toreuse water from the municipal wastewater treatment plant
downstream of the site is currently being studied: it could make itpossible to achieve at least 60% water reuse. Discussions with theauthorities are continuing and the project will enter its
implementation phase in 2024, illustrating a good example of an
innovative project carried out in consultation with our stakeholders. In
Italy, the Cuneo tannery commissioned an installation for the recovery
and use of rainwater, reducing its water consumption by 22% perleather product compared to 2022.
In parallel with these projects, the production teams and craftspeople
are continuing their actions to reduce water consumption on a daily
basis. This involves optimising the quantities of water used for eachhide treatment recipe and improving the measurement ofconsumption through the use of connected management tools.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

163

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Thus, at the Tanneries du Puy, water savings this year totalled 8%, i.e.
more than 10,000 m3 by optimising the initial tanning stages.
The Mégisserie Jullien has installed a monitoring and supervisionsystem for all its utilities in order to better manage its water
consumption as well as that of electricity and gas. The introduction of
an automated water dosing system is also underway.
Textiles / 14% decrease in consumption in 2023 compared to 2022,
33% decrease in intensity by product over the same period

Water is an essential element in the printing and ﬁnishing stages offabrics, in particular for the transfer of colours to textiles. 93% ofwater needs are covered by borehole water, signiﬁcantly limiting theuse of drinking water for industrial processes.
In 2023, water consumption was reduced by 14.5% in absolute value
and by 33% in intensity in a context of strong growth in activity.
These results are the product of work carried out for several years
aimed at reducing consumption by relying on ﬁve main levers:monitoring and management of meters, raising awareness among
teams, optimising processes, changing and modifying machines toachieve solutions that consume less, and the implementation ofrecycling solutions. In 2023, this resulted, for example, in thepurchase and installation of water sub‑meters on the main sites,
which will make it possible to obtain results as close as possible tothe consumption stations.
At the AEI and Ateliers AS sites (61% of the Textile division’s total
consumption), water consumption is still taken into account in the
incentive scheme agreement, thus showing the importance of thesubject to employees. For example, consumption indicators areanalysed at least once a week at the three main sites.
The division’s efforts are also focused on recycling wastewater to limit
water withdrawal. In 2023, investments continued, enabling its
gradual implementation: studies and modiﬁcation of networks,
speciﬁc treatment equipment, etc. These high‑performance
WWTP (1) projects include water recycling in the production process,with a rate of up to 70% (i.e. a potential saving of 80,000 m3 ofborehole water).
Since February 2023, the SIEGL site has thus activated water reuseand consumption has been reduced by 23% with a peak of 45% ofwater reused in September. This performance was made possible by
the installation of an osmosis unit to supply the boilers with recycledwater.

The AEI site is launching a call for tenders for its WWTP, which will
come on stream in 2026, with a recycling rate of 50% of the site’s
efﬂuents.
In April 2023, the AS, SIEGL and AEI workshops established a watersobriety plan. This plan takes stock of the actions undertaken to
reduce water consumption and gives concrete expression to thedivision’s ambition to achieve savings and limit water withdrawals tothe strictly necessary.
Leather / 6.1% increase in consumption in 2023 compared to 2022
and 4.8% decrease in water consumed per leather craftsperson (2)Leather goods workshops have a low water environmental impact
since no volume of water is used for the process. The consumption of
Leather Goods workshops can therefore be assimilated to that of atertiary activity with most of the water use being for washrooms.
However, the water impact is taken into account in the design of new
production units with the implementation, from the start of operation,of key best practices. For example, at the Allan Leather Goods
workshop, the implementation of several actions and in particular thechange of sanitary water drainage systems has led to a signiﬁcant
21% reduction in water consumption. Regular awareness‑raisingsessions on eco‑friendly practices are also carried out. In addition,
the latest leather goods workshops beneﬁt from a rainwater recovery
and treatment system to supply washrooms.
In 2023, the Leather division consumed 6.1% more water than in
2022. This increase in water consumption is due to the recruitment of
new craftspeople at existing sites and the opening of new sites.
Accordingly, water consumption per craftsperson fell by 4.8%.
Crystal manufacturing / 7.8% decrease in consumption in 2023
compared to 2022

Over the reporting period, compared to the previous year, theproduction unit’s overall water consumption decreased by 7.8% in
absolute value. Water plays a major role the crystal industry, where it
is used in the “hot process” to cool production tools and in the “coldprocess” to avoid overheating of cutting tools. While it is technicallyand physically difﬁcult to reduce gross water consumption, the main
optimisation lever is water recycling and reuse. Partially implemented
since the last quarter of 2022 for the cutting activity, the water
treatment and recycling solution has made it possible to reduce thewater needs of the facilities where it has been installed by 57% in
absolute value. This process will be replicated on a larger scale tocover the entire scope of the cutting activity by 2025.

The Ateliers AS facility is beginning the last phase of civil engineering
work and will come into operation in the second quarter of 2024: thewater recycling rate will reach 20% in 2025 and may be 40% in 2026.

164

1.

Wastewater Treatment Plant

2.

For comparison purposes, the water consumption of the Leather logistics site located in the Lyon region is not included in the indicators in this paragraph but is
included in the Group’s overall consumption.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTAGRICULTURAL WATERAGRICULTURAL WATER CONSUMPTION

2019

2020

2021

2022

2023

In megalitres

4,512

4,495

4,810

4,680

4,757

4

4

5

5

5

Number of farms

This consumption takes place in the United States and Australia.
Farms / 2% increase in agricultural water consumption in 2023
compared to 2022, -2% at constant scope compared to 2022.

The Farm division is respectively composed of one alligator farm
(alligator mississippiensis) and a hide inspection centre in the UnitedStates, as well as four crocodile farms (crocodylus porosus) and two
hide processing and hide inspection facilities in Australia. Water
withdrawals from the Australian Farm division increased due to theramp‑up in capacity of the farm built in 2021.
At constant scope compared to 2022 – i.e. excluding withdrawals
from this last farm – water withdrawals were reduced by 2%, i.e.
savings of nearly 100,000 m3, due to the awareness‑raising efforts
undertaken.
Water is essential for livestock farming. The regular renewal of poolwater and the control of its temperature are essential to animal
welfare, and make it possible to prevent the proliferation of bacteria
as well as to control the quality of the hides.
The water used in the sites of the Australian division comes mainly
from boreholes (86%), while the use of municipal sources is limited(7%). The balance comes from the recovery of condensation waterfrom a sugar cane production unit located near one of the farms: thisis an innovative industrial circularity operation, exchanging hotcondensation water from the sugar reﬁnery for farm efﬂuents toirrigate the sugar cane crops in line with an agreement with local
farmers.
The American farm uses borehole water from hot springs exclusively,
which allows it to signiﬁcantly limit its energy requirements.
The farms are located as close as possible to the natural habitats ofcrocodilians, which are aquatic animals. These areas are generally
not subject to water stress.
A study was launched in mid‑2023 on the American farm to map andprecisely measure the various water uses, to better identify the water
sources and to reduce the demand on the resource.

2

On one of the farms in the Australian division, a study is also
underway to recycle some of the wastewater after treatment.
The water from the basins, mainly high in organic matter, is returnedto the natural environment as far as possible for the irrigation ofneighbouring crops, in compliance with local regulations: in Australia,
21% of the water discharged by farms is reused for irrigation
purposes, i.e. a 16% increase compared to 2022. The water from oneof these farms is reused to irrigate a sandalwood plantation incollaboration with Hermès Perfume and Beauty. This circular project
aims to make this farm a supplier of raw materials to other divisions
within 15 years, as Hermès’ perfumes use sandalwood essence intheir formulation. On another farm, water is reused to irrigate a mixed
plantation of mahogany, white mulberry trees and a syntrophic forest.

2.5.4.1.2

Energy: electricity, gas

Hermès’ sites use electricity and gas to light and heat buildings, aswell as for manufacturing processes and livestock farming. The
manufacturing sites and farms consume three quarters of the energy
purchased by the Group. This energy is used to operate a wide rangeof equipments: glass furnaces and kilns for porcelain decoration,
tanning and ﬁnishing drums, leather drying lines, textile ﬁnishing andprinting lines, machining and polishing machines, porcelain
decoration printing machines, etc.
The Industrial Director, who reports directly to the member of the
Executive Committee in charge of the Manufacturing Division & Equity
Investments, coordinates issues relating to energy use on
manufacturing sites and farms. The objectives are validated and theachievements monitored by the Sustainable Development Committee.
Each métier draws up action plans and presents the investment
plans and resources required to achieve the Group’s objectives to theindustrial department. Major investments are approved by the
Executive Committee.

Objectives:s put in place actions compatible with the global warming trajectory of 1.5°C and, in particular, continue the decoupling between industrial
energy consumption and activity growth;s implement a policy of 100% renewable electricity within its own operations by 2025 and 100% renewable energies by 2030, unless this is
not technically possible;
s no longer use gas or any other fossil fuels as an energy source for any new industrial investments, also unless this is proven technically
impossible. This programme to “phase out fossil fuels at manufacturing sites” reaffirms Hermès’ desire to actively participate in the energy
transition necessary to limit global warming;s progressively equip all stores with 100%-LED lighting, unless this is technically impossible;s contribute to the corporate sobriety effort in the context of major tensions on gas and electricity supplies by reducing energy consumption
in France (manufacturing sites, tertiary buildings and stores) by 10% in 2023 compared to 2019.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

165

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

2021

2022

2023

2023

In MWhIn MWhIn MWhIn %Electricity

115,402123,507

124,965

60%

Gas

99,406

94,75384,13540%

Total

214,808

218,260

209,100

100%

3,806

3,775

79%

GROUP ENERGY CONSUMPTION
Excluding farms

Farms

Electricity
Gas

1,025

1,021

21%

Total

4,831

4,796

100%

223,091

213,896

TOTAL

214,808

Energy consumption (electricity, gas) was 209,100 MWh/year at
Group level, excluding farms. Energy consumption (electricity, gas) is
distributed as follows, in a context in which the Group manufactures
55% of its objects in exclusive in‑house workshops.
GROUP BREAKDOWN(EXCLUDING FARMS)

Industry2023 in %Services

Total

8%

100%

73%

19%

152,119

40,013

2019

2020

2021

2022

2023

30

31

24

19

16

In MWhGROUP ENERGYINTENSITY(EXCLUDINGFARMS)StoresIn MWh/€Mrevenue

16,968 209,100

Some 71% of the energy is consumed on manufacturing sites, which
therefore concentrate the majority of efforts in terms of reduction
trajectories.

INDUSTRIAL ENERGY166

BREAKDOWN OF INDUSTRIAL ENERGY CONSUMPTION (GAS, ELECTRICITY) BY MÉTIER
IN 2023 (EXCLUDING FARMS)

INDUSTRIAL
ENERGYCONSUMPTION

2019

2020

2021

2022

2023

In GWh

158

148

162

160

152

INDUSTRIAL
ENERGYINTENSITY

2019

2020

2021

2022

2023

In MWh/€Mrevenue

23.0

23.2

18.1

13.8

11.3

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL* Logistics, Metal, Perfumes and Beauty, Watch division, Beyrand,
Bootmaker, Porcelain, Silversmith.

Over the last decade, the Hermès Group has maintained its ambitionof decoupling consumption from growth with a 1.1‑fold increase inindustrial energy consumption compared with a 3.3‑fold rise inactivity volumes. This result testiﬁes to the improved management ofconsumption. Industrial energy consumption intensity fell 65.1% overthe same period. In 2023, overall energy consumption decreased
compared to 2022 (-4.1%) thanks to the solutions implemented by
the manufacturing sites and stores.
In order to monitor and manage energy consumption more closely,sub‑metering solutions are being rolled out across all Group sites. To
date, for example, 46 production sites and 14 stores are equippedwith such systems.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT-51%
industrial energy
consumption
in intensity, between 2019and 2023
The voluntary energy audit campaigns, initiated in 2019 and being
renewed in 2023 and 2024 on the French manufacturing sites,enrich the action plans undertaken in order to decrease energy
consumption with a view to reducing greenhouse gas emissions.

The industrial affairs department coordinates these reduction plans
and monitors the trajectory for reducing GHG emissions (scopes 1
and 2 including the impact of the energy consumed) to meet theGroup’s commitments. Three principles guide the métiers:s sobriety: each métier examines the use of energy, to constantly
reduce its needs in terms of absolute value and per unit producedon the sites;s efficiency: each new piece of equipment is designed to improveenergy efficiency compared to the previous generation. This pointis all the more important as the life of industrial equipment cansometimes be counted in decades;2

s decarbonisation: as part of the “Phase out fossil fuels”
programme, the sites are planning to phase out fossil fuels by
2030 in favour of renewable or low‑carbon energies. Each new
project is an opportunity to integrate a share of self‑consumed
renewable energy production.

Sobriety plan
Hermès has historically been committed to a programme for reducing the carbon footprint of its activities, as well as to an energy sobriety
action programme for several years. In 2020, the Group set targets for reducing its energy and environmental impacts (detailed above). At theend of July 2022, the French Association of Private Enterprises (AFEP) repeated the French President’s call, inviting all companies to deﬁne avoluntary reduction plan for their energy consumption, to be implemented from September 2022, in order to see results from the beginning of
winter. This follows the particularly tense energy context due to the war in Ukraine and the one‑off difﬁculties encountered by the nuclear
sector.
Efforts therefore focused on managing and regulating the thermal comfort of buildings.
Since the beginning of October 2022, in order to reduce energy consumption during the winter in France by 10%, a common approach has
been adopted, adapting it to each of the sites, based in particular on:s a 2°C reduction in heating temperatures in winter;s the reduction of air conditioning in summer (+1°C);s the optimisation of heating and air conditioning operating times;s the reduction in the intensity of the lighting according to the activity;s the anticipation of certain work to improve energy performance;s the shutdown of certain unnecessary equipment at night and on weekends;s the reduction of store window lighting times.

For the whole of 2023, a review of the French sites was carried out: energy consumption was reduced by 6.2% compared to 2022 atconstant scope. It should be noted that gas consumption was reduced by more than 11% overall. A more in‑depth assessment will be carriedout at the end of next winter to conﬁrm the best practices to be maintained, those to be corrected or those to be further developed.

Cristalleries de Saint‑Louis / 7% decrease in consumption in 2023
compared to 2022 ,-21% in intensity

The processes using the most energy at the production unit are
melting the material and working with it while hot. During each
investment project, research is carried out to ascertain the best
available technology in terms of energy efﬁciency and production
volumes, which is then implemented.
Energy, electricity and gas consumption decreased by 7% in 2023
compared to 2022, thanks to signiﬁcant technological investmentsthat will have their full impact in 2024. The new gas melting furnace

installed at the end of 2022 and fuelled by oxyfuel, made thisprogress possible: the gas consumption of this new equipment has
been reduced by 30%. In addition, the waste heat produced by the
installation is recovered to heat the adjoining museum, thus reducing
this item of gas consumption by more than 40% over one year.
Tanneries / 9% decrease in consumption in 2023 compared to 2022,
17% decrease in intensity per product over the same period

This year, the tanneries continued their decarbonisation and energy
efﬁciency work and consumed around 3,500 MWh less energy than in
2022, a decrease of nearly 10%.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

167

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTThe energy consumed by the tanneries is still mainly of
non‑renewable origin with 65% gas consumed in 2023. To reduce theuse of fossil energy, the tanneries are exploring different energy
efﬁciency and decarbonisation solutions. For example, the Vivoin
tannery has launched projects aimed at completely eliminating its gas
boilers by 2024 and thus reducing its use of fossil energy by 90%(lower temperature settings, elimination of the steam network infavour of electric heaters, heat pump installations and photovoltaic
study). An 18% reduction in gas use has already been observed withthe ﬁrst projects undertaken. The Montereau tannery is studying
another decarbonisation solution. Discussions are underway with theoperator of the city’s urban heating network to connect to the site.
This possibility is planned for the summer of 2024 and will enable thetannery to reduce its consumption of gas by 90%, used to heatprocess water as well as buildings (tertiary use). The Annonay tannery
has chosen to replace its gas boiler room with a mixed system thatwill combine a biomass boiler and heat pumps.
The division is conducting studies on the installation of photovoltaic
panels on the roofs of buildings or car parks in order to reduce theconsumption of electricity from the grid (§ 2.5.3.2.1).
The sobriety actions undertaken are already producing visible results
this year at all tanneries, reﬂected in a decrease of up to 30% inenergy consumption per number of leathers produced.
At existing facilities and during redevelopment or creation ofpremises, the following points are given special attention to improveenergy performance: supervision of equipment using centralised
technical management (CTM), replacement of production equipment
by equipment with superior energy performance, thermal insulation,pipe insulation or replacement of lighting with LED lighting, such as at
the Cuneo tannery where relamping was carried out during thesummer of 2023, which led to a 4% reduction in electricity
consumption from September.
Farms / 1% decrease in consumption by farms in 2023 compared to2022, 6.1% reduction at constant scope compared to 2022

The Farm division’s energy consumption decreased by 1% in 2023
compared to 2022 in connection with the increase in capacity of the
new Australian farm inaugurated in 2022.
At constant scope, consumption decreased by 6.1% compared to
2022.
Electricity is the most widely used energy on the farms, with gas
accounting for 21% of energy consumption (electricity and gas).
The other energies used on the farms are fuel for agricultural
machinery and, for one of them, fuel oil, which is used during the coldseason to supplement the pool heating. A study is underway to ﬁnd
low‑carbon heating solutions.
Of the electricity consumed on Australian farms, 250 MWh were ofsolar origin and produced by the photovoltaic panels installed. Thisﬂeet of panels will increase over the coming years to cover the needs

1682023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

of all Australian sites as part of the implementation of a Virtual Power
Plant (VPP). The project also plans to reinject the surplus photovoltaic
energy produced during the day into the grid, which will enable thefarms to draw energy from it to maintain the temperature of the pools
at night.
A parallel prior study was carried out to ensure that the project was
relevant by comparing the gain from renewable energy, which proved
to be greater than the carbon weight of the production of the panels
and batteries. The project speciﬁcations and its implementation will
also take into account the possibility of reusing existing batteries.
The Australia division is also working on an ongoing basis to control
refrigerant leaks from the equipment needed to preserve hides. A
quarterly prevention plan has been put in place at all the sites
concerned.
The sites of the United States division are building a roadmap for
reducing energy consumption. The farm mainly consumes electricity(96%) for the pumping and distribution of water, as well as for lighting.
Textiles / 2.5% decrease in consumption in 2023 compared to 2022,
23% decrease in intensity per product over the same period

Despite the strong growth in activity, the energy consumption of the
Textile division was reduced by 2.5% in absolute value compared to2022, thanks to efforts to manage consumption. This resulted in asigniﬁcant decrease in consumption per unit of textile produced(-23%).
This management of consumption is the result of an ambitious policy
initiated in 2020 for all sites in the division, which resulted in theperformance of energy audits leading to energy saving actions.
The plan to reduce consumption for all the Textile division’s sites
follows four major axes:s optimisation of equipment operation (humidity regulation system at
SIEGL, high‑performance fans at ATBC (electricity savings of 7%),detection of presence for lighting and LED technology, optimisationof ventilation of the AEI tenter (10% saving), precise control ofboiler rooms to limit boiler start‑ups, etc.);
s building insulation and consumption management with theintroduction of monitoring software (CTM, Building Management
System, monitoring and alert software);s phasing out of fossil fuels as energy production resources(geothermal energy, pellet boilers, photovoltaic panels);s raising employee awareness through internal communications.

Among these achievements, the geothermal installation on the ATBC
site, a heat pump using vertical boreholes, was commissioned in
December 2023. This will enable the site to eliminate the use of gas,
which represented around 10,000 m3/year, i.e. 150 MWh. The pellet
boiler at this site, which replaced a fuel oil boiler at the end of 2021,
saves 90 MWh per year. In 2023, 16.4 tonnes of pellets wereconsumed to enable this transition.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Leather / 9% decrease in consumption in 2023 compared to 2022
and 15.8% decrease in energy consumed per leather craftsperson (1)Total energy consumption in 2023 decreased by 9% in a context ofincreased activity. As a result, the ratio of energy per craftsperson fellby 15.8%.
Due to the artisanal production model, the Leather division sites do
not use very energy‑intensive equipment. Electricity is the main
source of energy for Leather Goods workshops (76% of total energy
consumption in 2023): lighting, air conditioning, ventilation, ofﬁce
equipment and sometimes heating are the main consumption items.
Gas is used exclusively for heating the division’s 13 Leather Goods
workshops. Gas consumption in 2023 decreased by 20% there
compared to 2022, in particular thanks to insulation work in certain
Leather Goods workshops and the application of the French energy
sobriety plan on all sites.

2.5.4.2

CONTRIBUTING TO THE ENERGY TRANSITION

Since 1 November 2015, Hermès has decided to actively participate in
the energy transition process by planning its operations and investments
in order to direct its companies towards actions compatible with the
trajectory of less than 1.5°C of global warming, via a “Just transition” toachieve net zero CO2 emissions by 2050. This was formalised via its
SBTi commitment, validated according to a trajectory by 2030 (§ 2.5.7).

2.5.4.2.1

Developing renewable energies

Working together with the Group real estate department, in particular,

the House has a policy of using renewable energies, through the
installation of geothermal heating or cooling, photovoltaic panels, thesupply of green electricity for sites in France, connection to district
heating and cooling networks and the use of wood‑ﬁred boilers onsome sites.
Hermès wants to use energy from renewable sources (photovoltaic
panels, wood‑ﬁred boilers, geothermal energy, biomass, etc.)
wherever possible, and has committed to implementing a policy of
100% renewable electricity in its own operations by 2025. No newindustrial investment running on fossil fuels is authorised, except
where this is not technically possible.
In addition, the Group is developing pilot initiatives, designed to be
expanded as and when new investment projects, available
technologies and regulations in force permit.
As part of its renewable energy policy, Hermès sites (production,
farms, logistics) produce electricity directly through the installation ofphotovoltaic panels.
All French sites (production, services, and stores) have been 100%
supplied with green electricity (hydro, solar or wind) produced in
France since 2021. On a global scale, the Group’s renewableelectricity supply amounted to 92.1% (up 3% compared to 2022).
In addition, in 2023, the Group purchased nearly 29 GWh of biogas. A
little more than 34% of the Group’s gas consumption is therefore of
renewable origin.
Overall, nearly 70% of the Group’s energy consumption (69.0%) isfrom renewable sources (2), compared with 55.4% in 2022.

Renewable origin
Energy consumed

Non‑renewable origin

Total

(MWh)

%

(MWh)

%

(MWh)

Gas

28,87634

56,28066

85,156

Electricity

118,240

92

10,5008

129,740

Heat

1,411

63

832

37

2,243

Cold

1,890

100

0

1,890

Wood

410

100

0

410

Total

150,82769

31

218,439

Leather

Two renewable energies are used in the Leather Goods workshops:s wood is used to heat the Abrets and Nontron production units;s several Leather Goods workshops, including the latest to be put
into operation, benefit from photovoltaic installations.

In 2019, the Manufacture de Haute Maroquinerie site in Aix‑les‑Bains
signed a contract with an electrical energy supplier to install aphotovoltaic power plant on the shades of its car park, with a power

2

67,612of 292 kWp. This renewable energy production supplies 27% of thesite’s consumption.
At all the sites concerned, 1,016 MWh of solar energy were produced
in 2023. Most of this was consumed by the sites, and represents
approximately the annual energy consumption of two Leather Goods
workshops.
Charging terminals for electric vehicles are installed in all site carparks. In 2023, the number of terminals increased by 46%.

1.

For comparison purposes, the energy consumption of the Leather logistics site located in the Lyon region is not included in the indicators in this paragraph but is
included in the Group’s overall consumption.

2.

Methodological clarification: Only energies whose origin is clearly defined by a contractual arrangement with an energy supplier (examples: renewable energy
purchase agreement, standardised green electricity tariff, market instruments such as guarantee of origin from renewable sources in Europe or similar
instruments such as renewable energy certificates in the United States and Canada, etc.) are considered to be renewable energy sources.
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

169

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Tanneries

The tannery located in Italy increased its ﬂeet of photovoltaic panels
during the summer of 2023 by installing an additional 300 m² inorder to increase the self‑production of electricity by 10%. In 2023,
the site produced 141 MWh of electricity from its solar panels. The
division is exploring the opportunity of installing photovoltaic panelson the roofs of buildings or car parks, as in Vivoin, where the potential
rate for self‑production of electricity would be close to 20%.
TextilesThe solar panels installed on the roof of the Pierre‑Bénite car park
generated 134.6 MWh, which were directly reused on the premises;
those at the Bourgoin site generated 14.9 MWh, powering thecharging terminals available to employees. With the two geothermal
facilities installed on the division’s sites, as well as the conversion offuel oil to pellets at Challes, 390 MWh of renewable energy were
produced per year, which represents 1% of the energy consumptionof the sector.
Farms

The photovoltaic panels installed since 2020 currently cover one‑ﬁfthof the electricity needs for three Australian farms. They produced
533 MWh in 2023.
The Australian division invested heavily to expand its ﬂeet ofphotovoltaic panels by around 30,000 m². It will operate in a closed
loop with the energy produced, stored and fed back into the virtual
network that will link the sites together. This project will be rolled out
between 2025 and 2027 on the sites concerned.
The installation of photovoltaic panels is also being studied on theAmerican farm.
HMM

At the Fundão plant in Portugal, photovoltaic panels have been
installed on the roof and will be operational in 2024. In addition, theplant is studying the possibility of installing two wind turbines toincrease and diversify its sources of renewable electricity.
Logistics

In the United States, the Dayton logistics centre in New Jersey has
been equipped with photovoltaic panels on the roof since 2017, inorder to produce the electrical energy required by the site. This centre
received LEED Gold certiﬁcation in 2018.
Overall, renewable energy production at the Hermès sites was
2,582 MWh in 2023, compared with 2,485 MWh in 2022, i.e.
+3.9%, representing approximately the annual energy consumptionof nearly ﬁve leather goods workshops.

2.5.4.2.2

Innovating in energy efficiency

In the conception phase of new leather goods workshops, a special
attention is paid to environmental impacts and more speciﬁcally, to1.
170energy consumption. New production units are therefore built with
future energy efﬁciency in mind. This anticipatory work is organised
according to four areas of work, which are integral parts of theHarmonie standard:s production of renewable energy: wherever possible, our projects
include photovoltaic electricity production via the installation ofsolar panels on the roof (see § 2.5.3.2.1);
s energy consumption in buildings: this parameter constitutes one of
the main issues facing the new Leather Goods workshop technicalprogrammes. As soon as a project is launched, various solutions
are envisaged and thermal simulations are carried out by
specialists from design firms commissioned for the project. The
most suitable solution is selected from the results. For example,
the Louviers and Sormonne Leather Goods workshops are
E4C2 (1) certified as part of the “energy + carbon -” standard. In
addition, a bioclimatic approach has been favoured in the design,in particular with the orientation of buildings and roofs;s management tools: as soon as a new Leather Goods workshop is
put into operation, meters are positioned and dedicated software
is set up to control energy consumption and the identification of
possible drifts as accurately as possible;
s new equipment that consumes less energy: the energy impact ofequipment has been introduced as one of the decision‑making
criteria of the equipment investment strategy, for example, in the
Leather métier. As such, new equipment introduced in both newand existing Leather Goods workshops is more energy efficientthan the old. This approach is carried out in partnership with
suppliers. All of the Group’s other métiers benefit from feedback
from this work carried out for leather goods workshops.

In particular, the Cristalleries Saint‑Louis took advantage of theinstallation of the new gas melting furnace, by implementing a heatrecovery solution to provide additional heating to the museum
installed on the site. This heat comes from the cooling water network
for the furnace electrodes. The solution makes it possible to reducethe museum’s gas consumption by more than 40% over one year.
Energy savings have also been made thanks to the in‑depth study ofthe operation of the “openers” (small furnaces for heating the molten
crystal at workstations): it has made it possible to optimise operatingtimes by choosing, depending on the facilities and their technologies,
to shut down unused openers or put them “on standby” at a lower
temperature.

2.5.5

As a major aspect of environmental protection and societal
responsibility, waste and discharge management means that each of
the House’s métiers contributes to the overall effort to reduce theproduction of waste and discharges and to recycle or recover them.

http://www.batiment‑energiecarbone.fr/niveaux‑de‑performance‑a88.html (in French).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALWASTE MANAGEMENTCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTCHANGE IN VOLUME OF WASTE (EXCLUDING FARMS) OVER THE LAST FOUR YEARSWASTENHW 1 in tonnes

2020

2021

2022

2023

6,012

10,043

11,143

12,321

HIW 2 in tonnes

5,189

2,787

3,193

4,019

TOTAL IN TONNES

11,201

12,83014,336

16,340(1) Non‑hazardous waste (NHW): this is waste that does not present any of the 15 hazardous properties defined at European level. Management rules are more flexible
than for hazardous industrial waste. This includes, for example, bio‑waste, glass or plastic waste, wood, etc.
(2) Hazardous industrial waste (HIW): this is waste that presents one or more of the 15 hazardous properties defined at European level: flammable, toxic, dangerous for theenvironment, etc. Hazardous industrial waste is subject to specific management rules due to the particular environmental and health impact risks associated with its handling.

In order to align with European legislation on waste classiﬁcation,
sludge from the treatment of efﬂuents from the Tanneries division has
been reported in the NHW category since 2021; it was previously
reported in the HIW category).

The hazardous industrial waste generated (24.6% of the total) consists
mainly of cullet (crystal debris) that cannot be reused at the Cristalleries
Saint‑Louis but is reused in a metal reﬁnery, sludge and distillate fromsurface treatment sites or dyes used in textile printing units.

Between 2022 and 2023, the quantity of waste increased by 14.0%
at Group level (excluding farms), although this increase is lesssigniﬁcant than the increase in activity.

Waste destination

Types of non‑hazardous waste generated by manufacturing sites
TYPES OF NON‑HAZARDOUS WASTE GENERATED BY MANUFACTURING SITES

2

The wide range of métiers prevents an overall waste management
policy, other than the general principle of avoiding its production andworking to improve its reuse and recovery. Waste management istherefore entrusted speciﬁcally to each manufacturing division bymeans of a dual policy of waste reduction and its recycling wherever
possible. The main contributors are the tanneries, textile, crystal
manufacturing, leather, perfumes and real estate divisions.
In 2023, 53% of waste was recovered (reuse, recycling, energy
recovery), compared with 41% in 2022 and the Group aims toincrease this ratio in the coming years.
Tanneries / 11% increase in waste production in 2023 compared to2022

The increase in waste in 2023 is linked to the increase in production
and the improvement in the treatment of discharged water efﬂuent,
generating more sludge.

The main types of non‑hazardous waste generated by manufacturing
sites are WWTP (1) sludge, process sludge and matter resulting fromcleaning operations, as well as leather by‑products generated during
the tanning steps (non‑usable parts of raw hides or cutoffs related tothinning, for example).

The raw material used in the tanneries is the entire hide, referred toas “raw” hide, a putrescible organic product. Tanning involves
processing the hide into a durable product, a ﬁnished leather, using
successive operations that eliminate matter and generate scraps.
The reduction of tannery waste naturally starts with the improvementof the quality of the raw hides. Tanning then generates unavoidable
waste, associated with trimming the edges of the hides (“trimming”)
or preparing the internal surface of the hide (“ﬂeshing”) to achieve
the desired mechanical properties and touch.
In 2023, an initial mapping of production waste was carried out at
each tannery in order to accurately quantify the losses during the
manufacture of leather and with a view to pooling in the most virtuous
sectors. At the division’s sites, most of the waste is non‑hazardous(over 90%). The source of non‑hazardous waste produced by theleather sector in France is estimated at 37,000 tonnes/year
according to a study by the CTC in 2023, which is relatively low
compared to other sources of waste (elements of comparison in
France: used textiles = 700,000 tonnes, wood energy =3,500,000 tonnes). This explains the lack of recovery channels in
France, especially as the sources are fragmented around the country.

1.

WWTP: Wastewater Treatment Plant.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

171

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTThe tanneries are therefore constantly seeking new reuse channels
and are active participants in the think tanks that are brought
together at Hermès to discuss leather waste, and in the work done by
the Centre Technique du Cuir (CTC). The Tannery division is also
studying the retrieval and recovery of leather scraps from tanning withvarious partners.
The treatment of the hides in successive baths also produces
efﬂuents which are treated in the sites’ treatment plants. This water
treatment generates sludge, the management of which is strictly
regulated in the geographical areas where the Group operates its
tanneries (European Union). In the Tanneries division, this sludge
represents 43% of the non‑hazardous waste generated.
The continuous improvement in the performance of efﬂuent treatment
systems led to an increase of 11% in the production of sludge, which
is sent to specialised treatment centres. Ways are being studied to
improve sludge drying and thus open up new recycling options.
At‑source sorting of waste streams is in place on sites and 100% of
the waste produced is evacuated to approved channels. On‑sitewaste storage is optimised to prevent any pollution risk (shelteredstorage areas, retention basins, etc.) and regular awareness‑raising
initiatives focusing on sorting and the layout of work areas are carriedout among employees.
Farms / 0.2% decrease in waste production in 2023 compared to2022

The amount of waste generated on farms remained constant in 2023(-0.2%) in a context of growth in activity at the new Australian farmand the end of the associated works. Hide inspection activities also
produce waste, mainly non‑hazardous waste (95% of annual
production) and is composed of operating waste (animal by‑products,
sludge from efﬂuent ﬁltration systems, wood or cardboard) as well as
waste from the renovation of facilities (inert waste, plastics or ferrous
scrap metal) and household waste. The salt used in the salting of raw
hides is considered hazardous industrial waste (under the regulations
in force in the States in which the hide processing and inspection
facilities are located) and makes up almost all the hazardous
industrial waste generated by the division. In order to avoid any
pollution, this waste is stored in covered and retention areas. They
are then evacuated to approved local treatment channels.
Textile / 5.5% increase in waste production in 2023, 20% reduction in
waste generated per unit produced

The waste produced on the division’s sites increased by 5.5% in
2023 in a context of strong growth in activity: expressed in intensity,
this represents a reduction of 20% in waste generated per unit
produced.

1.
172

Infected healthcare waste.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

This result is due to speciﬁc monitoring by site, the implementation ofindicators, regular discussions with the teams and theimplementation of supporting actions.
The total weight of hazardous industrial waste remained stable, while
dye waste, which represents 50% of the total volume of hazardous
industrial waste, decreased slightly for the ﬁrst year since 2020. The
volume of non‑hazardous waste increased by 11.8%: 98% of thisnon‑hazardous waste is recycled, composted or recovered.
Some 72% of all the waste from the Textile division’s direct production
was recovered, mainly as energy; 22.6% was sorted and recycled,
4.8% followed another treatment method (mainly composting) andonly 0.6% was incinerated or buried. Thus, only speciﬁc waste isdisposed of in this way, such as IHCW (1) or part of the waste fromisolated sites where there is currently no alternative treatment.
Through monthly meetings involving the sites as well as the service
provider, the sector ensures that recycling and recovery solutions are
systematically favoured. Each new ﬂow is validated.
Each site implements local adjustments to reduce the waste emitted;
for example, the AEI site has changed the packaging machine ﬁlms
from 110 microns to 85 microns, enabling a reduction of 23% inplastic consumed; the ATBC site is working to reduce its cardboard
and plastic waste by returning the thread cones to suppliers for reuse
and working with their partners on packaging optimisation, with anestimated saving of ﬁve tonnes of waste.
At the same time, the Textile division is carrying out in‑depth projects
to signiﬁcantly reduce the volume of waste emitted. Ateliers AS andSIEGL have developed a system for holding textile parts using areusable adhesive ﬁlm to replace glue. This system avoided theconsumption of 2.6 tonnes of glue while production increased.
In order to preserve and use our materials as efﬁciently as possible,
the sector has implemented a major textile offcut recycling project.
This project aims to recycle more than 50% of offcuts of natural
materials by 2024. Over the reference period, 17 tonnes of textiles
were sent for recycling, which represents 22% fewer offcuts comparedto the previous year. Signiﬁcant investments and resources have been
mobilised to deal with this issue: a new workshop has been set up
including a speciﬁc cutting machine and the sustainable development
project manager, who joined the sector in March 2023, dedicates
60% of her time to this.
An exceptional sludge dredging operation was carried out on the ITH
site in 2023 to preserve rainwater runoff around the site. 461 tonnesof sludge were disposed of as non‑hazardous waste. They were notincluded in the total waste generated by the site.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Crystal manufacturing / 14% reduction in waste production in 2023
compared to 2022

leather goods. 90% of all hazardous industrial waste is recycled or
recovered.

The Cristalleries Saint‑Louis is developing a waste sorting, treatment
and recovery policy adapted to the environmental and economic
issues. It is coordinated around the following major axes:

Leather scraps, parts not used in the production unit’s “cutting”
activity, are sold to specialised channels, sorted and reused, bothinternally (§ 2.4.1.6) and externally. These by‑products from activity
are not included as “waste” in this report.

s reduce the amount and harmfulness of waste produced;s prioritise the recovery of products whenever possible;
s choose sustainable treatment channels adapted to the products;
s commit to a green economy that is more respectful of people andtheir environment.

In 2023, the overall quantity of waste produced on the site decreasedby 14%. This reduction is the result of the efforts implemented by the
production unit’s proactive waste sorting, treatment and recovery
policy, as well as being linked to a signiﬁcant quantity of waste
produced the previous year due to the renewal of the gas melting
furnace and associated construction work, which generated a greater
quantity of waste during the ﬁnancial year.
The crystal manufacturing plant is also committed to a circularapproach, with a rate of cullet (production waste) reuse reaching on
average 63% of the share of the raw material composition over thelast ﬁnancial year compared to 57.6% in 2022. This performance hasa dual advantage: recovering production waste and reducing thequantities of raw materials used in the composition of the crystal.
Leather / 19% increase in waste production in 2023 compared to2022 (1)

At constant scope, the quantity of waste generated decreased by 4%compared to 2022. The increase in the amount of waste generated in
2023 is linked to the increase in the number of Leather Goods
workshops.
The proportion of non‑hazardous waste recycled and recovered forenergy out of the total tonnage generated by the Leather Goods
division was 81% in 2023. Household waste represents 59% of thetotal. Composting facilities have been set up at certain leather goods
workshops to recover organic waste and avoid its transportation. The
other main sources of non‑hazardous waste are cardboard (12%) andwood (5%).
The leather goods activity generates little hazardous industrial waste:
8% of the total annual tonnage of waste in 2023. Most of this deposit
consists of packaging, glues and dyes used in the manufacture of

The division also takes part, in the context of the recovery of
production waste, in working groups on the reuse, recycling andrecovery of its waste within Hermès, as well as in the work carried out
by the Centre technique du cuir (CTC – Leather Technical Centre) andother actors.

2.5.6

CONTROL OF POLLUTION RISKS

The policies conducted by Hermès in terms of prevention and the ﬁght
against pollution aim, based on a study of risks, to control them andlimit their impact on the environment, whether on soil, air or water.
Hermès assumes all its responsibilities as a company that places
goods on markets, to ensure the regulatory compliance of all products
sold, in all countries where it operates, in particular in terms ofchemical risk management.

2.5.6.1

EFFICIENT SOLUTIONS FOR WASTE
MANAGEMENT

Hermès is committed to going beyond current regulations to reduce
the use of hazardous substances. Most sites are subject to European
regulations, which are some of the strictest in the world. The House’sinternal requirements, for its own operations and for supplierspeciﬁcations, nevertheless impose limits that may be even more
stringent.

Water discharges
18 manufacturing sites (representing 77% of water abstraction) havetheir own wastewater treatment plants, including ﬁlter gardens. 78%
of industrial water discharges (423,107 m3) were treated on site bythese plants, with the most appropriate technologies for thesubstances discharged in accordance with the limits imposed by theenvironmental authorities, almost exclusively in France. 7% of
industrial water discharges are composed of water from washrooms.
The rest of the wastewater discharged is sent to municipal treatment
plants.

WATER DISCHARGES in megalitres

2021

2022

2023

Change 2022/2023

Manufacturing sites

529.0

591.8

543.3

-8.2%

Farms

4,523.4

4,231.0

4,204.5

-0.6%

TOTAL

5,052.5

4,822.8

4,747.8

-1.6%

1.

2

For comparison purposes, the waste production of the Leather logistics site located in the Lyon region is not included in the indicators in this paragraph but is
included in the Group’s overall waste production.
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

173

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Breakdown of the highest level of treatment of the plants at
manufacturing sites:s primary treatment (primary physico‑chemical treatment
flocculation, settling, formation of primary sludge): nine plants;s tertiary treatment (with, for example, microfiltration, ultrafiltration,
nanofiltration, reverse osmosis, filtration on granular media,
infiltration‑percolation, targeted treatment – nitrogen, chlorine
disinfection, ozone, UV, dephosphatation, activated carbon):eight plants including one temporary prior to construction of thepermanent plant.

–s secondary treatment (biological treatment – bacteria): one plant;

8 STATIONS

1 STATION

9 STATIONS
Primary treatments

Secondary treatments

Depending on the activity, regulations and agreements signed withthe operators of municipal wastewater treatment plants, themanufacturing sites monitor various parameters such as temperature,pH, suspended solids, biochemical oxygen demand for ﬁve days
(BOD5), chemical oxygen demand (COD), phenol index,
organohalogen compounds (AOX), concentrations of nitrogen (N),phosphorous (P), nitrites (NO2), nitrates (NO3), ammonia (NH3),
ammonium (NH4), and heavy metals.

Tertiary treatments

At these sites, chemical oxygen demand (COD) is one of the water
quality parameters measured. In 2023, 362 tonnes of oxidisable
substances measured by COD were released (395 tonnes in 2022),of which a very large quantity will be treated by downstream municipal
stations. New indicators and targets will be put in place by 2025 forthe quality of discharged efﬂuents, in line with the expectations interms of reducing the “freshwater pollution” pressure that Hermès
takes into account through the use of the SBTN method (§ 2.4.3).
As stipulated in § 2.5.1.4, no site has been subject to a formal notice
relating to water quality.

DESTINATION OF WATER DISCHARGES FROMFARMS AND MANUFACTURING SITES in megalitres

2021

2022

2023

Breakdown

Change2022/2023

Water discharged on the surface(marshes, rivers, lakes, etc.)

4,464.0

3,818.4

3,332.3

70.2%

-13%

Water discharged to a third party

588.5

484.1

447.7

9.4%

-8%

Water used for irrigation
TOTAL

-

520.3

967.8

20.4%

+86%

5,052.5

4,822.8

4,747.8

100%-2%

Atmospheric emissions excluding greenhouse gases
Air emissions from manufacturing sites are related to the operation of
furnaces, boilers, surface treatment activities, dry degreasing
activities, spray booths, as well as the use of solvent‑based products(adhesives, chemical printing pastes, etc.). Veriﬁcations of emissions
from such equipment, as identiﬁed in the prefectural orders or site
permits, are performed in accordance with the applicable regulations.

174

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The solvent management plans are regularly updated and sent to theauthorities.
Depending on the activity and regulations, industrial sites monitor
various parameters such as emissions of volatile organic compounds(VOCs), sulphur oxides (SOx), nitrogen oxides (NOx), hydrochloric acid(HCl), heavy metals, dust and cyanides, total acidity, total alkalinity.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Tanneries

The quality of efﬂuent discharges is central to sites’ environmental
concerns. Each tannery is equipped with an efﬂuent treatment stationand veriﬁes that its industrial emissions comply with the applicableregulations. These points are systematically reviewed and audited aspart of LWG certiﬁcations. Regulatory inspection reports, as well as
improvement projects, are submitted to the local authorities on aregular basis. As a reminder, the tanneries are solely located in
France (six sites) and Italy (one site), and their stringent regulations
are subject to frequent controls. In accordance with these regulations,
the Group monitors, among other measures, the biological andchemical oxygen demands of its discharged water and ensures thatthey do not exceed the thresholds set by its prefectural orders. To
date, 100% of our water is treated internally and 98% of this water
enters the municipal network for a further treatment in the municipal
stations.
Among our sites, the Vivoin tannery has one of the Group’s mostadvanced water treatment levels, with primary, secondary and tertiarywater treatments enabling the achievement of COD levels well below
the very strict discharge limit. This performance is achieved thanks toan ultraﬁltration unit and two activated carbon ﬁlters. The Cuneo
tannery and the Tanneries du Puy are also equipped with primary,secondary and tertiary treatments, and the others have a sufﬁcientlevel of primary physico‑chemical treatment to ensure the complianceof discharges. It is also planned that the quaternary treatment of thedischarges of the Tanneries du Puy will be operational by 2028 inorder to achieve the water quality necessary for its reuse inproduction.
Between 2020 and 2023, more than €12 million was dedicatedexclusively to projects to improve the quality of water discharged.
In addition to simple regulatory compliance, the division’s tanneries
are working to further improve the quality of waste in order to develop
solutions for the reuse of water for washing and production.
A pilot reverse osmosis unit was tested during the year at theMontereau tannery, as was the reuse of the concentrate from theevapo‑concentrator.
At the end of 2023, the Vivoin tannery also began trials by directly
recovering water from their treatment plant in order to measure theimpact on the quality of the leathers.
The Annonay tannery is studying the possibility of reusing water
directly from the municipal WWTP located downstream of the tannery.
The Cuneo tannery already reuses rainwater for maintenance andcleaning purposes thanks to retention basins installed on the roofs,
thus enabling water savings of 15%. The implementation of a similarsolution is also planned at the Montereau tannery.
Numerous studies and optimisation projects for tannery waste
management facilities are thus carried out annually. The amount of
this work represented an investment of around €10 million in 2023, a
sharp increase due to the start of work on the Tanneries du Puy
WWTP.

Air emissions at the division’s tanneries result primarily from theoperation of the boilers, the dry degreasing activity and the ﬁnishingbooths. Veriﬁcations of such equipment, as identiﬁed in theprefectural orders or site permits, are performed in accordance withthe applicable regulations. The solvent management plans are sent tothe authorities and the consumption of VOCs per hide is audited andis subject to a performance assessment as part of the LWG
certiﬁcations.

2

Farms

In Australia, 32% of water discharged from animal farming is reusedthrough irrigation projects after ﬁltering. All of the agricultural water
discharged by one of the farms is notably reused to irrigate
sandalwood in collaboration with Hermès Perfume and Beauty inorder to harvest the essence of the wood in a circular manner withina few years, as a raw material for their formulation.
Irrigation systems are also set up on other farms to produce fodder
for local farmers or to irrigate sugar cane plantations on neighbouring
agriculture farms in an industrial ecology scheme.
These projects are a priority area of work as part of the water strategy
rolled out by the Farms division.
A study is also underway on the American farm to map uses,
characterise the water resources and identify relevant planting/irrigation projects for the breeding and tanning activity.
For all tanneries and farms, the compliance of water discharges ischecked at a frequency adapted to the monitored parameters andregulations: half‑yearly, quarterly, daily or continuous measurements.
Most of these parameters are measured at a higher frequency thanthat required by the authorities. The control samples are analysed onsite or in approved external laboratories. The results of internal
analyses are compared once or twice a year with those obtained byan independent and certiﬁed laboratory. In the event of a deviationfrom regulatory requirements, precautionary measures are
immediately taken and actions are implemented to return within thedeﬁned parameters. All information is quickly transmitted to theauthorities as well as to the managers of the wastewater treatment
plants in urban areas, most of the time using dedicated IT platforms.
TextileThe three sites of the Textile division, which account for 98% of water
discharges, are subject to daily self‑monitoring of efﬂuents. To ensure
the reliability of these data, audit and calibration plans are regularly
implemented.
The AEI and Ateliers AS sites, whose efﬂuents are treated by themunicipal WWTP, are gradually being equipped with physical andphysico‑chemical pre‑treatment plants that will improve the quality of
the water discharged, while incorporating the possibility of reusing
manufacturing water in the process. For example, the chemical
oxygen demand (COD) will be halved at Ateliers AS and reduced
seven‑fold at AEI, where the objective is to discharge to the municipal
WWTP water whose quality would meet the levels required fordischarge into the natural environment. For Ateliers AS, the building
permit was ﬁled in December 2021 and the facility will be operationalin 2024. The AEI site is in the consultation phase.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

175

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTOn the SIEGL site, the new high‑performance WWTP, whose
construction began in 2018, is equipped with secondary biologicaltreatments as well as tertiary treatments by membrane ﬁltration andactivated carbon. The WWTP is operational and the results are in linewith expectations, with COD and BOD5 concentrations below thethreshold set by prefectural decree (150 mg/l). The site is beginningthe ﬁnal phase of this WWTP relating to the stabilisation and reuse ofwastewater, whose rates reached an average of 23% in 2023, withpeaks of 45%.
Crystal manufacturing

The Saint Louis crystal manufacture adopts the same rigorous
treatment of its discharges and efﬂuents for the excellence of its
production. As such, the processes are continuously improved andoptimised upstream to:s reduce the quantity of discharges induced by the activity;s reduce the concentration of any pollutants as much as possible in
the waste;s guarantee the harmlessness of waste coming out of treatment
cycles.

In line with the decrease in water consumption in 2023, the total
volumes of water discharged by the site were also down by 2% overthe same period. The water discharged comes from acid efﬂuent
neutralisation plants, treatment plants by settling for suspended
solids and a plant and mineral treatment for all ﬂows, described
below:The Cristalleries Saint‑Louis have implemented an innovative water
puriﬁcation solution based on nature and use the technique ofphyto‑restoration to treat part of the water discharged, a techniquemore respectful of the environment which avoids the use ofphysico‑chemical treatment techniques (§ 2.5.3.1.1). Requiring no
input of energy or chemicals, the “Jardins de Saint‑Louis” provide
optimal water puriﬁcation and their performance is superior to that ofa traditional physico‑chemical installation. This solution is based on a
triple device of ﬁltering basins:

Manufacture de Métaux

As part of its commitments to preserve the environment and comply
with regulations in force, Hermès Manufacture de Métaux implements
measures aimed at signiﬁcantly reducing its emissions into theenvironment, whether they are water or air emissions.
Concerning the management of discharges to water, the production
units specialising in the surface treatment of metals are adopting an
ambitious “zero discharge” policy. To this end, their sites areequipped with stations incorporating ion exchange resins andevapo‑concentrators, which recycle water in a closed circuit.
With regard to atmospheric emissions, HMM’s electroplating factories
comply with rigorous standards deﬁned by prefectural decrees, thus
limiting emissions into the air. To meet regulatory requirements, HMM
has equipped its facilities with source capture systems.

2.5.6.2

CHEMICALS MANAGEMENT

2.5.6.2.1

Compliance to restricted substances

General principles

Two main activities make it possible to respect Hermès’ commitment
as a responsible company marketing products by guaranteeing theirregulatory compliance, in all countries where the Group operates:s regulatory monitoring is carried out by various players, via various
actions and is coordinated by the industrial department:• coordination of the Colbert Committee’s “Chemical regulations”
working group,• participation in the “Regulations” working group of Francéclat
(Porcelain and Silversmith), the BJOP (Jewellery, Silversmith),• regulatory update at least once a year with the CTC (Leather),
IFTH (Textiles), FPPP (Porcelain), BJOP (Jewellery, Silversmith),
the Fédération du Verre et du Cristal, the Fédération Horlogère,s plant filters, reeds of the phragmites family, planted in peat, cantrap suspended matter and nitrogenous pollution;• taking into account the monitoring prepared by a specialiseds mineral filters, surrounded by perennial herbaceous plants(miscanthus) then trap the soluble metal compounds by drainage;• update twice a year (during the podiums), with all the House’ss finally, plantations of endemic species complete the device andintegrate it into the landscape.

The environmental monitoring of the quality of these discharges after
treatment demonstrates its effectiveness: no deviation has been
observed from the reference data and the qualitative and quantitative
thresholds.
Leather

The Leather Goods workshops mainly use manual manufacturing
processes that do not require water. The only wastewater discharge
concerns water used for washrooms, which does not require on‑sitetreatment and in most cases is directed to public wastewatercollection networks. However, the Nontron and Sormonne Leather
Goods workshops have a wastewater treatment facility that operates
using the principle of phytoremediation.

176

None of the Leather division’s sites received an administrative formal
notice for reasons of non‑compliance of wastewater discharges.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

service provider (Bureau Veritas) on certain products,
subsidiaries, on the regulatory changes relating to products ineach country. Any incidents are dealt with in these meetings;
s product validation from a regulatory point of view, which is carriedout at two levels:• the annual update of product specifications (CDC), which takes
into account all the results of regulatory monitoring. These
CDCs include compliance with the most stringent productregulations in the world (all countries to which Hermès exports
products). It is generally the European regulations that are themost demanding, although this is not always the case,• all products are tested (internally and/or externally), in qualified
laboratories, on the technical criteria and in accordance withthe standards described in the product specifications.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

List of restricted substancesHermès Group has a single Restricted Substance List (RSL), which
includes all substances that are or could be used in its products. For
each substance, the most stringent regulations in the world aresystematically adopted. The aim is to produce products that comply
with regulations, regardless of the country in which they are sold.
The RSL is shared within the Colbert Committee working group. This
list of substances is shared with our partners and suppliers but it is
not public to preserve the conﬁdentiality of certain exclusive
processes. Such distribution would not be of great interest, since thislist contains only public information, being a collation of national orfederal regulations. For each substance, the name of the substance,
its CAS number, the most stringent limit in the world and thelaboratory control standard for the substance appear.
Use of restricted substances

The Group’s list of substances, the permitted limits as well as thecontrol standards, are common to the production units and apply tothe suppliers. More speciﬁcally, product speciﬁcations (including thissubstance regulation) are shared with suppliers. The approval of
products manufactured by suppliers follows exactly the same pattern
as products manufactured by the Group. A good example is that of thetanneries: the Leather métier purchases hides from the Group’stanneries, but also some of its needs from external tanneries, withidentical speciﬁcations regardless of the source.
Hermès has put in place preventive processes to restrict or prohibit
certain substances, in particular by discussing and signing productspeciﬁcations with suppliers, which contains all the regulations andtechnical requirements, as well as the corresponding control
methods.
Control of materials and products

For its raw materials, Hermès adapts the frequency and type ofcontrols according to the volumes concerned. For very limited
volumes, control may be at the unit level, but it is carried out on a
statistical basis for larger volumes. Depending on the nature of thematerials, which can be technically very different (leathers, textiles,
perfume essences, etc.), the volumes and the history of the quality
results, a sampling and testing frequency is chosen by the quality
department to ensure a maximum conﬁdence level in the quality ofincoming materials. In the event of a negative result, the goods areblocked and sampling and controls increased.
With regard to products (whether manufactured in‑house or by
suppliers), the Group procedure is exactly the same: the aim is toverify, with a maximum level of conﬁdence, that the entity placing thegoods on the market has fulﬁlled its responsibilities. Some of theHouse’s products are subject to checks on every unit for certain
characteristics considered critical. Others are checked on a regularbasis and some are checked on a random basis. The great diversityof products (leather goods, textiles, porcelain, crystal, silversmith,jewellery, watches, ready‑to‑wear, perfumes, etc.) means that an

appropriate control scheme and the proper frequency must be
deﬁned for each product.
Hermès uses the services of both in‑house and external laboratories
for these checks. This decision is made according to the workload of
the in‑house laboratories as well as the nature of the measurements
to be carried out.
In summary, the Group’s generic procedure (SOP) is that no raw
material or product is supplied without a speciﬁcation being deﬁned
and accepted by the supplier, and without the raw material or theﬁnished product having been tested according to these speciﬁcations.

2

Supply chain compliance

All raw materials purchased, like any products purchased, are subject,on the one hand, to speciﬁcations that are discussed and formallyapproved by the supplier and include all the regulations
corresponding to the materials and/or products, and on the other
hand, to technical validation including laboratory measurements. All
deliveries (raw materials or products) are subject to appropriatequality control. Certain supplies (materials or products) areaccompanied by an inspection certiﬁcate, the tests having been
carried out by the supplier, when this provision is stipulated in thespeciﬁcations. Tier 1 suppliers undertake to develop the same
approach (formal speciﬁcations, control procedures, etc.) with theirown suppliers (Tier 2).
In the event of non‑compliance with the speciﬁcations for raw
materials or products, the goods are blocked and, generally, a second
veriﬁcation check is launched. Hermès does not use non‑compliant
goods in its production. They are therefore returned for new
manufacture or repair when technically possible.

2.5.6.2.2

Management of risks related to the useof chemical products

General principles

The Hermès craftsmanship model means that 55% of its objects areproduced in‑house, in exclusive workshops, 76% of which are locatedin France. The remaining 45% come from suppliers, the vast majorityof which are located in France and Europe. Thus, of the top 50 direct
suppliers (materials or products), 58% are located in France and 40%
elsewhere in Europe.
For all sites located in France and Europe, labour legislation requiresa chemical risk analysis and the implementation of measures toprotect workers. In owned units, as well as those of suppliers, regular
audits are carried out to verify that the analyses are properly carriedout, and the means of protection are in place and used. The national
regulator also imposes a limit on chemical substances released into
the air, efﬂuents and soil. In the House’s own units, as well as thoseof suppliers, regular audits verify that each entity is fully aware of theregulations to which it is subject, that the necessary means to comply
with them are in place, and that regular checks make it possible toensure that these methods are working.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

177

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

For the small number of suppliers further aﬁeld, for the majority ofmaterials suppliers, regular audits are used to verify regulatorycompliance, in terms of health and safety, as well as the environment.
In the event that local legislation does not exist or is insufﬁcient,Hermès helps its suppliers to adopt and comply with European
standards.
Implementation

The chemical risk management approach is based on legislation
which, in France and in Europe, is generally hazard‑based.
The regular and in‑depth audits carried out by Hermès in all entities,
as well as the appropriate frequency of product checks, ensure thatany use of chemical substances banned by Reach‑type regulations,for example in a French or European tannery, is immediately revealed.
The main tool for managing chemical risk is the product speciﬁcation,
which includes a list of restricted substances. An accurate andexhaustive reﬂection of the most demanding regulations worldwide, itlists all the requirements in terms of substances, the limits set, andthe corresponding laboratory control methods. The procedure begins
with the sharing of this document with the supplier (in‑house or
external), then follows a formal agreement from the supplier, and it iscompleted by an approval check of the ﬁrst products delivered. During
the “series life”, checks are carried out at an appropriate frequency.
The choice of chemical reduction and/or elimination projects is mainly
based on an analysis of future regulatory changes. It is in this spiritthat the Group conducts a very strict regulatory watch, both in France
and abroad.
When a probable change in regulations is identiﬁed for a substance ora family of substances, an estimated decision schedule is drawn up
in order to set out the work to be carried out and the timetable.
Hermès has set up a third‑party certiﬁcation target for each of its
purchasing supply chains (more than 60 listed in the Supply chain
brief), which also includes aspects related to the use of chemical
products (§ 2.4.2).
In line with the commitments made by Hermès, the Tanneries division
has also deﬁned an LWG audit programme for its sites.
Tanneries

Established in Europe (France and Italy), the Group’s tanneries meetthe highest standards in terms of protecting the health of theiremployees, customers and the environment.
The Group’s approach is based in particular on the implementation of
the European REACH regulation. It aims to control and protect humanhealth and the environment against risks related to chemical
substances by eliminating the most harmful substances andguaranteeing their absence in ﬁnished products above deﬁned
thresholds.
When standards outside the EU are even more demanding, they are
adopted by the Tannery division. This is the case, for example, for1.
178

formaldehyde, whose standard is set at 100 ppm in Europe, and at
75 ppm in China: it is the latter standard that the Group has adopted.
Overall, the Group is constantly investigating scientiﬁc and regulatory
developments in order to adapt the products it uses throughout thehide tanning process. It has thus replaced CMR products(carcinogenic, mutagenic and reprotoxic) and does not accept any
new CMR substances. The few CMR substances still used are inminute proportions, strictly controlled and supervised in order toguarantee the safety of the teams throughout the production process.
As the management of chemical products is a major issue for its
activity, Hermès Cuirs précieux joined the ZDHC (Zero Discharge ofHazardous Chemicals) initiative in August 2021. The ZDHC Roadmap
to Zero Programme aims to implement best practices in terms of theuse of hazardous substances and the quality of wastewater
discharges in tanneries. The implementation of the ZDHC protocol inthe division’s tanneries began in 2021 and continued in 2022 withthe support of an internal laboratory to ensure the safety of theleathers placed on the market and the quality of incoming products,
in accordance with related regulations.
This is reﬂected, for example, in the implementation of a
Manufacturing Restricted Substances List (MRSL), including during
production, and guarantees by product formulators that theirchemical products do not contain these substances. As part of the
LWG certiﬁcations of the tanneries, the Group has mapped its level ofachievement of the MRSL and is now aiming for 100% compliance.
The Group also relies on the savoir‑faire of its suppliers, whothemselves usually beneﬁt from the recognition of reference labels(such as the EcoVadis gold rating, for example).

2.5.7

CLIMATE CHANGE

Global warming, its impact on biodiversity and the industrialisation of
raw materials are areas of concern, which we address through our
climate strategy, our concrete initiatives in terms of responsible
supply chains and our policies to preserve natural resources.
Thanks to its craftsmanship model and a production mainly in France,
Hermès is today one of the lowest carbon emitters among CAC 40
companies. Nevertheless, taking all the necessary measures tocombat climate change, the Group has stepped up all actions aimed
at reducing the Group’s footprint since 2020. Hermès has developed
a climate transition plan which is available on the Hermès Financewebsite (1). The Executive Committee thus updated and validated theGroup’s strategy with ambitious objectives founded in science,
through its membership of the Science‑Based Targets initiative (SBTi)in order to achieve zero net emissions by 2050. SBTi validated theemission reduction targets for scopes 1, 2 and 3 at the end of 2021,
thus recognising Hermès’ commitment to the ﬁght against climatechange and its commitment to reducing its direct and indirectemissions, helping to limit global warming to 1.5°C by 2100, in
accordance with the Paris Agreement.

https://assets‑finance.hermes.com/s3fs‑public/node/pdf_file/2023‑07/1690390732/hermes‑climate‑transition‑plan‑july‑2023‑ven.pdf

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Hermès’ policy in this area is implemented as a priority on the mostsigniﬁcant issues. Practical measures to substitute fossil fuels used,
and reduce its energy consumption and carbon footprint across all
scopes. The control of greenhouse gas (GHG) emissions is achieved
through direct reduction actions throughout the value chain, as wellas outside Hermès’ sphere of inﬂuence through ﬁnancing of projects
with positive impacts, including for the ﬁght against global warming.

Objectives:s implement a policy of 100% renewable electricity within its own
operations by 2025 and 100% renewable energies by 2030;s achieve the phase out fossil fuels at manufacturing sites;s reduce absolute value by 50.4% for scopes 1 and 2 emissions
over the period 2018 to 2030;
s reduce relative value by 58.1% for scope 3 emissions over theperiod 2018 to 2030 – this objective means involving the
supply chain in the process, as well as suppliers and partners;

INTERNAL CARBON PRICE
As part of the operational implementation of the strategy to phase out
fossil fuels, the Group has decided to set up an internal carbon pricemechanism to strengthen decisions favourable to the energy
transition. This price was calculated on the basis of internalsimulations and compared to a CDP sector benchmark. Set
since 2021 at €40 per tonne of CO2 equivalent, it may change
according to economic conditions and its revaluation is subject to theassessment of the Sustainable Development Board. It is currently
used in notional form for the calculations of comparisons of industrial
investments (scopes 1 and 2), real estate investments (scopes 1, 2
and 3), as well as for new transportation contracts (scope 3). Morespeciﬁcally, this carbon price makes it possible to “put a cost” on thenegative climate externalities generated by certain industrial
investments, and promotes the adoption of less emissive solutions.
For example, the adoption by one of the Group’s tanneries of asolution for drying hides based on using a heat pump, rather thangas, was allowed by re‑weighting the actual cost, including
environmental externalities, for the second option.

2
s reduce the carbon footprint by 50% per m of real estate spacebuilt or renovated by 2030, compared with 2018;

MEASURES IMPLEMENTED AND RESULTS

s achieve net zero emissions by 2050.

As illustrated above (§ 2.5.1), the House has taken various measures
to reduce the use of energy in its various activities, and to use
renewable energies as much as possible. The programme “Phase out
fossil fuels at manufacturing sites” carried out across all HermèsGroup divisions is an illustration of the measures undertaken.

In addition, Hermès is attentive to the transparency and consistencyof its policy with that of the sector by presenting its actions according
to the framework recommended by the TCFD (Taskforce on
Climate‑related Financial Disclosures, § 2.7.2.2.2), responding the
CDP climate questionnaire (on which it received an A rating in 2023)
and participating in market initiatives such as the UNFCCC (United
Nations Fashion Industry Charter for Climate Action).

POLICYThe Group’s policy is to make a resolute commitment to a low‑carbon
world with quantiﬁed targets set out in a timetable. This policy is
reﬂected in its climate transition plan. It is broken down into several
areas such as measuring the impacts of its activities on all scopes 1,
2 and 3, taking priority actions to reduce emissions in the various
categories where the Group can act, and then implementing
offsetting initiatives.
It also incorporates a forward‑looking vision through an analysis ofrisks related to climate change that bear on its operations andbusiness model (physical and transition risks) using scientiﬁcallyrecognised scenarios including those of the IPCC (SSP1‑1.9,
SSP1‑2.6, SSP2‑4.5, SSP3‑7.0, SSP5‑8.5).
The new CSR governance structure established at the end of 2022(§ 2.1.6) places the supervision of the Group’s climate policy directlyat the heart of the Executive Committee’s responsibilities.

2

Hermès is working to achieve long‑term change and is investing in the
future to implement technical and/or organisational solutions that will
make it possible to signiﬁcantly reduce our energy consumption andin a sustainable manner. All métiers are therefore working on a plan
to reduce their consumption and change their energy mix, which
conﬁrms our SBTi trajectories.

2.5.7.1

STUDYING RISKS AND ACTING TO REDUCE
THEIR IMPACT

Hermès is striving to reduce the impact of its activities on the climate,
and the House is examining potential adaptations to its value chain(internal, external) in order to reduce its exposure to the effects ofclimate change. Depending on the regions and métiers concerned,
the latter will have different impacts on Hermès’ activity, through:s the physical consequences of climate change (extreme climate
events, increase in temperatures, increased or decreased rainfall,etc.);s the impacts of measures taken for the transition towards alow‑carbon world, in particular the fastest measures (transition
risks: carbon tax, regulatory changes, client behaviour, etc.).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

179

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

The impacts will depend on the extent and severity of these changes,
in the same way as the various factors such as location, sensitivity of
the upstream supply chain, the quality and capacity of local
infrastructures and, more generally, the behaviour of the other players
in the Hermès Group’s ecosystem.
Hermès has based its approach to adapting to climate change on theidentiﬁcation of risks and the assessment of their relevance in orderto deﬁne action plans within each métier, with the assistance of aconsulting ﬁrm and the use of authoritative tools.
This project, coordinated by the industrial affairs and directpurchasing departments, has involved around 20 high‑level
executives from the Company since 2020, in order to have both aprecise vision of the issues at stake, and facilitate the subsequent
implementation of measures that could result from these analyses.
The exposure to transition risk is studied both by the audit and risk
management department in its vertical analysis of the House’s main
activities (production métiers, retail subsidiaries), by the industrial,
direct purchasing and sustainable development departments and by
the Sustainable Development Committee, with a more transverse
vision that covers the main issues (water, climate, etc.).
In its responses to the CDP Climate questionnaire, Hermès details
several examples of identiﬁed risks and opportunities related toclimate change, which are listed below. The analyses are conductedalong three time horizons (within three years, within ﬁve years, andwithin 25 years).
A risk of a carbon tax at borders could, for example, weigh on Hermès’transportation of goods or raw materials. According to the informationin the 2023 World Bank report on the state of and trends in carbon
pricing and the opinions of experts on its implications for French
companies by 2050, this estimated price would be between €50 and€250 per tonne of CO2 equivalent, according to the scenarios by2050. Reducing the impact of this risk involves decarbonisation of
supply chains and the promotion of less carbon‑intensive modes oftransportation, such as rail and maritime transportation.
The physical risks related to climate change could impact the
production sectors for raw materials, such as Brazilian silk or
European leather.
Heat waves, increased temperatures and droughts can impact thehealth of silkworms and silk production in Brazil. The consequences
are already visible: a drought in 2020 resulted in a two‑month delay
in silk production. If climate change were to perpetuate these annual
droughts, the consequences for Hermès could include production
delays of a similar duration. To strengthen the resilience of this
sector, Hermès is already providing ﬁnancial support to its partner inBrazil for its work in adapting to climate change. The Group has also
anticipated the subject to reduce the potential impact of this risk by
setting up a buffer inventory of silk.

1802023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

These climate risks can also have an impact on leather production in
Europe and lead to an increase in animal mortality or a reduction in
the quality of the leather. In order to prevent the risk of animaltransportation bans during periods of high temperatures, Hermès
optimises its use of raw materials, in particular for calves, and has
established back‑up reserves of hides in its own operations.
In terms of opportunities, the decarbonisation work at Hermès’ sites,
as well as the care taken in new buildings, are a source of energy
savings for the Group, in a context of pressure on energy supplies. For
example, for the latest Leather Goods workshops in Louviers andSormonne, which hold the E4C2 label, the energy savings are
signiﬁcant in comparison with the energy consumption of similar
manufacturing sites, for the entire period of use of the buildings. In
Louviers, the site’s energy consumption savings are greater than
€1 million over a 15‑year lifespan.
The repair service, available to Hermès customers worldwide, offers
the possibility of extending the life of Hermès objects, thus limiting
the carbon footprint over an extended life cycle. This is made possible
thanks to the attention paid to repairability from the design stage, as
well as to the craftsmanship techniques. As a reminder, in 2023,
craftspeople repaired 202,000 products.
An analysis of the physical risks related to climate change was carriedout on two of the House’s emblematic value chains, from the sourcingof materials to the stores: leather and textiles. Eight scenarios wereselected to test the resilience of these value chains. These scenarios
were developed taking macroeconomic studies into account as wellas industry analyses:s six direct impact scenarios were developed for the supply of raw
materials for the sectors studied: exotic leathers, cowhide,cashmere and silk. They combine various predictable impacts on
the supply of raw materials and on the production of products:
droughts, rising temperatures, heat waves, rain and hurricanes.
They make it possible to identify existing capacities for adaptationand those that Hermès could strengthen, region by region: SouthAmerica (silk); Louisiana, Australia, Africa (precious leathers);
Mongolia (cashmere); Europe (manufacturing sites);s two systemic scenarios of direct and indirect impacts on Hermès’global business were examined, modelling a succession of extreme
events in France or modelling a global health and food crisis to test
the resilience of the upstream and downstream logistics chains,production and product distribution. They are built on the basis ofsystemic failures of support functions and/or external service
providers outside Hermès’ métiers. They combine original hazards
that are difficult to predict but have a major and systemic impact
on entire regions, such as the “black swan”. These scenarios makeit possible to identify potential weaknesses in Hermès’ value chain
and enable stakeholders to be included in the consideration of the
impacts of climate change. For example: implementation ofoperational business continuity plans, monitoring of certain signals
to be put in place to anticipate these hazards and deal with themwhen planning ahead is not possible.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTILLUSTRATION OF THE METHODOLOGY USED FOR THE PHYSICAL RISK ANALYSISSCENARIOS ANALYSIS METHODOLOGY(PHYSICAL RISKS)EXPOSURE(IMPACTS AND CONSEQUENCES)

CLIMATE RISKSVULNERABILITY

being presented to the management of the various sites so thatappropriate resilience plans can be developed.
An analysis of transition risks was carried out in 2023 by theindustrial and direct purchasing departments, with the help of anexpert ﬁrm, in order to anticipate changes in Hermès’ upstream value
chain and the impacts on activity. It makes it possible to use different
transition and climate change scenarios to test the business model,
in order to identify the axes and levers of resilience in the face ofidentiﬁed vulnerabilities and to devise the initial solutions, which canbe adapted as short, medium and long‑term operating strategies foreach activity impacted. The study identiﬁed paths of resilience for
Hermès, in order to secure its supplies for several strategic resources
to 2050. It comprises:2

s a diagnostic to assess the availability of six of Hermès’ strategic
resources, leather and textile materials, under contrasting
decarbonisation and +2°C warming scenarios;
CLIMATEPROJECTIONSAGGRAVATINGCIRCUMSTANCESLOCALISATIONOF ACTIVITIESSENSITIVITY
OF POTENTIAL
IMPACTSCAPACITYTO ADAPTRESILIENCE

SPECIFICITIY
OF ACTIVITIESIn each of these pessimistic scenarios, the risks likely to materialise
are taken from the study of global IPCC projection data (for a period of
10 to 15 years) or regional data, for example from the European
Environment Agency (20 to 30 year horizon). Each scenario describes
the potential impacts of major importance for Hermès, the triggeringrisks and their evolution in the short, medium or long term dependingon the geographical area studied. Materiality grids, classifying
impacts according to their likelihood and potential impacts, make itpossible to rank the issues identiﬁed. The conclusions of these risk
studies are then taken into account and integrated into the métiers’
action plans.
In 2023, Hermès continued to roll out the assessment of its activity’s
exposure to climate risks. As a reminder, an analysis of water‑related
climate risks (droughts, ﬂoods, water stress, etc.) was carried out by
WWF France in 2021. The partnership continued this year, to conduct
in‑depth audits. Each audit enabled us to better understand the risks
and to create a speciﬁc action plan. Hermès is ready to help its
suppliers if they need to adapt to physical risks (technical, material
and ﬁnancial support, as needed).
The Hermès Group Services teams and the Hermès International realestate department reviewed the risk analysis previously carried out inthe sectors. The two departments have deepened the analysis of theresilience of the sites by undertaking an analysis of the physical risks
to which all sites located in France may be exposed. This analysis iss a strategy and initial action plans to establish low‑carbon andresilient models for the production of these resources and theimplementation of complementary and sustainable alternative
sectors.

The availability of high‑quality climate scenarios is an issue for thesetransition risk studies. Hermès is therefore also committed to acollaborative strategic foresight approach that brings together morethan 15 large companies and organisations from various sectors, aswell as research institutions (UGA, Cirad, EM Lyon, University of Paris,
ESCP Europe, University of Georgetown). This project is called the IF
Initiative (formerly IRIS).
Coordinated by an expert ﬁrm (Carbone 4), the work carried out by
this group of players aims to:s build shared, enforceable and rigorous tools (forward‑looking
scenarios) and methods that enable companies to design
strategies based on “physically” realistic transformations andcollectively anticipate the disruptions caused by the confrontation
with planetary limits (resources, climate);s develop a “methodological grammar” with companies in order tostructure and facilitate discussions with their stakeholders on
forward‑looking subjects such as the future of mobility under theconstraints of resource supplies, or changes in lifestyles.

All conclusions will be freely accessible (open source) to ensure theirwide distribution and use.
As a founding member of the initiative, Hermès will contribute inparticular, alongside representatives of other companies and a groupof experts, to the construction of scenarios (for example, thedetermination of assumptions). After a pre‑project phase completed
in 2022, work continued in 2023 and breaks down into three
one‑year stages.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

181

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

2.5.7.2

REDUCING GREENHOUSE GAS EMISSIONS

Since 2013, the Group has been equipped with the tools needed tocarry out an annual update of the overall assessment of greenhousegas emissions from its production and distribution sites. This work is
carried out with the help of an independent specialist ﬁrm, using the
Bilan Carbone® (carbon assessment) method and the GHG Protocol.
In compliance with the requirements of the applicable regulations(Article 75 of law 2010‑788 of 12 July 2010), since December 2015
Hermès has published its carbon footprint in accordance with themethod and scope indicated by the legislation in France (directemissions generated by ﬁxed and mobile sources, and indirectemissions associated with the consumption of electricity, heat or
steam).
Hermès details its scopes 1, 2 and 3 greenhouse gas emissions inthis report and on its Hermès Finance website for the scope requiredby law (Article L. 229‑25 of the French Environmental Code).

2.5.7.2.1

Greenhouse gas emissions assessment

The Group expanded and structured its climate action in 2021, withthe following choices, approved by the Executive Committee.
Carbon reporting is fully aligned with the data detailed in the CDP(Carbon Disclosure Project), for which quantitative and qualitative
information is public. The CDP questionnaire gives Hermès theopportunity to develop its climate actions in more detail.
Hermès has decided to report on all scope 3 categories, even if thisrequires working on the basis of estimates for certain items (several
stores, for example), considering that the quest for completeness
contributes to the transparency of the analysis. For certain categoriesof the GHG Protocol, calculations or estimates led to non‑material
amounts (threshold below 0.5% of the total). They do not give rise to
any speciﬁc monitoring and are listed below as “not signiﬁcant”, inaccordance with the GHG Protocol methodology.
The results will be analysed according to the long‑term objectives(target for 2030), compared to the baseline situation adopted by theGroup for 2018 (ﬁrst year of contribution to the CDP, published in2019). This choice makes it possible to check that the course ismaintained, beyond the irregular short‑term developments, which are
inevitable given the changes to be implemented, which are not all
linear and may require time.
Regarding scopes 1 and 2 (which represent 3.3% of the total),Hermès uses the so‑called market‑based approach, which consists ofcalculating the carbon footprint directly related to its energy
purchases in each country considered, rather than using the averagemix of countries. The information based on this other methodology isnevertheless communicated (“location‑based”).
The Group has decided to continue its actions in terms of carbon
offset, beyond its targets of 100% coverage of scopes 1 and 2, withan additional target of covering 100% of its transportation (internaland external) mainly through long‑term investments in the Livelihoodsfund.
In the following tables, the data is presented according to theseprinciples. The ﬁgures for scopes 1 and 2 have been restatedaccording to the market‑based approach, to allow a fair comparison(see footnote (1)).
As part of the work carried out with the SBTi teams to validate theGroup’s trajectory up to 2030, and during the review of the Group’s
emissions summary by these experts, certain emission items were
distributed differently between scopes 1, 2 and 3. These
reclassiﬁcations were therefore made for the entire published period,
from 2018 to 2021. This improvement in the quality of the analysis
has a negligible impact on the data published to date (less than 4%
for all 2020 emissions).
Uncertainties:
In 2023, 98% of emissions are assessed using a physical approach,i.e. Hermès converts physical data (km, kWh, kg, etc.) into emissions
using physical emission factors (expressed in kg CO2eq/physicalunit). These emission factors are either calculated precisely using
internal data or taken from leading international standards. They arenaturally subject to variation over time.

Furthermore, in this 2023 carbon footprint, nearly 7% of emissions
reported in scope 3 came directly from suppliers and partners.

GREENHOUSE GAS EMISSIONS ASSESSMENT
In k tonnes CO2eq

2018

2019

2020

2021

2022

2023

Like‑for‑likechange/2022 1

Change/20182030
targetScope 1

22.1

20.9

19.9

21.3

18

12.8

-

-

-

Scope 2 market‑based

21.7

20.5

18.7

16.1

13.3

9.2

-

-

-

Total scopes 1 and 2

43.7

41.4

38.5

37.4

31.3

22

-29.5%-49.6%-50.4%

Scope 3

578.7

483.5

462.5

490.1

609.6

643.8

-

-

-

TOTAL GROUP

622.4

524.9

501.0

527.5

640.9

665.8

1%

-

-

(1) See the greenhouse gas emissions assessment table in the appendix to § 2.5.

1.

182

Location‑based scopes 1 and 2: 49.7 (2018), 48.5 (2019), 49.3 (2020), 56.2 (2021), 57.2 (2022), 53 (2023) in k tonnes CO2eq. Scope 2 location‑based: 27.6
(2018), 27.6 (2019), 29.4 (2020), 35 (2021), 37.3 (2022), 34.9 (2023) in k tonnes CO2eq.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTINTENSITY

In tonnes CO2eq/€m Gross
Margin

2018

2019

2020

2021

2022

2023

Like‑for‑likechange/2022 1

Change/20182030
targetScopes 1 and 2

10.5

8.7

8.8

5.8

3.8

2.3

-

-

-

Scope 3

138.6

101.8

105.7

77

74.2

66.3

-13.3%-52.2%-58.1%TOTAL GROUP

149.1

110.5

114.5

82.8

78

68.6

-

-

-

(1) See the greenhouse gas emissions assessment table in the appendix to § 2.5.

In tonnes of CO2eq/€m revenue

2018

2019

2020

2021

2022

2023

Scope 1

3.7

3.0

3.1

2.4

1.6

1.0

Scope 2 market‑based

3.6

3.0

2.9

1.8

1.1

0.6

Total scopes 1 and 2 market‑based

7.3

6.0

6.0

4.2

2.7

1.6

Scope 3

97.0

70.3

72.4

54.6

52.5

48.0

104.3

76.3

78.4

58.7

55.2

49.6

TOTAL GROUP

In 2023, the Group’s GHG emissions were 666 k tonnes CO2eq (up
1% from the previous year on a like‑for‑like basis). With a decrease of-49.6% in absolute value of scopes 1 and 2 compared to 2018, and-52.2% of scope 3 in intensity, emissions were in line with the Group’s2030 targets validated by the SBTi.
The chart below illustrates the reduction trajectory of the intensity
ratio of scope 3 emissions validated with SBTi (grey curve). The
scope 3 intensity ratios recorded between 2018 and 2023, shown on
the dark orange curve, demonstrate that the Group systematicallymanaged to exceed the targets it had set itself as part of its
emissions reduction trajectory. In 2023, the Group achieved 90% of
its SBTi scope 3 reduction target.
CHANGE IN THE INTENSITY TRAJECTORY OF THE GROUP’S SCOPE 3 EMISSIONS WITHREGARD TO THE TRAJECTORY VALIDATED BY SBTI

140

Analysis of the Group’s overall GHG assessment

The GHG emissions break down as follows:s 22 k tonnes of CO2eq for scopes 1 and 2, i.e. direct and indirectemissions related to energy consumed by production sites, offices,logistics centres and stores. In understanding this figure, it should
be recalled that the Company has a business model in which mostobjects are made in Hermès’ in‑house workshops, so it isrepresentative of a very large part of production (which is rarely thecase in the Fashion & Apparel industry, where production is
generally subcontracted and therefore falls within scope 3). This
figure is in line with Hermès’ objectives validated by SBTi. With areduction of 50% in four years, the Group is making progress inline with the 2030 target, and is continuing the necessarytransformation effort for its industrial facilities, which will takeseveral years to achieve;s 643.8 k tonnes of CO2eq for scope 3, which essentially takes into
account mainly the carbon footprint of raw materials (72% ofscope 3) as well as all purchases, fixed assets, waste,
subcontracting, packaging, transport of products and employee
travel. Upstream and downstream transport (categories 4 and 9)
represent 15% of the total scope 3. With a reduction in intensity of-52.2% in five years, the Group is also in line with its reduction
targets for 2030.

120
100
80
60
40
20
0

2

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

These ﬁgures conﬁrm the merits of a low‑environmental‑footprint
French craftsmanship model: with a carbon intensity of 68.6 (allscopes), Hermès is ranked as one of the least carbon‑intensive
companies of the CAC 40, based on a full scope 3. The decoupling
between activity growth and the Group’s footprint is -52.2% over ﬁve
years.

scope 3 intensity (tCO2eq/€M)
scope 3 intensity: 1.5 °C compatible objective

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

183

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTCHANGE IN GHG EMISSIONS ON THE VARIOUS SCOPES AND ITEMS OF THE GHG PROTOCOL SINCE 2018

Scope 3 Upstream

Scopes 1 & 2

600,000

500,000

Scope 3 Downstream

50,000100,000

40,00080,00030,00060,00020,00040,00010,00020,00000400,000

300,000

200,000

100,0000
20192020 2021

2022

2023

Purchased goods and services
Capital Goods
Upstream energy not included
scope 1 or scope 2
Upstream freight transportation
Activity waste
Business travel
Employee commuting
Upstream leased assets

20192020 2021

2022

2023

Direct emissions from fossil fuels(scope 1)
Indirect emissions from electricity
consumption and heating and cooling
networks (scope 2)

20192020 2021

2022

2023

Downstream freight transportation
End-of-life treatment of sold products
Franchises(NB: Scopes 1 and 2 data in market‑based)

Analysis of the main carbon footprint items

The diversity of the Hermès Group’s activities means that the areas
responsible for the highest scopes 1 and 2 emissions vary widelyfrom one activity to another. Each métier has drawn up a planaddressing its own issues. The energy consumption ﬁgures provide a
picture of the main contributing métiers.
The Greenhouse Gas Protocol (GHG Protocol) proposes determining
the greenhouse gas emissions of scope 3 from 15 categories. Using
the signiﬁcant categories of the Hermès Group’s activity as describedin § 2.1 “Business model”, the calculation of the scope 3 emissions iscarried out each year with the help of a specialised consultant. It
takes into account the most recent emission factors and technicaldeﬁnitions that are best adapted to the Hermès Group’s speciﬁc
needs. This approach is reﬁned as progress is made in this area.

-52%

scope 3 carbon
emissionsin intensity
between 2018 and 2023
For Hermès, the main categories are as follows:s raw materials used: all leathers, silks, cashmeres, other textiles,
metals and precious stones, perfume ingredients (category [1]);s wrapping and packaging products (category [1]);s purchasing and subcontracting (category [1]);s transport of goods and products upstream of production units,inter‑site transport and downstream transport of products to thestores (categories [4] and [9]);1842023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTs employee travel: commuting to and from work for craftspeople,
domestic and international business travel (categories [6] and [7]);s upstream energy consumed (category [3]);s fixed assets (category [2]);s waste generated in operations (category [5]).

Within scope 3, in addition to materials, transportation represents asigniﬁcant share of emissions, this being the trade‑off for French
production and global distribution. As explained below, this transport
is analysed in detail and subject to operational actions to lessen theimpact.
The scope 3 changes observed stem from the reduction of emissions
in some categories, the improved measurement of certain othercategories (estimates replaced by more precise calculations) and the
update of the emissions factors.

2.5.7.2.2

Focus on the métiers

Métier supply chains and production sites: scopes 1 and 2
decarbonisation plan

The industrial department coordinates a plan to reduce scopes 1
and 2 emissions with the métiers and production sites. Prior to this,each métier analyses the emissions of its manufacturing sites, mostoften related to energy consumption. These analyses, often
supplemented by in‑depth technical studies, have made it possible todeﬁne an emissions reduction plan and a trajectory, based on actions
to optimise existing equipment or investments in new, more efﬁcientequipment or lower‑carbon energy production: the combined actions
described below make it possible to forecast an additional emissions
reduction of 10,200 tonnes of CO2eq in absolute value between
2023 and 2030, and should make it possible to achieve a reductionof 50% in emissions from manufacturing sites by 2030 comparedwith 2018, including the projected growth in activity.

Métiers

Scopes 1 and 2 decarbonisation plan

Tanneries and farms

TANNERIES:
Photovoltaic electricity production at sites located in countries with carbon‑based electricity:s 2023: Conceria di Cuneo - Increase in the photovoltaic fleet (an additional 300 m² in the summer of 2023) and LED
relamping.
Connection to low‑carbon district heating networks:s 2024: Tannerie de Montereau – Connection to the waste incineration plant for heat recovery.
Substitution of gas by a low‑carbon alternative energy:s 2024: Tannerie de Vivoin – Move from gas boilers and the steam circuit to all‑electric, with replacement of
production equipment (drums and dryers)s 2025: Tannerie d’Annonay – Installation of two hot‑air gas boilers through heat pumping and biomass boiler.
s 2025: Tanneries du Puy – Removal of gas boilers and the steam circuit. Study of technological choices in progress.
s 2025: Mégisserie Jullien – Replacement of gas boilers. Study of technological choices in progress.

2

FARMS:s Photovoltaic electricity production at sites located in countries with carbon‑based electricity.
s Increase in the fleet of photovoltaic panels at Australian sites between 2025 and 2027.
s Replacement in 2027 of a fuel oil boiler on one of the farms by a decarbonised hot water production solution.
s Increased monitoring of refrigeration facilities to limit refrigerant leaks as much as possible.
Leather

In 2019 and 2020, energy audits were carried out on all Leather Goods division workshops to better understand theenergy proﬁle of each one and to develop a prioritisation strategy within the division. Five Leather Goods workshops,
among the oldest, were identiﬁed as priorities in terms of actions because they alone consume 54% of the entire
division’s energy (and generate 58% of scopes 1 and 2 carbon emissions). In 2021 and 2022, more in‑depth
investigations were conducted at these ﬁve production units with a specialist external ﬁrm. This made it possible todraw up a speciﬁc investment programme with a schedule between 2023 and 2026.
In addition to these priority production units, progress actions are planned until 2029 for all leather goods
workshops. Optimised management of energy equipment, the permanent elimination of the use of fossil fuels(speciﬁcally gas) and work to optimise existing buildings are planned.
In this context, in 2023, within the Manufacture de Haute Maroquinerie, building insulation work was carried out andthe gas boilers were replaced with heat pumps. In addition, the adjustment of temperature settings at all sites has led
to reductions in energy consumption of up to 27%.
Furthermore, each new Leather Goods workshop follows the Harmonie standard (§ 2.5.2), which signiﬁcantly reduces
scopes 1 and 2 for new constructions, making it possible to continue decoupling activity and carbon emissions.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

185

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Métiers

Scopes 1 and 2 decarbonisation plan

Textile2023:
Energy consumption represents 8% of the sector’s carbon emissions. Scopes 1 and 2 emissions were reduced by 7%
compared with last year thanks to the actions implemented.
Sobriety and energy efﬁciency:s Change in use or renewal of equipment: boilers, extractions, rooftops.
s Shutdown of certain energy‑intensive equipment or production.
s Communications, regular monitoring and control.

186

Crystal manufacturings The installation at the end of 2022 of a gas melting furnace using oxy‑fuel combustion has made it possible toreduce gas consumption by more than 30% compared to the old furnace.
s Part of the waste heat from this new furnace is recovered to heat the adjoining La Grande Place museum, reducing
the associated gas consumption by more than 40%.
s The renewal of equipment, the use of waste heat and the electrification of processes associated with energy
efficiency and sobriety actions are also being studied in order to continue the site’s decarbonisation.

Perfume and Beauty

Continuation of a feasibility study for the replacement of gas boilers by a low‑carbon solution: biomass or geothermal
boilers, or connection to a heating network, taking into account plans to make changes on the site.

HMM

Actions carried out:s Fabrique de Cœuilly: removal of gas heating, reinforcement of the roof insulation, installation of an instantaneous
water heater and replacement of old lighting with LEDs.
s Fabrique de Bonnétage: installation of a wood pellet boiler, replacement of the electric convector by an inertia
radiator, installation of LED lighting and variable speed drives on the electric motors.
s Fabrique de Roye: optimisation of the centralised regulation of offices, provision of thermostats for room
temperature control, and installation of LED lighting and presence detectors to reduce energy consumption related
to lighting.
s Fabrique de Châtillon‑le‑Duc: installation of LED lighting, installation of a new air compressor with self‑regulating time
settings to control energy consumption more precisely.
Actions to be implemented:
s Fabrique de Champigny‑sur‑Marne: optimisation of electroplating management, wall insulation, replacement of
windows and installation of LED lights.
s Fabrique de Fundão: studies regarding the installation of wind turbines and photovoltaic panels, improvement of wallinsulation.
s Fabrique de Cœuilly: study regarding the installation of solar panels and solar films to reduce the need for air
conditioning.
s Fabrique de Bonnétage: insulation of walls, replacement of joinery, optimisation of ventilation and updating of themachine fleet.

Ateliers Hermès Horloger
and LMH (Switzerland)s Validation of the Universal Objectives Agreement, under the aegis of the Swiss Confederation, with recognition of thecommitments made on energy efficiency and climate protection until 2031. The reduction targets have beenvalidated by the FOEN (Federal Office for the Environment) and will be monitored annually by an external firm.
s The first measures to decrease energy consumption and reduce CO2 emissions have been validated and will be
implemented in the coming months: roof repair, photovoltaic solar installation, improved lighting, etc.
s The 300 Hermès Horloger employees were also trained in climate issues with a day dedicated to the Climate Frescoand Hermès’ climate issues. It was the largest corporate climate fresco ever organised in a company in
Switzerland.

Porcelain

Several actions were implemented in 2023:
s Replacement of equipment with more efficient equipment and changes in uses: compressor, industrial dishwasher,
vacuum pump, wrapping machines.
s Optimisation of the filling and operating ranges of enamel kilns.
s Reduction in the heating temperature settings for buildings and hot water used for decoration, shutdown of certain
heating and ventilation equipment at weekends.
s In addition, a decarbonisation study of the CATE site was carried out, with the support of the real estate department.
It led to a plan to substitute the gas used on site in the coming years.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTThis favourable change is linked to the Group’s sobriety and efﬁciency
efforts. All of these sobriety and efﬁciency efforts lead to a favourable
change in GHG emissions on scopes 1 and 2 of the industrial scope,
as shown in the following graph:
CHANGE IN SCOPES 1 AND 2 LOCATION‑BASED EMISSIONS OF INDUSTRIAL SITES (INTONNES OF CO2EQ)

29,09628,65527,44428,583

27,66625,185The Sormonne and Louviers Leather Goods workshops,
demonstrating the performance of the Harmonie standard

Inaugurated in 2023, the Sormonne and Louviers Leather Goods
workshops illustrate the performance of the Harmonie standard, inparticular in terms of carbon:s in the choice of materials and supplies for the Maroquinerie deLouviers, which uses locally‑made bricks, and that of the
Maroquinerie de la Sormonne, made of wood (frame and burnt
wood facades);2s in the implementation of the carbon trajectory, with energy
performance exceeding the E4C2 label (positive energy building
through integrating the energy consumed by industrial
processes). The LCA of the materials and energies used gives a
result of 776 kg CO2eq/m2 for Louviers and 810 kg CO2eq/m2
for Sormonne. In comparison, a Leather Goods workshop of thesame nature in 2018 emitted 1,100 kg CO2eq/m2 in terms ofmaterials and energy.
2018

2019

2020

2021

2022

2023

Real estate

Since 2020, Hermès International and the Group real estate
department have committed to reducing the carbon footprint/m2 of
built or redeveloped surface areas by 50% by 2030, bearing in mind
that the absolute value of emissions remains unchanged since 2018.
The Group real estate department systematically conducts a Life
Cycle Analysis (LCA) of the construction materials chosen for eachreal estate project.
Thus, improvement of the carbon footprint of new stores and newbuildings involves special attention being paid to the choice ofbuilding materials, reduction in their weight, efforts to source supplies
locally, and modes of transportation with low carbon emissions.
The deployment of the Harmonie standard (§ 2.5.2) will signiﬁcantly
reduce scopes 1 and 2 of new buildings. This addresses carbon
issues and targets stemming from the Group’s commitments related
to new construction, renovation and dismantling projects.
The ﬁrst assessments made in 2019 enabled, on the one hand,assessment of the environmental impact of the constructions and, on
the other hand, adjustment of the standard layout and construction
benchmark to guide the CO2 emission reduction ambitions on future
projects through the Hermès sustainable construction standards.

Transportation

Governance

The team in charge of the Group’s upstream and downstream
transport works with the subsidiaries and métiers to be able to offer
them more sustainable solutions. The quality reviews conducted withcarriers and freight forwarders are an opportunity every quarter toshare, among other things, Hermès’ expectations in terms of
multimodal solutions and changes in possible means of transport(new fuels, aircraft with an improved carbon footprint, routes, etc.)
and to hear new proposals from them.
A newsletter keeps everyone abreast of these transportation andlow‑carbon solution topics and also makes it possible to share current
projects and best practices identiﬁed. In order to standardise carbon
data, a working group within the transport purchasing community was
set up to select a Group tool to carry out a harmonised carbon
footprint assessment within all the entities concerned.
In 2024, a working group will be set up to also deal with intra‑country
transport issues (in particular in China and the United States), toshare best practices and alternatives to be studied.
Procurement practices

Calls for tenders systematically include a CSR dimension andsuppliers are assessed on their performance in this area. The CSR
performance of transport partners is carried out with the EcoVadis
platform. 82% of our partners have already been assessed.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

187

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Calls for tenders for goods transport systematically include a criterion
linked to the improvement of the carbon footprint: the use of NGV andbioNGV (1) for road transport, SAF (Sustainable Aviation Fuel) for airtransport, SMF (Sustainable Maritime Fuel) for maritime transport,
are gradually asked of the selected service providers. With regard toalternative fuels, carriers are required to source only from recognisedand certiﬁed suppliers.
In addition to the quarterly reviews, the collaborative approach withpartners has been strengthened. Workshops/events on
decarbonisation provided food for thought and enabled newsustainable solutions to be identiﬁed through the sharing of bestpractices.
Action levers and results

To improve the carbon footprint of transport, three main levers exist
and are mobilised, possibly jointly, by the sales department: continue
the modal shift, deploy alternative fuels and optimise transport.
Modal shift

For distant transport (Asia, America, Oceania), maritime transport ispreferred when the nature, volume and/or quantity of the items to be
shipped permit it. To date, this mainly concerns publications (forexample, the biannual review Le Monde d’Hermès), items related tocommunication events, store ﬁttings, sales associate uniforms,
packaging and store consumables. Tests conducted for sea
transportation (to Asia and the United States), a rail/sea combination(to Japan, temporarily suspended) or air/sea (to Australia)
demonstrated the interest for other categories of items, in particularfurniture, as well as for more seasonal items such as shoes andready‑to‑wear. A good increase in shipments by sea was thus
observed in 2023 (+118%). 873 TEUs (20‑foot containers) were sent
in 2023 compared to 401 in 2022. The rail route to China via Russia
has been suspended due to the current conﬂict.
With regard to the scope of stores in Europe, 86% of parcels areshipped by road since October 2023, resulting in a 72% reduction ingreenhouse gas emissions in this scope.
Since 2010, a maritime transport network for hides has been set up
for alligator mississippiensis from the southern United States,
crocodylus niloticus from Africa, and, since 2013, for crocodylus
porosus from Australia.
Overall, greenhouse gas emissions related to upstream anddownstream freight of hides were reduced by 44% in 2023 compared
to 2022. It is the result of work undertaken for several years by the
Tanneries and Farms divisions to supply raw exotic hides in the mostvirtuous way possible. The transition from air transportation tomaritime transportation is taking place gradually by anticipating theneeds of tanneries and forging new partnerships with carriers.
Gradually, the share of sea freight has increased: it is now the1.
188

predominant mode of supply (87% on average) for transport from theUnited States (83% maritime), Australia (98% maritime), and South
Africa (96% maritime). A small proportion of air transportation is stillnecessary to manage unforeseen events or hurricanes in the UnitedStates.
Raw calf hides, 100% from the European Union and mainly frombreeding and slaughter centres in France, are transported by truck.
Within the Tanneries and Farms division, greenhouse gas emissions
related to the upstream and downstream freight of hides are constantcompared to 2021.
Alternative fuels

Intra‑European upstream logistics ﬂows are gradually replacing diesel
by gas or biogas. Rail transport has been set up with theUnited Kingdom, in addition to road transport, taking into account theban on using NGV vehicles through the Channel Tunnel. The trucks
therefore use a biofuel derived from rapeseed. The latter is also usedby the shuttles between the Beyrand and CATE sites and the Saran
site.
In 2023, numerous shuttles using XTL fuel, a synthetic not derived
from fossil fuels, were rolled out, in particular between Italy andFrance, allowing a saving in greenhouse gas emissions of around
215 tonnes of CO2 equivalent. The same approach is followed for
distribution in Italy with LNG shuttles, which should switch to XTL in
2024.
The quarterly quality meetings conducted with carriers also provide
visibility on the type of aircraft used by carriers or charterers, and it ispossible to choose aircraft with lower emissions due to their size andmodernity. Cargo aircraft are preferred, which have fewer emissions
as they are loaded optimally. The data are shared, become
increasingly precise and the calculated carbon footprint is reﬁned.
Within the HMS division, a ﬂeet of biogas trucks was introduced in
2022 to transport ﬁnished products from the leather goods
workshops to the central warehouse. The carbon footprint related tothis transport has been reduced by 67%. In addition, considerable
work has been carried out to optimise these ﬂows, in particular byadding components that were previously transported via courier
services.
For the distribution of its perfumes and beauty products, theComptoir Nouveau de la Parfumerie (CNP) is working to improve its
carbon footprint. CNP works with partners using neutral modes oftransport for short distances on a daily basis. Wherever possible,
city‑centre deliveries are made in electric vehicles (Hermès exclusive
stores in France, and in Europe, for example). The connection
between the logistics site and the depot of one of the main transport
service providers is carried out by NGV‑powered vehicles.

BioNGV is obtained from the methanisation of various and sometimes combined organic waste.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

For local transport, i.e. deliveries from local warehouses to city
centres, electric or biogas vehicles are used whenever possible. For
example, the Parisian sites are delivered from the two French logistics
centres using electric vehicles (from the Bobigny site), or biogas
vehicles (from the Saran site). Since the summer of 2022, 100% of
the transport between the logistics platforms and the shipping points
for products (airports or ports) has been carried out by ourlong‑standing partner using bioNGV vehicles (1), which emit 80% lessgreenhouse gas than diesel (2). In the same way, electrictransportation has been rolled out for the ﬁnal kilometres for several
cities in Europe such as Madrid, Milan, Rome, Padua, Naples,
Kampen and Athens.
Optimisation of transportation

This last lever is very effective and is systematically activated. For
example, for the transportation of shoes, stacking tests for thepalboxes were decisive and have made it possible to make better useof the height of each truck and thus reduce the number of trucks, witha saving of 39 tonnes of CO2 equivalent in 2023. In another example,
upstream transportation for shoes is organised on the basis of a“milk round”, in which a standard route is set up, passing at regularintervals between several manufacturers to collect ﬁnished products
and transport them to our logistics site. This system is used forsuppliers in certain regions of Italy and between certain French sites.
The average truck load factor for the ﬁrst quarter of 2023 was 81%,up compared with 2022 (80%). The shuttles departing from theSaran site (in France’s Centre region), have a load factor of 94%, up
ﬁve points compared with 2022. The collection of plain goods fromthree suppliers for delivery to the Beyrand decoration site is also
carried out on a joint weekly basis.
For deliveries in France and Europe, the optimisation of loading andthe frequency of departures are also key elements: weekly andbi‑weekly shuttles have been in place for several years and link thelogistics warehouse and the various distribution platforms located in
France or Spain.
CHANGE IN THE INTENSITY OF EMISSIONS RELATED TO FREIGHT TRANSPORT OVER
THE LAST FIVE YEARS

17
15
13
11
Decrease of 8%
between2022
and 2023

97
Decrease of 26% in 5 years

5

2019

2020

2021

2022

2023

Purchases of goods

Decarbonisation of the Purchases of goods item can only be done inconjunction with suppliers or partners. The objective is therefore to
support them so that they can carry out their own carbon footprint
assessment and then allocate the appropriate share to each Hermès
métier. For more mature suppliers, a questionnaire is sent to them toshare their CSR strategy, their carbon footprint or their reduction
trajectory, starting with their scopes 1 and 2. Supplier days are alsoorganised with a focus on carbon.

2

Purchases of the raw materials needed for the manufacture ofHermès objects (leather, textiles, metals and precious stones, etc.)
represent 58% of the total carbon impact and 60% of scope 3.
For textiles, a multi‑company group bringing together players in the
cashmere sector, including the Textile division, was created to work on
cashmere emissions, identify the items with the highest footprint andreduce them; the study began in 2023 and will be completed in 2024.
For leathers, the raw materials department of the Tanneries division, in
conjunction with the direct purchasing department, has createdEnvironmental guidelines to improve discussions and the sharing of bestpractices with its raw hide suppliers. These guidelines, co‑developedwith Bureau Veritas, have been introduced to assess and share bestpractices in an educational way, in particular energy management, in
terms of carbon emissions.
In 2024, the guidelines will be rolled out to two suppliers of exotic raw
hides as well as two calf feedlots/slaughterhouses.
At the same time, the division is deepening its knowledge of theenvironmental impact associated with crocodilian feed throughdiscussions with its suppliers and experts in calculating the carbon
footprint for hunted food. Crocodilian feed accounts for around 5% of
the Farm division’s greenhouse gas emissions.
In 2024, a precise mapping of the chemicals most used in tanneries
and/or the most emissive will be carried out. Suppliers will be asked
about the impact of their chemicals and their steps towards
decarbonisation, which will become a purchasing criterion. Purchasesof chemicals represent around 10% of the Tannery division’s
emissions.
For metals, Hermès Manufacture de Métaux (HMM) is committed toreducing the greenhouse gas emissions associated with its activities
by implementing several initiatives aimed at ensuring thesustainability and responsibility of its supply chain. HMM sources
gold and palladium exclusively from suppliers with RJC COC
certiﬁcation, thereby ensuring the traceability of the precious
materials used. This approach ensures that each material is recycled
in accordance with the guidelines of the Responsible Jewellery
Council.
In 2024, HMM aims to carry out a targeted assessment of the carbon
footprint for 20% of its suppliers and to deﬁne decarbonisation actions
with them. HMM already includes CSR criteria in its supplier audits,
designed to assess and encourage best practices in terms of ethics, theenvironment and governance. Each year, three suppliers are audited,ensuring that HMM’s partners adhere to the standards of responsibility.

1.

BioNGV is obtained from the methanisation of various and sometimes combined organic waste.

2.

(french) https://www.mobiogaz.fr/bilan‑co2‑du‑gnv‑ou‑biognv/.
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

189

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTFor Perfumes, in September 2023, a horizontal press was set up at
the Vaudreuil site to reuse cardboard waste generated by the site in
the manufacture of future cardboard cases and limit emissions
related to packaging. 17 tonnes had been collected by the end of
October 2023. The teams are also working to reduce multi‑material
packaging and eliminate materials with high emissions, such aszamac.
Commuting

The Leather division has set the ambitious objective, due to its mainlyrural locations, of reducing the impact of employee commuting by 4%
per year. Several actions are underway within the production units,
such as the implementation of a digital solution for managing
sustainable mobility at work. This makes it possible to measure theimpact of each employee’s actual mode of travel and to identify areas
for improvement in line with the speciﬁc features of each site. The
location of factories often determines the carbon footprint related to
employee mobility: it is studied before the construction of future
Leather Goods workshops to favour the presence of public transport
infrastructure nearby. Limiting the number of parking spaces also
encourages soft mobility.
Within the Leather division, Leather Goods workshops are equippedwith charging stations for electric vehicles to encourage and facilitate
the use of hybrid and electric vehicles.
In September 2023, Saint‑Louis proposed an app with a carpoolingsolution to all its employees in the production unit. After two months
of use, 11% of the workforce had registered for the platform and 248
carpooling trips had been made in 17% of cases. 91 kg of CO2,
corresponding to 736 km if travelled alone, had been saved.
For the Textile division, commuting by employees represented 3.3% of
its emissions. The HTH site is present in several discussion groups
with local authorities on mobility issues in order to reduce travel witha high carbon impact, requiring changes to the trafﬁc networks.
This year, the textile sector once again took part in the mobility
challenge in the Auvergne‑Rhône‑Alpes region in order to invite
employees to test new modes of transport for their home‑work
journeys. A total of 132 journeys were made using soft mobility, i.e.
17% of employees (compared to 9% in 2022) and 2,026 km were“avoided”, i.e. 434 kg of CO2.
An in‑depth look at mobility has also been initiated with an expert ﬁrm
for entities on the outskirts of Lyon, with the aim of offering analternative to private cars. Following the diagnostic and mapping
phases, which were carried out in 2023, participatory workshops
bringing together directors, human resources, EHS and employee
representatives, among others, will be organised in 2024 in order to
identify motivating factors and support.
Hermès Manufacture de Métaux is committed to developing
sustainable mobility solutions for its employees. To encourage the useof soft mobility, HMM used a carpooling app, designed to facilitate
the sharing of trips between colleagues. The user interface convinced
403 employees to register and participate in this ride‑sharing

190

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

programme. Charging stations for electric vehicles are installed at the
Fabrique de Champigny‑sur‑Marne. In Val‑de‑Fontenay, HMM offers abicycle rental service, both mechanical and electric, at attractive
rates for its employees.
Considering that societal expectations around mobility are very high,it seemed appropriate to aim for the formalisation of a Groupframework by launching a pilot mobility plan for 4,000 employees
located in Île‑de‑France. The project began with the analysis of thesites in October 2022 carried out by a specialist service provider. The
employee survey took place in December 2022 with a very highparticipation rate. In 2023, the action plan was deﬁned, resulting inthe signing with social partners of an agreement on sustainablemobility concluded for an indeﬁnite period and coming into force on
1 January 2024. This agreement includes four major areas with theaim of promoting multimodality:
s rollout of the sustainable mobility package with a dedicatedpayment tool allowing the mode of transport to be selected (public
transport, bicycle, carpooling, etc.), or even the purchase of
personal protective equipment (helmets, for example);s continued use of bicycles, with an additional focus on safety. All
beneficiaries of a bicycle contract must now follow road safety
training. 128 new bicycle contracts were signed in 2023. The
installation of cycle paths around the sites is monitored at thesame time and special attention is paid to the infrastructure oneach site (presence of showers, parking areas, tools, etc.);s choice of a platform to promote carpooling, particularly inÎle‑de‑France;s support for employees in the transition to electric vehicles with acollective or individual exchange offer with an expert to help
employees identify the vehicle best suited to their use as well as
the financial aids for which they may be eligible.

The study will be repeated after two years of implementation tomeasure the impact and the employee satisfaction rate.
Business travel

Hermès also employs a proactive policy of replacing internal
combustion vehicles with electric vehicles or hybrids (34% of thecurrent ﬂeet in France), both for company vehicles and service
vehicles. Hermès’ vehicle policy has always anticipated regulations, inFrance and internationally: limiting CO2 emissions/km, limiting vehicle
weight, eliminating diesel from 2017, etc. This approach is being
continued with a vision for mobility and no longer solely from a
motorisation perspective.
With regard to longer distance travel, the disruptions related to thehealth crisis have made it possible to solidify alternative working
solutions (videoconferences), and accelerated the awareness of
employees on the review of the most efﬁcient working methods
internationally. The distribution subsidiaries are working onorganisations to reduce their carbon footprint, as part of themonitoring of their strategic CSR plans. For example, initiatives arecarried out locally in France.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

2.5.7.3

UNDERTAKING VOLUNTARY CARBON OFFSETACTIONS WITH IMPACT

All of the initiatives taken by Hermès aim to make its business modelincreasingly sustainable and to contribute to a more sustainable
world. This strategy, which is based on an analysis of the risks andresilience potentials that may be associated with it, is recognised by
the rating agencies (§ 2.7.3.3).

2.5.7.3.1

Carbon neutrality approach

Some guidance

As speciﬁed by ADEME (French Ecological Transition Agency), carbon
neutrality aims to offset, on a global scale, any greenhouse gas
emissions resulting from human activity by sequestering equivalentquantities of CO2, i.e. keeping them out of the atmosphere over thelong term. This therefore means sequestering carbon to stabilise its
concentration in the atmosphere and limit the effects of climatechange on the planet. This objective of neutrality has a scientiﬁc
reality only at a global level, and involves the coordination of theStates by the Paris Agreement. However it also requires themobilisation of all stakeholders, from citizens to companies.
To achieve carbon neutrality, two levers are necessary: drasticallyreduce GHG emissions as quickly as possible, and, at the same time,
invest in biological or technological sinks to sequester residual CO2
emissions.
For ADEME, this commitment by stakeholders to carbon neutrality
must include the following three stages, which are applied by Hermès:s the implementation of a climate strategy consistent with the Paris
Agreement, i.e. enabling the reduction of emissions, and combinedwith a commitment to sufficient and verified resources. Hermès,
which calculates its carbon emissions and ensures their audit by
an independent third party, has formalised its reduction strategy
since 2019, and had its SBTi trajectory validated in 2021;
s participation, through its activity, in decarbonising its suppliers
upstream and its customers downstream, through the adoption of
low‑carbon consumption methods. Since 2021, in particularthrough CSR briefs for its suppliers, Hermès has been committed
to reducing emissions in its supply chain. The community of buyers
has benefited from training on measuring the carbon footprint
since 2022, thus enabling Hermès buyers to better understand thequality of the low‑carbon approach carried out by suppliers. In
2023, CSR briefs made it possible to ask the main suppliers for
information on their carbon trajectories. Its craftsmanshipproduction in a logic of quality and sustainability, and not volume
or rapid renewal, is a powerful vector of consumption with a low
carbon footprint;

1.

https://verra.org/

2.

https://www.goldstandard.org/

s contribution to the financing of third party reduction, avoidanceand sequestration projects to accelerate the ecological transitionand contribute to the increase of carbon sinks, according to theprinciple of carbon offset. This is the purpose of the Group’s
investment in the Livelihoods project since 2012.

Hermès wishes to contribute in a proactive way to this collective
neutrality by 2050, by putting its offset efforts into perspective in
relation to the level of its emissions. The Group does not seek to claim
carbon neutrality by itself.

2

ADEME thus supports the principle of voluntary carbon offset, if thecompany complies with ﬁve rules to which Hermès subscribes andwhich it applies:s rule no. 1: undertake and publish an assessment of GHG
emissions, reductions and offsets, in particular through thisNon‑Financial Performance Statement, but also with the public
reporting of the CDP (assessed A in 2023 for the CDP’s climatechange assessment);s rule no. 2: choose certified offset projects: all projects led byLivelihoods or bought from Eco‑Act, and taken into account by theGroup are audited and certified by Verra (1) (formerly VCS) or Gold
Standard (2);s rule no. 3: favour projects with a “sustainable development”
approach, i.e. long‑term projects with positive impacts on local
communities and biodiversity, which are the hallmarks of the
projects led by Livelihoods;s rule no. 4: define the right combination of projects supported bothnationally and internationally: while the first projects led byLivelihoods were international, inspired by the Clean Development
Mechanisms, in 2021 Livelihoods launched its first project in
Brittany (France) on a pilot basis and Hermès is also studying thepossibility of other similar projects in France;s rule no. 5: communicate responsibly. Hermès does not claim in any
way to be carbon neutral, acknowledging that the Group’s activities
have a carbon impact, even though it is one of the most moderate
in the CAC 40. However, its actions are committed to the long term,with the aim of achieving a “net zero” trajectory by 2050,
compatible with the 1.5°C scenarios of the Paris Agreement.

This national framework set by France is fully aligned with the content
of international discussions that take place, notably during COPs. The
methods for setting up new carbon markets (recorded in Article 6 of
the Paris Agreement) are questioned there to ensure that carbon
offset projects have a positive impact on local communities. This is
the position defended by the Livelihoods Venture fund to which
Hermès is committed. Its purpose, from its inception, was to besupported by organisations, such as the Group, able to accept andmanage the complexity of systemic approaches to try to make bothcommunities and nature thrive.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

191

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

GovernanceLivelihoods projects are monitored throughout the year by the Group’s
Sustainable Development Director, who attends meetings of theLivelihoods Fund’s Board of Directors and Investment Committee. A
member of the Hermès Executive Committee is a director of the funds
managed by Livelihoods, a witness to the Group’s involvement at thehighest level in these subjects. This monitoring makes it possible tovalidate the choices made in terms of investments and projects, andalso to monitor the progress of projects that may be impacted, forexample, by climate phenomena or other hazards. A presentation ofLivelihoods progress is made to the Hermès Executive Committee atleast once a year, in the same spirit of monitoring and sharing. The
companies supporting Livelihoods provide more than just ﬁnancing,
they also bring a vision, stability and commitment to generate apositive impact on populations as well as biodiversity, which it isessential to share at the highest level of the Group.
Offset strategy

The Group’s ambition to achieve a “net zero” target by 2050 is basedon two complementary approaches:s focus on reducing emissions in its own value chain, which requiresorganisational and technological changes internally and with
suppliers;
s use voluntary offsetting, which is based on so‑called “nature‑based
solutions (1)” through natural capture mechanisms (for example,
planting) with the implementation of large‑scale projects that taketime to set up over the long term.

This carbon offset strategy is therefore gradual for two main reasons:s on the one hand, so that the priority remains the allocation ofhuman and financial resources to reducing emissions;s on the other hand, to build offset projects with local communities,
in compliance with Hermès’ quality and ethics requirements, whichtakes time.

Hermès’ strategy is to follow a trajectory that will enable it toi) neutralise a growing part of its residual carbon emissions by 2030,
calculated on the basis of emission reduction projections (as taken
into account in the SBTi analyses), and ii) achieve expected volumesof voluntary carbon offsets (forecasts of carbon credits deliveries
from the Livelihoods business plans). Hermès is continuing its work
and investments to offset all of its residual emissions by 2050.

2.5.7.3.2

High environmental and social contribution
projects including the Livelihoods carbon funds

In June 2012, Hermès joined the Livelihoods carbon funds (LCF), a
coalition of companies ﬁnancing carbon offset projects with highsocial and environmental value. Livelihoods initiatives are described
below as well as in the section covering relations with stakeholders(see § 2.7.2.1.4), notably explaining that more than 158 million trees
have already been planted, beneﬁting more than 1.83 million people.

1.

192

The operation of this system is based on seven structuring principles,the foundations of the Livelihoods charter, which contribute to its
interest:s reduction first: the carbon credits generated by Livelihoods
projects serve to complement internal reduction efforts, and are
one of the parameters for achieving carbon neutrality by 2050;
s the additionality principle: the projects supported by Livelihoods
would not have seen the light of day without its investment
alongside project developers, the vast majority of which are NGOs,
which requires detailed study in complex social and ecologicalcontexts. These are not off‑the‑shelf or standardised projects, but
projects that require a systemic and tailor‑made approach. Startingfrom the aspirations of disadvantaged and sometimes
marginalised communities, this involves helping them out ofpoverty by increasing their income and improving their foodsecurity;s carbon credits certified to the highest standards, Gold Standard
and Verra (formerly VCS), which validate the carbon effectively
removed (and not carbon reduction estimates or future
projections). In addition, each project gives rise to monitoring andimpact calculations in accordance with the United Nations SDG
framework, given its contributions, which extend beyond justcarbon sequestration (no poverty, gender equality, life on land,etc.);
s taking an entrepreneurial risk to finance projects from the
beginning: Livelihoods does not buy credits “on the market” fromprojects that have already been started, accepting to pay a margin
to an intermediary. It helps communities by investing for them rightfrom the beginning, and by taking a risk of between €2 million and€6 million on each project, with no absolute guarantee of any
return. The communities concerned do not have the means to carryout their projects without this risk‑taking. Project financing occurs
during the first years, with the results seen, for example, when thetrees grow. This can sometimes be five years after the maininvestments have been made;s a long‑term approach: companies and project sponsors, as well as
communities, are committed to projects lasting between 10 years(energy projects) and 20 years (farming projects). During thisperiod, the fund will help communities, monitor projects andreceive credits after a few years. Commitments of this length arerare for company coalitions;s local communities that benefit directly from projects: thanks to theNGOs that coordinate projects at local level, communities benefit
directly from the advances provided by the projects: increases insoil fertility, regenerative farming, efficient agro‑ecologicalpractices, restoration of ecosystems, generation of farming,
forestry and fishing income and the improvement of living
conditions. This is actually one of the key success factors of the
projects: the communities mobilise themselves because they findthat there is a direct advantage to the project;

Nature‑based solutions are defined by the International Union for the Conservation of Nature (IUCN) as actions that rely on ecosystems to meet global challenges
such as the fight against climate change, management of natural risks, health, access to water, food safety, etc.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTs a coalition of companies driven by the same spirit: all investors in
Livelihoods pool their commitment and therefore receive credits
from a portfolio of projects that have been developed anddiscussed together.

fund (LCF3), which was closed in June 2021 and which aims for aninvestment objective of €150 million to improve the lives of 2 million
beneﬁciaries in developing countries. In 2022, the LCF3 Board
approved several projects located in Ghana, Rwanda, Peru, Nepal
and Indonesia, which began to be rolled out in 2023.

The Livelihoods funds are organised by a system of successive
compartments. The ﬁrst LCF1 compartment (Livelihoods carbon
fund 1, €45 million), was opened in 2011, and until 2020 was the
only one to issue carbon credits. Hermès has also been ashareholder since 2017 in a second sub‑fund, LCF2 (€65 million),
whose ﬁrst deliveries took place in 2021. Numerous projects havealready been launched by this fund, in India, Indonesia, Kenya,
Rwanda and Malawi, on agroforestry, mangrove and energy projects.

More than €260 million have been collected to ﬁght against climatechange through the three Livelihoods funds.
Hermès has thus conﬁrmed its commitment to the climate,communities and biodiversity through investments in this third
LCF3 compartment. With each of these funds having a lifespan of
20 years, the Group is demonstrating its long‑term philosophy, and its
ability to assume long maturities (2040) and continue its commitment
to reducing the impact of climate change.

Capitalising on 10 years of experience with private investors, at theend of 2019, Livelihoods announced the launch of a third carbon

2

Livelihoods projects produce positive impacts that go beyond the sequestration or reduction of carbon emissions, as illustrated by the following
diagram:LIVELIHOODS CARBON FUND #1, #2 AND #3
25 extensive projects with concrete social and environmental results

FranceNepal
MexicoGuatemalaSenegalBurkina-Faso

India
Ghana

Kenya

OugandaRwandaPeru

Indonesia

MalawiAgroforestry
LCF1 FundLCF2 FundLCF3 Fund

Mangrove restoration

Rural energy

LCF1 FundLCF2 FundLCF3 FundLCF1 FundLCF2 FundLCF3 Fund

Targeted objectives
More thanMore thanMore thanMore than

2.8 M

173 M

456,000

148,752

26 M

25

project
beneficiaries

trees
being plantedhouseholds being
equipped withefficient cookstoveshectares planted
or preserved

tonnes of CO2
sequesteredover 20 years

current projects(Asia, Africa,
Latin America,
Europe)2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

193

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

Livelihoods launched a working group in May 2023 to formalise andfurther measure the impact of projects on biodiversity. Although the
projects have clear biodiversity protection aspects, the objective is tobe able to quantify them in a robust and scientiﬁc manner. A
framework and a roadmap will be presented in February 2024 inorder to deﬁne recommendations to be followed for all projects, in linewith the TNFD reporting framework.

proposed by EcoAct, a major player in the ﬁeld for more than 15
years. One of the projects selected, which makes it possible to obtain
Gold Standard certiﬁed carbon credits, is located in Uganda, andconsists of equipping local populations with improved cooking stoves,
avoiding the use of charcoal and therefore deforestation andimproving air quality inside homes. Another, on the same issue, islocated in India.

The carbon deliveries expand as the trees grow (the projects span aperiod of 20 years). They were made in 2023 after veriﬁcation by
specialised auditors (according to the Gold Standard and Verra – VCS
standards), and Hermès cancelled all the credits granted to it.

Until 2022, Hermès accounted for its carbon credits each year on thebasis of the amounts approved by the Boards of Directors of theunderlying carbon funds. The year used corresponded to the actual
capture of the projects, the ﬁles prepared locally and previously by the
NGO partners and the start of veriﬁcation operations by third parties(Verra, Gold Standard), with the following results:

In addition to its investment in the Livelihoods carbon funds, and tomeet its commitments, Hermès has chosen to support projects

Reminder of carbon credits received and cancelled as published in 2022

2018

2019

2020

2021

2022

Carbon credits received and cancelledin k tonnes CO2eq% coverage of scopes 1 and 2 market‑based (2019‑2021)

36

44

46

81

127

82%

100%

100%

100%

100%

% coverage of scopes 1 and 2 market‑based and Transportation (2022‑2023)

100%

Since 2022, the Livelihoods carbon funds have had to deal with
difﬁculties setting up the necessary veriﬁcation processes, withextended deadlines, without signiﬁcant impact on the certiﬁed
volumes. These difﬁculties are explained by the disruptions brought
about by Covid‑19 and a form of growth crisis in the certifying bodies,called on for an exponentially increasing number of projects. To apply
a precautionary principle, in 2023 Hermès decided to change its
accounting method. The carbon credits received and cancelled will

now only be recognised on receipt of the invoices attesting to the endof the legal certiﬁcation operations, and therefore relating to carbon
credits from previous years.
This approach leads to a reduction in the amounts reported by theGroup, as a precautionary measure, and introduces greater variability
to the schedule. It leads to the following results, reconstructed overthe last ﬁve years for the sake of transparency:

CARBON CREDITS RECEIVED AND CANCELLED
In tonnes CO2eq

2019

2020

2021

2022

2023

Cumulative
2019‑2023

Carbon credits received and cancelled

36

42

51

56

197

382

Reminder of scopes 1 & 2

41

39

37

31

22

170

91

100

191

41

39

37

122

122

361

88%

>100%

>100%

>100%

>100%

46%

>100%

>100%

13

-67

76

20

Reminder of the Freight transportation item
(items #4 and #7 in scope 3)
Total coverage commitment% coverage of scopes 1 & 2 market‑based(2019‑2021)% coverage of scopes 1 & 2 market‑based
and Transportation (2022‑2023)
Difference in cancelled credits vs.
commitments-6

Cumulative differences

-6

-3

11

-56

20

% credits vs. Group carbon emissions

7%

8%

10%

9%

30%

Over the period as a whole, Hermès met its 2019 target ofoffsetting its emissions to the extent of its scopes 1 and 2(offsetting 224% cumulative). In 2022, Hermès decided to add a newtarget, complementary to scopes 1 and 2, and to also include theoffset of emissions related to its internal and external transportation.
To meet its commitments and take into account the unfavourable

194

32023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

impact of the change in method, the Group occasionally increased its
purchases of carbon credits in 2023. It thus conﬁrms compliancewith its overall targets (scopes 1 and 2 and transportation over theperiod) with a bonus of 20 kt CO2eq difference (i.e. 5% above
target for the 2018‑2023 period). In 2023, the Group offset 30% of
its emissions.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTThis voluntary investment in carbon offset projects is part of astrategy of gradually increasing the coverage rate of the Group’s
residual emissions, with the target of an intermediate situation of
50% between 2030 and 2040, and 100% of residual emissions by
2050, with a view to “net zero”. The deliveries of these carbon credits
will accelerate in the coming years with the achievement of thetargets of the LCF funds. It should be noted that SBTi took a positionin September 2022 in its paper “Net‑Zero: Urgent Beyond Value
Chain Mitigation Is Essential”. In short, SBTi is encouraging
companies to take the leadership initiated by Livelihoods from theoutset, namely to commit to large‑scale societal projects, recognisingthem as an effective means of combatting climate change. The
House’s actions are therefore fully in line with SBTi’s position on
carbon offset.

2

APPENDIX TABLES§ 2.7.2.1.4 provides further information on the Livelihoods societal aspects.

WATER
BREAKDOWN OF INDUSTRIAL WATER CONSUMPTION BY ACTIVITY

In megalitres

2019

2020

2021

2022

2023

Tannery

407

343

352

365

339

Textile

198

165

196

217

186

Leather

29

26

33

30

31

Metal

-

9

13

25

20

Crystal manufacturing

11

9

8.9

9

8

Logistics

6.6

7.0

4.2

5.5

5.5

Perfume and Beauty

5.1

6.7

6.2

5.9

6.7

Watch division

3.2

4.9

4.9

5.2

3.6

Beyrand

2.6

2.3

2.1

1.8

2.8

Bootmaker

3.0

5.0

3.3

2.7

2.2

Porcelain

2.3

2.3

2.3

2.8

2.8

Silversmith

-

0.24

0.18

0.18

0.15

TOTAL

668

580

627

671

608

Farms

4,514

4,514

4,810

4,680

4,757

CHANGE IN INDUSTRIAL WATER CONSUMPTION (EXCLUDING FARMS)
In m3

Intensity (m3/€M)

2012

376,938108

2013

510,314136

2014

493,252120

2015

502,632104

2016

768,163148

2017

713,5331292018719,725121

2019668,469972020

580,25391

2021

627,491

70

Year

2022

670,98158

2023

608,452

45

Note: The reporting scope includes Les Tanneries du Puy, acquired in November 2015. From 2018, the reference period is the 12‑month period
from 1 November of the previous year to 31 October of the current year. The scope of reporting includes the Mégisserie Jullien (acquired in May
2020) whose data measured over the period from May 2020 to October 2020 are included in these ﬁgures.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

195

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTENERGY
BREAKDOWN OF THE GROUP’S ENERGY CONSUMPTION BY DIVISION (EXCLUDING FARMS)

intensity

IndustryStoresServices

Total

In MWh/€M revenue

2018

161,531

31,305

15,846208,68235

2019

158,117

31,952

13,952

203,64030

2020

147,955

36,96914,253

199,17731

2021

162,147

38,451

14,209214,80824

2022

160,256

41,29016,715

218,260

19

2023

152,119

40,013

16,968209,100

16

72.8%

19.1%

8.1%

100%

GROUP BREAKDOWN (in MWh)2023 in %BREAKDOWN OF INDUSTRIAL ENERGY CONSUMPTION BY ACTIVITY

2020

2021

2022

2023

Tanneries

40

38

37.9

34.6

Textile

31

36

38.6

37.7

Leather

23

24

23.8

21.9

In GWh (gas, electricity)

Metal

196

-

4.3

4.8

6.0

Crystal manufacturing

40

42

37.8

35.1

Logistics

4.8

4.4

4.2

3.9

Perfume and Beauty

3.1

3.7

3.5

3.6

Watch division

1.4

1.5

1.6

1.7

Beyrand

3.7

4.1

4.1

4.1

Bootmaker

0.95

1.1

1.0

1.0

Porcelain

1.7

2.4

2.5

2.5

Silversmith

0.64

0.56

0.41

0.12

Sub‑total

148

162

160

152

Farms

4.1

5.1

4.8

4.8

TOTAL

152.1

167.1

164.8

156.8

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

2023 consumption

Gas (GWh)

Electricity (GWh)

Tanneries

22.4

12.2

Textile

22.5

15.1

Leather

5.7

16.2

Metal

0.06

5.9

Crystal manufacturing

27.3

7.9

Logistics

0.79

3.1

Perfume and Beauty

1.2

2.3

Watch division0

1.7

Beyrand1.9

2.2

Bootmaker

0.09

0.90

Porcelain

0.55

2.0

Silversmith

0.01

0.11

Sub‑total

82.5

69.6

Farms

1.0

3.8

TOTAL

83.5

73.4

2

Note: The reporting scope includes the Tanneries du Puy, acquired in November 2015. From 2018, the reference period is the 12‑month period from 1 November of theprevious year to 31 October of the current year. Lastly, the scope of reporting includes the Mégisserie Jullien (acquired in May 2020), whose data measured over theperiod from May 2020 to October 2020 are included in these ﬁgures.

CHANGE IN INDUSTRIAL ENERGY CONSUMPTION (EXCLUDING FARMS)

Year

Gas

Electricity

Total

(MWh)

(MWh)

(MWh)

(MWh/€M revenue)

2012

79,42941,893

121,322

35

Intensity

2013

90,05247,818137,87037

2014

83,39750,398

133,795

32

2015

81,62551,678133,30328

2016

99,44954,645

154,09430

2017

105,894

54,768160,66229

2018

105,042

56,489161,53127

2019101,744

56,373

158,11723

2020

91,106

56,849147,955

23

2021

99,40662,741

162,147

18

2022

93,21367,043

160,256

14

2023

82,53869,581

152,119

11

BREAKDOWN OF ELECTRICITY CONSUMPTION OF STORES BY GEOGRAPHICAL AREA IN 2021, 2022 AND 2023 (MWH)

Geographical area

2020

2021

2022

2023

France

2,721

3,536

4,018

3,282

Europe (excluding France)

7,321

7,513

7,625

7,478

Americas

9,698

10,682

11,930

9,557

Japan

5,164

4,471

5,683

5,806

Asia‑Paciﬁc (excluding Japan)

12,066

12,24912,033

13,889Total

36,96938,451

41,29040,0132023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

197

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENTWASTE
NHW 1 (t)HIW 2 (t)Total (t)

8,333

760

9,093

Textile

656

909

1,565

Crystal

146

819

965

Leather

2023
Tanneries

1,291

103

1,394

Perfume and Beauty

808

260

1,068

Logistics

517

1

518

Metal

212

1,053

1,265

Porcelain

81

19

100

Beyrand

49

35

84

Watches

129

45

174

Bootmaker

98

0

98

Silversmith

2

15

17

TOTAL (EXCLUDING FARMS)

12,322

4,019

16,341

Farms

1,261

51

1,312

(1) Ordinary industrial waste.
(2) Hazardous industrial waste.

198

Industrial waste intensity (excluding farms) over the last three years

2020

2021

2022

2023

NHW intensity (t/€M)

0.94

1.12

0.93

1.01

Change

+9%

+19%

+17%

+8.6%

HIW intensity (t/€M)

0.81

0.31

0.27

0.30

Change

+12%

+62%

+14%

+11.1%

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCETHE PLANET: ENVIRONMENT

CLIMATE CHANGE
GREENHOUSE GAS EMISSIONS ASSESSMENT – SCOPES 1 AND 2 AND DETAIL OF SCOPE 3
In k tonnes CO2eq

2018

2019

2020

2021

2022

2022
like‑for‑like2023

Scopes 1 and 2 market‑based

43.7

41.4

38.5

37.4

31.2

31.2

22.0

1. Products and services
purchased

402.9

365.6

336.2

361.8

415.1

433.6

462.4

2. Capital goods

26.7

10.7

31.5

24.6

61.2

61.2

31.0

3. Fuel- andenergy‑related
activities not includedin scopes 1 or 2
emissions

3.0

2.9

2.8

3.0

2.9

2.9

2.6

4. Upstream
transportation anddistribution

20.7

14.2

17.7

10.9

17.8

17.8

17.6

5. Waste generated
by the sites

8.8

9.3

5.8

6.2

7.3

7.3

8.1

Scope 3

Upstream

6. Business travel

27

15.9

3.2

1.3

4.8

4.8

10.7

7. Employee commuting

19.7

13.1

14.6

20.3

22.6

22.6

25.3

8. Upstream leased
assets

N/S

N/S

N/S

N/S

N/S

N/S

N/S

9. Downstream
transportation anddistribution

70

51.7

48.5

57.7

73.5

73.5

82.1

10. Processing ofproducts sold

N/S

N/S

N/S

N/S

N/S

N/S

N/S

2

11.
Downstream

Use of products sold

N/S

N/S

N/S

N/S

N/S

N/S

N/S

12. End‑of‑life treatmentof products sold

N/S

N/S

N/S

1.9

1.9

1.9

1.6

13. Downstream leased
assets

N/S

N/S

N/S

N/S

N/S

N/S

N/S

-

-

2.1

2.4

2.6

2.6

2.6

14.
Franchises
15.
Investments
TOTAL SCOPE 3

N/S

N/S

N/S

N/S

N/S

N/S

N/S

578.7

483.5

462.5

490.1

609.6

628.1

643.8

NB: calculations or estimates that led to non‑material amounts (threshold <0.5% of the total) are included as “not signiﬁcant” (N/S).
NB 2: the data in the “2022 like‑for‑like” column include changes in scope, methodology and emission factors to make the data comparable to those for 2023.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

199

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

Manufacture of charms, small bag accessories, by an ESAT partner of the Sayat Leather Goods workshop© Photography credits: Hermès International

200

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

2.6

COMMUNITIES: SUPPLIERS & PARTNERS

Hermès’ sustainable development is linked to the ability of its partners and suppliers to develop sustainably with regard to social,environmental and ethics issues, in particular human rights, fundamental freedoms, employment conditions, respect for nature and its
biodiversity.
More broadly, Hermès contributes to the deployment of responsible sustainable development practices through its inﬂuence, and by
exercising a duty of care towards its partners as well as by promoting socially supported organisations and local economic activity, particularly
in disadvantaged areas.

POLICY

GOVERNANCE

A key part of its strategy of preserving unique savoir‑faire andsecuring supplies, most of Hermès’ production is integrated. In 2023,
55% of objects were made in exclusive in‑house workshops, and thisshare has remained stable in recent years. Our ability to grow is
however also linked to the retention and development of our suppliers
and subcontractors, whose exceptional savoir‑faire and future
success will contribute to that of the Hermès Group and whose socialand environmental practices must be irreproachable.

In terms of organisation, indirect purchases are supervised by aGroup department, which pools certain items (such as packaging)and coordinates a network of dedicated buyers in the métiers,subsidiaries and central services. It also coordinates Group actionplans on major topics, such as the elimination of single‑use plastics(§ 2.4.1.4).

These subcontractors and suppliers of the House are, for the mostpart, historical partners. As such, for direct purchasing (production
purchases), the average length of trading relationships with the
Hermès Group’s 50 largest suppliers in 2023 was 19 years. They
operate mainly in the Leather Goods division (tanneries andmanufacturers) but also in Textiles (HTH division) and other sectors(Jewellery and Shoes, notably). This stability is also true for smaller
suppliers, some of which have been working with the House for morethan 60 years.
The Hermès Group has also been working with socially supported
organisations in France for many years for its direct and indirectpurchases, and this practice is growing steadily every year. The
system of making purchases with a social contribution is now being
extended to other players located, for example, in economicallydisadvantaged areas, whether urban or rural. It now includes
suppliers in the social and solidarity economy. In 2017, Hermès thus
set itself the target of increasing the volume of purchases made fromorganisations helping people with disabilities into work in France by
20% each year.

2

Direct purchasing (i.e. related to production) is also supervised by a
dedicated Group department which coordinates a network of buyers
within the métiers and coordinates the process of analysing supply
chains (§ 2.4.2), managing supplier risks and the supplier audit
programme. Moreover, it also deﬁnes the Group’s purchasing policy
as well as the CSR objectives for suppliers and partners (humanrights and labour‑related rights, biodiversity, energy and carbon,
water, plastics).
Close attention is paid to the management of human rights issues. A
dedicated section in a commitment handbook is notably signed by allof the Group’s suppliers (available in French and English). Hermès ispursuing a corporate project in which respect for ethics and goodbusiness conduct are the foundations and ensure responsible andsustainable performance. Traceability software is starting to besystematically rolled out for better monitoring and control of risks, forexample within the Home and PAP H métiers for 2023.
An Ethics Committee has been set up to collect and process alerts
issued by internal stakeholders and within the value chain. This
committee also issues advice and recommendations on the Group’s
ethics culture (§ 2.8).

In 2023, the Group made progress on the major procurement issues, with the aim of making a long‑term difference through steady
improvements with a signiﬁcant impact. Among these, the selected elements below are particularly illustrative of the year for this section:s CSR brief and supply chain brief communicated to suppliers, a total of 66 materials covered, including new material risk analyses and more
precise requirements on decarbonisation issues;s rollout of the CSR self‑assessment questionnaire for direct purchases from suppliers, which can be completed on the Hélios digital supplierportal, online since 2023;
s opening of the ethics whistleblowing line to our suppliers and external stakeholders (105 alerts);s in France, among our social value‑added suppliers (organisations helping people with disabilities into work, regional revitalisation, socialand solidarity economy), which represent a total of €293 million in purchases, 44% are SMEs.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

201

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERSCOMMUNITIESSUPPLIERS AND PARTNERSSDG

OBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

SUPPORTING THE DEVELOPMENT AND EVOLUTION OF SUPPLIER PRACTICES TO PRESERVE KEY SAVOIR‑FAIRE AND SECURE SUPPLIES

Average length of relationships
with the top 50 direct suppliers

Create lasting relationships with our
suppliers to promote long‑term action Supplier payment terms in Franceplans

19 years of trading for relationships withthe top 50 direct suppliers. A relationshipof almost 30 years with the silk supplierin Brazil. Among the longest supplier
relationships: 65 years in textiles,
42 years in jewellery and leather
An average of 28 days for supplier
payments in France in 2023, compared toa general average of 42 days in France(according to the Banque de France)

In 2023, €4,439 million were paidin advance of the contractual deadline
Amount paid in advance of the contractual by all the Group’s French entities in orderterm
to support the cash ﬂow of partners. Thus,
91% of suppliers were paid before thecontractual deadline.

=

=

↗

CO‑CREATING SUSTAINABLE DEVELOPMENT ACTION PLANS WITH OUR SUPPLIERS AND PARTNERSWork with our suppliers to achieve
the highest existing standards% of suppliers that are partof certiﬁed supply chains

100% of jewellery workshops are RJC‑COP
certiﬁed=

100% of the paper and cardboard used fororange boxes and bags is FSC‑certiﬁed=

100% of tanneries are LWG (Leather
Working Group) certiﬁed↗

ENSURE THE APPLICATION OF OUR SOCIAL, ENVIRONMENTAL AND ETHICS REQUIREMENTS (DUTY OF CARE)
Guarantee suppliers’ adherence to
the Group’s CSR commitments% of purchasing suppliers that have signed 85% of direct purchasing suppliers have
handbooks 1 and 2
signed handbooks 1 and 2↘

956 suppliers (French and international)
Monitor the CSR performanceof suppliers

Number of suppliers (French andinternational) assessed by EcoVadis andaverage score of suppliers by EcoVadis

invited onto the EcoVadis platform, with anaverage score of 59.1, compared to 46.5
for all assessments carried out by
EcoVadis,i.e. an outperformance of 27% (i.e.
2 percentage points better than in 2022)

122 audits carried out at Tier 1 direct
Control the application of the Group’s Number of audits performed on direct
requirements by all suppliers
suppliers

Allow suppliers to report actions that
Activation of an alert system
do not comply with the Group’s codes

202

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

suppliers and 98 performed at Tier 2
direct suppliers, i.e. 298 days of audit
assignments
Opening of the H‑Alert! whistleblowing
system to 100% of suppliers and external
stakeholders

↗

↗

↗

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERSCOMMUNITIESSUPPLIERS AND PARTNERSSDG

OBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

DEVELOPING BALANCED PARTNERSHIPS, SUPPORTING OUR PARTNERS, AND ENCOURAGING LOCAL INTEGRATION
AND REGIONAL DEVELOPMENT AROUND THE BASINS AND SITES WHERE THE GROUP IS LOCATED

Contribute to regional development
through our purchasing policies€293 million in social and environmental% of our suppliers that contribute to thevalue‑added purchases from 1,261 SMEs
development of priority areas (rural(ESS, EA/ESAT, ZRR, QPR), i.e. more thanareas, districts, the long‑term unemployed) 44% of indirect purchasing suppliers inFrance2-

INCREASE PARTNERSHIPS WITH ORGANISATIONS HELPING PEOPLE WITH DISABILITIES INTO WORK
AND PARTICIPATE IN THE REVITALISATION OF CERTAIN URBAN AND RURAL AREAS

Encourage suppliers to use socially
supported organisations and employ
socially supported organisations
directly

Amount of purchases made from socially
supported organisations€6.7 million in purchases from
adapted companies (EAs) and shelteredwork establishments (ESATs)-

Amounts of purchases made with Socialand Solidarity Enterprises (ESS)€144 million-

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

203

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

2.6.1

SUPPORT AND CONTROL

Committed to providing long‑term support for all its partners andmaintaining balanced relationships, Hermès ensures, in addition toquality issues, that everyone shares and respects its social,environmental and ethics ambitions. In particular, the Group monitors
issues related to human rights and fundamental freedoms,
employment conditions (hygiene, health, safety, working hours,
wages, etc.), the protection of the environment and biodiversity, as
well as animal welfare. This monitoring applies to its Tier 1 suppliers,
but also to their own suppliers (Tier 2) and subcontractors, with theaim of always better understanding all the supply chains and aligning
their CSR objectives with those of Hermès.

POLICYAt Group level, the direct and indirect purchasing departments
coordinate and monitor policies, tools and outcomes. The Grouppurchasing policy, issued in May 2013 and updated in
January 2021, is based on four elements:s security: ensuring long‑term relationships with suppliers, inparticular, with the preservation of key savoir‑faire, securing of
supplies and services, and the establishment of balanced andsustainable relationships with partners;s quality and innovation: seeking the best quality and enriching
Hermès’ creation with concrete proposals, resulting from theinnovation of partners;s CSR: ensure a social, societal, environmental and ethicalcommitment across all supply chains, by sharing the House’s
objectives in these areas with partners and supporting them intheir implementation;s cost control: contribute to the House’s economic performance bothby controlling costs, considered as a whole, and by providing value
to the customer, while respecting a balanced approach with
suppliers.

This policy was updated to strengthen its CSR component, by addinga CSR brief and a supply chain brief (updated in 2023):
s the CSR brief specifies the House’s objectives and its expectations
vis-à-vis suppliers on five themes: human and social rights,
biodiversity, energy and carbon, water and plastics. Since then,
new themes have been included: forestry, traceability, circularity,materials and process innovation, pollution, safety and chemical
substances;s the supply chain brief presents, for each raw material, both theshort‑term objectives and the trajectory for 2025, the points
requiring particular attention, and those that are prohibitive. In
particular, this brief includes certification objectives for mostmaterials according to the best existing standards (§ 2.4.2.1).

Operationally, each métier is responsible for managing its suppliers
and more generally, its supply chains. This approach guarantees
proximity, understanding of issues and pragmatism of its
mechanisms, while complying with the House’s rules.
The CSR brief and the supply chain brief, are shared with all partners
and analysed during supplier panel meetings. The House’s mainmétiers, having a wide range of suppliers, are the spearheads of

204

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

these documents. Thus, all direct suppliers of HTH (Holding Textile
Hermès) received the CSR brief (also available in Italian) and the
supply chain brief. This is also the case for Tier 1 suppliers in the
Shoes métier and for certain Tier 2 suppliers. Meetings wereorganised by the métiers with their main suppliers to present these
documents in person and advise them on the implementation ofthese objectives.
In 2023, the distribution rate to suppliers was 88% for the supply
chain brief and 90% for the CSR brief (as a % of purchasing revenue).
Suppliers who so wish are also offered more in‑depth training, towhich Hermès contributes ﬁnancially, in particular in the areas ofenergy and carbon, water and biodiversity, in order to continue tosupport them in the best possible way using a collaborative
approach. Suppliers are also invited to share their carbon data
(scopes 1, 2 and 3), which will feed detailed ﬁgures into the Group’sdata. On this subject, a group of buyers was trained in carbon issues
in the value chain, with a speciﬁc focus on reading carbon data(carbon footprint, GHG protocol, internal grid). A campaign to raiseawareness and collect carbon data through sessions of ﬁve webinars
in French, English and Italian was launched for Tier 1 suppliers. Data
collection work with the support of an expert ﬁrm has been launched.
Lastly, a Carbon Steering Committee meets three times a year toshare the objectives and progress of each métier.

2.6.1.1

SOCIAL, ENVIRONMENTAL
AND ETHICS REQUIREMENTS

The supplier risk management system, which had already existed in
the Hermès Group for many years, has been strengthened since
2018 as part of the rollout of a reasonable vigilance plan with respect
to suppliers and subcontractors as required by French law. The future
European law on the duty of care (corporate sustainability due
diligence directive) is also being watched closely.
This monitoring is undertaken in the speciﬁc context of Hermès,
which carries out more than 55% of its production internally: thisnot only reduces its exposure to risk, but it often gives it a better
understanding of operational issues (being itself an actor on thesubject). In this way, through its purchasers by métier, the Group is in
most cases close (geographically, on account of an ongoing
relationship and thus also technically) to its suppliers. The distribution
and understanding of the documents transmitted, particularly thosethat include a human rights dimension, are facilitated by translations(in English or Italian), and by discussion sessions within the buyer
network to explain speciﬁc issues related to social and environmental
requirements.
In addition to quality issues the EHS audit programmes pay particularattention to human rights and fundamental freedoms (absence oflabour that is forced, undeclared or not aligned with ILO standards or
local regulations), health and safety of people, and more generally theiremployment conditions, as well as the protection of the environmentand biodiversity. Ethics, speciﬁcally the prevention of corruption andinﬂuence‑peddling, are also closely monitored. The H‑Alert! line, open tothird parties, allows them to report any identiﬁed breaches.
All of this work is carried out systematically across the entire scope of
the Group, using a “risk‑based” approach that aims to prioritise theissues using successive ﬁlters, to focus efforts on the most signiﬁcantissues.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

In accordance with the recommendations of law no. 2017‑399 of
27 March 2017 on the duty of care of parent companies andordering companies, this vigilance plan is speciﬁcally structured
around:s risk mappings aimed at identifying and assessing the risks
generated by the activities of suppliers and subcontractors, andmore generally by all of the supply chains;s procedures to regularly assess the situation of suppliers andsubcontractors with which the Group has an established trading
relationship, but also to assess the situation of Tier 2 suppliers
and subcontractors, in order to gain an ever‑stronger
understanding of the supply chains;s appropriate action to mitigate risks identified and prevent serious
breaches of human rights, fundamental freedoms and health,safety and environmental regulations;s a whistleblowing mechanism and alert monitoring (H‑Alert!);s a system for monitoring the measures implemented and assessing
their effectiveness. This system is described in detail in § 2.8.4
below.

The Group ensures that there are no negative impacts on local
communities or indigenous communities in its value chain bycross‑referencing data from risk mapping and supply chains with data
and analyses from Verisk Maplecroft. This company has specialisedin the analysis of sector and geographical risks for more than
15 years, and is a benchmark in the market.
As also described in section 2.8 “Ethics and compliance”, § 2.8.4.4,
in 2022 the Group published a speciﬁc vigilance plan, which is being
updated for publication in 2024.
A methodology for monitoring supplier risks was formalised in 2018
and is applied by the direct purchasing and indirect purchasing
departments at all the House’s métiers.
The diagram below summarises this methodology and thecorresponding tools:
Risk mappingby métier
Risk mapping
by purchase category
Analysis of risks
by supplierSupplier
informationquestionnaire
Third-party
audit

The métier purchasers must sort their suppliers by purchasecategory, then, for each of these categories, map the global risks andthen analyse the risks by supplier. For suppliers identiﬁed as“at‑risk” (notably corruption, politically exposed persons, negative
press, breach of human rights, risk to the health and safety of
persons, environmental risk) and those identiﬁed as strategic or
sensitive (volume of business, special savoir‑faire, intuitu personae,
succession, ﬁnancial health), the purchasers must complete a“supplier information questionnaire” to enable them to investigate therisks further. If the risk is conﬁrmed, an external audit is requested.

2.6.1.2

2

RISK MAPPINGThe Group has produced a risk mapping (see chapter 4 “Risks andcontrol”, § 4.1), into which the mappings produced by each of themain métiers, retail subsidiaries and support activities are fed. Each
one takes risks related to suppliers and subcontractors into account.
In addition, to guarantee the thorough assessment of all suppliers
and, more generally, all supply chains, the purchasers in each métier
formalise a risk mapping for each of their purchasing categories,
assessing in particular the risks with respect to human rights andfundamental freedoms, the health and safety of people, social
aspects, the environment, biodiversity, ethics and corruption risks.
Since 2019, these risk analyses by purchasing category(manufacturing methods, metal parts, fabrics, etc.) have been
supplemented by analyses of the supply chains by raw material(cotton, linen, gold, silver, etc.) (§ 2.4.2.1).
Since 2018, the emphasis has been on direct production purchases,
for which control of the supply chain is a strategic challenge. With its
16 métiers, the Group has around 100 direct purchasing categories
and 75 raw materials supply chains in use. At the end of 2023, risk
mapping and a risk analysis by supplier had been conducted for 99%
of purchasing categories and a comprehensive analysis had been
completed for 74 raw materials supply chains.
Among the risks identiﬁed, ensuring the sustainability ofcraftsmanship savoir‑faire and maintaining our capacity in France aremajor challenges for several divisions, as is improving the traceabilityof raw materials throughout the supply chain. The impact of climatechange, water and energy consumption and biodiversity areimportant issues, systematically taken into account (§ 2.5). Issues
relating to the health and safety of people are also identiﬁed, butdeemed to be less critical, this point being already controlled thanks
to the long‑standing monitoring with all Tier 1 and 2 suppliers, notably
through audits, with a particularly high level of exigence. Lastly, as the
majority of suppliers are located in France, the risk of violation ofhuman rights and fundamental freedoms as well as the risk ofcorruption are generally assessed as lower; nevertheless, these areclosely monitored.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

205

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

2.6.1.3

REGULAR ASSESSMENT PROCEDURES

For each purchasing category previously covered in a risk mapping,the métier purchasers carry out a second‑level risk analysis by
supplier. This aims to assess the performance (deliveries, quality,etc.) and ﬁnancial independence of each supplier, but also the risks
related to human rights and fundamental freedoms, the health andsafety of people, and more generally, employment conditions, as wellas environmental risks. Corruption risks are also assessed according
to the country in which the supplier is based and its activity. Expert
tools, compiling the most up‑to‑date data, are used in this process.
If a risk is suspected, the purchaser conducts a more detailed
analysis to conﬁrm or rule out this risk, supported by a “supplierinformation questionnaire” setting out the various topics included in
the previously completed supplier risk analysis framework.
This “supplier information questionnaire” is more generally used by
the direct purchasers as the basis of visits to a Tier 1 or higher
supplier with the aim of constantly improving their knowledge of the
supply chains. Purchasers also use this questionnaire during
pre‑accreditation visits before starting to work with a new supplier.
These pre‑accreditation visits are compulsory within the scope of
direct purchasing.
CSR self‑assessment

In addition, the CSR briefs, created in 2020, and the supply chain
briefs, developed in January 2021 and updated annually, specify theHouse’s objectives and its expectations vis-à-vis suppliers on these
topics. To strengthen supplier engagement, a “CSR self‑assessment
questionnaire” has been developed, comprising 69 questions relating
to CSR. It allows purchasers to retrieve all the information they needfrom their suppliers in terms of CSR (social policy, commitments tothe environment and biodiversity, ethics charter, waste management,
commitments to reduce the water footprint, carbon footprint andgreenhouse gas emissions, etc.). Tailor‑made by the Hermès’ teams,
it is both comprehensive and corresponds to their typology andneeds. The resulting progress plan will be easier to manage, having
been jointly constructed. For example, this approach has made it
possible to better understand manufacturers’ social and energy
issues. Likewise, 10 major suppliers in the Women’s ready‑to‑wear
métier were supported in the construction of a remediation plan,following analysis of the responses collected by these questionnaires.

206

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The “Hermès Purchasing” digital information system is gradually
being improved in order to better match buyer and supplierinformation and better integrate new parameters, in particular carbon
emissions. Since 2023, a supplier portal has also enabled them tosubmit their various supporting documents independently and to
download available resources (supply chain briefs, CSR brief, CSR
self‑assessment questionnaire, carbon grid). Webinars wereorganised to present the tool.
AuditsDirect purchases
A procedure for conducting and monitoring external audits of Hermès’suppliers, updated in August 2022, governs the overall process of the
supplier audit programme. Initiated on a voluntary basis in 2011, theprocess was strengthened with the implementation of the laws on the
duty of care and Sapin II. The supplier audit programme is managed
by the direct purchasing department (DAD) in partnership with all of
the House’s métiers.

In essence, if the supplier information questionnaire conﬁrms asigniﬁcant level of risk, the purchaser alerts the direct purchasing
department and their line manager, a member of the métier’sManagement Committee, and an action plan is drawn up to preventor mitigate the risks. If the risk is related to the environment, thehealth and safety of people, social issues or human rights andfundamental freedoms, an external body recognised for its expertisein these areas, is asked to conduct an audit. The results of theseaudits and the quality of action plans are taken into account during
any continuation of relationships.
Audits are also requested for strategic or sensitive suppliers (volume
of business, speciﬁc savoir‑faire, intuitu personae, located in acountry far from France, etc.). Speciﬁcally, in terms of directpurchases, the Hermès Group’s 50 largest suppliers must be audited
at least once, and suppliers outside Europe may be audited regularly,
depending on the results of audits.
These on‑site audits last an average of two days each and are carriedout in the presence of a Hermès representative. They make itpossible to verify in situ the reality of suppliers’ social, environmental
and ethics commitments, the proper implementation of regulations
that concern them, and the reality of the working conditions andwell‑being of employees. This audit approach favours the quality of
the work over the number of suppliers reviewed.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

In keeping with the supplier information questionnaire, these audits
cover the following seven issues, with a higher level of requirement
than that of the SA 8000 standard:

Environment andsustainable
development
Health andsafety of people

Business ethics andanti-corruption

Supplier
audit

Human rights,
fundamental
freedoms andlabourConfidentiality

and brings together the direct purchasing department, the audit andrisk management department, purchasing and internal control of the
métier that requested the audit, as well as all métiers that have acommercial relationship with this supplier. During this committee
meeting, the main audit ﬁndings are presented and the priority
actions to be carried out by the supplier are discussed. The urgencyof these actions is deﬁned and shared with the supplier. The aim is tohave all action plans completed, other than clearly urgent situations,
within 12 months of the audit. A site visit may be organised tovalidate the proper closure of the action plan.

2

In a context where more than half of the production is in‑house, theGroup devoted 25,000 hours to auditing its direct suppliers, i.e. theequivalent of 16 full‑time employees over the year. The audit ﬁrm
spent 11,000 hours working on Hermès’ supplier audit programme
and the teams devoted 14,000 hours to it. The number of audits
increased by 60% between 2022 and 2023:
s 88% of the top 50 suppliers were audited;s more than 80% of manufacturers for Men’s ready‑to‑wear,
Women’s ready‑to‑wear and Shoes were audited;

FinanceBusiness
continuitys 100% of Italian manufacturers of Men’s ready‑to‑wear and
Women’s ready‑to‑wear will now be audited every three years;s in Shoes, 100% of Italian manufacturers will now be audited every
two years;

Of these seven topics, the three priorities, which also meet our
obligations under the duty of care law are those identiﬁed in orange inthe diagram above. If the audited supplier uses subcontractors, mostof its subcontractors will also be audited by the third‑party ﬁrm. These
Tier 2 audits last an average of half a day and focus on health andsafety, environment, and human rights, fundamental freedoms andlabour.
The schedule of this supplier audit programme begins in Septemberof year N‑1 with the establishment by the métiers of the list of
suppliers to be audited according to the priorities deﬁned above. This
list is validated by the direct purchasing department with theassociated budget. Preparatory meetings for the audits are held
before the end of the year with the métiers and the third‑party ﬁrm.
They make it possible to properly dimension the audits and establish
the provisional schedule for year N. The suppliers concerned are theninformed of the planning of an audit. Prior to it being undertaken, aﬁnancial analysis is conducted using dedicated tools. The audit takes
place according to a precise schedule including an in‑depth site visit
and interviews with employees. A report is published by thethird‑party ﬁrm within 15 days to quickly implement any corrective
actions. A Direct Purchasing Audit Committee meets twice a months More than 60% of Tier 2 manufacturers in the PAP women métier
were audited in 2023 and more than 80% of them for the PAP H.
SUPPLIER AUDITS

300
250
200
150
100
50
0

2017

2018

2019

2020

Number of audits conducted
Tier 2 subcontractors

2021

2022

2023

Objective
2024

Tier 1 suppliers

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

207

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

BREAKDOWN OF AUDITS PERFORMED ON DIRECT TIER 1 AND 2 SUPPLIERS
Directpurchases

2021

2022

2023

Objective 2024

Audits carried
out

106 *

157

220

150 Tier 1 suppliers

Types ofsuppliers

Tier 1: 65* suppliers at 87 sites
Tier 1: 79 out of 102 sites
Tier 1: 122 out of 147 sites
Tier 2: 41 suppliers located
93% in Italy Tier 2: 78 located mainly in Italy Tier 2: 98 mainly located in Italy

Number ofaudit days
Results

204 (7,000 hours
for the external ﬁrm)

144 *1,364 ﬁndings, of which 0.2%
considered critical, 18.5% major
and 52.5% signiﬁcant. The
remaining 28.8% concern simple
points for improvement, withproposals for best practices toencourage suppliers toconstantly progress in a spirit ofcontinuous improvement.

1,793 ﬁndings, of which 0.7%
considered critical.
See below for more details

More than 300 days
298

2,612 ﬁndings, of which 0.5%
considered critical.
See below for more details* Method changed in 2021.

Hermès places the safety of people at the heart of its concerns,
which is why the level of health and safety audits is particularly high.
It is therefore no surprise that, in 2023, 61% of the ﬁndings wererelated to this topic, i.e. 1,596 ﬁndings, of which 27% wereconsidered major or critical.
The most frequent major observations in terms of personal healthand security relate to:s fire risk;s chemicals risk;s risks related to workspaces;

In terms of labour, the most frequently occurring observations
concern the non‑compliance with or exceeding of the overtime quota.
In terms of the environment, the main recurring ﬁndings relate tonon‑compliance with the obligations related to ICPE regulations, themanagement of waste, and the absence of an asbestos technical ﬁle.
In terms of ethics and anti‑corruption, although some suppliers have
not yet formalised their own ethics and anti‑corruption charter, they
can all use Hermès’ social, environmental and ethics policy as a basis(Handbook 2), which notably contains clauses relating to the ﬁght
against corruption.

s compliance with mandatory periodic checks.

BREAKDOWN OF FINDINGS RECORDED IN 2023

In more detail, in 2023, 12 critical ﬁndings were identiﬁed at nine
suppliers. Four ﬁndings were related to personal health and safety(ﬁre, absence of protection during work), seven were related to thelabour topics (working time, day off) and one was related to theenvironment (storage of waste and risk of pollution). They all took
immediate steps to implement the necessary actions to correct thesituation and comply once more.

Financial position

1%
Ethics3%
Confidentiality

4%
Continuity plan6%
Human rights
and fundamental
freedoms

10%
Environment

16%

208

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Healthand safety

61%

The audits are a fundamental part of the risk assessment system for
suppliers and subcontractors. They also contribute to the quality of therelationship, a key factor in the success of sustainable support towards
best practices. This is why the métier purchasers are involved in theauditing of their suppliers, supporting the process upstream,
participating in audits alongside the external ﬁrm, and in monitoring the
progress made in the action plans in a more formal manner. An
employee from the direct purchasing department is also involved inmost of the audits. It also helps develop the purchasers’ CSR expertise,
which they can then apply to the identiﬁcation of risks when visiting their
suppliers.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

Direct Purchasing Audit Committee

Indirect purchases

Since 2019, a Direct Purchasing Audit Committee is tasked withanalysing the various audit reports and deﬁning the actions to be
implemented as a priority with each of the audited suppliers. This
Supplier Audit Committee brings together the direct purchasing
department, the audit and risk management department and thepurchasers concerned within the métiers. The Supplier Audit
Committee meets twice a month to review the ﬁndings of new audits
and dedicate time to follow up on past audits. The purchaser of the
métier in question is responsible for distributing the conclusions of
the Supplier Audit Committee to each supplier and monitoring actionplans. Audit follow‑up visits are planned three months, six months
and/or one year after the audit, depending on the type and severityof the ﬁndings. If necessary, a member of the Group direct purchasing
department can accompany the purchaser on these visits. Lastly,
once all the ﬁndings have been cleared by the supplier, where
necessary, a closing visit is carried out by the purchaser concernedand a member of the Group direct purchasing department to conﬁrm
the successful completion of all corrective actions and ensure theirsustainability over time.

Audits of indirect suppliers last between one and two days dependingon the type of activity carried out at the suppliers’ premises. They
often target less speciﬁc métiers than direct purchases, which areless complex to monitor. As with direct purchases, a risk‑based
approach is used. Since 2014, Hermès Sellier’s strategic packaging
suppliers have all been audited. Each year, this list is extended to
strategic suppliers from other departments (logistics, temporary work,transportation, etc.) or to suppliers whose buyers have identiﬁed a
risk.

2

In 2023, indirect purchasing thus carried out 22 audits in France andabroad. Several times a year, the audits are reviewed by a dedicatedIndirect Purchasing Audit Committee in order to review the audit
results and approve the action plans decided upon. This is also an
opportunity to study the follow‑up audits carried out by buyers incharge of suppliers.

BREAKDOWN OF AUDITS CARRIED OUT AT INDIRECT PURCHASING SUPPLIERS

Indirect purchases

2020

2021

2022

2023

Objective 2024

Audits carried out

6

10 (+67%)

18 (+80%)

22 (+22%)+36%

France 65%
Italy 15%
Portugal 10%

France 70%
Portugal 15%
Italy 5%
Spain 5%
India 5%

France 100%

Geographical locations

France 40%
China 30%
Portugal 20%

In 2023, an audit of suppliers outside the European Union (India) was carried out as part of the store renovation project in Mumbai. This audit
did not reveal any issues related to the human and social rights of workers.
EcoVadisIn line with its responsible purchasing strategy, the Indirect
Purchasing division selected EcoVadis at the end of 2018, which
offers a collaborative platform for assessing the environmental
performance and social responsibility (CSR) of its suppliers on four
themes: environmental, social and human rights, ethics andresponsible purchasing. Each company is assessed on thesefundamental issues according to their size, location and sector of
activity. Evidence‑based assessments are recorded in assessment
sheets enabling the implementation of corrective action plans.

2020

2021

2022

2023

Objective 2024

Number of national
and international
suppliers invited touse the EcoVadis
platform since 2018

200, i.e. 50% of
indirect purchasing
expenditure322, i.e. 60% of
indirect purchasing
expenditure736, i.e. 70% of
indirect purchasing
expenditure

956 invited (900expected), i.e. 81%of the France indirectpurchasing
expenditure coveredby the responses

Maintain coverageof 80% of indirectpurchasing
expenditure

Average score50.8 (18% higher
than the overall
EcoVadis average of
42.8)

55.4 (29% higher
than the overall
EcoVadis average of
42.8)

55.2 (23% higher
than the overall
EcoVadis average of
44.9)

59.1% (27% higher
than the overall
EcoVadis averageof 46.5)2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

209

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

Number of suppliers
assessed in 2023

Average score

Average score
Environment

646

59.1 EcoVadis: 46.5

61.4 EcoVadis: 47.3

61.0 EcoVadis: 49.1

55.0 EcoVadis: 44.1

53.6 EcoVadis: 38.6

Of these 646
suppliers, 41% werereassessed

Average scoreincrease of +3.6
pointsAverage scoreincrease of +4.3
pointsAverage scoreincrease of +3.1
pointsAverage scoreincrease of +3.3
pointsAverage scoreincrease of +3.9
points

The results of supplier assessment with the platform are reﬂected inaction plans proportionate to the risk exposure according to thescore. The latter triggers a new assessment at a variable dateaccording to the level of performance. Thus, suppliers can becongratulated or encouraged to implement a corrective action plan or,
after an explanatory meeting, be supported in a traditional site visit
and speciﬁc questioning process.

2.6.1.4

RISK MANAGEMENT AND MITIGATION OR
PREVENTION OF SERIOUS HARM

The Group’s policy is also based on a desire to train purchasers in an
increasingly complex métier and formalise concrete commitments bysuppliers.
Network management and training

The two purchasing divisions, direct and indirect, are responsible forcoordinating the network of purchasers and organising joint training
actions.
The Direct Purchasing Coordination Committee, led by its Group
department, regularly brings together purchasers from the métiers toreview the Group’s policy and procedures, regulations, legal rules andtools for monitoring suppliers and subcontractors. These meetings
are also an opportunity to share the purchasing risk mapping of thevarious métiers. This helps purchasers to exercise their duty of carevis-à-vis their suppliers and subcontractors, and more generally vis-àvis all supply chains. In particular, in 2021, the enhancement of the
CSR component of the Group’s purchasing policy was presented tothe entire community of purchasers, i.e. 120 direct purchasers,
during these meetings.
In addition, networks speciﬁc to certain supply chains, common toseveral métiers, have existed since 2019 and meet on average threetimes a year, and more frequently if necessary. These are the leather,
textile, metal and stone purchasing networks. Other networks havebeen created to address other supply chain categories such as woodand plant‑based materials, raw materials in the Perfume & cosmetics
métier, and ceramics, enamel, glass and crystal. These meetings
provide the opportunity to discuss the risks identiﬁed within the
chains and steer the action plans to prevent or mitigate these risks.
Since the end of 2018, the development of a training course forpurchasers has been ongoing, with the aim of strengthening andstructuring the training already existing within the Group. These
dedicated sessions are either more general, with detailed CSR
components, or more technical on EHS (Environment, Health and
Safety), legal compliance and human rights topics:s a “Hermès Purchasing Excellence” training course was finalised inearly 2021 and is continuing to be rolled out. It lasts three days,

210

Average score
Business ethics

Average score
Responsible purchasing(for the suppliers
concerned)

Average score
Labour and humanrights2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

including a full day dedicated to CSR, responsible purchasing andsupply chain management;s an “Environment, health and safety” training course has also beenrunning since 2020. It addresses purchasers, as a priority, butalso everyone who is required to travel to the House’s suppliers
and subcontractors. In 2023, more than 50 people were trained
and the Group now has nearly 260 people trained;s a 3.5‑hour “GOTS certification” training course was made available
to the métiers so that they could understand its inclusion in
Hermès’ CSR policy and its consequences for partners. This will
make it easier to support them and develop their skills in thesubject. Some 45 employees who work with textile suppliers weretrained in 2023;
s all buyers other than in the Leather métier were trained in CSR
during specific sessions.

As part of the management of its strategic partners, Hermès Horloger
has increased the number of suppliers involved in the “supplier
relationship management” cycle: bimonthly meetings are organised tostrengthen ties with a view to jointly building lasting relationships.
Within this framework, the central topics of the purchasing policy are
addressed, such as the vision of CSR, ﬁnancial health and recent
investments, as well as the short-, medium- and long‑term needs ofHermès Horloger, in order to be able to systematically give its
partners a clear vision and thus secure supplies.
As an extension of the Group’s supply chain management
programmes, Hermès Horloger continued its work on the precise
mapping of its value chains: work carried out jointly by the métier’spurchasing and CSR teams also served as a basis for identifying
environmental and social risks coupled with supply risks in the value
chain, in order to deﬁne the priority supply chains on which to focus
actions and efforts in 2023 and the following years.
In its risk analysis, out of a panel of 145 suppliers andsubcontractors, Hermès Horloger analysed 45 suppliers andidentiﬁed 15 suppliers likely to be monitored more closely over thelong term, but no alerts according to the OECD’s due diligence
principles were identiﬁed. Following this analysis, eight audits werecarried out (including four diamond cutting plants, Tier 2 suppliers)
and a strategic and operational action plan was put in place for2023.
Furthermore, Hermès continues to conduct buyer training on carbon
footprints, with 55 people trained. The objective of these training
courses is to better understand the methodology, but above all to beable to explain it to the Group’s suppliers in order to help them intheir own carbon footprint analyses. In 2023, this training wasenriched by a module to help analyse and explain the results andpropose action levers to suppliers.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

A “Social Issues and Human Rights” training course was rolled out in
2023 and 72 people were trained.
In addition, a “Legal and Compliance” training course is being
ﬁnalised with the legal department.
Supplier commitments

From a legal standpoint, Hermès systematically requests a formal
commitment from its suppliers to comply with their social, regulatory
and environmental obligations through two contractual undertaking
handbooks, signed by both parties. These handbooks, which deﬁne
the contractual relationships, are regularly updated (publication of the
new Supplier Code in 2024):s handbook 1: defining undertakings with respect to non‑disclosureand fair trading;s handbook 2: defining undertakings with respect to social,environmental and ethics policies.

These two handbooks are public and available online. They were
updated in 2020 to include an email address facilitating the reportingby suppliers of any breaches they witness in terms of ethics.
The signature campaign launched in 2018 continued to present andencourage all the Group’s suppliers to subscribe to this new version.
Handbook 2 includes items relating to international standards andagreements, rules of labour‑related, environmental and ethicalconduct, as well as personal data.
By signing handbook 2, suppliers and subcontractors formally
undertake to carry out their own duty of care with respect to their
suppliers and subcontractors. Moreover, they are responsible fordeclaring all their subcontractors to Hermès and may not subcontract
any production of Hermès products to a new subcontractor without
Hermès’ prior written agreement. This agreement is tied to a
pre‑accreditation visit based on the “supplier informationquestionnaire”.
Purchasers regularly remind their suppliers and subcontractors of theundertakings they have made by signing handbooks 1 and 2.
Furthermore, any new supplier is required to sign handbooks 1 and 2
before any partnership can be undertaken, and in particular prior toparticipating in any call for tenders or listing. In other words, CSR
criteria are systematically taken into account in the supplier selection
process and their performance in this area is monitored during thecontractual period. Similarly, the termination of the supplier
relationship could be considered by the Group in the event of aproven breach of Hermès’ CSR requirements. In 2023, 85% of directpurchasing suppliers signed commitment handbooks 1 and 2.
In 2024, handbooks 1 and 2 will be combined in a single document
called the “Supplier Code of Conduct” (1).

Examples of the application of the approach by the métiers

The Cashmere working group ﬁnalised the identiﬁcation of its supply
chain issues and rolled out a speciﬁc questionnaire to shearers. The
ﬁrst métier audits of the division’s upstream chain were launched in
2023.
The Leather division organised a day for its suppliers in 2023, toshare CSR issues and engage them on these topics. On thisoccasion, 106 people were trained in the Climate Fresco. Similar days
dedicated to suppliers on the theme of CSR were organised forbuyers in the Women’s ready‑to‑wear métier, and the Hermès
Manufactures de Métaux subsidiary.

2

Within the Fashion jewellery métier, suppliers are supported in
implementing a zero plastics supply chain approach. They are thus
made aware of the importance of not including intermediate plastic
packaging when sending articles. The Home métier has drawn up aroadmap with its suppliers for all of its textile supply chains in order tomanage a transition to 100% certiﬁed materials by 2030.

2.6.1.5

ALERT MECHANISM AND MONITORING SYSTEMFOR MAJOR ISSUES

The close relationships between Hermès and its suppliers are key toidentifying suspicious conduct. On‑site visits by purchasers andfrequent assessments are important aspects that make it possible todetect any breaches and to alert the Group.
Each métier is responsible for monitoring the issues identiﬁed andthe proper implementation of corrective actions with suppliers.
Similarly, the legal framework of relations with suppliers andsubcontractors is regularly updated in light of actual experience. In
particular, the conclusions of the audits, which bring together thepurchasers and the Group direct purchasing department, offer deep
insights solidly anchored in the real circumstances of suppliers andsubcontractors.
In accordance with the code of business conduct, any employee who
identiﬁes suspicious behaviour in the supply chain is invited to report
it internally thanks to the H‑Alert! mechanism. Furthermore, in
accordance with the French Sapin II law, in the event of a breach orsituation contrary to the ethics, social and environmental principles,the Hermès Group has provided its suppliers and subcontractors witha whistleblowing mechanism using a dedicated digital platform.
French law no. 2022‑401 of 21 March 2022, which fundamentallyamended the Sapin II law, broadens the scope of whistleblowing aswell as those people beneﬁtting from whistleblower status.
As a result, the global H‑Alert! whistleblowing system was
supplemented in 2022, in order to:s strengthen the protection of whistleblowers against any form of
retaliation. To this end, a new information notice on thewhistleblowing system has been published;s provide Hermès suppliers, dealers, distributors, intermediaries andco‑contractors in general with access to the unique H‑Alert!
whistleblowing system.

1.

https://assets‑finance.hermes.com/s3fs‑public/node/pdf_file/2024‑02/1706808629/24‑01‑30‑supplier‑code‑of‑conduct‑en‑final.pdf.
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

211

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

This external H‑Alert! occupational whistleblowing system is now
accessible on the HermèSphère intranet and the Hermès Financeinstitutional website. Available in 21 languages, it was validated by
the Group’s Governing bodies and communicated to all its entities
and structures.

s this approach is regularly shared with the teams and through thework of the legal compliance department. It is shared with
suppliers during operational exchanges with purchasers, and wasformalised in the signing of handbook 2 (§ 2.6.1.4), which is alsoavailable to the public online (2).

These alerts are analysed by the legal compliance department and
the Group purchasing department. § 2.8.1.3.2 describes in moredetail the implementation of this alert system.

Monitoring of practices is primarily the responsibility of the métiersand their purchasers, who are in direct contact with suppliers. The
topics that are monitored closely include working conditions (hours,
health and safety, compensation, right to organise andrepresentation, disciplinary practices), risks of discrimination, forced
labour, child labour, and, more broadly, acceptable living conditions(considering the local environment). Industry (for the packaging
sector, for example) and geographical discussions are held to help
identify the issues more precisely. When a subject is identiﬁed, it isdiscussed with the partner to help it understand why the topic is
important to Hermès, examine possible improvement solutions andput in place an action plan as part of a long‑term relationship. If thisprocess cannot be put in place, the subject is discussed by theManagement Committee of the appropriate métier, the industrial
affairs department and the Sustainable Development Committee. therelationship is suspended.

2.6.1.6

HUMAN RIGHTS IN THE SUPPLY CHAIN

The Hermès craftsmanship model, in which 55% of objects are madein Hermès’ exclusive in‑house workshops, and 74% in France, relies
on a network of suppliers based mainly in Europe, where labour
practices are stricter than in other environments. Hermès’ exposure
to supplier risk is therefore reduced, all the more so as 58% of the
top 50 direct suppliers are in France and 40% in other European
countries. Just 2% of purchases are made in more distant countries,
mainly raw materials (e.g. exotic leathers), and control and monitoring
there are extremely strong. The House’s practice is to have a close
relationship with its suppliers, historically for reasons relating toquality, however this historical mode of operation is now also very
useful when it comes to ensuring the quality of ethics, social andenvironmental practices.
The Group’s policy, for its own operations as well as for those carriedout by its suppliers and subcontractors, is to enforce compliance withmajor international Human Rights principles:s Hermès’ internal and external ethics approach is based on theuniversal framework established by major international principles.
The ethics charter, signed by the Executive Chairman, establishedin 2009 and updated in 2022, is communicated to all employees.
It is available on the intranet and can be accessed by the public on
the financial website (1).

As stated in § 2.8, the ethics charter specifies that these principles
apply to both Group companies and suppliers. In particular, explicit
reference is made to the Universal Declaration of Human Rights,
the charter of fundamental rights of the European Union, thecharter of fundamental principles of the International Labour
Organization, which covers freedom of association, the fightagainst forced labour, child labour and the fight against
discrimination, and the OECD Guidelines. It is also a member of theUnited Nations Global Compact, which invites companies to adopt,
support and implement in their sphere of influence a set of 10 corevalues (relating to issues involving human rights, labour standards,
environment, the fight against corruption), and the UN Guiding
Principles on Business and Human Rights, which commit
companies to respect human rights and address the negative
impacts of their activities;

212

1.

https://finance.hermes.com/en/.

2.

https://finance.hermes.com/en/ethics‑human‑rights‑and‑diversities/.

3.

EA – Adapted company.

4.

ESAT – Sheltered work establishment.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Respect for Human Rights and fundamental freedoms is part of thevigilance plan put in place by the Group as part of its duty of care.
This is repeated and detailed in § 2.8.4.

2.6.2

DEVELOPMENT OF PURCHASES WITH A
SOCIAL CONTRIBUTION OR RESPONSIBLE
SOCIAL IMPACT

Aware of its societal responsibility and driven by the development ofpurchases from socially supported organisations both for its direct
and indirect purchases, Hermès implements a strategy of developing
its responsible purchasing, wishing to extend its societal commitment
beyond the strict deﬁnition of socially supported organisations.

POLICYThe Group is very sensitive to the subject of disability, with an
employment rate in excess of 6.8% within its teams in France (see§ 2.2.4.5). Moreover, Hermès has long pursued an external policy infavour of people with a disability through partnerships withorganisations helping people with disabilities into work (EA (3),ESAT (4)) in France. This ambitious purchasing policy with socially
supported organisations is based on enabling EA and ESAT workers to
exercise a professional activity in an adapted framework that provides
a meaningful environment. The legislation changes of the Disability
Reform, which set a ceiling for the tax reductions generated bypurchases from socially supported organisations, will not threaten thispolicy, which has been reafﬁrmed to all players and decision makers.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

The ambitious target set in 2017 to increase the use of the socially
supported and sheltered organisation sector in France by 20% peryear was widely exceeded in 2023, with purchases made growing
from €0.7 million at the end of 2017 to €6.7 million at the end of2023 (vs. €5.2 million in 2022), i.e. an increase of nearly 30%
compared with last year and a 10‑fold increase in six years. Driven bya proactive policy, these purchases are mainly made at the initiativeof Hermès Leather Goods & Saddlery and Hermès Group Services.
The Group regularly uses the Hors les Murs initiative, in which EA
and/or ESAT workers come and carry out tasks in the workshops. In
many métiers (Hermès International, Hermès Group Services, Hermès
Leather Goods & Saddlery, Hermès Perfume and Beauty, HermèsDistribution France, etc.), these workers, made available on a daily
basis by EAs and ESATs, contribute to various activities (cutting,preparation of orders or meeting rooms, logistics, security, concierge,
mail dispatching, etc.). These collaborations provide long‑term
employment opportunities. For example, at Puiforcat, a partnershipwith APF Entreprise enabled this structure to provide a person with adisability to assist in the workshops as a controller and assembler,

meeting a need for reinforcements due to growth in the activity. Afterbecoming multi‑skilled and having increased her skills, she is now afull‑time member of the teams. In addition, speciﬁc systems can alsoenable the structures of the adapted sector to beneﬁt from theorganisations set up at Hermès, in the form of a transfer ofexperience.
Building on this inclusive base, the Group now measures the impact
of its purchases in the regions in France, and the results represent asigniﬁcant impact in terms of social responsibility.

2

Indirect purchases thus contribute to the development of priority
regions. In 2023, these purchases were made from 1,261 SMEs inFrance (<250 people, revenue <€50 thousand) spread across 236
ESS – social and solidarity enterprises, 367 suppliers located in ZRR(rural revitalisation zones), 628 suppliers located in QPV (priority cityneighbourhoods) and 30 ESATs/EAs. In summary, 44% of the amountof value‑added social purchases (contributing to the revitalisation ofregions as well as organisations helping people with disabilities intowork) are made from SMEs.

In total, in France in 2023, 1,856 partners enabled the Group to make purchases with social and environmental added value in the amount of€293 million:

Purchases madefrom EAs/ESATs

Purchases made fromcompanies in the socialand solidarity economy(SSE) sector

Purchases made fromsuppliers in rural
revitalisation areas(ZRR)

Purchases from suppliers
located in a priority
or revitalised
neighbourhood (QPR)€15 million€144 million€127 million€6.7 million(+30% vs. 2022)

MEASURES IMPLEMENTED AND RESULTS IN ORGANISATIONS HELPING PEOPLE WITH DISABILITIES INTO WORK
Hermès Maroquinerie‑Sellerie’s objective is for each internal regional
division to develop a partnership with one or more EAs/ESATs in its
region. Each partnership is ﬁrst and foremost a human journey,
providing an opportunity to integrate people with disabilities into theteams, drawing on the experience and skills of these structures.
The ﬁrst step is to have the EA/ESAT partners work locally on the skills
they already offer: green spaces, company canteens, renovation of
workbenches, small equipment, etc. Once this potential is tapped, aramp‑up of skills is envisaged in the techniques necessary for the
manufacture of objects. The ultimate goal is to enable certain EA/
ESAT partners to become contract manufacturers to whom the sites
could entrust the manufacture of certain small, ﬁnished products.
These supported long‑term partnerships in short make it possible tofree up internal production capacity within the leather goods
workshops, while allowing the EAs/ESATs to improve their skills anddevelop their activity.

Undertaken since 1999, the Hermès Leather Goods & Saddlery
collaboration with EAs/ESATs on the core métier expanded further in
2023, now representing 133 FTEs spread across nine EA/ESAT
partners. In addition, the development of “off‑site” secondment
missions continued this year by integrating more operations such as
the slitting of stiffeners at ﬁve partners and trimming operations at
two of them. All partners beneﬁt from the growth in activity andmachines can also be sold to them for a symbolic €1. For 2024, twopartners should be listed, in Montereau and in Normandy.
Manufacturers are also supported in starting a stiffener cutting
activity with an EA or ESAT near their premises. Lastly, HMS willorganise the third Handispensable day in July 2024, an internal eventthat brings together the various entities of the Group and theirpartners in organisations helping people with disabilities into work, toshare their skills and experience and encourage the use of
responsible purchasing.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

213

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: SUPPLIERS & PARTNERS

The other major player in the collaboration with EAs/ESATs is HermèsGroup Services, which for the third consecutive year exceeded thethreshold of €1 million in purchases from EAs/ESATs. By structurally
integrating into each call for tenders an inclusive clause on purchasesfrom socially supported organisations and the sheltered sector, andregularly setting up tripartite co‑contracting contracts, they havedeveloped numerous opportunities for collaboration with socially
supported organisations: cleaning of premises, waste management,
concierge service at the Faubourg premises, in‑store packaging
management, reception at the switchboard, management of meetingrooms, maintenance of green spaces, postage, inter‑site shuttles,
premises maintenance, etc. The growth in partnerships is alignedwith that of the Group. In addition, the teams of Café Joyeux, acompany that employs people with disabilities, work in the tea rooms
and cafeterias.

214

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Hermès Perfume and Beauty continued its partnership with an ESATin addition to the packaging partnership that had been in place forseveral years, with support from Hermès for the implementation of an“RAE” (Recognition of skills Acquired through Experience) system, theprovision by Hermès Parfum of a conveyor belt within theirestablishment so that ESAT employees can learn to adapt to working
at a steady pace and ﬁnally welcoming a small team from the ESAT
within the premises of Hermès Perfumes directly on our packaging
lines.
Lastly, Hermès Commercial has developed a collaboration with three
EAs/EATTs/ ESATs over several years. At the logistics department in
Bobigny, three workers are currently seconded to the site by APF(Association des Paralysés de France) to work as logistics operators
and an administrative assistant. Building on this successful
experience, a team of two people was also recently deployed within
the exceptional sales department to prepare products for donations
to associations or recycling (§ 2.4.1.2.4). Some of thesecollaborations have resulted in hires.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCE

2

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

215

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

Manufacto, introducing the craftsmanship métiers and savoir-faire, a programme run by the Fondation Hermès© Photography credits:: Benoît TEILLET

216

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7

COMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

Hermès’ sustainable development is rooted in harmonious long‑term relationships with its stakeholders. Hermès acts as a socially
responsible company wherever it operates, contributing to the economic, social and cultural vitality of the regions.
Hermès communicates its sustainable development ambitions and achievements with its stakeholders. More broadly, Hermès contributes tothe public dialogue by sharing the speciﬁcities of its responsible and sustainable model.

2

Introduction
Aware of its responsibility in terms of contribution to regional
development, Hermès mainly locates its production activities inFrance. With 75 own production and training sites worldwide,
including 60 in France, Hermès contributes to the sustainable
development of the regions through employment (4,877 new
employees in France over the past ﬁve years) and promotes thecreation of sustainable value (recruitment in the local area, employee
training, etc.).
Diverse initiatives enable Hermès to express its uniqueness, as well
as extend its outreach into numerous regions, and create constructive
ties with local economic players. These harmonious relationships withstakeholders contribute to its local integration and its contribution tohaving a positive impact. They reinforce employees’ pride inbelonging.

Moreover, the House’s subsidiaries and sites organise local
charitable operations. They stimulate and cultivate the desire of
employees to become more involved in these very diverse subjects,
each in their own way. Dedicating time, investing personally, being
open to others and giving back to society a part of what it gives us…
around the world, a multitude of local interest projects thrive thanks
to Hermès.
The founding values of Hermès are also expressed through the
Fondation d’entreprise Hermès, created in 2008. This createsfavourable conditions for the design of works, the transmission ofsavoir‑faire, the preservation of the environment and the promotion ofsolidarity actions.

In 2023, the Group made progress in its local anchoring and stakeholder relations approach with a philosophy of undertaking steady in‑depth
improvements over the long term. Among these, the elements selected below are particularly illustrative of 2023 for this section:s nearly 388 solidarity and social actions around the world;s an emblematic project to replant 20,000 trees with the Est Ensemble urban community;
s 26% of the added value redistributed to the public authorities and 20% redistributed to employees, on average over the last three years;s progress in non‑financial assessment scores:• keeping its place on the “A list” of the Carbon Disclosure Project (CDP) for water, new entry to the “A list” for climate, and A- for forests,• B- “prime” awarded by ISS ESG,
• winner of the best improvement class in the Best Vigilance Plan rankings awarded by the Sustainable Investment Forum for the 2023
edition;s alignment of information relating to the Group’s non‑financial performance with the main ESG (environmental, social and governance)
standards: TCFD (Task Force on Climate‑related Financial Disclosures), TNFD (Task Force on Nature‑related Financial Disclosures); SASB
(Sustainability Accounting Standards Board); GRI (Global Reporting Initiative); PAI indicators (principal adverse impacts) of the SFDR(European Sustainable Finance Disclosure Regulation);s reasonable assurance report on a selection of CSR information published in this document.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

217

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCYCOMMUNITIESSTAKEHOLDERS AND TRANSPARENCY
SDG

OBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

PURSUE A MANUFACTURING DEVELOPMENT POLICY IN FRANCE BY JOINTLY DEVELOPING PROJECTS WITH THE REGIONS WHERE IT OPERATESMaintain a high level of commitment
in terms of production in FranceContinue to develop new production
sites in France

Share of production in France

74% of objects are produced in France-

Number of production sites in France and
60 production and training sites in France
number of new sites established in France-

Number of regions in which the Group has 11 of the 13 French regions (including nineestablished sites
for production and training sites)=

Number of new employees in France

4,877 new employees in France over ﬁve
years

-

DEVELOP HARMONIOUS RELATIONSHIPS WITH LOCAL STAKEHOLDERS
Partnerships with local employment
centres to promote local recruitment
Implement stakeholder relations
action plans in each host region

Number of local events with local
Participation in Réseau
authorities, local institutions, associations,
Entreprendre 93
etc.
Support for the “Des Territoires aux
Grandes Écoles” initiative

GIVE BACK TO THE WORLD A PART OF WHAT IT GIVES TO THE GROUP
Group tax rate

27.8% Group consolidated tax rate

Group income tax expense
in millions of euros

tax expense

Ensure value is shared

Establish the necessary conditions
Fondation budget by mandate
for the creation of works of art,
transmission of savoir‑faire, protectionof the environment andencouragement of solidarity actions€1,623 million in consolidated income€63 million (1): budget of the Fondationd’entreprise (over ﬁve years)

At least one sponsorship or social andsolidarity action per year and per country

See table § 2.7.2.1.2

Number of solidarity projects set up

Nearly 388 solidarity projects
around the world

Projects led by the Group

Project with Est Ensemble to plant 20,000
trees across the Est Ensemble region overfour years

Strong commitments from the entire
Group to local sponsorship initiatives-==

Develop global philanthropic actions
Livelihoods project1.
218

Including €2 million euros for skills‑based sponsorship.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

2.8 million people supported byLivelihoods projects worldwide-

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCYCOMMUNITIESSTAKEHOLDERS AND TRANSPARENCY
SDG

OBJECTIVE

INDICATORS

2023 RESULTS

CHANGE
2022/2023

CONTRIBUTE TO DISCUSSIONS BY CIVIL SOCIETY OR ACADEMIC RESEARCH EFFORTS BY PARTICIPATING IN MULTI‑STAKEHOLDER INITIATIVES

2

20 partner educational establishments
Establish partnerships
with educational establishments

Number of partnerships with educational
establishments, chairs, etc.

Continuation of partnerships with the
Sciences Po Paris Sustainable
Development Chair and the PSE “Opening
up science to the economy” Chair=PARTICIPATE IN ADVOCACY ACTIONS FOR DIFFERENT PRODUCTION METHODS (CRAFTSMANSHIP, LESS INTENSIVE AGRICULTURE, LOCAL INTEGRATION)
UNFCCC (United Nations Fashion Charterfor Climate Change)

Act4Nature International

SBTN (Science Based Target Network)

ICFA (International Crocodilian Farmers
Association)

Contribute to initiatives and coalitions

Contribution to an action in eachof our value chains

LPPS (Lizard Procurement and Processing
Standard)
SAOBCS (South African Ostrich Business
Chamber Certiﬁcation Scheme)

CVFR (Cuir de Veau Français Responsable)

Lab Cap Naturel

La Fabrique de la Circularité
DEVELOP A CONSTRUCTIVE AND TRANSPARENT DIALOGUE WITH ALL OF THE COMPANY’S STAKEHOLDERS
Be transparent about our
non‑ﬁnancial performance

Achieve the highest rating category
in each assessment

Be transparent about the strategic
actions taken by the Company
and the results obtained

Number of non‑ﬁnancial assessments

15 main non‑ﬁnancial assessments-

CDP climate: inclusion on A List-

MSCI: AA-

Moodys ESG: 65 “Advanced”-

ISS ESG from C+ to B- “prime”-

Improve non‑ﬁnancial ratings

Number of CSR documents shared on
Hermès’ websites

18 documents published on the Hermès
Finance website in addition to the annual
report-2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

219

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.1

REGIONAL RESPONSIBILITY IN FRANCE

As part of its regional responsibility, Hermès undertakes initiatives inFrance in particular to support the regions in which it is located,enhancing their value and transforming them.

POLICY
Hermès chooses to locate its manufacturing sites mainly in France.
Where other companies that have chosen to relocate more centrally
are now seeking to return, Hermès remains faithful to its long‑term
model. This is the case for its Leather Goods & Saddlery division’s
activity, where the industrial development approach is that ofspin‑offs: organic development that creates human‑scale production
sites (approximately 250 people), that start with a core group of
experienced craftspeople, who train newcomers.
Hermès’ ambition is also to contribute to the development of theregions in which it is located by creating direct and indirect jobs, aswell as by local initiatives in social, educational and cultural ﬁelds,
among others.

2.7.1.1

PURSUE A MANUFACTURING DEVELOPMENTPOLICY IN FRANCE

Hermès is present in 11 of the 13 regions of mainland France(production and stores). The House establishes itself for the longterm and today has 13,723 employees in France, with an increase in
its workforce of 4,877 employees in ﬁve years, i.e. growth in theworkforce in France of nearly 55% over this period.
Since the launch of the ﬁrst site in 1837, the locations for production
units have been chosen to support hubs of regional expertise.
Hermès has 60 production and training sites of its own in France innine of the 13 French regions. The Textile division, which has ﬁve sites
in the Lyon region (around 1,000 jobs), concentrates the House’ssavoir‑faire in this domain. The complementary lines of savoir‑faire –such as weaving, engraving, printing, dyeing, ﬁnishing and sewing –are grouped together under the holding company Holding Textile
Hermès. The major “Passerelles” project at Pierre‑Bénite (near Lyon)
has enabled the addition of two new printing lines, thereby creating
additional jobs. Moreover, this project, which provides social support
for people in difﬁculty in the Lyon region, has earmarked 5% of theworkforce time for employees in professional integration programmes(the long‑term unemployed or coming from disadvantaged
neighbourhoods).
The CATE porcelain production site is based in the Limousin region,
the cradle of the porcelain métiers, with Beyrand, a colour printersince 1926, which joined the Group in 2013.
In the Périgord region, the Nontron site is a good example of theGroup’s desire to develop its local footprint. Hermès, thanks to its
decision to set up a porcelain production site, was able to hire
200 people impacted by the closing of a manufacturing site in 1990.
Today, with three companies, Hermès has more than doubled its
workforce and employs around 600 people at Nontron, making it thelargest private employer in the area.

220

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALThe Cristalleries Saint‑Louis, founded in 1586, are located in theheart of the Lorraine forest, the source of all the raw materials
necessary for crystal manufacture. They hold more than
10,000 moulds that can be reactivated at any time to fashion the
production unit’s crystal objects. The Cristalleries Saint‑Louis form aremarkable area of activity in the Pays de Bitche region, including
thanks to the presence of the Musée du Cristal “La Grande Place”,
located in the heart of the production unit.
The Leather Goods sites continue to expand according to customer
demand. In December 2023, the Leather Goods métier had 26 own
production and training sites. In 2023, the new Leather Goods
workshops opened in Louviers (Eure), Sormonne (Tournes‑Cliron) andSaint‑Junien (Haute‑Vienne), thus strengthening the centres alreadyestablished in the Normandy, Limousin and Ardennes regions.
The choice of new sites responds to a desire for local integration on
three levels: respect for local expertise, sustainability of savoir‑faire,and desire to create local jobs bringing life to the regions.
The geographical location of the integrated production and training
sites covers the whole of France (see map of production sites inchapter 1 “Presentation of the Group and its results”, § 1.4.2 and§ 1.4.3).
The history of the local architecture and the emblematic materials of
the region are also integrated in the thinking and design of new
production units, as part of Hermès Harmonie standard for
responsible real estate (§ 2.5.2). Local companies are preferred
whenever possible in calls for tenders when they meet the
speciﬁcations.
In addition, the creation of sites organised by division (maximum
three sites) promotes project synergies, recruitment of experts, skills
improvement, and also presents opportunities for internal mobility
ensuring the sustainability of the model.
Hermès has expanded its sites in France with 18 production andtraining sites since 2018. Located outside the Paris region, thesesites demonstrate the Group’s desire to contribute to regional
development in all regions of France.

2.7.1.2

DEVELOP HARMONIOUS RELATIONSHIPS WITHREGIONAL STAKEHOLDERS

In order to contribute to the development of the host regions, site
construction projects are prepared in cooperation with the local
cluster of municipalities. They address the impacts related inparticular to employment, training, mobility (mobility plans, impacts
on transport), biodiversity and, more generally, the integration of theHouse in the issues of the area concerned.
Special attention will be paid to the potential of the local employment
pool, in particular transport infrastructures, possibilities for local
housing and schooling for families. The quality of the partnership withlocal councils is decisive, driven by the desire for a real local life forthe families who settle there.
The Group works to promote these relationships, based on trust,transparency and joint actions.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

The development of craftsmanship métiers and job creation

The sites all maintain close relations with local Job Centres (Pôle
Emploi) and schools. The goal is to help train the new generations ofcraftspeople, as well as showcase our offers and métiers, allow
hands‑on practice, and explain the Group’s métiers to the young
generations. Regardless of the site’s activity (leather, silk, or other
métier) or its geographical location, this approach consists of:s workshop visits by high school students to discover thecraftsmanship métiers;
s talks in secondary schools to present the métiers prior to thepupils’ choice of a career path;s organising information
Employment Agency;

forumswiththeFrenchNationals the creation of appropriate local training programmes.

The establishments, which are often in rural areas, provide a major
local boost to the communities concerned: stimulation of local
consumption, supporting real estate, impact on community needs(maintenance of classes in schools, public transport support, etc.).
Thanks to the creation of the “École Hermès des Savoir‑Faire”
schools, Hermès also contributes to the training effort as close as
possible to the regions and to the inﬂuence of the craftsmanshipmétiers.
In addition to actions linked to its own activities, it is also a socially
responsible company in the places in which Hermès conducts its
business, building harmonious and constructive relations withstakeholders. The production sites interact with the municipalities,
the local association of municipalities, and local Agencies such as
Action Logement. Hermès cooperates with partner associations for
employment, as well as with junior and high schools which will provide
the House with fresh young talent, thereby contributing to its
expansion.
The following examples illustrate the operations conducted in 2023:
Leather

As part of a brand new project, the école de Guyenne workshop was
set up. Future employees are trained for a period of 18 to 24 months
before the opening of the site and sit their certiﬁcation exams during
their training.
Recruitment is carried out locally; the ﬁrst classes, each consisting ofaround 30 craftspeople, are recruited without CVs, regardless of theirprevious career path. Their manual skills and their ability to learn areassessed in a joint MRS process with Pôle emploi. Every six months,
a new group is brought on board for an 18‑month training period. The
craftspeople are then provided with continuous training from tutors. In
this way, upon opening, about 100 people are already operationaland ready to launch the leather goods activity. In the long term, theaverage workforce will be 250 craftspeople. This number of
employees will allow the craftsmanship dimension to be preserved,
and quality relations between employees and management.
In 2023, Hermès entrusted the Executive Master of the École urbainede Sciences Po Paris with a ﬁeld mission on the Group’s regional
implementation and production network strategy. The objective is tounderstand and qualify the externalities of the establishment of a
Leather Goods workshop in a region, to objectify and measure theimpact and creation of Hermès’ values on it with regard to multiple
quantitative and qualitative criteria. Through this approach, Hermès isseeking the means to create stronger and long‑term local anchoring.
The students carried out ﬁeld studies by visiting the Maroquinerie desArdennes in Bogny‑sur‑Meuse, the Maroquinerie de Guyenne in the
Bordeaux area, and the Cité des métiers in Pantin. The analysis grid
they then built took into consideration the economic fabric andemployment, the attractiveness of the region, the contribution to theregion’s project and the social impact. Each theme was the subject ofseveral questions addressed to stakeholders in the ﬁeld of leather
goods, public, civil and private players in each region. The datacollected made it possible to draw up a regional matrix that isdesigned to complement the tools Hermès uses to choose its site
locations. The conclusions of the study highlighted the importance of
employee well‑being in the choice of locations, as well as
relationships with local players deﬁned as stable, good and regular. To
strengthen the performance of Hermès’ sites, the students issued
nine recommendations on local anchoring and ﬁve recommendations
on new sites, some of which have already been implemented, such asaccessibility by public transport or the prioritisation of sites that canreuse a piece of wasteland.

2

Local anchoring in Seine‑Saint‑Denis

Between Pantin, Bobigny and Le Pré-Saint‑Gervais, the Hermès sites
in Seine‑Saint‑Denis represent a total surface area of nearly
200,000 m2 (including 13,000 m2 under construction in Pantin) andemploy more than 2,600 people, of whom 700 live in thedepartment. This proportion is expected to increase thanks to help in
ﬁnding candidates from the employment agency in Pantin. Hermès isone of the largest employers in Seine‑Saint‑Denis, and the Group istherefore involved in promoting talent from this region. Hermès has
thus been a member of the Réseau Entreprendre 93 association fromits creation in 2003. The House participates, along with the othermembers, in the selection, ﬁnancial support and coaching for start‑up
projects whose common point is their strong job creation potential. In
20 years, 5,000 jobs have been created by 372 new companies
under this system. Some 10 employees of the House are involved in
an advisory role with start‑ups fostered by Réseau Entreprendre 93.
Since 2022, this support has been strengthened by creating one of
the ﬁrst partnerships involving a company for the sponsorship of agroup of Entreprendre winners. This sponsorship consisted of regularexchanges between young entrepreneurs and Hermès to help them intheir development. In 2023, Hermès co‑organised a Boostercamp
morning at the House’s premises in conjunction with theEntreprendre 93 network, bringing together 40 people around the
projects of four winning entrepreneurs from the network. These
entrepreneurs each beneﬁted from a morning of managerial andentrepreneurial support from other winners, business leaders who
are members of the Réseau Entreprendre 93 and a dozen employeesof the House.
In Seine‑Saint‑Denis, many projects are set up using the framework of
the Entreprise‑territoire charter signed in 2017 with Est Ensemble.
This association of nine municipalities includes Pantin, Le PréSaint‑Gervais and Bobigny, where Hermès is also located. One of theobjectives is to strengthen the company’s participation in theeconomic development and local employment of this region, which
has many vulnerabilities, whether in the face of climate change orsocio‑economic developments.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

221

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

Thus, in 2023, Est Ensemble launched a project to plant
20,000 trees in four years wherever possible, in order to reintroduce
biodiversity into the city, to cool and provide shade to residents andthus contribute to improving the region’s resilience in the face ofclimate change. The objective is to provide each inhabitant with
10 m² of green space, as recommended by the WHO. Motivated by
the shared interest in strengthening the presence of nature andbiodiversity in the city, Hermès is committed to supporting thisambitious project, which represents an amount of €3 million.

corporate collective aiming to pool the human, ﬁnancial and realestate resources of companies and mobilise them in helping people
in difﬁculty and the homeless. HTH is also a partner of theassociation “Viens voir mon taf” (“Come see my work”), enabling
students in priority education areas, without a network or contacts, tocarry out an internship in a company. Lastly, the division helps job
seekers in the region by offering them job interview simulation
workshops.

In Pantin, the House has launched an “equal opportunities” strategy
in conjunction with two secondary schools in Pantin. Each year since2021, it has offered internships to young students, aimed at allowing
them to discover the métiers that make up a company, to see thediversity of career paths and showcasing the work. This initiative
enables employees to appreciate daily life in the neighbourhoods
without bias. In 2023, employees also rolled out the Climate Frescofor 40 students, selected for their role as eco‑delegates.

2.7.2

TextileHolding Textile Hermès maintains close relations with the silk
apprentice training centre (CFA Textile) and FrenchTex, France’s
leading regional professional textile organisation. As such, it also sitson the Boards of Directors of Cepitra and the Chambred’Apprentissage des Métiers Textile. The Managing Director of HTH is
Chairman of Intersoie, an inter‑professional organisation in the sector
in France.
Holding Textile Hermès also participates in the “Alliances etTerritoires” community, a network of major Lyon companies as well as
the MMIE du Rhône, which develops cross‑functional events andactions on current topics or issues related to recruitment, training andskills development. The SME BoostInnov programme thus enables
HTH’s employees to receive training while providing support to small
businesses in the region. The new non‑proﬁt project of Alliance etTerritoires has been in progress since September 2023, with thesupport of the Regional Directorate for the Economy, Employment,
Labour and Solidarity (DREETS) of the Rhône, with which a 24‑month
revitalisation agreement was signed.
HTH is also a member of Alliance Coaching alongside other local
companies and CARSAT (1). This is an inter‑company partnershipagreement enabling the internal coaches of each of the structures tocarry out individual coaching actions for employees of othercompanies bound by the agreement. The operating principle is basedon reciprocity of services, which makes it possible to provide
professional coaching without a budget to devote to the training plan(one or two assignments per year). In 2023, an Ateliers AS employee
was able to beneﬁt from this. In addition, Holding Textile Hermès is apartner for the third year in a row of Entreprise des Possibles, a

1.
222

SOCIALLY RESPONSIBLE COMPANY

Hermès seeks to ﬁt harmoniously into the local economic
environment. The House is determined to be a socially responsible
company actively involved in the life of local communities with which itbuilds and develops strong ties. The craftsmanship model that it
employs in France brings with it a regional corporate responsibility,and even beyond, because its employees contribute to thedevelopment of their communities through simple actions: giving time,
getting involved, being open to others, receiving, and so on. Aroundthe world, a multitude of opportunities are available at Hermès.

POLICYThe Hermès Group’s policy is to ensure that each production anddistribution unit maintains a dialogue and undertakes concrete
actions with local authorities and stakeholders, with the goal ofhealthy integration in the local community, as a good, trustworthy,
civic‑minded neighbour, poignant examples of which are set out
below.
The distribution subsidiaries, for example, have an annual target inthis area.

2.7.2.1

GIVING BACK TO THE WORLD A PART OF WHATIT GIVES, THROUGH IMPACTFUL ACTIONS

2.7.2.1.1

Corporate Responsibility – sharing value

Hermès participates in value creation in France through the direct
employment of 13,723 people, and increased its workforce by
1,363 people in 2023 compared with the previous year. Although
74% of the objects are produced in France, 91% of the Group’s sales
are made outside France, thus making a positive contribution to the
French trade balance. In addition, the Group is attentive to theharmonious sharing of added value in order, on the one hand, tosecure its future development and, on the other hand, to contribute tosocial and societal equilibrium. Thus, on average over the last three
years (i.e. from 2021 to 2023), the value added and the share
distributed break down as presented in the following diagram:

Caisse d'assurance retraite et de la santé au travail (retirement insurance and occupational health organisation)

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

s every year, the Group files, as part of its tax obligations, astatement of transfer prices and a country‑by‑country statement,
the Cross‑Border Currency Reporting (CBCR) with the French tax
administration. The CBCR is created in accordance with therecommendations of the OECD (as interpreted in French tax law). It
is subject to an exchange of information between the tax
administrations of the countries in which the Group is established.
In the countries in which the exchange of information is notoperational, the Group has a CBCR programme with the local tax
administration.

2.7.2.1.2

2

Tangible and generous commitments: financial
donations, contributions in‑kindand skills‑based sponsorshipGroup entities get involved* The portion paid to employees only includes gross compensation received
directly by employees. Social security charges, which are included under the“Public authorities” share represent 7% of added value.

In particular, the Group’s consolidated income tax expense amounted
to €1,305 million, i.e. a tax rate of 27.8% (see note 6 to chapter 5“Consolidated ﬁnancial statements”).
Concerning taxes, the Group follows the recommendations of the CSR
GRI 207 reporting standard:s Hermès’ tax strategy is based on the following principles:• compliance by all Group companies with the regulations in force
in the States where its companies are located, compliance withthe deadlines provided for by the regulations applicable in eachState, for the filing of the required declarations and thepayment of the taxes due,• income is taxable in the place where the income is generated,• absence of creation of legal structure or transactions to meet a
primarily tax‑related objective,• the fight against tax evasion with the absence of use of tax
evasion schemes or structures without substance.
This tax strategy is implemented by Group Financial
Management, based on internal (the tax department) andexternal expertise in France and abroad. This strategy isreviewed and approved by the Executive Committee at least
once per year;s the location of the Hermès Group’s activities is based exclusively
on operational choices, and tax considerations do not modify thisapproach. The location of production in France, which is a key
element of the Hermès Group’s strategy for sustainable
development, thus impacts the amounts of taxes paid in the
country as well as the Group’s effective tax rate;s the Hermès Group’s tax positions are tracked and audited by the
consolidation and tax department, which reports directly to amember of the Executive Committee, one of whose objectives is toanticipate, identify, and manage, with the finance department, thetax issues;

In 2023, Hermès continued its efforts to extend its generous
initiatives in all the regions where it operates. Manufacturing sites
and distribution subsidiaries get involved regularly, and are keen tocontinue the partnerships established. While Group Management is
at the root of many initiatives and commitments, the international
distribution subsidiaries remain a source of ideas and contributesigniﬁcantly to the development of local initiatives and partnerships,with dedicated budgets. They encourage involvement and nurture asense of belonging among employees, who come together around a
project and with common objectives. In recent years, the Group’s
generosity has taken various forms depending on the regions, theneeds identiﬁed in the ﬁeld and the resources available internally,
namely ﬁnancial donations, donations of materials and, lastly,
skills‑based sponsorship. These commitments, made locally, arecarried out in addition to the philanthropic initiatives carried out by
the Fondation d’entreprise Hermès and are broken down according to
its areas of intervention (see § 1.11).
As explained in § 2.2.7, these actions give rise to centralised
monitoring and control in Paris, thanks to the Sponsorship Committee
and dedicated tools.
Some examples of actions carried out in France and abroad arepresented below to illustrate the scope of the Group’s commitment.
Create works

Strongly anchored in the Auvergne‑Rhône‑Alpes region, HTH supports
the Maison de la Danse ﬁnancially in its artistic programming and its
cultural actions in connection with the public. Opened in Lyon in
1980, the Maison de la Danse offers a programme that combines
dance, technique, style and the most diverse audiences. Today it is a
key cultural player in Lyon, with a reputation both nationally andinternationally. In early 2026, the dance workshops will open, tocreate a place where dance can ﬂourish through residencies,
practical artistic workshops and various actions that are in tune withthe local cultural fabric.
Hermès Italy has decided to support the Associazione Cultura 360,
which seeks to highlight heritage and culture in Italy based on threepillars: raising awareness among young people and people
far‑removed from sources of culture; the enhancement andconservation of works and heritage, in particular 15th and 16th
century frescoes; the promotion of young talents in various artisticﬁelds. In 2023, various frescoes were renovated in Rome, Bologna
and Bari.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

223

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

Transmission of savoir‑faire

Hermès Manufacture de Métaux decided to support Casa 93 Moda
Fusion in the implementation of a free fashion training course, inwhich creative young people with atypical proﬁles can enrol, without
qualiﬁcation requirements. The training course, located in
Seine‑Saint‑Denis, where Hermès has a strong presence, isaccessible to talented young people between the ages of 18 and 25,
including those with disabilities who are able to use sewing
equipment. Participants are trained to rethink the fashion of tomorrowin a more human, supportive, transparent and responsible way.
In Mexico, Hermès Mexico has chosen to support Enseña por Mexico,an organisation that ﬁghts against inequalities in access to educationand seeks to improve teaching in less privileged communities in the
country. In 2022‑23, 14 municipalities in the Puebla region weretargeted, with 3,500 people involved (including 1,568 students,
mainly in secondary schools). The idea is to develop innovative andeffective educational tools for communities that do not have themeans to offer their children all the levers that would enable them toafford an education with the highest standards. For the year
2023‑24, 15 municipalities are taking part, once again in the Pueblaregion, with more than 2,200 young people involved.
Protect the environment

Hermès of Paris (HOP) supports Ocean Conservancy, an NGO createdin 1972 with the aim of protecting marine ecosystems and opposing
practices that threaten the climate, marine life and human life. Theirpriorities are to establish fair and sustainable ﬁshing areas, protect
fauna from human impact and improve ocean management. HOP
employees were made aware of this cause and were able to take partin the cleaning up of squares near Naples (Florida) as part of the
opening of the new store.
As mentioned above, Hermès is also participating in a project with Est
Ensemble to plant 20,000 trees in four years throughout the region(see § 2.7.1.2 “Local anchoring in Seine‑Saint‑Denis”).
Encourage solidarity actions

opportunity to support and promote solidarity projects on a global
scale. In 2023, subsidiaries and concessionaires in Italy, Qatar,
China, the United Kingdom, Hong Kong, Switzerland and Luxembourg
actively took part in this initiative. The number of scarves createdespecially for these actions and sold for the beneﬁt of eightassociations has increased from 2,000 in 2021 to 2,700 in 2022,
and exceeded 3,350 scarves in 2023.
The Bo Charity Foundation Limited T/A Food Angel (1) is supported
ﬁnancially by Hermès Asia Paciﬁc (HAP). This organisation provides
quality food assistance to the least privileged communities, using
unsold food, in strict compliance with health protocols and withattention paid to the nutritional quality of the meals offered.
The MyHandicap public utility foundation is supported by Hermès
Germany. It aims to support people with disabilities in managing theirchallenges through various means. Financial sponsorship should
continue in 2024 with a project involving employees.
Since 2017, toys have been collected at several Group sites inFrance. In 2023, 350 kg of toys and childcare articles were collected
for the partner association, promoting solidarity and participating in amore circular economy. In addition, most sites in France organisecollections of essential items throughout the year (clothing, food,etc.).
The Group also continued its Equiphoria programme in France, whichaims to manufacture and adapt equestrian saddles for people withdisabilities, enabling therapeutic practice of the activity. The work ofthis association is described in a wonderful ﬁlm in the “Footsteps
across the World” series.
Overall, the subsidiaries completed 388 projects in 2023, amounting
to €13 million, excluding skills‑based sponsorship linked to the
Fondation. Employees sometimes contributed to this, during theirworking hours as well as in their own time, undertaking
environmental, cultural or solidarity actions with local communities.
Since 2020, a Group Donations and Sponsorship Committee has
been monitoring and validating the projects that subsidiaries wish to
support, in order to conﬁrm the quality of the operations carried out:

The “Carrés Solidaires” editions are continuing, providing an

Breakdown of actions carried out by geographical area

2021

2022

France907798Europe

109

146

117

Asia and Asia‑Paciﬁc

110

80

81

Americas

69

73

92

TOTAL

378

376

388

The causes supported by the Group through the various initiatives carried out are as follows:
Craftsmanship, culture
and education

Solidarityand health actions

Protection of animals
and the environment

Total

Number of shares

156

179

53

388

In %

40%

46%

14%

100%

1.
224

2023

https://www.hermes.com/uk/en/content/135446‑footsteps‑across‑the‑world/2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.2.1.3

Fondation d’entreprise Hermès (see chapter 1“Presentation of the Group and its results”, § 1.11)

The mission of the Fondation d’entreprise Hermès since its creationin 2008 has been to support those who act to promote the common
good. One of its speciﬁcities resides in being an operator – orsemi‑operator – that is to say, it implements speciﬁc programmes or itis the major player in the ﬁelds of artistic creation, transmission ofsavoir‑faire, preservation of biodiversity or solidarity in order to act as
closely as possible on the ground in response to targeted needs.
Whether they are artists, project leaders or simply students, thebeneﬁciaries of its actions can thus experience very tangibly how the
Fondation contributes, on its own scale, to building a better world.
In 2023, the Fondation continued its commitments through its
programmes.
Transforme, a new programme dedicated to the performing arts, is a
travelling festival created with four partners: La Comédie in
Clermont‑Ferrand, SUBS in Lyon, the Théâtre de la Cité Internationale
and the Théâtre National de Bretagne in Rennes. In order to spreadthe vitality of the performing arts to other regions and thus reach newaudiences, Transforme aspires to move spectators and artists alikethroughamultidisciplinary
programme.
Inauguratedin
November 2023 in Paris, this ﬁrst edition includes 15 hybrid showsscheduled by partner theatres until spring 2024. Moreover, as part ofits commitment to creation, this year the Fondation produced andscheduled 10 contemporary art exhibitions this year in its four
spaces spread across Europe (Brussels and Saint‑Louis‑lès‑Bitche)and Asia (Tokyo and Seoul). Dedicated to contemporary photography,
the Immersion programme was highlighted speciﬁcally in New York in
2023 at the International Centre of Photography, which presented acollective exhibition bringing together the last three winners of thisprogramme. Lastly, the Artist Residencies programme enabled thevisual artist Bianca Bondi to produce unique textile sculptures within
Holding Textile Hermès, with the help of the site’s craftspeople.
A legacy of the House’s craftsmanship culture, transmission isnaturally one of the Fondation’s focus areas. The Manufacto
programme is continuing its rollout among educational
establishments for the eighth consecutive year. Spread across
15 academies – including Reunion Island – since the start of the2023 school year, 2,100 students from primary to high school havebeen keen to discover the craftsmanship métiers during sessionsorganised as part of the school day. Open to savoir‑faire professionals
such as craftspeople, designers and engineers, the Académie dessavoir‑faire was extended this year to architects, due to the material
to which this 6th edition was dedicated – stone – under theeducational direction of the architect Lina Ghotmeh. For students
seeking a work‑study course, the various projects of the Artists in theCity programme continued to be funded by the Fondation, and ﬁrst
and foremost the system of scholarships based on social criteria forthe talents of tomorrow undertaking higher education in dance,theatre or circus skills. At the start of the 2023 school year, allclasses combined, 140 students were thus receiving ﬁnancial
supported in this respect.

1.

Including €2 million euros for skills‑based sponsorship.

While the importance of ecological issues is measured every day, theFondation is working actively with tomorrow’s generations through
Manuterra, a programme to raise awareness of the living world. For
the third edition of this programme, more than 600 students in
10 academies are learning about the savoir‑faire of permaculture bytaking care of a garden plot through the seasons. At the same time,
the Fondation is also committed to various project leaders who, on
the ground, contribute to the preservation of biodiversity andecosystems through multiple levers.

2

Lastly, the internal H3 programme – Heart, Head, Hand, which
structures the Fondation d’entreprise Hermès’ solidarity actions,completed its fourth edition before being reconﬁgured with the help of
the Group’s human resources department. In addition to the ﬁnancial
support granted to projects identiﬁed by the House’s employees, they
can now participate in a skills‑based sponsorship format, enablingthem to assist associations directly in the context of time slots takenfrom working hours.
Skills‑based sponsorship in the framework of H3 has been rolled out
in particular by certain subsidiaries (Switzerland, Hermès Horloger,
United Kingdom) and recently in France, by the Hermès Group
Services (HSG) team and HMS. The objective is to offer volunteer
employees up to ﬁve days per year to carry out one or more missions
with an association. In order to connect the selected associations
with employees and present the proposed missions, a forum ofassociations was organised by HSG in June 2023 and by HMS in
October. Missions may involve mentoring, preparation and/or
distribution of food parcels or basic necessities. The collective
dynamic has been launched and will be extended to other regions.
In 2023, the Fondation entered(April 2023‑April 2028)
withan€63 million (1) over ﬁve years.

2.7.2.1.4

its fourth ﬁve‑year termincreasedbudgetofSocial impacts of carbon contribution programmes

All of the programmes presented in § 2.5.6.3 have social beneﬁts thatare measured and monitored with the partners selected by Hermès.
Livelihoods Carbon Fund

Since 2012, Hermès has been a partner of the Livelihoods Carbon
Fund (LCF), which aims to improve the living conditions of
disadvantaged communities in a sustainable manner by developing
large‑scale projects with real impact against climate change andsimultaneously contributing to local populations and the restoration of
biodiversity. Ecosystem restoration, agroforestry and conservation
agriculture have the ability not only to sequester carbon sustainably,
but also to enable nature and communities around the world to thrive.
LCF aims to be a start‑up investor (with an entrepreneurial approachand investment risk) in three types of projects (ecosystems,
agroforestry and energy) in Africa, Asia and Latin America as well as
in France. The fund has 10 partners in its LCF1 & LCF2
compartments: Danone, Crédit Agricole, CDC, Schneider Electric,
La Poste, Hermès International, Voyageurs du Monde, SAP, Firmenich
and Michelin. Some of these companies, such as Hermès, have alsojoined the LCF3 fund with the Bel group, Chanel, DEG, Euroﬁns, theGlobal Environment Fund, the L’Occitane group, Mars, Mauritius
Commercial Bank, McCain Foods and Orange.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

225

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

The initial duration of the funds is 24 years, and the duration of a
project varies between 10 and 20 years. By participating in thesethree funds for 12 years now, Hermès is committed to local economic

development, the protection of biodiversity and the ﬁght against
climate change.

KEY INDICATORS OF THE LCF1 FUND

Categories of impact

Macro objectives

Results for the first Livelihoods Carbon Fund (9 projects):

Social results

Environmental results

Number of beneficiaries 1:
961,000 people positively impacted
to dateNumber of trees planted 3:
127 million to dateAmount of carbon
sequestered or avoided
8 MtCO2 eq. forecast
3.8 MtCO2 eq. verified to date

Number of households supported
193,987
Farmers trained 2
24,324

Investment capacity of the fund

€45 million

Duration of commitment
20 years

Hectares planted or preserved
27,030 hectares

Women given accessto cooking equipment
120,000

Definitions

Economic results

Hectares converted to sustainableagricultural practices:
16,750 hectares(1) Number of people involved who are positively affected by the project's activities.
(2) Farmers trained in sustainable agricultural practices.
(3) Trees, seeds, propagules (mangroves and agro-forestry trees) planted as part of the project's activities.

KEY INDICATORS OF THE LCF2 FUND

Categories of impact

Macro objectives

Results for the 2nd Livelihoods Carbon Fund (nine projects to date):

Social results

Number of beneficiaries 1:
868,300 people positively
impacted to date

Number of trees planted 2:
31 million to date

Number of farmers trained
43,233

Amount of carbon sequesteredor avoided (target)
10.3 MtCO2 eq.
200 KTCO2 eq.

Number of women supported 3
121,361

Hectares planted or preserved
9,321

Farming associations created557

Hectares converted to sustainableagricultural practices
34,865

Number of households impacted
177,530

Definitions

226

Environmental results

Economic results

Investment capacity of the fund:€65 million

Duration of commitment
20 years
Farming associations
849 strengthened
347 created(1) Number of people involved who are positively affected by the project's activities.
(2) Trees, seeds, propagules (mangroves and agro-forestry trees) planted as part of the project's activities.
(3) Number of women participating in training on how to create improved stoves and/or agroforestry
and natural ecosystem restoration activities.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

The third Livelihoods Carbon Fund (LCF3) aims to invest €150 million
to improve the lives of 2 million beneﬁciaries in developing countries.
Following on from LCF1 (2011, €45 million) and LCF2 (2017,€65 million), this new impact fund will invest in community projects
for the restoration of natural ecosystems, agroforestry andregenerative agriculture. With the LCF3 fund, 1 million additional
people will be positively impacted by the projects put in place.
More than €260 million have thus been collected to help
disadvantaged communities, the ﬁght against climate change and theprotection of biodiversity. Fully operational, the fund has approved its
ﬁrst two major projects. An agroforestry project in Ghana covering
17,000 hectares aims to support the adaptation to climate change ofsmall cocoa farmers and improve their living conditions.
The second is located in Rwanda, near the Nyungwe National Park,
one of the most important sites for the conservation of birds andcertain mammals in Africa and recognised by Unesco as a World
Heritage Site. The project aims to implement agroecological practices
with tea producers. Local populations will be able to beneﬁt from newsources of revenue and consolidate their local positions. Annual
monitoring will be carried out as part of Hermès’ participation in
LCF3.
The projects selected by Livelihoods for the ﬁrst funds launched(LCF1 and LCF2) are already generating proﬁts for local communities
and ecosystems, as well as for the partners in the funds, which earncarbon credits with a signiﬁcant environmental and social impact overthe project development period, in proportion to their investment.
These projects, one of the characteristics of which is to extend theirscope to a very large scale, are in particular the following:s restoration and preservation of natural ecosystems, for example
mangrove forests. Nearly 10,500 hectares have been replanted inthis way over the past 10 or so years in Casamance (“Océanium”
project) and 4,500 hectares in the Ganges delta (“News” project).
With a strong educational dimension for local populations, theseprojects ensure their safety (protection against cyclones orseawater flooding) and provide food sources through ecosystemregeneration. The “Yagasu” project in Indonesia, covering
10,000 hectares, was faced with heavy government subsidies forthe establishment of ponds for intensive fish farming. However,
50% of the surface areas were nevertheless preserved thanks to
the joint efforts of LCF and the partner. The “Pronatura” project
located in Mexico was also started to restore the working of themangrove swamp ecosystem and improve the region’s resilience;s agroforestry and soil remediation through sustainableagricultural practices. With the support of the Naandi Foundation,
Adivasi tribal communities in the Araku valley in India have, forexample, planted six million trees (fruit trees, as well as for
firewood, construction, etc.), including three million coffee bushes,in accordance with agroforestry models, with the aim of triplingthese plantings in the coming years through the LCF2 project (thetotal project is expected to cover 14,500 replanted hectares). In
Guatemala, 1,750 hectares of trees and food crops have beenplanted in the Cerro San Gil mountain area (“Fundaeco” project),allowing rural families to increase their food security and incomes,
while protecting biodiversity. 1,615 hectares have already beenplanted, positively impacting 400 people (out of the 500 targeted).
They now have revenues from rubber, cardamom and rambutan.
In Kenya (project VI “Agroforestry”), on the slopes of Mount Elgon
near Lake Victoria, the livelihoods of 15,000 small farmers will
improve through the intensification of agriculture respectful ofnaturalresources(Sustainable
AgriculturalLandscapeManagement – SALM) already implemented on half of the planned
area. Dairy farming has already expanded, benefiting nearly
7,000 farmers. The project also contributes to the protection ofwater resources and generates positive social impacts for
women’s jobs.

2

In Rwanda, the ambitious project to replant 3,495,176 trees in an
agriculture conservation scheme with Arcos was rolled out on
15,466 hectares and reached nearly 25,000 farmers, with the
distribution of livestock financed by microloan operations.
In India, the “Pradan” project is making it possible to replant morethan 3.6 million trees that host Tasar silkworms on more than
3,200 hectares, with the aim of restoring biodiversity on an
additional 3,600 hectares, and thus contributing to thedevelopment of this silk‑related activity locally with more than
5,000 new jobs expected. Each of the 4,835 families should be
able to earn a decent income.
In Mexico, in the mountainous region of Oaxaca, Livelihoods andits partners launched a shaded agroforestry coffee project torestore the fragile local mountainous ecosystem, while helping
more than 3,000 smallholders to improve their incomes. This
20‑year project was implemented by the local cooperative CEPCO,
which has more than 30 years of experience with coffee producers
in the region. The Livelihoods‑CEPCO initiative enabled therestoration and preservation of 2,325 hectares, as well as thegeneration of 865,000 CO2 over its entire duration. The
cooperative is working to maintain momentum in a context where
the market price of organic coffee is being overtaken by that ofconventional agriculture;s access to rural energy to reduce deforestation. In Kenya, the“Hifadhi” projects are equipping 120,000 households withimproved wood stoves, as planned, which, by significantly reducing
wood consumption, reduce the pressure on forests, the time ittakes to collect wood for families, as well as exposure to toxic
fumes.

In Burkina Faso, with the support of the Tiipaalga NGO, 31,089
improved stoves were installed by inhabitants in their villages, inan effort to secure their use over time in part of the Sahel region.
Women were trained in the maintenance and repair of facilities.
With the financial support of the French Development Agency(AFD), an agroforestry component has been added to this project.
In the Peruvian Andes, the “ITYF” project (named after the NGO
Instituto Trabajo y Familia) installed 30,000 improved
wood‑burning stoves with a significant impact against
deforestation.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

227

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCYIn Malawi, the “Chitetezo” project has equipped 5,000 families
with access to drinking water and installed more than 61,000
improved cooking stoves under an innovative commercial scheme;s regenerative agriculture. For the first time in Europe, in 2022
LCF2 launched a project called “Sols de Bretagne” in the Brittanyregion of France (1). By interacting with local stakeholders (theBrittany region, the Regional Chamber of Agriculture and the local
association Sols d’Armorique), this project supports around
100 farmers in the transition to regenerative agriculture covering
11,000 hectares, as well as sequestering 133,000 tonnes of CO2
in 10 years. The objective is for farmers to avail of technical levers
such as less ploughing, continuous cover, a reduction in inputs andcrop rotation so that the soil is enriched and the biomass
improved. Agricultural practices must evolve for environmental but
also social benefits, by attracting young farmers motivated bythese changes. Numerous indicators have been put in place todemonstrate the impact of these changes in practices. 93 farmers
in this programme were identified as of September 2023.

In 2023, since their creation, the above LCF1 and LCF2 projects havehelped replant 151 million trees, i.e. an area equivalent to ﬁve times
the size of Paris and impacted the lives of more than 1.83 million
people, having equipped more than 294,000 families with improved
cooking stoves, which reduce deforestation and preserve women’s
health, with a target of 16.6 million tonnes of CO2 captured or
avoided over the period (projects last between 10 to 20 years). They
therefore help to offset Hermès’ carbon emissions on a voluntarybasis (§ 2.5.6.3.2).
Other projects

In addition to the Livelihoods fund and on the recommendation ofexperts in the subject, Hermès has chosen to support projects
presented by EcoAct and located in Uganda. Recognised as a major
player in carbon offset, this company has existed since 2008 and has
supported more than 370 projects in 36 countries with dedicatedsupport and constant updating of impact indicators.
The Bihar Cookstoves project aims to replace inefﬁcient cooking
techniques that are responsible for deforestation with improved,sustainable and energy‑efﬁcient cooking stoves. Launched in 2021, it
has already demonstrated social beneﬁts, particularly for women, who
are often in charge of collecting ﬁrewood, and has improved thequality of life of households by reducing indoor pollution. Hermès has
been supporting this project since 2023.

2.7.2.1.5

228

Projects conducted with local populations abroad“Poplar” white poplar, which have gradually formed thick forests in thevalley ﬂoors. These plant formations smother endemic vegetation,
destroy the original biodiversity, reduce or cancel out the low‑waterﬂow of watercourses and increase the frequency and intensity of ﬁres.
The ﬁght against these invasive plants has become a national issue
in South Africa.
Faced with these challenges, the provincial government is funding an
association of farmers to carry out projects to eradicate this invasive
vegetation, under the control of the Cape Nature association, which
has deﬁned best environmental practices promoting the regenerationof endemic vegetation.
Hermès, after having veriﬁed the compatibility of these operations
with its policy, decided to contribute to these operations, which
beneﬁt biodiversity, the water supply of local populations andagriculture, thus preserving the Ostrich supply chains(meat‑leather‑feathers) essential to the economic and social fabric of
this emblematic region of South Africa.

2.7.3

COMMUNICATION AND TRANSPARENCY
VIS-À-VIS STAKEHOLDERS

2.7.3.1

COMMUNICATE WITH OUR STAKEHOLDERS

As a company with a speciﬁc culture, Hermès aims to make its
sustainable development strategy, objectives and initiatives
understandable, while taking into account the uniqueness of its
model. In a constantly changing environment: changes in regulatory
frameworks, increasing demands and expectations fromstakeholders, the Group is multiplying opportunities to explain thevalue of its speciﬁc business model, its ambitions and its actions inthis area.
The House’s teams are fully engaged in creating the conditions forexternal communication that is as transparent as possible. This
includes in particular the responses given to questionnaires andexternal analysts, as well as the dialogue established with the press,
and inﬂuence.
A page dedicated to CSR on the
webpage (2) presents the site’s main actions.

HermèsFinance

Launched in 2020, this digital space incorporates
communication the best practices established by:s CDP for carbon, water and forestry issues;s SASB (Sustainability Accounting Standards Board);Hermès has been sourcing ostrich hides in South Africa for decades,
mainly in the Klein Karoo region, where a resilient agricultural model
has been developed thanks to a network of dams and irrigation
canals erected a century ago.

s TCFD (Task Force on Climate‑related Financial Disclosures);

However, this model is now threatened by the invasion of invasive
exotic plants such as the “black wattle” black mimosa and thes the GRI framework.

1.

https://livelihoods.eu/portfolio/brittany‑france‑regenerative‑agriculture/2.

https://finance.hermes.com/en/a‑value‑creating‑and‑sustainable‑french‑model/

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

s TNFD (Task Force on Nature‑related Financial Disclosures);s SFDR (Sustainable Finance Disclosure Regulation);

in

its

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

The Group’s interactions with its stakeholders are rich, diversiﬁed andtake many forms. In order to represent the different existing discussion
methods, the Group uses the matrix below, working around three typesof relations (information, two‑party dialogue, collaboration) with atypology of contacts as follows (1):Governmental, supranationaland regulatory bodies

Local communities (local residents, environmentalists, sports& cultural associations, indigenous peoples, etc.) and NGOs
Suppliers & production partners, ESAT/EA& integration companies

Local elected representatives & public services(firefighters, police, gendarmerie, health sector)

Investors, shareholders(financial community) & media

Educational environment, savoir-faire(schools, universities, etc.) and talents(France Travail)

Employees and their representatives

Customers, consumers and their representatives

Professional associations, coalitions and other companies

Inform2

Concessionaires and distribution partners

Dialogue

Collaborate

The table below summarises the main forms of exchange and dialogue undertaken with each of these stakeholders:Aﬀected communities

InformDialogue

Collaborate

Employees and theirrepresentatives

HermèSphère internal social
network
Internal training

Employee representation bodies
Quality of life at work surveys

Working groups and committees (see governancein § 2.1)

Education/Savoir‑faire (schools,
universities, etc.) andemployment (France Travail)Information conferences

Participation in student fairs andeventsCreation of professional training courses incraftsmanship métiersFunding of scholarships
Funding of university chairs Academic research
projects (Sciences Po)
Collaborative projects to promote local
employment (École des Savoir‑Faire/Pôle
Emploi)Interventions and participation in professional
and university training courses

Suppliers & production partners
and EAs/ESATs & integrationcompanies

Communication of the Group’scommitments
Internal network of Disability
Ambassadors

Supplier assessment and audits

Quality support, product co‑development

Discussions with stock market
groups and sector initiatives
Joint contracting agreementswith EAs/ESATs, off‑siteassignments

CSR training actions
Support in measuring their carbon footprint
Social and environmental value‑added purchasesfrom SMEs (ESS, EA/ESAT, ZRR, QPR)

Local elected representatives &public services (ﬁreﬁghters,
police, gendarmerie, healthsector)Meeting and welcoming ofelected representatives

Local integration projects

Local biodiversity (tree planting in the regions inconjunction with the communities ofmunicipalities)
Blood donation
Local projects (such as the reuse of water fromthe municipal wastewater treatment plant inAnnonay, see § 2.5.3.1.1)

Professional associations,
Coalitions and other companies

Detailing our sector speciﬁcities

Monitoring of market
discussions

Participation in studies, surveys and working
groups (Afep, Medef, Interprofession des métiers,
etc.)

1.

List not exhaustive.
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

229

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

Aﬀected communities

InformGovernmental, supranationaland regulatory bodies

Dialogue

Collaborate

Dialogue at Global Compact
France events (United Nations)

Participation in SBTN (Science Based Targets
Network) initiatives

Customers, consumers and theirrepresentatives

Empreintes sur le Monde(“Footsteps across the World”)
ﬁlms
Social Networks (LinkedIn)
Websites

Open days
Site visits
Hermès in the Making

Fondation d’entreprise projects

Concessionaires anddistribution partners

Monthly meeting with allconcessionaires

Raising awareness of theGroup’s regulations andcommitments

Participation in internal purchasing days
(Podiums)
Integration of activities into our production
capacities

Local communities (local
residents, sports, cultural andenvironmental associations,indigenous peoples, etc.) andNGOs

Internal WWF conference

NGO surveys
Real estate location projects

Co‑development of projects (Water Risk Filter,
WWF, GBS)
Project ﬁnancing (Livelihoods)
Donations & local sponsorship of projects related
to the arts, culture, sports, environmental
preservation and biodiversity
Projects with local stakeholders (e.g. recovery of
condensation water from neighbouring canesugar farms in Australia, see § 2.5.3.1.1)

Investors, shareholders(ﬁnancial community) & Media

Press releases and letters toshareholders
Investors section of the Hermès
Finance website
Non‑ﬁnancial publications andGroup policies on the Hermès
institutional website
Publications on the websites of
the AMF, in the Bulletin desAnnonces Légales Obligatoires(BALO), as well as on
infogreffe.fr

Dialogue with shareholders
Roadshows
Investor meetings
Store events and meetings
with institutions

Participation in Euronext Committees, studies
and working groups (AFEP‑MEDEF, AMF)

2.7.3.2

RESPONSIBLE COMMUNICATION

Hermès’ unique communication is based on building an authentic
relationship with its various stakeholders.
Hermès traditionally favours the design and production of events,
both private and open to the public, to a space‑buying approach.
The Group is committed to responsible, sincere, non‑misleading,accurate and balanced communication, with an important focus on
multi‑local expression. Through its communication, the Group also
undertakes not to make unfounded allegations. This founding
commitment is enshrined in the Group’s ethics charter (1).
In addition, the Group is making progress in providing transparent
information on the environmental impact of its products. Thus, anddriven by the French regulatory context of the AGEC law and in

1.
230

particular the section relating to environmental labelling, Hermès has
undertaken several pieces of work in anticipation of expectedchanges. Customers will be able to access the ecological footprint of
their item either through a QR Code printed on the label or directly on
the website. The information will also be included in a link printed on
the invoice. It will include the environmental characteristics of the
product and the sorting instructions for its end of life. Traceability isalso documented.
The Company also participates in the Supporting Studies of the
Product Environmental Footprint with two of its emblematic products
and in discussions on methodologies via the Fédération de la Haute
Couture et de la Mode, with a ﬁnal version expected in 2027‑2028. In
France, the House took part in discussions on an alternative
methodology as part of an ADEME call for projects, with a timetable
expected to be adapted to that of the European Union.

Ethics charter published on the Hermès finance website: https://finance.hermes.com/en/ethics‑human‑rights‑and‑diversities

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.3.3

NON‑FINANCIAL COMMUNICATIONThe sustainability and performance of Hermès’ business model havebeen recognised on several occasions by independent bodies, such

SUBJECT

Assessor

as dedicated ESG (1) rating and ranking agencies through their 2022
ratings. These assessments were carefully chosen by Hermès fortheir credibility, rigour and representativeness of the priority issues ofthe sector, including, but not limited to, the following analysts:

2021 score2022 score2023 score

Change 2022/2023

Climate

CDP

A-

A-

A

-

Water

CDP

A-

A

A

=

A-, livestock questionnaire
B. timber questionnaireA-, livestock questionnaireA-. timber questionnaire-

CDPA-, livestock questionnaireA-. timber questionnaire

ESG risks

ISS ESGC+ “Prime”

C+ “Prime”

B- “Prime”-

ESG risks

Sustainalytics

10.2 “Top 1%”

9.4 “1st/192”

9.4 “2nd/200”=

ESG risks

MSCI

A

AA

AA

=

ESG risks

Moody’s ESG
Solutions

61/100“Advanced”

65/100“Advanced”

65/100“Advanced”=

ESG risks

FTS4GOOD

2.9/5

3.8/5

3.6/5

-

ESG risks

S&P
CSA questionnaire

45/10054/100-

Humpact

Grand Prix

Top 3 companies promoting
employment in France
Top 3 companies promoting
access to employment forpeople with disabilities

Grand Prix Emploi France-

Forests

Human resources
Classiﬁcation

Corporate Knights

5th in the category 1

5th in the category 1

2nd in the
category 1

GeneralUN Global Compact

Advanced

Advanced

Submitted 2

2(1) “Textiles and clothing manufacturing” category.
(2) Status differentiation removed in 2023.

The CDP is an international organisation measuring the environmental
performance of cities and companies according to a rating ranging
from A to F with three distinct assessments: Climate, Water andForests. This year, Hermès entered the prestigious double A list,
achieving the maximum score on Climate and maintaining it on Water.
The Group is now ranked alongside the 71 companies deemed tohave the best environmental performance on two or more themes.
Hermès is rated A on Climate, A on Water and A-/A- on Forests.
ISS ESG is a specialist ESG (environment, social and governance)
non‑ﬁnancial rating agency. The scores it attributes range from D- to
A+. Hermès has made further progress this year to reach the Brating, and retains the “Prime” status, distinguishing the top 10
best‑rated companies in the sector (with B as the best rating).
The Sustainalytics rating agency, a subsidiary of Morningstar, one of
the world’s leading providers of information and independent ﬁnancial
research, assesses the sustainability of companies through ananalysis combining more than 80 ESG criteria. For the second
consecutive year, in 2023 the House was still ranked as the best
player in the Textiles and Apparel sectors (2nd out of
200 companies); Sustainalytics did not update its Hermès
assessment in 2023.

1.

Environment, social and governance

The MSCI ESG rating index, which assesses more than
8,500 companies worldwide, measures the resilience of companies
to risks (ESG) between AAA and CCC. The House conﬁrmed its
performance in 2023 in all categories: Environment, Social,
Governance, with an AA rating despite the introduction of new rating
criteria.
As a reminder, since 2021 Hermès has been included in the CAC 40
ESG index, which includes 40 companies on the basis of theirenvironmental, social and governance performance and is based on
Moody’s ESG Solutions’ rating (formerly Vigeo‑Eiris). Hermès saw its
rating improve in 2023, with a score of 65/100, and its position in
the “Advanced” category was maintained.
Hermès is included in the FTS4GOOD index, which reﬂects
commitments and action plans on ESG issues, based on the FTS4G
agency rating of 3.7 compared to 2.9 in 2020.
Hermès is making rapid progress on its S&P ESG rating, which now
stands at 54/100 vs. 45/100 in 2022, an increase of +9 points and+28 points compared to 2020.
The rating agency Humpact measures the performance of 280 listed
French companies, according to social dimensions such as job
creation for young people and seniors, job quality and gender parity.
The House was awarded the Grand Prix Emploi France for the thirdtime in 2023.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

231

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

underlines the scale of the economic and industrial transformations
to be achieved as well as the ambition of the European authorities interms of Sustainable Finance and transparency. On the strength of its
environmental, social and societal commitments, Hermès supports
the European Commission in its work to analyse activities and deﬁnetechnical review criteria intended to guide the investments of public
and private players towards projects contributing to the transition to asustainable and low‑carbon economy.

For almost 20 years, the Corporate Knights ranking has revealed thecompanies that have increased their investments in green solutions
such as renewable energy, energy efﬁciency and the circular
economy. Hermès made great progress by increasing its score
against its peers from 28.58 to 50.54 (+21.96 points) in 2023 andreaching second place in the “Textiles and clothing manufacturing”
category.
Hermès publishes its Communication on Progress (COP) on the UN
Global Compact website every year.

An activity is thus said to be taxonomy “eligible” if it is explicitly
included in the list of activities drawn up by the European
Commission. This activity then becomes “aligned” if it cumulatively
meets three conditions:

These assessments were also supported in 2023 by various awards
and studies conducted by the press or external organisations(§ 2.1.1), including the “CAC Large 60” award at the Transparency
Awards, after receiving the Grand Prix All categories last year (forwhich the Group was no longer eligible to compete). Beyond theﬁnancial world, Hermès actively participates in civil society campaigns
such as the Corporate Human Right Benchmark (CHRB), the WBA
Gender Benchmark and the Know the Chain study.

2.7.4

APPLICATION OF THE EUROPEANTAXONOMY TO THE HERMÈS GROUP

2.7.4.1

REMINDER OF THE REGULATORY CONTEXT

1. comply with the minimum technical thresholds forenvironmental performance (substantial contribution criterion);
2. do no harm to the other five remaining criteria, known as the“Do No Significant Harm” (DNSH) criterion;
3. the activity must be carried out in accordance with the“Minimum Safeguards” (MS) criterion in terms of human rights,
corruption, taxation and competition law.

Six environmental objectives have been deﬁned by the Taxonomy
Regulation and delegated acts (2) were published by the European
Commission aimed at specifying the sectors concerned and theinformation required. Since its implementation in 2021, the content of
the Taxonomy information to be published has changed as follows.

The European Taxonomy for sustainable activities, or “Taxonomy”
Regulation (1) establishes a list of economic activities consideredenvironmentally sustainable, on the basis of ambitious andtransparent technical criteria. The introduction of this standard
designed to distinguish economic activities contributing to theEuropean objective of carbon neutrality – the Green Deal –Environmental objectives

FY21

FY22

FY23

Eligibility

Eligibility and alignment

Eligibility and alignment

1. Climate change mitigation
2. Climate change adaptation
3. Protection of water and marine resources
4. Transition to a circular economy
5. Pollution prevention and reduction

Eligibility

6. Protection of biodiversity and ecosystems

For each of the environmental objectives, the regulation requires the publication of the percentage of eligible and/or aligned activity for each of
the following three indicators (3):s Turnover (%);
s CapEx (%);
s OpEx (%).

232

1.

Regulation (EU) 2020/852.

2.

Delegated regulation (EU) 2021/2139 specifying the classification of sustainable activities on climate topics.
Delegated regulation (EU) 2023/2486 specifying the classification of sustainable activities on other topics.

3.

Delegated Regulation (EU) 2021/2178 (“Article 8”) specifying the reporting obligations of companies in relation to the taxonomy.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.4.2

APPLICATION TO THE HERMÈS GROUP

The corresponding regulatory table is available in § 2.7.4.4.
OpEx eligibility and alignment ratios

The detailed ﬁnancial information was analysed and checked jointly
by the sustainable development department, the ﬁnance department,
the real estate development department, the industrial, technical andinnovation department and the métier teams. The methodologicalelements on which the Group conducted its analysis – assumptions,estimates and limitations – are described in § 2.7.4.3.

In accordance with the regulation, as the ratio of operating expenses,
as deﬁned by the Taxonomy, to the Group’s total operating expenses
is less than 5%, the Group has used the exemption provided forallowing it not to publish the taxonomy eligibility and alignment ratios
for its OpEx.

Turnover eligibility and alignment ratios

The corresponding table is available in § 2.7.4.4.

The Hermès métiers do not present any signiﬁcant turnover currently
on the list of eligible activities published by the European
Commission. Nevertheless, the Group is continuing the efforts
undertaken for several years to limit its carbon footprint, promote thecircular economy and preserve biodiversity, as described in § 2.5 and§ 2.4.

Taxonomy CapEx eligibility and alignment ratios

2

The CapEx eligibility and alignment ratios, as deﬁned by the
Taxonomy, are detailed below:
The corresponding regulatory table is available in § 2.7.4.4.

Eligible CapEx

Aligned CapEx

2023

Amountas a % of total
CapEx

1,327

832

63%

267

20%

32%

Taxonomy real estate CapEx:

832

832

63%

267

20%

32%

Renovation of existing buildings 1

228

228

17%

76

6%

33%

Acquisition and construction ofbuildings 1

136

136

10%

82

6%

60%

IFRS 16 right‑of‑use assets 2

468

468

35%

109

8%

23%

Other Taxonomy CapEx 1 - 3

494

-

-

-

-

-

In millions of euros

GRAND TOTAL TAXONOMY CAPEX

Amountas a % of total
CapEx

as a % ofeligible CapEx(1) I.e. total operating investments of €859 million over the ﬁnancial year, see Notes 7.2.1 and 7.2.2 to the consolidated ﬁnancial statements.
(2) Corresponds to the implementation of new contracts and revisions of rights‑of‑use for the ﬁnancial year, see Note 7.3.1 to the consolidated ﬁnancial statements.
(3) Concern CapEx not eligible under the Taxonomy. These are mainly IT investments and land acquisitions.

Eligible CapEx

Aligned CapEx

In millions of euros

2022

Amountas a % of total
CapEx

Amountas a % of total
CapEx

as a % ofeligible CapEx

GRAND TOTAL Taxonomy CapEx

848

582

69%

72

8%

12%

a. Grand total Taxonomy CapEx
In accordance with regulations, the Group analysed its acquisitions ofproperty, plant and equipment and intangible assets (IAS 16 andIAS 38), right‑of‑use assets (IFRS 16) and business combinations(IFRS 3) constituting the CapEx Taxonomy denominator. This

amounted to €1,327 million for 2023, compared with €848 million in
2022. It includes:s acquisitions of property, plant and equipment and intangible
assets (operating investments) for €859 million;s the increase in right‑of‑use assets (IFRS 16) for €468 million.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

233

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

b. Eligible CapEx
Eligible CapEx are mainly related to the construction and renovation ofbuildings owned and rented for a total amount of €832 million.
The environmental objectives concerned by these eligible CapEx are
as follows:s climate change mitigation, including the following Taxonomy
activities:• 7.2. Renovation of existing buildings, for €228 million,• 7.7. Acquisition and ownership of buildings, activity concerning
both buildings for the Group’s own account, for €136 million
and new property leases recognised in accordance withIFRS 16, for €468 million;s transition to a circular economy, including the following Taxonomy
activity:• 3.2 Renovation of existing buildings, for €228 million.
Other Taxonomy CapEx, which are non‑eligible, amounted to €494
million and mainly included:s investments in land for €166 million;s IT investments amounting to €128 million;s investments related to recurring maintenance, for €101 million;s equipment and tooling for workshops, amounting to €64 million;s real estate investments of individually less than 500 K€, whichwere not analysed, represent a total of €9 million.

c. Aligned CapEx
In 2023, the alignment of CapEx under the Taxonomy totalled 20%(aligned CapEx out of total Taxonomy CapEx), compared to 8% in
2022.
The Group owns almost all of its production sites. Hermès hascreated its own sustainable construction framework, called Harmonie,
certiﬁed in 2022 for its alignment with the most ambitious labels andcertiﬁcations on the market (§ 2.5.2). This framework is gradually
being enhanced with the criteria and evidence required by the
Taxonomy. Thus, the application of the Harmonie frameworkcontributed signiﬁcantly to the increase in the CapEx alignment rate.
In addition, the Hermès Group leases most of the stores in the cities
where it operates. These stores are often located in the shopping
avenues of historic city centres, in buildings that do not yet meet thehighest energy performance standards, and are currently
incompatible with the standards set by the Taxonomy. Nevertheless,whenever possible, Hermès undertakes renovation work to improvethe environmental performance of the occupied point of sale.
In total, the alternative indicator showing the ratio of aligned
Taxonomy CapEx to eligible Taxonomy CapEx amounted to 32% in
2023.

234

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

2.7.4.3

METHODOLOGICAL NOTE

In accordance with the regulatory requirements for the 2023 ﬁnancial
year, the alignment analysis was conducted for the sole purposes ofclimate change mitigation and adaptation.
Substantial contribution

Alignment is based on compliance with the substantial contribution
criteria and the non‑enforceability of a generic or speciﬁc DNSH
criterion (see methodology below). Compliance is assessed in thelight of the supporting documents available to the Group. For
example, large‑scale renovation projects signiﬁcantly improving theenergy performance of buildings were considered aligned because
they had such supporting documents.
7.2 Renovation of existing buildings
In order to qualify the alignment of building renovation investments,
meticulous work was carried out for each investment of more than
500 K€ in order to analyse the alignment with the substantial
contribution, notably by demonstrating a reduction in demand forprimary energy of at least 30%.
7.7 Acquisition and ownership of buildings
The analysis of the substantial contribution criteria for activity 7.7 wasbased on the identiﬁcation of elements to deﬁne the energy
performance of buildings (RE2020, primary energy demand, DPE,etc.). As permitted by the Commission Communication of
20 November 2023 on the interpretation and implementation ofcertain legal provisions of the delegated act on the climate aspect of
the Taxonomy, investments in the construction of new buildings by the
Hermès Group were analysed using the relevant criteria of activity 7.7
and are reported under this activity.
Methodology for assessing generic and specific DNSH criteria

As indicated in the table presenting the CapEx eligibility andalignment ratios, only eligible activities categorised as 7.2 and 7.7
show an alignment component. The DNSH criteria, for each of theTaxonomy activities, were applied as follows:
7.2 Renovation of existing buildings
DNSH adaptation – The Climate Delegated Act recommends
compliance with three criteria:
s analysis of the various physical climate risks that could affect theactivity;s assessment of these risks using climate projections in order todetermine their significance;s assessment of adaptation solutions.

Hermès has carried out an analysis of the physical risks impacting its
main sectors since 2019. This analysis ranks, for each of the Frenchsites, a list of chronic and acute physical climate hazards andprojects them over different climate horizons based on the IPCC
RCP2.6, RCP4.5 and RCP8.5 scenarios. Depending on the ranking
obtained and the results of the climate projections, Hermès
undertakes the construction of adaptation plans consistent with thenature of the assets concerned, their geographical location and thepriority physical climate risks.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCYDNSH water – This DNSH imposes compliance with water ﬂow rates
per minute, which vary according to the water supply equipment. To
ensure compliance with this criterion, Hermès veriﬁed the existenceof water meters or solutions to manage water consumption. These
solutions indicate alignment with the thresholds set by the European
Commission.
DNHS circular economy – The delegated act imposes compliance withthree criteria:s the preparation of at least 70% by weight of construction waste forrecycling, reuse or any other form of recovery;s operators must limit waste production;s building design and construction techniques must promote
circularity.

Eligible real estate investments meeting the criteria of substantial
contribution in accordance with these three criteria are consideredaligned.
DNHS pollution – Three criteria must be met:s list of pollutants in Appendix C of the Climate Delegated Act thatmust not be used in the context of the Taxonomy activity
concerned;s compliance with the thresholds set for certain polluting substancessuch as volatile organic compounds;s adoption of measures to limit noise, dust and pollutant emissions
during work.

The DNSH pollution criteria were in particular considered to be met
for eligible real estate investments according to the substantial
contribution criteria when these projects were located in France, inview of the applicable national and European regulations in terms ofpollution.

2

7.7 Acquisition and ownership of buildings
DSNH adaptation – The applicability criteria and compliance withthem by Hermès are the same as those detailed for activity 7.2.
Methodology for assessing minimum safeguards

Hermès followed the recommendations of the European Platform on
Sustainable Finance report dated October 2022 concerning the studyof minimum safeguards (“Final report on Minimum Safeguards”). With
regard to the four themes of human rights, corruption, taxation andcompetition law, as well as the non‑alignment criteria described in thereport, Hermès carried out a controversy analysis for 2023. No
breeches were identiﬁed. The Group complies with the minimum
safeguard requirements for this second alignment exercise. All of theGroup’s commitments to its employees and suppliers are described in§ 2.8.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

235

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.4.4

REGULATORY TABLES REQUIRED BY THE EUROPEAN TAXONOMY REGULATION

Key to the regulatory tables: EL: eligible, N/EL: not eligible
TURNOVER ALIGNMENT TABLE

Category of transitional activity (20)Category of enabling activity (19)

Proportion of turnover aligned with the Taxonomy (A.1.)
or eligible under the Taxonomy (A.2.), Year N‑1 (18)Minimum safeguards (17)Biodiversity (16)

Circular economy (15)Pollution (14)Water (13)Mitigation of climate change (11)Biodiversity (10)Circular economy (9)Pollution (8)Water (7)Adaptation to climate change (6)Mitigation of climate change (5)Proportion of turnover, year N (4)Turnover (3)Code (2)Economic activities (1)Adaptation to climate change (12)

Do no signiﬁcant harm criteria(“DNSH criteria”)

Substantial contribution criteria

A. Activities eligible under the Taxonomy
A.1. Environmentally sustainable activities (aligned with the Taxonomy)
Turnover from environmentally
sustainable activities (alignedwith the Taxonomy) (A.1.)

0

0%

0%

Of which enabling

0

0%

0%

Of which transitional

0

0%

0%

E

A.2. Activities eligible under the Taxonomy but not environmentally sustainable (not aligned with the Taxonomy)
Turnover from activities eligible
under the Taxonomy but notenvironmentally sustainable(not aligned with the Taxonomy)(A.2.)

0

0%

0%

0%

0%

0%

0%

0%

0%

A. Turnover from activities
eligible under the Taxonomy(A.1 + A.2)

0

0%

0%

0%

0%

0%

0%

0%

0%

B. Activities not eligible under the Taxonomy
Turnover from activities not
eligible under the Taxonomy

13,427100%

TOTAL (A + B)

13,427100%

PROPORTION OF TURNOVER FROM ECONOMIC ACTIVITIES THAT ARE ELIGIBLE AND/OR ALIGNED WITH THE TAXONOMY BY ENVIRONMENTALOBJECTIVE
Proportion of turnover/total turnover

236

Aligned with the Taxonomy by objective

Eligible under the Taxonomy by objective

Climate change mitigation

0%

0%

Climate change adaptation

0%

0%

Water

0%

0%

Pollution0%0%

Circular economy

0%0%Biodiversity0%0%2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALTCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCYCAPEX ALIGNMENT TABLE

Mitigation of climate change (11)Adaptation to climate change (12)Water (13)Pollution (14)Circular economy (15)Biodiversity (16)Minimum safeguards (17)Proportion of CapEx aligned with Taxonomy (A.1) or
eligible (A.2) under the Taxonomy, year N‑1 (18)

YES

YES

YES

YES

YES

3%

191

14%

YES N/EL N/EL N/EL N/EL N/EL

YES

YES

YES

YES

YES

YES

YES

5%

267

Water (7)Category of transitional activity (20)

Biodiversity (10)YES

Circular economy (9)YES

Pollution (8)NO N/EL

Adaptation to climate change (6)YES N/EL N/EL N/EL

Mitigation of climate change (5)

6%

CCM
7.7

Proportion of CapEx, year N (4)76

Acquisition andownership of buildings

CapEx (3)CCM
7.2

Code (2)Renovation of existingbuildings

Economic activities (1)Category of enabling activity (19)

Do no signiﬁcant harm criteria(“DNSH criteria”)

Substantial contribution criteria

2

A. Activities eligible under the Taxonomy
A.1. Environmentally sustainable activities (aligned with the Taxonomy)

CapEx of environmentally
sustainable activities (alignedwith the Taxonomy) (A.1.)

20% 20%

0%

0%

0%

0%

0%

YES

YES

YES

YES

YES

YES

YES

8%

Of which enabling

0

0%

0%

0%

0%

0%

0%

0%

YES

YES

YES

YES

YES

YES

YES

0%

Of which transitional

76

6%

6%

YES

YES

YES

YES

YES

YES

YES

3%

T

E
T

A.2. Activities eligible under the Taxonomy but not environmentally sustainable (not aligned with the Taxonomy)CCM
7.2 and
CE 3.2152

11%EL N/EL N/EL N/EL

Installation,
maintenance and repair
CCM
of energy efﬁciency
7.3 andequipment
CCA 7.3

Renovation of existingbuildings

EL N/EL

18%

0

0%

EL

EL N/EL N/EL N/EL N/EL

0%

CCM
7.7

413

31%

EL N/EL N/EL N/EL N/EL N/EL

42%

CapEx of activities eligible
under the Taxonomy but notenvironmentally sustainable(not aligned with the Taxonomy)
(A.2)

565

43% 43%

0%

0%

0%

0%

0%

60%

A. CapEx of activities eligible
under the Taxonomy (A.1 + A.2)

832

63% 63%

0%

0%

0%

0%

0%

69%

Acquisition andownership of buildings

B. Activities not eligible under the Taxonomy
CapEx of activities not eligible
under the Taxonomy
TOTAL (A + B)

494

37%

1,327

100%

PROPORTION OF CAPEX FROM ECONOMIC ACTIVITIES THAT ARE ELIGIBLE AND/OR ALIGNED WITH THE TAXONOMY BY ENVIRONMENTALOBJECTIVE
Proportion of CapEx/Total CapEx
Aligned with the Taxonomy by objective

Eligible under the Taxonomy by objective

Climate change mitigation

20%

63%

Climate change adaptation

0%

0%

Water

0%

0%

Pollution0%0%

Circular economy

0%

17%

Biodiversity0%0%2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

237

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCYOPEX ALIGNMENT TABLE

Category of transitional activity (20)Category of enabling activity (19)

Proportion of OpEx aligned with the Taxonomy (A.1.) or
eligible under the Taxonomy (A.2.), year N‑1 (18)Minimum safeguards (17)Biodiversity (16)

Circular economy (15)Pollution (14)Water (13)Adaptation to climate change (12)Mitigation of climate change (11)Biodiversity (10)

Do no signiﬁcant harm criteria (“DNSH criteria”)

Circular economy (9)Pollution (8)Water (7)Adaptation to climate change (6)Mitigation of climate change (5)Proportion of OpEx, year N (4)OpEx (3)Economic activities (1)Code (2)Substantial contribution criteria

A. Activities eligible under the Taxonomy
A.1. Environmentally sustainable activities (aligned with the Taxonomy)
OpEx of environmentally
sustainable activities (alignedwith the Taxonomy) (A.1)

0

0%

0%

Of which enabling

0

0%

0%

Of which transitional

0

0%

0%

E

A.2. Activities eligible under the Taxonomy but not environmentally sustainable (not aligned with the Taxonomy)
A2 - OpEx of activities eligible
under the Taxonomy but notenvironmentally sustainable(not aligned with the Taxonomy)
(A.2)

0

0% N/EL N/EL N/EL N/EL N/EL

N/EL

0%

A. OpEx of activities eligible
under the Taxonomy (A.1 +A.2)

00% N/EL N/EL N/EL N/EL N/EL N/EL

0%

B. Activities not eligible under the Taxonomy
OpEx of activities not eligible
under the Taxonomy

7,989

100%

TOTAL (A + B)

7,989

100%

PROPORTION OF OPEX RESULTING FROM ECONOMIC ACTIVITIES THAT ARE ELIGIBLE AND/OR ALIGNED WITH THE TAXONOMY BYENVIRONMENTAL OBJECTIVE
Proportion of OpEx/Total OpEx

Climate change mitigation

238

Aligned with the Taxonomy by objective

Eligible under the Taxonomy by objective0%

0%

Climate change adaptation

0%

0%

Water

0%

0%

Pollution0%0%

Circular economy

0%0%Biodiversity0%0%2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALTCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.5

ANALYSIS OF CORRESPONDENCE WITH
THE MAIN NON‑FINANCIAL REPORTING
FRAMEWORKS

2.7.5.1

SASB CORRESPONDENCE ANALYSISThe Sustainability Accounting Standards Board (SASB) is anindependent, not‑for‑proﬁt standard‑setting body that develops andmaintains reporting standards for ﬁnancially material sustainable
development information. The SASB has established standards
speciﬁc to 77 activity sectors including with the “Apparel, Accessories
and Footwear (consumer goods)” sector.
In addition to the information presented in this report, Hermès
presents a summary of its actions according to the sector reading
grid. This publication is also an opportunity to highlight the House’s
progress. Hermès’ business model is quite unusual compared to thesector taken into account by the SASB. The SASB identiﬁes nine key
topics for the sector, ﬁve of which concern the supply chain(CG‑AA‑430); very few concern human resources and societal

aspects. Hermès operates according to a highly integrated businessmodel (55% of production is manufactured in Hermès’ own
workshops), with partnership relationships with its suppliers (theaverage length of relationships with the top 50 direct suppliers is
20 years), and production made in France (for example, for 100% ofleather goods, which represents half of the Group’s sales) and 74% in
total. Although important, the topics highlighted by the SASB relating
to the supply chain are not the only ones. Human and societal issues
are also key to the House’s sustainability. In terms of risk, thecategories identiﬁed by the SASB are not always the most signiﬁcantfor Hermès. As explained in § 2.1, the Group has identiﬁed andprioritised 13 key topics that structure its reporting and provide
material non‑ﬁnancial economic information that is useful,comparable (even if sometimes speciﬁc) and evidence‑based. In
addition, as presented in this document, the Group uses the CDP
reporting framework for its carbon, water and forest issues, andcomplies with the TCFD recommendations.

2

SASB CORRESPONDENCE GRID
Sections in the universal
registration document

SASB topic

Correspondence with Hermès’ strategy

Management of Chemicals in Products(CG‑AA‑250a)

Hermès assumes all its responsibilities as a company that places goods onmarkets, to ensure the regulatory compliance of all products sold, in all
countries where it operates.

§ 2.5.5.2

The list of restricted substances monitored by the Group is the list of restricted
substances worldwide. The Group has set a target of compliance with the moststringent regulations, which are generally European regulations.
Environmental impacts in the supply chain(CG‑AA‑430a)

Hermès ensures that it monitors the environmental footprint of its supply chain. § 2.6.1, § 2.5.3, § 2.6,
The Group veriﬁes through regular audits that its suppliers (Tier 1) comply with § 2.4.2 and § 2.6
local regulations regarding the regulatory compliance of their efﬂuents.
The Group’s entities and those of its suppliers are regularly subject to audits
carried out by Hermès’ teams and external consultants, in addition to thosecarried out by the authorities (in particular for sites subject to authorisation).

Labour conditions in the supply chain(CG‑AA‑430b)

The Group’s supplier relations policy is based on four pillars: safety, quality &innovation, cost control and CSR.

§ 2.6.1, § 2.6.2, § 2.8.1 and§ 2.8.4

Hermès systematically requests a formal commitment from its suppliers tocomply with their social, regulatory and environmental obligations through two
undertaking handbooks signed by both parties.
Raw materials sourcing (CG‑AA‑440a)

The Group exercises close control over these raw materials, particularly interms of quality and the conditions for obtaining these materials and theirenvironmental and social impact.

§ 2.4 and § 2.4.2.1

As soon as a risk related to social or environmental non‑compliance is detected,
the Group carries out investigations that may lead to supplies being halted.
The objectives and recommendations concerning Hermès’ supply chains arepresented in the supply chain brief.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

239

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.5.2

TCFD CORRESPONDENCE ANALYSIS

Hermès presents its actions according to the framework
recommended by the TCFD. The TCFD (Task Force on Climate‑related
Financial Disclosures) is a working group created in December 2015
during COP 21. This working group has published recommendations,
updated in 2021, on how to report and publish the risks and

TCFD recommendations

opportunities related to climate change, with the aim of increasingtransparency between companies and investors in order to reduceinvestment risks, and reconcile the short‑term ﬁnancial decisions withthe long‑term consequences of climate change.

Correspondence with Hermès’ strategy

Sections in the universal
registration document

GovernanceOversight by the Board of Directors ofclimate‑related risks and opportunities

The CAG‑CSR Committee oversees sustainable development issues andinterviews the sustainable development department twice a year, enhancing
the stringency of requirements regarding climate topics.

§ 2.1.6 and § 2.5.6

Management role in assessing andmanaging climate‑related risks andopportunities

The Group’s Executive Chairman, Axel Dumas, has been involved in many
climate‑related issues in recent years, including in particular the decisions torevise Hermès’ climate commitment upwards with the SBTi validation for a
trajectory of 1.5°C.
The Executive Committee devotes at least four weeks per year to CSR,
including the climate.

§ 2.1.6, § 2.5.1 and § 2.5.6

Risks and opportunities related to theclimate that the Group has identiﬁed in the
short, medium and long term

The exposure to transition risk is studied both by the audit and risk
management department in its vertical analysis of the House’s main
activities, by the industrial and sustainable development departments and by
the Sustainable Development Board, with a more cross‑cutting vision.

§ 2.5.6.1

Impact of climate‑related risks andopportunities on the Group’s activities,
strategy and ﬁnancial planning

Climate system disruptions and related operational, regulatory and politicaltransition issues, such as carbon pricing, are already identiﬁed as physicaland transition risks with impacts on the Group’s supply chain, various
operations (manufacturing, logistics, distribution), as well as on the
behaviour of its customers.

§ 1.10Resilience of the organisation’s strategy,
taking into account different
climate‑related scenarios, including a 2°C
or lower scenario.

In 2019, the Group analysed the IPCC (Intergovernmental Panel on Climate
Change) scenarios RCP2.6 (equivalent to a 2°C scenario), RCP4.5 and
RCP8.5 over three time scales (two‑year budget vision, within ﬁve years anda long‑term vision of 25 years).

§ 2.5.6

Group processes to identify and assessclimate‑related risks

The Group’s risk management process is based on the preparation of risk
mapping as well as the use of additional tools to deﬁne the level of priority to
be associated with the risks identiﬁed and the actions to be implemented tomitigate them.

§ 2.5.6 and § 4.3

Group processes for managing
climate‑related risks

The risk maps are regularly updated and the action plans are monitored
directly by the Group’s various entities under the supervision of the audit andrisk management department.

§ 4.3

Integration of processes for identifying,assessing and managing climate‑relatedrisks into the organisation’s overall risk
management

The risk maps are consolidated annually into a Group‑wide risk mapping,including climate‑related risks such as the scarcity of certain raw materials.

§ 4.3

Indicators used by the Group to assessclimate‑related risks and opportunities, inaccordance with its strategy and risk
management process

The SBTi validated Hermès’ carbon emission reduction targets, conﬁrming
the consistency of its policy with the Paris Agreement’s 1.5°C trajectory.

§ 2.5.1 and § 2.5.6

Communicate scopes 1, 2 and, if
appropriate, 3 greenhouse gas (GHG)
emissions, as well as related risks

Hermès bases its carbon emissions calculations on the rules of the GHG
Protocol. The Group has set up a speciﬁc reporting tool and regularly calls on
experts to reﬁne the calculations of emission factors and revise some of thecalculations carried out by the métiers or subsidiaries.
Hermès ensures that the calculation of its carbon emissions is audited by anindependent third party.

§ 2.5.6

Objectives used by the Group to manage
climate‑related risks and opportunities andperformance against these objectives

The science‑based targets, aligned with a world at 1.5°C, aim to reduce theabsolute value of GHG emissions for scopes 1 and 2 by 50.4%, and therelative value by 58.1% (GHG emissions per million euros of gross margin)
for scope 3 emissions over the period from 2018 to 2030.

§ 2.5.6

Climate strategy

Management of climate risk

Metrics and targets

2402023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.5.3

TNFD CORRESPONDENCE ANALYSIS

A working group was set up on the disclosure of ﬁnancial information
relating to nature (Taskforce on Nature‑related Financial Disclosures –TNFD) to develop and provide a reporting framework for risks andopportunities related to the evolution of nature and to act accordingly,

TNFD recommendation

with the ultimate aim of supporting a reorientation of global ﬁnancial
ﬂows towards projects with positive externalities for nature. In
September 2023, this group published a transparency framework, towhich Hermès is aligned by publishing the information required in thisNon‑Financial Performance Statement. The details of the alignment
with this framework are presented in the table below:

Sections in the universal
registration document

Correspondence with Hermès’ strategy

2

Governance
Board oversight of nature‑related
dependencies, impacts, risks andopportunities

The CAG‑CSR Committee oversees sustainable development issues andinterviews the sustainable development department twice a year,
enhancing the stringency of requirements regarding biodiversity topics.

§ 2.1.6 and § 2.4.3

Management’s role in assessing andmanaging nature‑related dependencies,
impacts, risks and opportunities

The subject of “Biodiversity” is overseen by the Executive Committee,
which relies on the work of the Sustainable Development Board. In
addition, this issue is driven by speciﬁc competence present on the
Supervisory Board.

§ 2.1.6 and § 2.4.3

The organisation’s human rights policies andengagement activities, as well as the oversightconducted by the Board of Directors andmanagement, with respect to indigenous
peoples, local communities, stakeholders
affected and others, in the assessment andresponse of the organisation to nature‑related
dependencies and impacts, risks andopportunities

Driven by its humanist values, the Hermès Group’s ethics and compliancepolicy aligns with the universal framework set down by the majorinternational principles, standards and agreements, in particular those
covering the subject of human rights.
The Group has several requirements in terms of ethics: zero tolerance forbreaches of probity, a determined commitment to a culture of ethics, ananti‑corruption policy and, lastly, a structured approach to protecting
personal data.
Speciﬁc governance, carried out at the highest level of the organisation,
guarantees the commitments, policies, control and alert systems that form
the foundation of the approach.

§ 2.8

Disclose the actual and potential impacts ofnature‑related risks, opportunities anddependencies on the activities, strategy andﬁnancial planning of the organisation when
this information is material

The Group’s biodiversity master plan is built around six components in linewith the recommendations of the TNFD and those of the Act4Nature
International system: vision, governance and organisations, the four pillarsof our commitments (train, collaborate, assess, act).
In line with the biodiversity blueprint, the SBTN approach was launched in2023.

§ 2.4.3. and § 4.1.4

Nature‑related dependencies, impacts, risks
and opportunities that the organisation has
identiﬁed in the short, medium and long term

The diagnostics carried out on the sites’ biodiversity and water resources
made it possible to assess the risks for the Group’s direct activities. Since
2019, Hermès has methodologically mapped 80 supply chains in order to
identify their risks, including on the environment.

§ 4.1.4

Effects that nature‑related dependencies,
impacts, risks and opportunities have had on
the organisation’s business model, value
chain, strategy and ﬁnancial planning, as wellas any transition plans or analyses

The rollout of the biodiversity strategy is overseen by the Executive
Committee and the Sustainable Development Board, and regularly
reviewed by external organisations such as Act4Nature International. The
action plan follows four areas: training all employees in biodiversity,
collaboration with recognised external stakeholders, measuring Hermès’relations with biodiversity and the activation of action plans commensuratewith the issues.

§ 2.4.3 and § 4.3

Resilience of the organisation’s strategy tonature‑related risks and opportunities, taking
into account different scenarios

The large diversity of types (more than 35 different leathers) andgeographical origins of Hermès’ natural materials, and its mainly French
production, make it possible to reduce its exposure to the occasional or
chronic degradation of certain ecosystems.

§ 2.4.2 and § 4.1.4

Nature strategy

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

241

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

Sections in the universal
registration document

TNFD recommendation

Correspondence with Hermès’ strategy

Disclose the locations of assets and/or
activities in the organisation’s direct
operations and, if possible, the upstream anddownstream value chain(s) that meet thepriority location criteria

Hermès publishes supply chain briefs for its suppliers, which also take into
account biodiversity issues as well as the mapping of its production sites.

§ 2.1 and § 2.4.3

Organisational processes to identify, assess
and prioritise nature‑related dependencies,
impacts, risks and opportunities in its direct
operations

The Group’s risk management process is based on the preparation of risk
mapping as well as the use of additional tools to deﬁne the level of priority
to be associated with the risks identiﬁed and the actions to be
implemented to mitigate them. In addition, steps 1 and 2 of the SBTN
approach have made it possible to assess the materiality of the issues
and establish the conditions for prioritisation.

§ 2.4.3 and § 4.3

The organisation’s processes to identify,
assess and prioritise nature‑related
dependencies, impacts, risks andopportunities in its upstream and downstream
value chain(s)Risk management for value chains is included in the Group process.
It is thus based on the preparation of risk mapping, and supplemented bysteps 1 and 2 of the SBTN approach, which have made it possible toassess the materiality of the issues and establish the conditions forprioritisation.

§ 2.4.3 and § 4.3

Organisational processes to manage
nature‑related dependencies, impacts, risks
and opportunities

The risk maps are regularly updated and the action plans are monitored
directly by the Group’s various entities under the supervision of the audit
and risk management department.

§ 4.3

Processes for identifying, assessing andmanaging nature‑related risks are integrated
into the organisation’s overall risk
management

The risk maps are consolidated annually into a Group‑wide risk mapping,including for risks related to biodiversity such as reduced ecosystem
integrity.

§ 4.3

Measurement tools and targets used toassess and manage material nature‑related
dependencies, impacts, risks andopportunities.

Hermès uses speciﬁc metrics to assess and manage nature‑related risks
and opportunities, in line with its risk management strategy and process.

§ 2.4.3, § 2.5 and § 4.3

Measures used by the organisation to assess
and manage dependencies and impacts onnatureIn 2021, Hermès measured its footprint using the Global Biodiversity
Score tool developed by CDC Biodiversité (a subsidiary of Caisse desDépôts), implemented with the support of WWF France and based on ﬁeld,
ﬁnancial and theoretical data from 2019. An update is underway for theleather activity. This biodiversity footprint measurement approach is partof Target 15 of the Kunming‑Montreal Agreement.
Launch of the SBTN approach during the ﬁnancial year.

§ 2.4.3

Targets & objectives used by the organisation
to manage nature‑related relationships ofdependency, impacts, risks and opportunities,
as well as its performance in relation to these

Hermès sets targets that are both speciﬁc on biodiversity but also related
to its industrial performance (water, waste, pollution) and the responsibilityof these sectors (certiﬁcation). These objectives are reviewed at least
annually to ensure performance.

§ 2.4.2, § 2.4.3 and § 2.5

Management of nature‑related risk and impacts

Measurement tools and targets

242

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.5.4

SFDR‑PAI CORRESPONDENCE ANALYSISThe Sustainable Finance Disclosure Regulation (SFDR), which enteredinto force in March 2021, is a European regulation introduced to
improve transparency in the sustainable investment products market
and to increase transparency around sustainability claims made by
ﬁnancial market players. This new regulation establishes, exclusively forﬁnancial‑sector players, the obligation to publish information on
non‑sustainability risks, as well as indicators measuring the Principal
Adverse Impact (PAI) indicators for their activity.
Although this new regulation does not apply to Hermès, the Grouppublishes, for the sake of transparency and alignment with the Action
Plan for Sustainable Finance deﬁned by the European Commission,
its own PAI indicators, identiﬁable thanks to the following:

Thematics

PAI

Information for HermèsGreenhouse gases(GHG)

s Greenhouse gas emissions
s Carbon footprints Intensity of greenhouse gas emissions
s Exposure to the fossil fuel sectors Share of non‑renewable energy consumption and productions Intensity of energy consumptions § 2.5.7.2.1 (Direct emissions, indirect emissions
related to energy, other indirect emissions, carbon
footprint, emission intensity)
s No exposure to the fossil fuel sectors § 2.5.4.2

Biodiversity

Activities signiﬁcantly affecting biodiversity‑sensitive areas

Diagnostic under way, § 2.4.3.4

Water

Water consumption§ 2.5.4.1.1

Waste

Rate of hazardous industrial waste§ 2.5.5

2Social and employee s Violations of the principles of the United Nations Global Compact s No violation
issuesand the Organisation for Economic Co‑operation ands Processes and mechanisms described in § 2.8.2.1
Development (OECD) Guidelines for Multinational Enterprisess 92/100 for the gender equality index (France)s Lack of compliance processes and mechanisms to monitor
s 50% women on the Supervisory Board ascompliance with the principles of the UN Global Compact and theat 31 December 2023
OECD Guidelines for Multinational Enterprisess No exposures Unadjusted gender pay gap
s Gender diversity on the Board of Directorss Exposure to controversial weapons (anti‑personnel mines, cluster
munitions, chemical weapons and biological weapons)2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

243

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.5.5

GRI CORRESPONDENCE ANALYSISThe Hermès Group’s reporting protocol also complies with the framework deﬁned by the Global Reporting Initiative (GRI) and addresses all thesustainability themes recommended by this standard, as presented in the table below:

244

GRI 1

General principles

Methodological note – chapter 2

GRI 2

General disclosures

Methodological note – chapter 2

GRI 3

Management approach§ 2.1.6

GRI‑201

Economic performance§ 1.5, § 1.6, § 1.7

GRI‑202

Market presence§ 1.4

GRI‑203

Indirect economic impacts§ 2.7

GRI‑204

Procurement practices§ 2.6

GRI‑205

Anti‑corruption§ 2.8.2

GRI‑206

Anti‑competitive behaviour§ 2.8.1.2.3

GRI‑207

Tax§ 2.7.2.1.1

GRI‑301

Materials§ 2.4

GRI‑302

Energy§ 2.5.4.1.2

GRI‑303

Water and efﬂuents§ 2.5.4.1.1

GRI‑304

Biodiversity§ 2.4.3

GRI‑305

Emissions§ 2.5.7.2

GRI‑306

Efﬂuents and waste§ 2.5.5

GRI‑307

Environmental compliance§ 2.5.6.2.1

GRI‑308

Supplier environmental assessment§ 2.6.1.1

GRI‑401

Employment§ 2.2.2

GRI‑402

Labour/management relations§ 2.2.7

GRI‑403

Health and safety at work

§ 2.2.5.2

GRI‑404

Training and education§ 2.3

GRI‑405

Diversity and equal opportunity§ 2.2.3

GRI‑406

Non‑discrimination§ 2.2.4.2

GRI‑407

Freedom of association and collective bargaining§ 2.2.7

GRI‑408

Child labour§ 2.6.1.6

GRI‑409

Forced or compulsory labour§ 2.6.1.6

GRI‑410

Security practices§ 2.6.1.6

GRI‑411

Rights of indigenous peoples§ 2.6.1.6

GRI‑412

Human rights assessment§ 2.6.1.1, § 2.8.1.2.1

GRI‑413

Local communities§ 2.7.1, § 2.7.2

GRI‑414

Supplier social assessment§ 2.6

GRI‑415

Public policy§ 2.7.1, § 2.7.2

GRI‑416

Customer health and safety§ 2.7.3.2

GRI‑417

Marketing and labelling§ 2.7.3.2

GRI‑418

Customer privacy§ 2.8.3

GRI‑419

Socio‑economic compliance§ 4.1.32023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

2.7.6

HERMÈS’ CONTRIBUTION TO THE UN SUSTAINABLE DEVELOPMENT GOALS

No. 3: Good health and well‑being
3.dStrengthen the capacity of all countries, in particular developing countries, for early warning, risk reduction and management of nationaland global health risks.

3.8

Achieve universal health coverage, including ﬁnancial risk protection, access to quality essential health‑care services and access to safe,
eﬀective, quality and aﬀordable essential medicines and vaccines for all.

2

Hermès’ main contributions in 2023

20% decrease in the frequency rateof workplace accidents with lost time,and decrease of 1/3 in the severity rate

97% of employees worldwide beneﬁt fromschemes in addition to statutory health plans

Group absenteeism rate 2.56%

No. 4: Quality education
4.4

By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills,
for employment, decent jobs and entrepreneurship.

4.7

By 2030, ensure that all learners acquire the knowledge and skills needed to promote sustainable development, including, among others,
through education for sustainable development and sustainable lifestyles, human rights, gender equality, promotion of a culture of peaceand non‑violence, global citizenship and appreciation of cultural diversity and of culture’s contribution to sustainable development.

Hermès’ main contributions in 2023

three daysof training per employee

800 learners supported and trainedin the Leather Goods métiers in 2024
thanks to the École Hermès des Savoir‑Faire

More than 10,000 people took part in Group training
courses to learn about sustainable development issues

No. 6: Clean water and sanitation
6.4

By 2030, substantially increase water‑use eﬃciency across all sectors and ensure sustainable withdrawals and supply of freshwater to address
water scarcity and substantially reduce the number of people suﬀering from water scarcity.

Hermès’ main contributions in 2023

9% decrease in its overall water consumption over the year
and 62% decrease in intensity over 10 years

100% of its tanneries (the industrial sites that consume
the most water in its operations) are equippedwith their own water treatment plants

No. 7: Aﬀordable and clean energy
7.2

By 2030, increase substantially the share of renewable energy in the global energy mix.

7.3

By 2030, double the global rate of improvement in energy eﬃciency.

Hermès’ main contributions in 2023

69% of the Group’s energy consumption is from renewable sources

3% decrease in overall energy consumption over the year,
and halving (-49%) of energy intensity since 20192023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

245

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

No. 10: Reduced inequalities
10.2 By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin,religion or economic or other status.
10.3 Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting
appropriate legislation, policies and action in this regard.
10.4 Adopt policies, especially ﬁscal, wage and social protection policies, and progressively achieve greater equality.
Hermès’ main contributions in 2023

68% women at Hermès,

100% of Group employees covered by a maternity policy

6,8% of employees in France

and 60% of managers
are womenwith compensation maintained, 83% of employees
are covered by “second parent” leave

have disabilities in 2023
(above the legal minimum)

No. 11: Sustainable cities and communities
11.a Support positive economic, social and environmental links between urban, peri‑urban and rural areas by strengthening national and regional
development planning.
11.b By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards
inclusion, resource eﬃciency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in linewith the Sendai Framework for Disaster Risk Reduction 2015‑2030, holistic disaster risk management at all levels.
11.3 By 2030, enhance inclusive and sustainable urbanisation and capacity for participatory, integrated and sustainable human settlement
planning and management in all countries.
11.4 Strengthen eﬀorts to protect and safeguard the world’s cultural and natural heritage.
Hermès’ main contributions in 2023

75 production sitesof which 60 in France

1,300 jobs created in France€293 million in purchases with social added value(organisations helping people with disabilities
into work, social and solidarity economy, regional
revitalisation) in France, of which 44% from SMEs

No. 12: Responsible consumption and production
12.b Develop and implement tools to monitor sustainable development impacts for sustainable tourism that creates jobs and promotes local culture
and products.
12.2 By 2030, achieve the sustainable management and eﬃcient use of natural resources.
12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
12.6 Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information
into their reporting cycle.
12.8 By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony
with nature.
Hermès’ main contributions in 2023

0% destruction of Hermès objects in France(Agec law scope), target extended globally
between 2025 and 2030

2462023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

202,000
repaired products

More than 2.8 million objects soldhave circular and eco‑designed characteristics

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCECOMMUNITIES: STAKEHOLDERS AND TRANSPARENCY

No. 13: Climate action
13.1 Strengthen resilience and adaptive capacity to climate‑related hazards and natural disasters in all countries.
13.2 Integrate climate change measures into national policies, strategies and planning.
13.3 Improve education, awareness‑raising and human and institutional capacity on climate change mitigation, adaptation, impact reductionand early warning.

2Hermès’ main contributions in 2023
A decrease of 49.6% in absolute valueof scopes 1 and 2 compared to 2018,
and -52.2% of scope 3 in intensity.

Physical risk analyses conducted on

100% of our buildings in France

Offset of 100% of GHG scopes 1 and 2
emissions, and emissions related to upstream
and downstream transportation

No. 15: Life on land
15.a Mobilise and signiﬁcantly increase ﬁnancial resources from all sources to conserve and sustainably use biodiversity and ecosystems.
15.b Mobilise signiﬁcant resources from all sources and at all levels to ﬁnance sustainable forest management and provide adequate incentives
to developing countries to advance such management, including for conservation and reforestation.
15.c Enhance global support for eﬀorts to combat poaching and traﬃcking of protected species, including by increasing the capacity of local
communities to pursue sustainable livelihood opportunities.
15.1 By 2020, ensure the conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services,in particular forests, wetlands, mountains and drylands, in line with obligations under international agreements.
15.2 By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forestsand substantially increase aﬀorestation and reforestation globally.
15.7 Take urgent action to end poaching and traﬃcking of protected species of ﬂora and fauna and address both demand and supply of illegal
wildlife products.
15.9 By 2020, integrate ecosystem and biodiversity values into national planning, development processes, poverty reduction strategies andaccounts.
Hermès’ main contributions in 2023

100% of Leather Goods workshops
have a biodiversity plan

100% of purchases related to animal supply chains 100% of orange bags are FSC‑certiﬁed
are covered by the Group’s Animal Welfare policy

No. 17: Partnerships for the goals
17.17 Encourage and promote eﬀective public, public‑private and civil society partnerships, building on the experience and resourcing strategies
of partnerships.
Hermès’ main contributions in 2023
Collaboration with more than 50 associative
and academic stakeholders

25 projects supported worldwide via the Livelihoods funds,
more than 149,000 hectares planted or preserved

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

247

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

2.8

ETHICS – COMPLIANCE

Introduction
Driven by its humanist values, the Hermès Group’s ethics andcompliance policy aligns with the universal framework set down by the
major principles, standards and international agreements, inparticular those covering the subject of human rights. The Group has
several requirements in terms of ethics: zero tolerance for breaches
of probity, a determined commitment to a culture of ethics, ananti‑corruption policy and, lastly, a structured approach to protecting
personal data.

The Hermès Group maintains relationships with its employees andpartners based on trust, open communication and a control strategy
adapted to the issues. To ensure that each employee adheres to therules of good conduct adopted by Hermès, numerous training
sessions help them to understand the importance and the issues of
the Group’s ethics approach in the performance of their activities.
Partners are informed of the Group’s expectations and the existenceof information reporting channels and the procedures for using these.

Speciﬁc governance, carried out at the highest level of theorganisation, guarantees the commitments, policies, control and alert
systems that form the foundation of the approach.

In 2023, the Group strengthened its compliance programmes, in particular by:s the update and extension of the H‑Alert! whistleblowing system to all Hermès Group stakeholders. This change is accompanied by directaccess to the digital platform of the H‑Alert! whistleblowing system on the Group’s institutional website;s the continuation of training, in particular with the “Ethics, integrity and anti‑corruption” module. In 2023, 2,818 employees were trained,
thus totalling more than 14,000 people trained since the module’s launch in 2017;s the publication of the updated and detailed vigilance plan as a stand‑alone document.

ETHICS – COMPLIANCEOBJECTIVE

INDICATORS

2023 RESULTS

CHANGE 2022/2023

PROMOTING THE MAIN ETHICS STANDARDS AND THE APPLICATION OF HUMAN RIGHTS AND ANTI‑CORRUPTION REGULATIONS

100% of employees receive codes of business

Ensure employees adhere to ethics andcompliance principles

100% of employees informed

Strengthening the Group’s duty of care

Publication of a stand‑alone vigilance plan

conduct, ethics charter and anti‑corruption codeof conduct
Publication of the Group’s 2023 vigilance plan,248

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

which won an award from the French
Sustainable Investment Forum (see § 2.1.1)=-

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

2.8.1

PROMOTING ETHICSPOLICYThe Group’s policy is to maintain, wherever it operates, healthy andlasting relationships with its employees, customers, suppliers,
partners and communities. This approach is organised with a speciﬁcgovernance, demonstrated at the highest level of the organisation, a
policy, efforts to promote and raise awareness of ethics and integrity
issues, and using tools that formalise its commitments.
The promotion of ethical values is supported through actions to raiseawareness and provide training in the Group’s policies. The Group
has also put in place prevention and detection systems to prevent any
infringement of its principles.

2.8.1.1

GOVERNANCE

2.8.1.1.1

Ethics Committee

duties to the Audit and Risk Committee of the Hermès International
Supervisory Board.
The legal compliance department relies on the in‑house counsels in
the Hermès International legal department in Paris, on subsidiaries’
legal departments (in Lyon, New York, Shanghai, Singapore, Seoul andTokyo) and on the Group’s network of internal control ofﬁcers, todeploy compliance programmes and ethics policies within the Group.
These employees take part in the implementation and managementof compliance programmes, including the corruption prevention andcombatting plan, as well as the deployment of ethics policies in all of
the Group’s métiers and entities. They verify in particular that thepolicies and procedures put in place are applied by the operational
staff in all the métiers and entities.

2.8.1.1.3

Compliance and Vigilance Committee

The Compliance and Vigilance Committee meets regularly and iscomposed of the following functions:

The Hermès Executive Committee oversees all ethical issues,particularly those relating to human rights. It is supported by an
Ethics Committee set up in 2018 and chaired by the Executive
Vice‑President of Governance and Organisational Development, amember of the Executive Committee, and composed of the Director of
Human Resources, who is also a member of the Executive
Committee, the Group Director of Social Development, Group GeneralCounsel and the Chief Compliance Ofﬁcer.

s Chief Compliance Officer;

The Ethics Committee oversees ethics actions with three main duties:s Director of Sustainable Development;s advise on the Group’s ethics culture and make recommendations;s Director of Consolidation, Taxation and Management Control;s receive alerts (through various reporting channels);s Group Director of Social Development;s direct and monitor the treatment of these alerts.

s Group Direct Purchasing Manager;

The Ethics Committee met formally four (4) times in 2023 and its
members interact with each other as often as necessary.

s Group Indirect Purchasing Manager;

2.8.1.1.2

s Director of Retail Activity Compliance.

Legal compliance department

The main task of the legal compliance department is to design,develop, implement and lead the Group’s compliance programmes
and ethics policies worldwide. It identiﬁes, evaluates and controls thecompliance risks to which the Hermès Group is exposed, veriﬁes
compliance with the various laws and regulations, and ensures, inclose cooperation with the Group’s various departments, thecoordination, implementation and updating of complianceprogrammes. The Chief Compliance Ofﬁcer reports to the Group
General Counsel, who reports to the Executive Vice‑President
Corporate Development and Social Affairs, member of the Executive
Committee. The latter reports to the Group’s Executive Chairman.
The independence of the Chief Compliance Ofﬁcer is ensured bydirect and regular reporting to the Executive Vice‑President Corporate
Development and Social Affairs, at frequent meetings and to the
Ethics Committee.
The Chief Compliance Ofﬁcer chairs and oversees the Complianceand Vigilance Committee.

2s Head of Legal Compliance;s Group General Counsel;
s Director of Audit and Risk Management;s Director of Internal Audit;s Head of Risks and Foresight;s Group Director of Retail Activities;

Its duties speciﬁcally include:s define compliance guidelines, particularly in terms of human rights;
s advice and recommendations on prevention and monitoring
actions, notably in terms of duty of care and the fight against
corruption for all Group entities;s monitor the development of compliance programmes: ethics andanti‑corruption, vigilance plan, anti‑money laundering, economic
sanctions;s the management of the deployment of awareness‑raising andtraining campaigns for employees most at risk;s monitor and update the entire vigilance plan.

The actions of the Compliance and Vigilance Committee contribute to:s the provision of expertise;s the dissemination of a culture of compliance by relaying the
programmes to the entities’ Governing bodies and employees;

At least once a year, the Chief Compliance Ofﬁcer reports on his2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

249

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

s ensuring programme coordination and consistency;s develop the Group’s policies in this area;s supporting and monitoring compliance programmes.

For example, in 2023, the Compliance and Vigilance Committeemonitored the updating of the risk mapping and the associatedvigilance plan, particularly in terms of human rights, as well as the
subject of international economic sanctions.

2.8.1.1.4

A global network of compliance liaison officers

Legal teams located in France (Paris and Lyon) and the United States,
China, Japan, Singapore and South Korea are part of the network ofcompliance ambassadors and act as compliance relays. The latteract with the Group legal compliance department and with the Group
Data Protection Ofﬁcer in order to develop, facilitate, coordinate andmonitor compliance programmes and ethics policies within the Group.
The legal teams beneﬁt from a compliance review framework enablingthem to apply the corresponding programmes.

250

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The international legal departments monitor compliance issues withthe local teams. By way of illustration, a regional Compliance
Committee was created in 2020 and meets quarterly to deal with allcompliance, ethics and personal data issues in the South East Asia
region. This committee brings together the legal, human resources,internal control and management functions of the entities concerned.
The internal control ofﬁcers and auditors are also complianceambassadors and monitor the application of compliance programmes(see chapter 4 “Risk factors and management AFR”, § 4.3). The
Group’s internal control ofﬁcers have access to a compliance review
framework and second‑level control plan developed in collaboration
with the legal compliance department and the audit and risk
management department.
In addition, in the Supplier Code of Conduct (rolled out in 2024), it isspeciﬁed that when the national legislation of the supplier’s country
and the Code deal with the same subject, the most stringent norms
or standards apply, in compliance with local public order provisions.
This provision stems from the OECD principles and makes it possible
to protect all people involved in our entire value chain (see § 2.7).

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

2.8.1.2

FRAMEWORK AND TOOLS

2.8.1.2.1

Promotion of and compliance with fundamental conventions on human rights and fundamental freedoms

Hermès is involved in promoting respect for human rights and fundamental freedoms and, as such, undertakes to comply with the principles,standards and international agreements listed in the table below:

Major international ethics principles

Internal framework

Examples of implementation

2
Ethics charter

Ethics Committee

The Universal Declaration of Human
RightsAims to promote respect and ensure
proper application of majorinternational ethics principles.

The committee collects and processes
alerts, as well as providing advice andrecommendations on the Group’s
ethics culture.

The Charter of fundamental rights ofthe European Union

Code of business conduct

H-Alert! system
Aims to raise awareness of certain
risks and give employees appropriate
behavioural reflexes.
The International Labour Organization(ILO) Declaration on Fundamental
Principles and Rights at Work andthe ILO Fundamental Conventions

Anti-corruption code
Aims to promote an ethics culture
in which breaches of probity haveno place.

Employees are encouraged to reportgrave and serious incidents throughseveral information channels.
Supplier brief
Suppliers integrate the Group’s
human rights expectations.
Métier/subsidiary EHS policies
Policies include good working
conditions for employees.

The OECD Guidelines (2023)
for Multinational Enterprises

The Global Compact under the aegis
of the United Nations

Supplier Code of Conduct

UK modern slavery act

Aims to promote ethical,
responsible and sustainable conduct
for all suppliers.

California transparency supply
chain act

The Group’s policy is to adhere to the universally recognised ethicalprinciples, particularly those concerning human rights and the ﬁght
against corruption, and to ensure that they are implemented in its
operations. This policy is formalised by several more charters andadditional codes, validated by the Executive Committee, that fallwithin the framework of fundamental principles such as the Universal
Declaration of Human Rights, and the rules of the ILO, the OECD and
the Global Compact governing sustainable development.

1.

Modern slavery act Australia

Furthermore, the Hermès Group and all its employees strive to comply
with the laws and regulations applicable in all countries where they
operate.
These principles have been clearly set forth in the Group’s ethics
charter since 2009 and in its code of business conduct since 2012,
given to all employees and available on the Group intranet, as well ason the ﬁnancial (1).

https://finance.hermes.com/en/ethics‑human‑rights‑and‑diversities/
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

251

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

2.8.1.2.2

Ethics charter“The ethics charter serves to enrich the corporate project aroundthe genuineness of the Group’s purpose and ethics. It guarantees
respect for the debt of gratitude that is owed to our employees andpartners.
This charter does not replace the laws and regulations applicablein the countries where the Group operates, but aims to promotecompliance with them and ensure their proper application. It is ofcourse in line with fundamental principles such as the Universal
Declaration of Human Rights, and the rules of the ILO, the OECDand the Global Compact. It is one of the means of ensuring thesustainability of our unique business model.”Henri‑Louis Bauer – Chairman of the Executive Management
Board of Émile Hermès SAS; Axel Dumas – Executive Chairman

Code of business conduct“To help make sure that everyone is on the same page, this “codeof business conduct” has been formalised. Its role is to raiseawareness of certain risks and to instil Group employees withbehavioural reﬂexes in response to frequently raised issues.
The sheets below, each of which must be responsible for theproper application of the code, are instruments of progress anddialogue.”
Axel Dumas – Executive Chairman

A code of business conduct, available in 13 languages, is distributed
to all employees worldwide. It sets out the House’s guiding principles
on business ethics. It was updated in 2023, in particular tostrengthen the Group’s commitment in terms of competition law.

The House’s ethics have been enshrined, since 2009, in an ethics
charter, updated in 2023, distributed to all employees worldwide andavailable in 12 languages so that it is accessible to everyone.

The code is given to all employees as soon as they join the House, issigned by the Executive Management and is available on theinternet (2).

A summary version is also available on the website (1) and on the
HermèSphère intranet in the “Our Ethics” section. It reafﬁrms theGroup’s desire to respect fundamental principles in its relations with
its stakeholders and is signed by the Executive Management.

Its purpose is to raise employees’ awareness about ethics risks andto instil behavioural and alert reﬂexes. It consists of factsheets,
dealing with key issues.

The ethics charter, designed as a tool for progress and dialogue,seeks to promote compliance and ensure the proper application oflaws, regulations and fundamental principles. It invites employees, inthe event of difﬁculty in application or misunderstanding, to talk totheir line manager. It is structured around the following points:s relations between Hermès and its employees;s relations between Hermès and its suppliers;s relations between Hermès and its customers;s relations between Hermès and its shareholders;s the uncompromising principles of Hermès objects;
s relations between Hermès and society:• environment,

The code sets out whistleblowing protocols existing as part of a Groupsystem called H–Alert!. Employees confronted with situations thatraise ethics issues, or who believe, in good faith, that a violation of acode, charter, procedure, law or regulation has been committed, areencouraged to report the irregularities or breaches as soon as
possible using the whistleblowing channels set out in relation to theGroup’s H‑Alert! whistleblowing system.
The H‑Alert! whistleblowing system is also open to third parties; its
operating methods are set out below (see § 2.8.1.3.2).
The opportunity to revise the ethics charter and code of businessconduct is reviewed each year by the Compliance and VigilanceCommittee described in § 2.8.1.1.3. Any amendment to these
documents must be validated by the relevant member of the
Executive Committee.

• relations with communities and local authorities,

2.8.1.3

PREVENTION AND CONTROL MEASURES• its cultural and solidarity actions,

2.8.1.3.1

Training programmes on ethics issues• its communication;

Within the Group, several training courses on ethics issues(face‑to‑face or remotely) are provided to employees, regardless of
their type of contract (ﬁxed‑term, permanent, temporary or intern).
Depending on the subject, they may be designed by the legal
department or the human resources department, with the help ofinternal control.

s adherence to international principles;s relations with its stakeholders, with which Hermès aims to ensure
dialogue and consultation in order to contribute to the economic
and social development of the regions and employment areas
where its manufacturing and commercial sites are located. Hermès
is investing in this to have a positive impact, by using local
resources as much as possible, as a socially responsible company
in a spirit of regional responsibility.

252

2.8.1.2.3

1.

https://finance.hermes.com/en/ethics‑human‑rights‑and‑diversities/2.

https://finance.hermes.com/en/ethics‑human‑rights‑and‑diversities/

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

An online training module (e‑learning) dedicated to ethics and theﬁght against corruption has been rolled out to all employees
worldwide in 2020, as well as to external and occasional employees.
It uses practical scenarios to give them the keys to preventing risks ofcorruption and breaches of ethics. This e‑learning system includes acomprehension and simulation exercise, for which a minimum scoremust be achieved, to ensure that employees have fully understood
the risks of corruption and how to manage them. This e‑learning
module is mandatory for people considered to be exposed to the riskof corruption in accordance with the Group’s corruption risk mapping.
These people include in particular employees with ﬁnancial
commitment authority and/or employees with links to external
stakeholders. Since the rollout of the e‑learning module in 2020,
more than 15,000 employees have completed it. In 2023,
5,227 employees followed the anti‑corruption e‑learning module.
Furthermore, speciﬁc training modules on the Group’s ethics andanti‑corruption policy, the contents of which are adapted to theteams, subsidiaries and métiers in question, are delivered by thelegal department to those employees who are most exposed to therisks of corruption, as identiﬁed and prioritised in the Group risk
mapping. They may be buyers, people in charge of internal control,
members of management committees, etc. They aim to provide
employees with the knowledge and tools needed to prevent anddetect at‑risk situations and to determine the behaviour to adopt insuch cases. They are also an opportunity to set out all internal
procedures relating, for example, to gifts and invitations, conﬂicts ofinterest, accounting control and the third‑party assessment system.
In ﬁnancial year 2023, 505 employees beneﬁted from these speciﬁctraining courses.
The “Ethics, integrity and anti‑corruption” (EIAC) training course, thecontent of which was updated in 2022, is intended for all sales staff
in the exclusive stores within the Group’s entities. In 2023,
2,818 people took this module, which aims to explain the risks ofcorruption to sales staff. They learn about different forms ofcorruption and how to effectively combat these risks in their dailytasks. Lastly, they learn about the tools and procedures that they canuse in case of doubt. Attendance at these training sessions ismonitored. This module is regularly delivered in all subsidiaries
worldwide. Since the module was rolled out, more than
14,000 people have been trained. The objective is to train all
distribution subsidiary employees, whether their contract is
ﬁxed‑term, permanent, temporary or as an intern, etc. and whatever
their role (members of the Management Committees, support, sales
staff, stockists, cashiers, managers, etc.).
The purchasing department provides training for purchasers and,makes them aware, in particular, of the risks of corruption in their
daily tasks. At its own level, it ensures the implementation of these
ethical ambitions thanks to the CSR brief, distributed to the House’s
suppliers and partners (1).

1.

The audit and risk management department internal control ofﬁcers
are trained and take part in the Group training sessions in order topromote an awareness of risk management and internal control bestpractices amongst the management.
Activities focusing on ethics and compliance issues continued thisyear thanks to the organisation of two seminars by the audit and risk
management department for internal controllers worldwide.
The roll‑out of all training sessions on ethics issues is closely
monitored by the legal compliance department, in collaboration withinternal control and human resources.

2

The themes of the ﬁght against corruption are also addressed as partof the policies and training courses put in place within the Group tocombat counterfeiting and the parallel market.

2.8.1.3.2

Whistleblowing system

In accordance with laws and in order to boost the ﬁght against
breaches of ethics and integrity, in 2019 the Group set up a global
whistleblowing system called H‑Alert!.
This system is composed of several channels, including in particular
the traditional communication channel (HR/manager) as well as the
H‑Alert! platform. This system has been designed to enable its
employees worldwide, its external and occasional employees and all
external stakeholders to report breaches and violations.
Available seven days a week, 24 hours a day and operated by an
external service provider, the H‑Alert! platform makes it possible toreport facts that may constitute a violation of any law or regulation, or
a violation of the Group’s codes, procedures and ethics standards, aswell as to report the existence of risks or violations of human rights
and fundamental freedoms, the health and safety of people or theenvironment resulting from the activities of the Group and/or its
subcontractors or suppliers.
The H‑Alert! global whistleblowing system was updated in 2022 and2023 in accordance with French law no. 2022‑401 of 21 March2022 and the decree of 3 October 2022, in order to:s strengthen the protection of whistleblowers against any form of
retaliation; ands give suppliers, service providers and distributors, and in general,
the Hermès Group’s co‑contractors, access to the H‑Alert!
whistleblowing system.

The H‑Alert! whistleblowing system is now accessible to all Group
stakeholders, both internal and external, either via the HermèSphère
intranet site or the Hermès Finance institutional website. Available in
21 languages to ensure its proper distribution, the new information
notice was the subject of a communication within the Group and our
suppliers.

https://finance.hermes.com/en/responsible‑sourcing/2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

253

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

HOW TO ISSUE AN ALERT VIA H-ALERT!?
H-Alert!

INTERNAL ALERT

EXTERNAL ALERTS

All employees

All external andtemporary collaborators

People whose employment relationshipwith a Hermès entity has ended

Distributors and partners

People who applied for a job at an entity

Suppliers and service providers

In 2023, 105 alerts were received through the whistleblowing
system, compared with 69 alerts in 2022. This increase reﬂects aprocess that is now well‑known and efﬁcient, but also the opening upof this system to all our external partners.
100% of the 105 alerts received in the ﬁnancial year resulted infollow‑up. Hermès carried out the internal investigations necessary toprocess said alerts.
All parties involved in the processing of alerts were mobilised andinvolved throughout the processing of the incidents.

can send their alert via

The categorisation of alerts received is presented below.

Line manager
or
HR Manager
orMembers of the Ethics Committee

Usual contact
at Hermès entityoror

Environment

Secure internet platform
accessible 24/7
Ethics Committee
Analysis − Guidance − Monitoring

0%
Health& safety

Personal dataprotection

0%

2%
Other

2%

Corruption

5%

Fraud

3%
In terms of whistleblower protection, the Group has introduced
effective measures guaranteeing the conﬁdentiality of informationand processing of reports at all times. Where appropriate, following
an investigation, disciplinary sanctions may be decided upon andimplemented against employees who violate the Group’s ethics rules,
which may go as far as dismissal. Contracts and commercial
relationships (with suppliers or business partners) may also be
terminated in the event of serious breaches of the Group’s ethics
rules.
The Company undertakes not to impede access to legal or otheravailable mechanisms, including mediation processes, for any person
reporting negative impacts, especially on human rights, and also toprotect the whistleblower. To strengthen the independence of thepeople responsible for handling alerts, investigations are conducted
separately from the management line against which the complaint ismade. Always in accordance with applicable local rules, the House
may also use third parties, such as lawyers, to conduct theseinvestigations.
Upon receipt of an alert, an acknowledgement of receipt issystematically sent within seven (7) days of receipt of the alert. The
admissibility of alerts is processed within a maximum of one monthand, if the alert is admissible, it is immediately assigned to the entity
concerned by the subject reported. Thus, the admissibility of reports
on social issues (discrimination, harassment, etc.) is analysed by thehuman resources department. The admissibility of other reports ismade by the Ethics Committee, which, as a reminder, includes two
members of the Hermès Executive Committee. Reports relating tosocial issues are dealt with by the local HR or Director of Human
Resources (outside the managerial line against which the complaint ismade) and its follow‑up is shared with the Ethics Committee. Other
reports are handled by a person appointed by the Ethics Committee
according to their topic (purchasing department, legal department,etc.).

254

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Group ethics
charter, procedures
and rules

16%
Discrimination

5%
Human rights,
social standards
and working
conditions
Bullying, sexual
harassment andother HR issues

2%

65%
USA

29%

Mexico1%
Greater China

UK

3%
Sweden1%

5%Singapore

4%
South Korea

Italy

3%

1%

India

Germany

UAE

2%France46%

1%1%Australia

1%
Turkey2%
To ensure that this whistleblowing system is properly used by external
stakeholders, a dedicated section is included in the Supplier Code of
Conduct updated and rolled out in early 2024. Speciﬁc
communication aimed at suppliers and service providers will also be
put in place.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

2.8.1.3.3

Audit of the application of ethics values

Internal control evaluations, and internal and external audits on theapplication of Group procedures are carried out regularly at theGroup’s companies and métiers, as well as at its signiﬁcant suppliers
and partners. Among other areas, these audits cover compliance withethics procedures, the ﬁght against corruption, combatting money
laundering, the protection of personal data, respect for theenvironment, respect for human rights and fundamental freedoms,
hygiene, health and employee safety. The methodology of thesecontrols and audits is described in chapter 4 “Risk factors andmanagement”, § 4.3 “Risk management, internal control and internal
audit”.

2.8.1.3.4

Sanctions system set up

A system of sanctions has been set up for compliance programmes
because any breach of ethics and integrity is contrary to the Group’s
intrinsic values and internal rules laid down in this area.
In accordance with existing French law, rules of procedure are inplace which devote a chapter to disciplinary law and the right ofdefence.
At international level, depending on applicable local law, there are
either rules of procedure, which set out rules on disciplinary mattersand which may go as far as dismissal, or an employee handbook isissued to employees on joining, and contains rules on disciplinarylaw, as well as anti‑corruption measures. In the event of a breach of
the Group’s ethics rules and compliance programmes, commercial
relations with a distributor or supplier may be suspended pending theimplementation of corrective actions or be terminated.
The Group has not been convicted of corruption.

2.8.2

FIGHTING CORRUPTION“Combatting corruption is a clear priority for the Hermès Group.
The culture of probity, integrity and transparency is intrinsic to thevalues of Maison Hermès. Since its creation, the House has
endeavoured to promote it to its employees, business partners
and stakeholders.”
Axel Dumas – Executive Chairman and Olivier Fournier – Executive
Vice‑President Corporate Development and Social Affairs

POLICY
Corruption is in contradiction with the values of the Hermès Group.
The Group has a two‑fold requirement: zero tolerance for breaches ofprobity on the one hand, and a determined commitment to a cultureof ethics, on the other.
The Group’s policies in terms of ethics and the ﬁght against
corruption are clearly set out in the code of business conduct,available on the Group intranet as well on the Hermès Financeinstitutional website (1).

1.

The Hermès Group continues to improve its corruption prevention
plan, in accordance with the requirements of the French law of
9 December 2016 on transparency, the ﬁght against corruption andthe modernisation of economic life in France.
Furthermore, the Group conducts global legal monitoring of legislativechanges on the ﬁght against corruption and complies with current
legislative and regulatory requirements both in France and incountries abroad in which it operates, such as the Foreign Corrupt
Practices Act in the United States, the United Kingdom Bribery Act
and Legislative Decree 231 in Italy. This monitoring is carried out
in‑house and by external ﬁrms.

2.8.2.1

2

GOVERNANCE

Alongside other members of the Executive Committee, Axel Dumas,
Executive Chairman, drives compliance with ethics rules, applying aﬁrm policy of zero tolerance of any act of corruption. Thus, theGoverning body’s commitment can be seen at the Group’s highest
level.
Corruption risk mapping, driven by the legal compliance department,
was validated by all the members of the Executive Committee, thus
clearly demonstrating the importance put on analysing and identifying
Group‑speciﬁc risks.
The ﬁght against corruption in all its forms permeates all the Group’s
policies and procedures.
Governance of anti‑corruption is supported by the legal compliancedepartment (§ 2.8.1.1.2 above) and includes the Compliance andVigilance Committee (§ 2.8.1.1.3 above) and the Ethics Committee(§ 2.8.1.1.1 above) with a local relay thanks to the network of Group
compliance ambassadors (§ 2.8.1.1.4).

2.8.2.2

FRAMEWORK AND TOOLS

2.8.2.2.1

Risk mapping“The update in 2020 of the Group’s anti‑corruption risk mapping,as well as all the recommendations resulting from the action plans
aimed at controlling these risks, demonstrate the Group’s
unwavering commitment to combatting all forms of corruption andinﬂuence peddling.
This exercise is part of the Group’s approach to continually
improve its anti‑corruption and inﬂuence peddling plan to make it
increasingly robust and effective.”
Axel Dumas – Executive Chairman and Olivier Fournier – Executive
Vice‑President Corporate Development and Social Affairs

A Group corruption risk mapping was produced jointly in 2018 by thelegal compliance department and the audit and risk management
department and was then approved by the Group’s Executive
Committee.

https://finance.hermes.com/en/ethics‑human‑rights‑and‑diversities/
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

255

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

With the help of numerous contacts covering all the geographicalareas in which the Group operates, this Group corruption risk
mapping was updated in 2020 and then shared with all Group
entities and departments, before implementation of action plans.
The risk mapping, carried out according to a rigorous methodology,
covers all the Group’s activities and all the geographical areas inwhich it operates. Each risk scenario identiﬁed corresponds to apotentially risky behaviour or situation in terms of corruption andinﬂuence peddling and speciﬁes the geographical areas, the métiers
mainly concerned and the third parties that may be involved. This is
so that the anti‑corruption action plans corresponding to each risk
scenario can be implemented to respond as a priority, in a
proportionate and effective manner to the challenges facing theGroup.
The update of the Group’s anti‑corruption risk mapping is scheduled
for 2024.

2.8.2.2.2

Anti‑corruption code of conduct

An anti‑corruption code of conduct, drafted in 2018 from the resultsof the Group’s corruption risk mapping, is distributed in
18 languages. This code of conduct was validated by the Group’s
governing bodies and communicated to all Group entities andstructures. It has been issued and applies to all Group employees.
“This anti‑corruption code of conduct (the “Code of Conduct”) is inline with the commitments taken by the Hermès Group in the areaof ethics and integrity. It sets forth the personal commitment of
the Hermès Group’s Senior Executives and forms an integral partof the values and principles that unite all Hermès Group
employees.”
Axel Dumas – Executive Chairman

The anti‑corruption code of conduct is available on the Group’s
website and is updated at least annually (1).
It describes rules on gifts and invitations, relations with third parties
and public ofﬁcials, the ban on facilitation payments, management of
conﬂicts of interest, patronage and sponsorship, representation ofinterests, etc.
The opportunity to update the anti‑corruption code of conduct isreassessed each year by the Compliance and Vigilance Committee.

2.8.2.3

PREVENTION AND CONTROL MEASURES

2.8.2.3.1

Training system for managers and employees mostat risk

The training systems are described in § 2.8.1.3.1 above.

2.8.2.3.2

Whistleblowing system

The Group’s H‑Alert! internal whistleblowing system, set up forreporting any situation at risk of corruption, is described in§ 2.8.1.3.2 above.

1.
256

https://finance.hermes.com/en/ethics‑human‑rights‑and‑diversities/

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

2.8.2.3.3

Procedures for assessing the situation ofcustomers, Tier 1 suppliers and intermediaries

The Group’s business model consists mainly of purchasing materials
from suppliers and manufacturing most of its production in‑house, inorder to then market it to its end customers via a network of exclusive
Hermès stores (most of which are owned by the Group) as well as via
selective distribution networks comprising specialised boutiques(perfumes and watches in particular). Upstream, i.e. relationships
with goods suppliers and service providers, accounts for most of theGroup’s relationships with third parties.
To a lesser extent, the Group also has downstream relationships, withconcessionaires, distributors and business intermediaries in somemétiers.
The Group develops long‑term relationships with its partners, both
upstream and downstream, thereby protecting its sources of supply
and business relationships. The average age of the Hermès Group’s
relations with its suppliers is 19 years and a large majority of thesepartnerships are European.
The commitments made by the Group and its partners focus on thefollowing points:s good labour practices and respect for human rights: prohibition ofchild labour, prohibition of forced labour, compliance with healthand safety rules, respect for freedom of association,
non‑discrimination, respect of working time, appropriatecompensation, prohibition of illegal work;s best environmental practices: compliance with environmental
regulations, management of natural resources and consumption,effluent and waste, respect for biodiversity;
s good ethical conduct: the fight against corruption and money
laundering and recommendations on best practices in relation to
subcontracting.

On an operational level, each métier or entity is responsible formanaging its relations with third parties, monitoring the issues
identiﬁed and the implementation of corrective actions with them.
Experience has shown that adopting a métier or entity approachguarantees third party proximity, awareness of the issues ahead andrealistic systems set up to comply with the Group’s rules.
Nevertheless, to ensure that the Group’s anti‑corruption system iswell implemented in the métiers, entities and subsidiaries,
coordination is carried out at Group level by the legal compliancedepartment.
To ensure their partners’ integrity and compliance with anti‑corruption
regulations, the métiers and entities have the following tools at theirdisposal:s risk mapping;s procedures for entering into business relationships with third
parties;s procedures for selecting, assessing and managing suppliers andservice providers, business intermediaries, agents, distributors
and concessionaires;

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

s an IT tool for assessing the integrity and reputation of third parties,
set up with the help of an external service provider and accessible
to all Group entities;s analysis grids and questionnaires to assess third party risk levels;s a list of “sensitive countries”;
s a procedure to prevent money laundering and corruption;s a suppliers’ charter, a business ethics charter for the selling ofproducts and compliance clauses to ensure third parties’commitment to complying with social, environmental and ethics
policies, including anti‑corruption regulations;s external evaluations/investigations on third‑party compliance andintegrity risks;s rights of access and right to request documentation;s the right to conduct internal and external on‑site audits and, if
necessary, to implement corrective measures.

The métiers and entities manage their relationships with third parties
and update their assessments and engagement policies on a regularbasis. The distribution in 2023 of the CSR briefs is a step forward in
the formalisation and dissemination of our high standards. The Group
ensures that métiers and entities comply with these third party
assessment policies by means of internal control and internal audits
conducted by the audit and risk management department, as well as
through controls carried out by the legal compliance department.

2.8.2.3.4

Accounting control proceduresInternal control and risk management procedures relating to the
preparation and processing of accounting and ﬁnancial information,
as described in chapter 4 “Risk factors and management AFR”, § 4.3,
form an integral part of the Group’s anti‑corruption system and, inparticular, are aimed at preventing and detecting any acts ofcorruption. Controls on accounts deemed “more sensitive” in terms of
the ﬁght against corruption are regularly strengthened. An accounting
control procedure dedicated to the prevention and detection ofcorruption and inﬂuence‑peddling was put in place in 2020 andcontrols are carried out regularly.
Furthermore, annual self‑assessment campaigns (§ 4.3.4.1) are an
important tool when it comes to the process of applying accounting
control procedures across all the Group’s entities.
The audit and risk management department monitors the proper
application of these procedures during its internal audits.

2.8.2.3.5s the second level of control involves internal control officers in each
entity/métier, working in close collaboration with the legal
department, in particular, on the proper application of procedures
relating to the fight against corruption. To this end, the legal
compliance department and the audit and risk management
department have drawn up a dedicated anti‑corruption work
programme for all of the Group’s internal control officers;s the third level of control is operated by the audit and risk
management department when it audits the métiers and entities.
This control assesses the implementation of the anti‑corruption
and influence peddling policy of the métier or entity in question.
The audit and risk management department also conducts auditsof the various Group anti‑corruption programmes.

2

In 2023, the audit and risk management department carried out
checks on its anti‑corruption system and in particular on the system
relating to gifts and conﬂicts of interest and the codes of conduct andanti‑corruption charters.

2.8.2.3.6

Disciplinary regime for sanctioning violations of theanti‑corruption code of conduct

The sanctions system is described in § 2.8.1.3.4 above.

2.8.3

PROTECTING PERSONAL DATA

Respect for privacy is more than a legal obligation, it is a Maison
Hermès value and an essential commitment to maintaining a
relationship of trust with our employees, customers and partners.

POLICY
Since 2015, Hermès has adopted a set of rules to protect thepersonal data of its customers in the form of Binding Corporate Rules(BCR). These BCRs, approved by the European Data Protection
Authorities, apply to all Group entities with a distribution activity.
These BCRs, still in full force, foreshadowed the Group’s more generaldata protection system. Since then, the Hermès Group has
implemented a more extensive data protection system covering all the
personal data it collects (customers, employees, third parties, etc.)
and all of its subsidiaries and métiers, regardless of their location.
This Group system complies with the European Data Protection
Regulation (GDPR) which is one of the highest levels of dataprotection in the world and also takes into account local regulatory
requirements. This system also includes the code of businessconduct, which contains a “Personal Data” sheet (see § 2.8.2.1.3).

Internal control and evaluation system

In order to verify the proper application of its anti‑corruption system,
Hermès has deployed a control plan based on three levels:s the first level of control is implemented directly by operational staff.
It involves applying, on a daily basis, the principles and steps
relating to ethics and integrity as described in Group procedures
and, in particular, those relating to the fight against corruption andinfluence peddling;

2.8.3.1

GOVERNANCE

The Group Data Protection Ofﬁcer is responsible for informing andadvising the Company on its legal and regulatory obligations withregard to personal data, and steering and monitoring data processing
and ensuring its compliance with these obligations. The Group Data
Protection Ofﬁcer is the point of contact for data subjects and for dataprotection authorities. This function reports to the Chief ComplianceOfﬁcer.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

257

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

The Data Protection Ofﬁcer relies on a network of people throughout
the Group – mainly consisting of the Chief Information Security Ofﬁcer(CISO), members of the legal department, Internal Control Ofﬁcers
and Regional Data Protection Ofﬁcer. This network enables him or her
to be regularly informed of issues related to the processing of
personal data, to ensure that they are dealt with consistently by thesubsidiaries and to be alerted to local legal and regulatory changes
where applicable. In addition, the Data Protection Ofﬁcer is supported
by a network of specialised lawyers, present in all the countries where
the Group operates.
Data protection guidelines have been rolled out to the network ofinternal control ofﬁcers since 2020 to support them in theirsecond‑level control duties. These guidelines provide in particular areminder of the elements of governance, the control themes and thetools available for this purpose.
Lastly, as part of the creation of the Group data department in
October 2022, a governance has been put in place in which the Data
Protection Ofﬁcer will handle the protection of personal data throughthe Data Governance Committee. This governance will also address
the issues posed by artiﬁcial intelligence (AI), in particular in terms ofrisks and ethics, through the AI Assessment Committee.

2.8.3.2

MAIN ACTIONS IMPLEMENTED

The Group’s personal data protection awareness and training
programme comprises two levels:s an online training module (e‑learning) rolled out internationallysince 2020 for all Group employees, translated into 11 languages.
To date, more than 15,000 people in the most sensitive functions
and métiers have taken this module. In 2023, 5,173 employees
completed the personal data protection e‑learning module;s face‑to‑face training sessions for the most exposed employees, inparticular employees in the human resources departments andemployees in the stores.

The principles of protection of privacy by design and by default are
ensured by the use of tools for managing data protection impact
assessments (DPIA) and managing the record of processing activities.
These tools are part of the procedure for integrating security andprivacy into projects (ISP), which involves the Group’s Chief
Information Security Ofﬁcer (CISO) and Data Protection Ofﬁcer teams.
In 2023 (ﬁgures cover November 2022 to November 2023),
357 projects were processed through the ISP procedure.
The management of the rights exercised by the people concerned isensured through the use of a tool and a procedure for managing
customer rights allowing the diligent and harmonised management ofrequests regardless of their geographical origin and the contact
channel used. In 2023 (ﬁgures from November 2022 toNovember 2023), 1,196 requests to exercise rights were processed,of which 5% were requests for modiﬁcation, 11% requests for access,
67% requests for deletion of data and 17% requests of various types(in particular, for information). These ﬁgures do not take into account1.
258

Available on finance.hermes.com

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

requests to change simple contact details or requests to unsubscribefrom our promotional communications.
The security of personal data is an essential component of theprotection of privacy. In this context, these issues were highlighted
through awareness‑raising operations (“cybersecurity month”) andaddressed as part of regular work with the CISO teams. The data
breach procedure is part of the regularly tested broader cyber crisis
management process (see chapter 4 “Risk factors and management
AFR”, § 4.1.1.3 “Information systems and cyberattacks”).
Checks are carried out in cooperation with the teams of the audit andrisk management department and the internal control ofﬁcers ofGroup entities to assess compliance with the Group’s rules andapplicable regulations.
In 2023, the IA Assessment Committee (see § 2.8.3.1 above) held its
ﬁrst meeting in the presence of the Group’s Data Protection Ofﬁcer
and representatives of the Group’s legal department, in particular.
This committee focuses on the implications of the artiﬁcial
intelligences that are used or could be used in the House’s projects,
including the issues they may raise in terms of personal dataprotection.

2.8.4

DUTY OF CARE

In accordance with French law no. 2017‑399 of 27 March 2017
relating to the duty of care of parent companies and contractors, theGroup has drawn up a vigilance plan to identify risks and prevent
serious violations of human rights and fundamental freedoms, andthe health and safety of people and the environment, resulting fromits activities as well as the activities of its subcontractors andsuppliers.
In 2023, the Group published its vigilance plan in a stand‑alone
document, accessible on its institutional website (1). The measuresrequired by the duty of care are presented in detail there. They aresummarised below.

2.8.4.1

GOVERNANCE

The Compliance and Vigilance Committee oversees the vigilance plan.
It met three times in 2023 to:s define compliance guidelines;s recommend preventive actions;s manage and roll out employee awareness and training campaigns;
s monitor the entire vigilance plan.

Hermès also called on several stakeholders – suppliers, employee
representatives, associations and universities – as part of the
preparation of its vigilance plan, with the support of an independentﬁrm. For its update, stakeholders were again questioned, to follow up
on the weak signals identiﬁed and integrate the societal issues that
had emerged over the period.

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

2.8.4.2

RISK MAPPING AND ASSESSMENTMETHODOLOGY

In particular, the Compliance and Vigilance Committee:
s defined a universe of risks specific to Hermès;

In order to identify and assess risks throughout its value chain and tostrengthen its mapping of risks related to the duty of care, Hermès
has used the analysis of non‑ﬁnancial risks, the materiality analysis
and the risk mapping generated for its activities and supply chains. In
addition, the risk mapping was developed in association with internaland external stakeholders.

s deepened the analysis of risks in certain scopes assessed aspriorities;s added a source of raw risk data.

The Group’s vigilance plan was constructed by analysing its entire
value chain as presented below (values and information date from2022)HERMÈS VALUE CHAIN

INTERNAL

SOURCING & TRANSFORMATION
OF MATERIALSPRODUCTION/MANUFACTURING OF FINISHED PRODUCTS

2

EXTERNAL

EXCLUSIVE DISTRIBUTION

structured according to the Hermès métiers

Logistics platforms
Tanneries and Precious Leathers

Crocodilian farms in the
United States and Australia

Production
sites

Direct purchases

Leather Goods & Saddlery
Production
sites

Subcontractors

Production
sitesStoresFrance + Monaco
15 branches

Saddlery

Textile/Women’s and Men’s
ready-to-wear

Suppliers of materials and components fromaround the world divided into 88 supply chainsgrouped into ﬁve macro-families:

E-Commerce

Designers

15 concessionaires

Europe57 branches

15 concessionaires

Internet of Things (loT)

Designers

North America
36 branches

animal (fibres and leather)plant-based
synthetic/artificial
mineral
metal

Home

8 concessionaires

Metal parts

Latin America
Production
sites

Production
sites

Manufacturers

Suppliers &subcontractors

10 branches

2 concessionaires

Greater China
Accessories
Shoes, jewellery, gloves, etc.
Production
sites

Indirect purchases
Suppliers in France and worldwide divided into
38 categories grouped into 9 families, the mainones being:

Manufacturers& subcontractors

Production
sites

7 concessionaires

South Korea

Suppliers &subcontractors

11 branches

8 concessionaires

Japan

Cristalleries de Saint-Louis

Perfume and Beauty

Communication
IT
General Services
Transport & Logistics
Real estate

44 branches

Watches
Productionsites

29 branches

Manufacturers& subcontractors

Puiforcat
Hermès Horizons

6 concessionaires

John Lobb

South East Asia and Middle East

Petit h15 branches

Group support functions and local entities
HR, Finance, Digital, Real Estate, Communication, Legal, etc.

16 concessionaires

Oceania
5 branches

1 concessionaireThis analysis enabled the Group to draw up the following mapping of risks related to the duty of care.
2022 RISK MAPPING RELATED TO THE DUTY OF CAREGLOBAL RISK MAPPINGAT HERMÈS

AT PARTNERS’ SITES

Assessment of risks according to their net criticality: impact x probability x level of controlHERMÈS
MATERIALS ANDCOMPONENTS

RISKSRAW MATERIALSSUPPLY CHAIN

PRODUCTION
WORKSHOPS

MANUFACTURERS ANDSUBCONTRACTORSLOGISTICS
PLATFORMSSERVICEPROVIDERS &TRANSPORTHERMÈS
BRANCHESCONCESSIONAIRESSUPPORT
FUNCTIONSHuman rights
Social dialogue
Discrimination
Decent wage
Child labour
Forced labour
Negative impact on communities
Personal data
Health & safety
Consumer safety
Health and safety at work
Psychosocial risks
Working conditions
Employee safety
Environment
GHG emissions and climate change
Pollution and waste
Depletion of natural resources
Biodiversity damage
Animal welfare

Net criticality

Very highHigh

MediumLow and very low

Not signiﬁcant2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

259

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

2.8.4.3

Direct purchases

WITHIN HERMÈS

Human rights and fundamental freedoms
The level of risk of serious human rights violations is relatively low inHermès’ activities, on its sites. The Group’s sustainable development
is based on the fulﬁlment and well‑being of its teams, as part of acorporate project that places people at the heart of its values since1837. Hermès contributes to respect for human rights through its
proactive actions in terms of ethics, diversity, employee equality,
consideration of disability and, in general, respect for human rights.

Health & safety
The sustainability of the House rests on the women and men who
contribute in a harmonious and positive manner to its functioning anddevelopment. For this reason, the Group is very demanding in termsof working conditions: everyone can express their potential safely, in apleasant environment, whether on production sites, in stores orofﬁces. Thus, for example, any investment in health and safety withina manufacturing site is a priority.

Environmental protection
The Group’s sustainable and responsible development involves
knowing, controlling and reducing its environmental impacts, as partof a responsible approach. More broadly, Hermès contributes,
through its commitments and actions, to the ﬁght against climatechange and the preservation of biodiversity.

2.8.4.4

ON THE VALUE CHAIN

The Hermès craftsmanship model, with 74% of objects made inFrance, relies on a network of suppliers based mainly in Europe,
where labour practices are some of the strictest and are monitored
frequently due to the close operating proximity. In addition, Hermèsbuilds balanced partnerships with its direct suppliers, according to its
principle of transparency, high standards and fairness.
The risk exposure to its direct suppliers is therefore reduced for
Hermès. In order to secure the use of its exceptional raw materials,
Hermès is also committed, as part of the sustainable development of
its supply chains, to exceeding compliance with regulations in social,environmental and ethics areas, as well as animal welfare.

Indirect purchases
The indirect purchasing department coordinates a network of
dedicated buyers in the support functions in each country and métier
managers for categories such as real estate, general services,
communications, IT and intellectual services.
The indirect purchasing department, supported by a community ofbuyers in France and international contacts, implements a procedure
to control the risks of its various partners. This includes a mapping of
CSR risks by purchasing family and, if necessary, by supplier,including social issues, triggering the assessment via a third‑party
tool and an audit.

Concessionaire partners
Hermès works with concessionaire partners in France and abroad forits distribution.

Human rights related to affected communities
The House is concerned with the protection and promotion of humanrights within its value chain wherever it operates. The level of risk ofserious human rights violations is relatively low in Hermès’ activities,
including given the geography of its production operations (mainly
Europe). Its commitments to comply with the OECD principles, theUnited Nations Global Compact, the United Nations Guiding Principles
on Business and Human Rights and its two conventions, and theUnited Nations Declaration on the Rights of Indigenous Peoples are
the documents underpinning the human rights policy set out in thevigilance plan updated annually.

Hermès’ relationships with them are long‑standing relationships
based on the trust acquired over the years.
The few recent partners concern travel retail stores. These are major
structures, leaders in their market, whose requirements in terms ofrespect for human rights and fundamental freedoms, health andsafety and environmental protection are in line with those of theGroup.

Summary of the application of the law on the Duty of Care in the value chain – references are to the vigilance plan
Suppliers and subcontractors

260

Human rights andfundamental freedoms

Health & safety

Risk mapping

Risk mapping and assessment methodology (chapter 2 – Vigilance plan framework)
Mapping by theme in the chapters in question

Regular assessment
procedures

Chapter 6 – Direct purchases andChapter 7 – Indirect purchases

Mitigation andprevention measures

Transversal actions, chapters 3 to 8

Chapter 3 – Human rights andfundamental freedoms
Chapter 6 – Direct purchases andChapter 7 – Indirect purchases

Measuring andmonitoring system

Transversal actions, chapters 3 to 8

Alert mechanism

Chapter 9 – Alert collection and processing system

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Chapters 4 – Health and safety,
Chapter 6 – Direct purchases andChapter 7 – Indirect purchases

Environment

Chapter 5 –Environmental
protection

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEETHICS – COMPLIANCE

2.8.4.5

WHISTLEBLOWING SYSTEM

In 2019, the Group set up a platform as part of its H‑Alert! global
whistleblowing system (terms and conditions described in§ 2.8.1.3.2), intended for its employees worldwide and for externaland occasional employees.

2.8.4.6

SUMMARY & OUTLOOKIn 2024, Hermès will continue to strengthen the vigilance programmethrough the following actions:s continued rollout of human rights training for buyers (see § 2.6);
s raising awareness among suppliers and partners of ethics andsocial issues;s strengthening of the vigilance system in anticipation of the future
European Directive on the duty of care (Corporate Sustainability
Due Diligence Directive);s continuing communication and training on the update of thewhistleblowing system;2s active monitoring of new European and international regulations.

s rollout of the Supplier code of conduct;s update of the Group ethics charter for all employees andstakeholders;

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

261

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEREPORT OF ONE OF THE STATUTORY AUDITORS, APPOINTED AS INDEPENDENT THIRD PARTY, ON THE VERIFICATION OF THE CONSOLIDATED NON‑FINANCIAL STATEMENT

2.9

REPORT OF ONE OF THE STATUTORY AUDITORS, APPOINTEDAS INDEPENDENT THIRD PARTY, ON THE VERIFICATION
OF THE CONSOLIDATED NON‑FINANCIAL STATEMENT(Year ended December 31, 2023)
This is a free English translation of the report by one of the Statutory Auditors issued in French and is provided solely for the convenience ofEnglish‑speaking readers. This report should be read in conjunction with, and construed in accordance with, French law and professional
standards applicable in France.

To Hermès International’s General assembly,
In our capacity as Statutory Auditor of the company Hermès International (hereinafter the “Entity”), appointed as independent third party (“third
party”) and accredited by the French Accreditation Committee (Cofrac) (Cofrac Inspection Accreditation, n° 3‑1862, scope available atwww.cofrac.fr), we have undertaken a limited assurance engagement on the historical information (observed or extrapolated) in the consolidated
non‑ﬁnancial statement, prepared in accordance with the Entity’s procedures (hereinafter the “Guidelines”), for the year ended December 31,
2023 (hereinafter the “Information” and the “Statement”, respectively), presented in the group management report pursuant to the legal andregulatory provisions of Articles L. 225‑102‑1, R. 225‑105 and R. 225‑105‑1 of the French Commercial Code (Code de commerce).

CONCLUSION
Based on the procedures we have performed as described under the “Nature and scope of procedures” and the evidence we have obtained,
nothing has come to our attention that cause us to believe that the consolidated non‑ﬁnancial statement is not prepared in accordance with theapplicable regulatory provisions and that the Information, taken as a whole, is not presented fairly in accordance with the Guidelines.

PREPARATION OF THE NON‑FINANCIAL PERFORMANCE STATEMENT
The absence of a commonly used generally accepted reporting framework or a signiﬁcant body of established practice on which to draw toevaluate and measure the Information allows for different, but acceptable, measurement techniques that can affect comparability between
entities and over time.
Consequently, the Information needs to be read and understood together with the Guidelines, signiﬁcant elements of which are available uponrequest from the entity’s head ofﬁce.

INHERENT LIMITATIONS IN PREPARING THE INFORMATIONThe Information may be subject to uncertainty inherent to the state of scientiﬁc and economic knowledge and the quality of external data used.
Some information is sensitive to the choice of methodology and the assumptions or estimates used for its preparation and presented in theStatement.

RESPONSIBILITY OF THE ENTITYManagement is responsible for :s selecting or establishing suitable criteria for preparing the Information;s preparing a Statement pursuant to legal and regulatory provisions, including a presentation of the business model, a description of the main
non‑financial risks, a presentation of the policies implemented considering those risks and the outcomes of said policies, including key
performance indicators and the information set‑out in Article 8 of Regulation (EU) 2020/852 (Green Taxonomy);s preparing the Statement by applying the Entity’s “Guidelines” as referred above; ands implementing internal control over information relevant to the preparation of the Information that is free from material misstatement, whether
due to fraud or error.

The Statement has been prepared by the entity’s Management.

262

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEREPORT OF ONE OF THE STATUTORY AUDITORS, APPOINTED AS INDEPENDENT THIRD PARTY, ON THE VERIFICATION OF THE CONSOLIDATED NON‑FINANCIAL STATEMENTRESPONSIBILITY OF THE STATUTORY AUDITOR APPOINTED AS INDEPENDENT THIRD PARTY
Based on our work, our responsibility is to express a limited assurance conclusion on :s the compliance of the Statement with the requirements of Article R. 225‑105 of the French Commercial Code;s the fairness of the information provided pursuant to part 3 of sections I and II of Article R. 225‑105 of the French Commercial Code, i.e. theoutcomes of policies, including key performance indicators, and measures relating to the main risks, hereinafter the “Information”.

As we are engaged to form an independent conclusion on the Information as prepared by management, we are not permitted to be involved in
the preparation of the Information as doing so may compromise our independence.

2

It is not our responsibility to report on :s the Entity’s compliance with other applicable legal and regulatory provisions (particularly with regard to the information set‑out in Article 8 ofRegulation (EU) 2020/852 (Green taxonomy), the French duty of care law and against corruption and tax evasion);s the fairness of information set‑out in Article 8 of Regulation (EU) 2020/852 (Green Taxonomy);s the compliance of products and services with the applicable regulations.

APPLICABLE REGULATORY PROVISIONS AND PROFESSIONAL GUIDANCE
We performed the work described below in accordance with Articles A. 225‑1 et seq. of the French Commercial Code, the professional guidanceissued by the French Institute of Statutory Auditors (Compagnie Nationale des Commissaires aux Comptes) applicable to such engagement, inparticular the professional guidance issued by the Compagnie Nationale des Commissaires aux Comptes, Intervention du commissaire aux
comptes – Intervention de l’OTI – déclaration de performance extra‑ﬁnancière, and acting as the veriﬁcation programme and with theinternational standard ISAE 3000 (revised) – Assurance engagements other than audits or reviews of historical ﬁnancial information.

INDEPENDENCE AND QUALITY CONTROL
Our independence is deﬁned by the provisions of Article L. 822‑11 of the French Commercial Code and French Code of Ethics for Statutory
Auditors (Code de déontologie) of our profession. In addition, we have implemented a system of quality control including documented policies
and procedures aimed at ensuring compliance with applicable legal and regulatory requirements, ethical requirements and the professional
guidance issued by the French Institute of Statutory Auditors (Compagnie Nationale des Commissaires aux Comptes) relating to thisengagement.

MEANS AND RESOURCES
Our work engaged the skills of 7 people between October 2023 and February 2024 and took a total of 18 weeks.
We were assisted in our work by our specialists in sustainable development and corporate social responsibility. We conducted 15 interviews withpeople responsible for preparing the Statement, representing in particular the Industrial Affairs Department, the Construction Development
Department, the Group Human Resources Department and the Sustainable Development Department.

NATURE AND SCOPE OF PROCEDURES
We are required to plan and perform our work to address the areas where we have identiﬁed that a material misstatement of the Information is
likely to arise.
The procedures we performed were based on our professional judgment. In carrying out our limited assurance engagement on the Information,we:s obtained an understanding of all the consolidated entities’ activities and the description of the main risks associated;s assessed the suitability of the criteria of the Guidelines with respect to their relevance, completeness, reliability, neutrality andunderstandability, taking into account, where appropriate, best practices within the sector;s verified that the Statement includes each category of social and environmental information set out in article L. 225‑102 1 III as well as
information regarding compliance with human rights and anti‑corruption and tax avoidance legislation;s verified that the Statement provides the information required under Article R. 225‑105 II of the French Commercial Code where relevant withrespect to the main risks, and includes, where applicable, an explanation for the absence of the information required under Article
L. 225‑102‑1 III, paragraph 2 of the French Commercial Code;2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

263

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEREPORT OF ONE OF THE STATUTORY AUDITORS, APPOINTED AS INDEPENDENT THIRD PARTY, ON THE VERIFICATION OF THE CONSOLIDATED NON‑FINANCIAL STATEMENTs verified that the Statement presents the business model and a description of the main risks associated with of all the consolidated entities’
activities, including where relevant and proportionate, the risks associated with its business relationships, its products or services, as well as
its policies, measures and the outcomes thereof, including key performance indicators associated to the main risks;s referred to documentary sources and conducted interviews to:• assess the process used to identify and confirm the main risks as well as the consistency of the outcomes, including the key performanceindicators used, with respect to the main risks and the policies presented, and• corroborate the qualitative information (measures and outcomes) that we considered to be the most important presented in Appendix 1;
concerning social and societal risks, our work was carried out on the consolidating entity, for other risks, our work was carried out on the
consolidating entity and on a selection of sites:- Direction of Industrial Affairs:- Compagnie des Cristalleries de Saint‑Louis,- Pyramide,- Pierre‑Bénite,- Ateliers AS,- SIEGL,- Tannerie de Vivoin,- Tanneries d’Annonay,- Cairns croc farm,- Conceria di Cuneo,- Pinnacle Alligator Farm,- Tanneries du Puy,
- Logistique Bobigny,- Construction Development Department:- Hermès Munich 8 Maximilianstrasse,- Hermès Milan Via Montenapoleone,- Hermès Sydney Trust Building,- Mumbai Fort,- Hermès Séoul Dosan Park,- Hermès Beijing China World Trade Center 2,- Hermès Changsha IFS Tower T1,- Hermès Chengdu Taikoo Li,- Hermès Chongqing Mixc,- Hermès Dalian Timesquare 2,- Hermès Guangzhou Taikoo Hui 2,- Hermès Hangzhou Hubin,- Hermès Ningbo Heyi Avenue 2,- Hermès Shanghai IFC,
- Hermès Shanghai Maison Hermès,- Hermès Shanghai Plaza 66,- Hermès Shenyang Mixc Dep Store,- Hermès Shenzhen Bay MixC,- Hermès Suzhou Matro,- Hermès Wuhan Heartland 66,- Hermès Xian Sky mall shop,- Hermès HK Central Princes Building – LP,

264

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEREPORT OF ONE OF THE STATUTORY AUDITORS, APPOINTED AS INDEPENDENT THIRD PARTY, ON THE VERIFICATION OF THE CONSOLIDATED NON‑FINANCIAL STATEMENT- Hermès HK Kowloon Harbour City – HC,- Hermès Macau Galaxy – Galaxy,- Hermès Macau Wynn Cotai – WP,- Hermès Taipei Bellavita,- Hermès Kobe Daimaru,- Hermès Nagoya Mitsukoshi,

2- Hermès Osaka Daimaru Shinsaibashi,- Hermès Sendai Fujisaki,- Hermès Tokyo Ginza,- Hermès Tokyo Nihonbashi Takashimaya,- Hermès Austin state House,- Hermès Beverly Hills North Rodeo Drive,- Hermès Chicago East Oak St 2,- Hermès Dallas Highland Park Village,- Hermès Hawaï ala Moana Center,- Hermès Las Vegas Crystals,- Hermès Miami Design District,- Hermès New York Wall St,- Hermès NY Madison 706,
- Hermès Royal Hawaï Center Waikiki- Hermès San Francisco Grant Av.,
- Hermès South Coast Plaza Costa Mesa 2,- Hermès filiale New York 59th St. 2nd Floor, 3rd Floor, 4th Floor,- Tomosato – Hermes Logistic Center (LHJ),- Hermès HK Causeway Bay – HAP Office,- Logistique Dayton Herrod Blvd,- Direction of Human Resources:- Hermès of Paris,- Les Maroquineries des Alpes,- Manufacture de Franche Comté,- Comptoir Nouveau de la Parfumerie,- Maroquinerie des Ardennes,- Les Manufactures d’Auvergne,- Hermès Asia Pacific Hong Kong,- Hermès Korea,- Cristalleries de Saint‑Louis,- La Montre Hermès,- Hermès GB,- Holding Textile Hermès,- Ateliers AS,- Hermès Asia Pacific Taiwan,- Hermès Australia,- Tannerie de Vivoin,- Hermès Suisse,2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

265

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEREPORT OF ONE OF THE STATUTORY AUDITORS, APPOINTED AS INDEPENDENT THIRD PARTY, ON THE VERIFICATION OF THE CONSOLIDATED NON‑FINANCIAL STATEMENT- Société Novatrice de Confection,- Tannerie du Puy,
- SIEGL,- Hermès Singapour Retail,- Tannerie d’Annonay,- JL & Co,- Hermès Iberica,- Compagnie des Cuirs Précieux,- Hermès Distribution France,- Hermès Commercial,- Hermès Services Groupe,- Hermès Femme;s verified that the Statement covers the consolidated scope, i.e. all the entities within the consolidation scope in accordance with Article
L. 233‑16 of the French Commercial Code within the limitations set out in the Statement;s obtained an understanding of internal control and risk management procedures the Entity has implemented and assessed the data collection
process aimed at ensuring the completeness and fairness of the Information;s for the key performance indicators and other quantitative outcomes that we considered to be the most important presented in Appendix,
implemented:• analytical procedures to verify the proper consolidation of the data collected and the consistency of any changes in those data,• tests of details, using sampling techniques, in order to verify the proper application of definitions and procedures and reconcile the datawith supporting documents. This work was carried out on a selection of contributing sites, cited above, covers between 20 % and 67 % of
the consolidated data relating to the key performance indicators and outcomes selected for these tests,• assessed the overall consistency of the Statement in relation to our knowledge of all the consolidated entities.
The procedures performed in a limited assurance review are less in extent than for a reasonable assurance opinion in accordance with theprofessional guidelines of the French National Institute of Statutory Auditors (Compagnie Nationale des Commissaires aux Comptes); a higher
level of assurance would have required us to carry out more extensive procedures.

Neuilly‑sur‑Seine, February 27, 2024

One of the Statutory Auditors,
PricewaterhouseCoopers Audit

266

Amélie WATTEL

Sylvain LambertPartner

Sustainable Development Partner

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEREPORT OF ONE OF THE STATUTORY AUDITORS, APPOINTED AS INDEPENDENT THIRD PARTY, ON THE VERIFICATION OF THE CONSOLIDATED NON‑FINANCIAL STATEMENTAPPENDIX : LIST OF THE INFORMATION WE CONSIDERED MOST IMPORTANT
Selection of qualitative and quantitative information :s KPI 1 – Talents (Group Workforce)s KPI 2 – Total number of layoffs reported compared to total group workforce
s KPI 3 – Number of training hours
s KPI 4 – Absenteeism rate

2

s KPI 5 – Severity rate of work‑related accidents with time off
s KPI 6 – Group energy consumption (electricity and gas)s KPI 7 – Group renewable energy consumption rates KPI 8 – Greenhouse gas emissions scope 1
s KPI 9 – Greenhouse gas emissions scope 2, location‑baseds KPI 10 – Greenhouse gas emissions scope 2, market‑baseds KPI 11 – Greenhouse gas emissions scope 3
s KPI 12 – Total waste mass (excluding farms)s KPI 13 – Mass of non‑hazardous waste (excluding farms)s KPI 14 – Mass of hazardous waste (excluding farms)s KPI 15 – Total water consumption in industrial sites and farms
s KPI 16 – Number of sites in water‑stressed areas
Qualitative information (actions and results) :s Actions• “H Day” organisation• Deployment of an e‑learning awareness module on “unconscious biases and micro‑inequities”• Launch of the “HBA” (Hermès Bijouterie Academy)• Hermès Japan meeting with over 150 managers, including the executive committee, focusing on three themes : group development
challenges, distribution, and the importance of creativity• Establishment of the “zero destruction” ambition committee at Hermès• Certification of the Annonay and Montereau tanneries at the Bronze and Silver levels• Transition risk analysis conducted by the Industrial department• Hermès joined the Corporate Engagement Program of SBTN and the Natural Capital Lab of WWF France• Workshops by AS, SIEGL, and AEI established a Water Sobriety Plan in April 2023
• Renovation of various frescoes in Rome, Bologna, and Bari
• Inclusion of forests, pollution (waste), and pollution (safety and chemicals) in the CSR (Corporate Social Responsibility) brief• Update of the ethical charters Results• Number of collective agreements signed in France• Number of managers and HR professionals trained in inclusion through the Alterego program• Number of senior talents benefiting from the Leading with Art program in 2023
• Number of employees celebrated for their length of service• Number of global new hires• Number of global permanent hires• Average seniority level• Average age• Tonnes and percentage of recycled textile materials

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

267

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEREPORT OF ONE OF THE STATUTORY AUDITORS, APPOINTED AS INDEPENDENT THIRD PARTY, ON THE VERIFICATION OF THE CONSOLIDATED NON‑FINANCIAL STATEMENT• Percentage of Business Division volumes covered by representative Life Cycle Assessments (LCAs)• Percentage of raw crocodilian skins from farms audited annually by BSI as part of ICFA certification• Proportion of material purchases integrated into the supply chain brief after analysis• Percentage of emissions from scopes 1 and 2, and transport (scope 3) offset• Proportion of purchases covered by the SBTN methodology• Percentage of biodiversity pressures exerted by purchases covered by the SBTN
• Percentage of waste subject to valorization (reuse, recycling, energy recovery)• Proportion of labor time allocated to employees in insertion for the “Passerelles” project in Pierre‑Bénite
• Supplier dissemination rate for supply chain briefs and CSR briefs (as a percentage of procurement revenue)• Number of reports received through the alert system• Number of requests for exercising rights processed268

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEREASONABLE ASSURANCE REPORT FROM ONE OF THE STATUTORY AUDITORS ON THE IDENTIFIED SUSTAINABILITY INFORMATION OF HERMÈS INTERNATIONAL’S NON‑FINANCIAL PERFORMANCE STATEMENT

2.10 REASONABLE ASSURANCE REPORT FROM ONE OF THE STATUTORYAUDITORS ON THE IDENTIFIED SUSTAINABILITY INFORMATION OFHERMÈS INTERNATIONAL’S NON‑FINANCIAL PERFORMANCESTATEMENT AS AT/ FOR THE YEAR ENDED DECEMBER 31ST, 2023

2

This is a free English translation of the report by one of the Statutory Auditors issued in French and is provided solely for the convenience ofEnglish‑speaking readers. This report should be read in conjunction with, and construed in accordance with, French law and professional
standards applicable in France.

To the General Assembly of Hermès International,

In our capacity as Statutory Auditor of Hermès International (hereinafter the “Company”) and in accordance with your request, we haveundertaken a reasonable assurance engagement on the selected key sustainability performance indicators as at/for the year ended December
31st, 2023 (the “Identiﬁed Sustainability Information”) presented below and included in the document Extra‑ﬁnancial Performance Declaration
presented in the 2023 Universal Registration Document (hereinafter “URD 2023”):s KPI 1 – Talents (Group Workforce) – 22,037;
s KPI 2 – Total number of layoffs reported compared to total group workforce – 1.17%;
s KPI 3 – Number of training hours – 391,050;
s KPI 4 – Absenteeism rate – 2.57%;
s KPI 5 – Severity rate of work‑related accidents with time off – 0.30;
s KPI 6 – Group energy consumption (electricity and gas) – 213,896 MWh;s KPI 7 – Group renewable energy consumption rate – 69%;
s KPI 8 – Greenhouse gas emissions scope 1 – 12.8 k tonnes CO2eq;s KPI 9 – Greenhouse gas emissions scope 2, location‑based – 34.9 k tonnes CO2eq;s KPI 10 – Greenhouse gas emissions scope 2, market‑based – 9.1 k tonnes CO2eq;s KPI 11 – Greenhouse gas emissions scope 3 – 644.1 k tonnes CO2eq;s KPI 12 – Total waste mass (excluding farms) – 16,340 tonnes;
s KPI 13 – Mass of non‑hazardous waste (excluding farms) – 12,321 tonnes;
s KPI 14 – Mass of hazardous waste (excluding farms) – 4,019 tonnes;
s KPI 15 – Total water consumption in industrial sites and farms – 5,365 megalitres;s KPI 16 – Number of sites in water‑stressed areas – 9.

Our assurance does not extend to information in respect of earlier periods or to any other information included in the 2023 URD.
Our Reasonable Assurance Opinion

In our opinion, the Identiﬁed Sustainability Information set out in the 2023 URD presented in Chapter 2 for the year ended December 31st, 2023
is prepared, in all material respects, in accordance with the 2023 reporting protocols of the Industrial Affairs and Human Resources Directions
composed of i. reporting procedures (“HR quantitative indicators” from October 2023 for KPI 1 to 6, “Environmental and Industrial reporting
procedure: 2023” for KPI 7 to 12, and “Retail Energy consumption & Environmental Report : 2023 Procedure” for KPI 13 to 16), ii. a glossary
and iii. additional information embedded in the internal reporting tools as well as the detailed preparation bases in the paragraph‘methodological note’ of section 2 of the 2023 Universal Registration Document for the year ended December 31, 2023.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

269

2

CORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEREASONABLE ASSURANCE REPORT FROM ONE OF THE STATUTORY AUDITORS ON THE IDENTIFIED SUSTAINABILITY INFORMATION OF HERMÈS INTERNATIONAL’S NON‑FINANCIAL PERFORMANCE STATEMENT

Understanding how Hermès International has Prepared the Identiﬁed Sustainability Information

The absence of a commonly used generally accepted reporting framework or a signiﬁcant body of established practice on which to draw toevaluate and measure Identiﬁed Sustainability Information allows for different, but acceptable, measurement techniques that can affectcomparability between entities and over time.
Consequently, the Identiﬁed Sustainability Information needs to be read and understood together with the reporting framework deﬁned by theCompany in the 2023 reporting protocols of the Industrial Affairs and Human Resources Directions composed of i. reporting procedures (“HRquantitative indicators” from october 2023 for KPI 1 to 6, “Environmental and Industrial reporting procedure: 2023” for KPI 7 to 12, and “Retail
Energy consumption & Environmental Report : 2023 Procedure” for KPI 13 to 16), ii. a glossary and iii. additional information embedded in theinternal reporting tools, available at the Company’s headquarter on request, as well as the detailed preparation bases in the paragraph‘methodological note’ of section 2 of the 2023 Universal Registration Document for the year ended December 31, 2023 (together “theReporting Criteria”).
Inherent Limitations in Preparing the Identiﬁed Sustainability Information

As indicated in Chapter 2 of the 2023 URD, the Identiﬁed Sustainability Information may be subject to inherent uncertainty because ofincomplete scientiﬁc and economic knowledge and the quality of external data used. Moreover, some information is sensitive to the choice of
methodology and the assumptions and/or estimates used for its preparation and presented in the company’s reporting protocols.
In addition, greenhouse gas quantiﬁcation is subject to inherent uncertainty because of incomplete scientiﬁc knowledge used to determine
emissions factors and the values needed to combine emissions of different gases.
Hermès International’s Responsibilities

Management of the Company is responsible for:s selecting or establishing suitable criteria for preparing the Identified Sustainability Information, taking into account applicable law andregulations related to reporting the Identified Sustainability Information;s the preparation of the Identified Sustainability Information in accordance with the Reporting Criteria;s designing, implementing and maintaining internal control over information relevant to the preparation of the Identified Sustainability
Information that is free from material misstatement, whether due to fraud or error.

Our Responsibilities

We are responsible for:s planning and performing the engagement to obtain reasonable assurance about whether the Identified Sustainability Information is free frommaterial misstatement, whether due to fraud or error;s forming an independent opinion, based on the evidence we have obtained; ands reporting our opinion to the Head of the Company.

As we are engaged to form an independent opinion on the Identiﬁed Sustainability Information as prepared by management, we are notpermitted to be involved in the preparation of the Identiﬁed Sustainability Information as doing so may compromise our independence.
Professional Standards Applied

We performed our reasonable assurance engagement in accordance with the professional guidance issued by the French Institute of Statutory
Auditors (Compagnie Nationale des Commissaires aux Comptes) applicable to such engagement and the International Standard on Assurance
Engagements 3000 (Revised), and, in respect of greenhouse gas emissions included in the Identiﬁed sustainability information, in accordancewith the International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements, issued by theInternational Auditing and Assurance Standards Board.

270

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE SOCIAL RESPONSIBILITY AND NON-FINANCIAL PERFORMANCEREASONABLE ASSURANCE REPORT FROM ONE OF THE STATUTORY AUDITORS ON THE IDENTIFIED SUSTAINABILITY INFORMATION OF HERMÈS INTERNATIONAL’S NON‑FINANCIAL PERFORMANCE STATEMENTOur Independence and Quality Control

We have complied with the independence and other ethical requirements of the French Code of Ethics for Statutory Auditors (Code de
Déontologie) as well as the provisions set forth in Article L.821‑28 of the French Commercial Code (Code de Commerce) and the International
Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards
Board for Accountants (IESBA Code) which is founded on fundamental principles of integrity, objectivity, professional competence and due care,conﬁdentiality and professional behavior.
Our ﬁrm applies International Standard on Quality Management 1, which requires the ﬁrm to design, implement and operate a system of quality
management including policies or procedures regarding compliance with ethical requirements, professional standards, and applicable legal andregulatory requirements.

2

Our work was carried out by an independent and multidisciplinary team with experience in sustainability reporting and assurance.
Summary of the Work we Performed as the Basis for our Assurance Opinion

A reasonable assurance engagement involves performing procedures to obtain evidence about the Identiﬁed Sustainability Information. The
nature, timing and extent of procedures selected depend on professional judgment, including the assessment of risks of material misstatement,
whether due to fraud or error, in the Identiﬁed Sustainability Information. In making those risk assessments, we considered internal control
relevant to the Company’s preparation of the Identiﬁed Sustainability Information. A reasonable assurance engagement also includes:s evaluating the suitability in the circumstances of the Company’s use of the Reporting Criteria;s evaluating the appropriateness of measurement and evaluation methods, reporting policies used and the reasonableness of estimates madeby the Company; ands evaluating the disclosures in, and overall presentation of, the Identified Sustainability Information.

We believe that the evidence we have obtained is sufﬁcient and appropriate to provide a basis for our opinion.

Neuilly‑sur‑Seine, February 27th, 2024

One of the Statutory Auditors,
PricewaterhouseCoopers Audit

Amélie Wattel

Sylvain LambertPartner

Sustainable Development Partner

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

271

3

CORPORATE GOVERNANCE AFR
SUPERVISORY BOARD REPORT ON CORPORATE GOVERNANCE
AFR

275

3.1

THE COMPANY’S CORPORATE GOVERNANCE CODE

275

3.1.1

Corporate governance principles applied
Provisions of the Afep‑Medef Corporate Governance Code not applied
and those newly complied with

275
275

3.2

AMBITIOUS AND BALANCED GOVERNANCE

278

3.2.1

3.2.3

Organisational structure of Hermès International as at 31 December
2023
Two types of partners
Governance by nature dissociated

278
279
280

3.3

ADMINISTRATIVE AND MANAGEMENT BODIES

281

3.3.1

3.3.5

The Active Partner and its Executive Management Board
Executive Management
Governing bodies
Non‑discrimination and diversity policy
Succession plan for Senior Executives

281
282
286
290
292

3.4

ORGANISATION OF THE SUPERVISORY BOARD

293

3.4.1

3.4.8

Key data on the Supervisory Board as at 31 December 2023
Applicable principles
Diversity policy applied within the Supervisory Board
Succession plan for the Chairman of the Supervisory Board
Composition of the Supervisory Board
Independence of the members of the Supervisory Board
Supervisory Board ethics
Information on sitting members of the Supervisory Board

293
294
296
298
299
305
307
310

3.5

FUNCTIONING OF THE SUPERVISORY BOARD

329

3.5.1

3.5.7

Role of the Supervisory Board
Meetings of the Supervisory Board and the Joint Council
Information and training of the Supervisory Board
Main duties of the Supervisory Board and work carried out in 2023
Ethics and compliance – Personal data protection
Corporate social responsibility (CSR)
Compensation and reimbursement of expenses

329
330
331
333
335
335
338

3.6

SPECIALISED COMMITTEES

339

3.6.1

Applicable principles
CAG‑CSR Committee
Audit and Risk Committee

339
340
344

3.1.2

3.2.2

3.3.2
3.3.3
3.3.4

3.4.2
3.4.3
3.4.4
3.4.5
3.4.6
3.4.7

3.5.2
3.5.3
3.5.4
3.5.5
3.5.6

3.6.2
3.6.3

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

273

3

CORPORATE GOVERNANCE

3.7

EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES

347

3.7.1
3.7.2

Methodology
Changes since the last evaluations

347
347

3.8

COMPENSATION AND BENEFITS OF CORPORATE OFFICERS

349

3.8.1

Compensation policy for the Executive Chairmen (Executive Corporate
Officers) and members of the Supervisory Board (Non‑Executive
Corporate Officers)
Overview of compensation and benefits of all kinds for Corporate
Officers
Allocation of free shares and stock options
Tables drawn up in accordance with AMF position‑recommendation
DOC -2021‑02 (§ 13.3) of 5 January 2022 on the presentation ofcompensation
Summary table of the votes of the General Meeting on the resolutions
relating to the compensation of Corporate Officers

3.8.2
3.8.3
3.8.4

3.8.5

360
366

367
373

3.9

OTHER INFORMATION

373

3.9.1

Agreements
Capital structure and factors liable to affect the outcome of a public
offering
Special conditions for attending General Meetings
Summary table of the use of financial delegations of authority

373

3.9.2
3.9.3
3.9.4

3.10

OTHER INFORMATION FROM THE EXECUTIVE MANAGEMENTREPORT3.10.1

Interests of Corporate Officers and Executive Committee members inthe share capital
Declarations concerning Corporate Officers and the Executive
Committee

3.10.2274

349

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

375
376
377

380
380
381

CORPORATE GOVERNANCE
SUPERVISORY BOARD REPORT ON CORPORATE GOVERNANCE

SUPERVISORY BOARD REPORT ON CORPORATE GOVERNANCE AFRThis chapter 3 “Corporate governance” incorporates in § 3.1 to 3.9 the Supervisory Board corporate governance report prepared pursuant to
Article L. 22‑10‑78 of the French Commercial Code (Code de commerce) and in accordance with the recommendations of the French
Financial Markets Authority (AMF).
A cross‑reference table for the corporate governance report is presented in chapter 9 “Additional information”, § 9.5.3.
It was prepared with the assistance of the Chairman of the Supervisory Board, the CAG‑CSR Committee and the Secretary of the Board, on thebasis of the work and procedures carried out by the functional departments concerned. It was approved by the Supervisory Board at its meetingof 8 February 2024.

3
3.1

THE COMPANY’S CORPORATE GOVERNANCE CODE

3.1.1

CORPORATE GOVERNANCE PRINCIPLESAPPLIED

The Supervisory Board ofﬁcially adopted the Afep‑Medef
recommendations on corporate governance in 2009, as it deemed
these recommendations to be entirely in keeping with the Group’s
corporate governance policy. This framework includes the Afep‑Medef
Corporate Governance Code for listed companies, updated in
December 2022, available on the Afep website (www.afep.com) or
the Medef website (www.medef.com), and the application guide of
the High Committee on Corporate Governance (HCGE), revised inJune 2022, which explains the recommendations of this code.
The positions and recommendations issued by the French Financial
Markets Authority (AMF) are also taken into account:s concerning corporate governance and the compensation of
Executive Corporate Officers (AMF position‑recommendation DOC‑2021‑02 and AMF recommendation - DOC‑2012‑02);s on Shareholders' General Meetings of listed companies (AMF
recommendation DOC‑2012‑05).

With each revision of the Afep‑Medef Code, the CAG‑CSR Committee
performs an exhaustive comparative analysis of the Company’s
application of the Afep‑Medef Code’s recommendations, and reports
to the Supervisory Board.
These periodic reviews, as well as monitoring of market practices andanalyses, make it possible to adapt the systems in force each yearwith the aim of constant improvement.

3.1.2

PROVISIONS OF THE AFEP‑MEDEFCORPORATE GOVERNANCE CODE NOTAPPLIED AND THOSE NEWLY COMPLIED
WITH

The table below lists the provisions of the Afep‑Medef Code notapplied by the Company at the date of publication of this universal
registration document, together with the corresponding explanations.
We have also listed the changes made since the most recent updateof the Afep‑Medef Code in December 2022 to ensure compliance
therewith.
The Afep‑Medef Code states as a preamble that its recommendations“most of them have been written with reference to public limited
companies (sociétés anonymes) with a Board of Directors. Public
limited companies with a Management Board and a Supervisory
Board, as well as partnerships limited by shares (sociétés encommandite par actions) will therefore need to make the necessary
adjustments”.
A société en commandite par actions (partnerships limited by shares,
SCA) is a ﬂexible legal form and intended as such by the legislator.
Furthermore, if some constants can be observed between the various
large French SCAs, there is also a very diverse variety of organisationand functioning within the framework of the law.
The Afep‑Medef Code also recognises the freedom of organisation ofcompanies (Article 2.2): “The wide diversity of listed corporations
does not allow formal and identical forms of organisation andoperation to be imposed for all Boards of Directors. The organisationof the Board's work, and likewise its membership, must be suited tothe shareholder make‑up, to the size and nature of each ﬁrm's activity,
and to the particular circumstances facing it. Each Board is the best
judge of this, and its foremost responsibility is to adopt the mode oforganisation and operation that enable it to carry out its tasks in thebest possible manner. "2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

275

3

CORPORATE GOVERNANCE
THE COMPANY’S CORPORATE GOVERNANCE CODE

The very speciﬁc functioning of an SCA and the organization of powers
between the Executive Management, the Supervisory Board and theActive Partner make certain recommendations of the Afep‑Medef

Provisions of the Afep‑Medef Code not applied dueto the Company’s legal form
The Board and CSR (Articles 5.1 to 5.3)
The Board’s missions are strengthened so that it
determines the multi‑year strategic orientations interms of CSR and is the guarantor of theirimplementation.

Code inapplicable. These recommendations have therefore been
rejected or adapted by Hermès International due to its legal form. No
recommendations were dismissed for other reasons.

Explanations
The Supervisory Board of Hermès International has powers strictly deﬁned by the Company’s Articles
of Association and does not have the authority to determine the strategic orientations that fall within
the exclusive competence of the Executive Management.
It is therefore the responsibility of the Executive Management to:s determine the CSR strategy including climate objectives;s decide on the implementation methods: action plan and time horizons within which theseactions will be carried out;s annually review the results obtained and the opportunity to adapt the action plan or modify
the objectives in light of changes in the Company’s strategy, technologies, shareholder
expectations and the economic capacity to implement them.
The governance put in place by Executive Management to monitor CSR issues is presented in chapter
2 “Corporate social responsibility and non‑ﬁnancial performance”, § 2.1.6).
As part of its management control role, the multi‑year strategic guidelines in terms of CSR and theirimplementation methods were presented to the Supervisory Board.
The results obtained are presented each year to the CAG‑CSR Committee, which reports to theSupervisory Board.
This provision of the Afep‑Medef Code is therefore not applicable to Hermès International, given its
legal form and the role assigned to the Supervisory Board (described in § 3.5.1).

Hermès International’s Supervisory Board holds powers that are strictly deﬁned by the Company’s
Articles of Association and does not have the power to appoint the Executive Chairmen or determine
It is recommended that at least one meeting not their compensation policy. These decisions are the responsibility of the Active Partner, Émile Hermèsattended by the Executive Corporate Ofﬁcers be SAS, under the aegis of its Executive Management Board. Furthermore, and this is an essential pointof the Company’s governance, the duties of the Supervisory Board do not entail any involvement in theorganised each year.
Executive Management, nor any liability for management actions and the results thereof. This provisionof the Afep‑Medef Code is therefore not applicable to Hermès International, given its legal form andthe role assigned to the Supervisory Board (described in § 3.5.1).

Board meetings and Committee meetings(Article 12.3)

Succession plan for Executive Corporate Ofﬁcers(Article 18.2.2)
The Appointments Committee (or an ad hoc
committee) should design a plan for replacement of
Executive Corporate Ofﬁcers. This is one of theCommittee’s most important tasks even though it can,if necessary, be entrusted by the Board to an ad hoc
committee. The Chairman may take part or be involvedin the Committee’s work during the conduct of thistask.

Composition of the Compensation Committee(Article 19.1)
The Compensation Committee “shall not include any
Executive Corporate Ofﬁcers and shall be composed ofa majority of independent directors. It is recommended
that the Chairman of the Committee be independentand that an employee director be a member.”This recommendation is supplemented in Article 19.2
by the description of the powers of the Compensation
Committee, as deﬁned by Afep‑Medef: “Thecompensation committee is responsible for reviewing
and proposing to the Board all of the elements
determining the compensation and entitlements
accruing to the company ofﬁcers. The Board of
Directors in its entirety is responsible for making thecorresponding decisions. "276

The Company’s CAG‑CSR Committee (described in § 3.6.2) is not in charge of establishing the
succession plan for the Executive Chairmen, a task that does not fall within the remit of theSupervisory Board in a société en commandite par actions (partnership limited by shares).
In accordance with its rules of procedure, since 2016 the CAG‑CSR Committee has been tasked withensuring the existence of a succession plan for the Executive Chairmen, which is reviewed annually(see § 3.3.5.1). Since 2018, the CAG‑CSR Committee has also ensured the existence of a succession
plan for the Chairman of the Supervisory Board (see § 3.4.4) and this mission is included in its rules ofprocedure(see https://ﬁnance.hermes.com/en/governing‑bodies‑rules‑procedure‑articles‑association/).
This recommendation is primarily intended for monist or dual‑tier sociétés anonymes (public limited
companies) since it is up to the Board of Directors or the Supervisory Board of such structures toestablish the compensation policy and the effective compensation of Executive Corporate Ofﬁcers(Article L. 225‑37‑2 of the French Commercial Code (Code de commerce)).
Its application remains debatable in the case of sociétés en commandite par actions (partnerships
limited by shares) (SCA).
In an SCA, the Supervisory Board is the body representing the Limited Partners. Its duties and powersof control are deﬁned as those of a Statutory Auditor. The Supervisory Board of an SCA has exceptional
powers of control (in the audit sense) of the management of the company, as a counterpart to thedormant partner role of the Limited Partners.
The Supervisory Board of Hermès International has powers strictly deﬁned by the Company’s Articles
of Association and does not have the authority to determine the compensation policy for the Executive
Chairmen, which falls within the sole remit of the Active Partner Émile Hermès SAS, under the aegis of
its Executive Management Board.
The law (Article L. 226‑8‑1 of the French Commercial Code) provides that the role of the Supervisory
Board of an SCA is limited to issuing an advisory opinion on the compensation policy and deliberatingon the actual compensation.
The role of Hermès International’s CAG‑CSR Committee is strictly limited to that of monitoring
compliance with the Articles of Association and the compensation policy and monitoring the actual
compensation proposed by the Active Partner as well as the assessment of the achievement of thevariable compensation CSR criterion.
The responsibilities of the CAG‑CSR Committee therefore do not correspond to the responsibilities of
the Committee in charge of compensation as deﬁned by the Afep‑Medef Code.
The Board therefore decided to set aside this provision of the Code, in a clear, relevant and detailed
manner, due to the legal form of the company.
The role of the Supervisory Board in the decision‑making process applicable to the compensation
policy for the Executive Chairmen is described in § 3.8.1.2.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
THE COMPANY’S CORPORATE GOVERNANCE CODE

Provisions of the Afep‑Medef Code not applied dueto the Company’s legal form

Explanations

This provision of the Afep‑Medef Code is therefore not applicable to Hermès International, given its
legal form and the role assigned to the Supervisory Board (described in § 3.5.1).
Independent directors should account for at least two The Supervisory Board determined that slightly less than two‑thirds of the Audit and Risk Committee
thirds of Audit Committee members and the members are independent (60%, i.e. three out of ﬁve members). This situation enables the Audit andCommittee should not include any Executive Corporate Risk Committee to carry out its duties in an appropriate manner. The Audit and Risk Committee rulesof procedure stipulate that at least one‑half of the seats on the Audit and Risk Committee should be
Ofﬁcers.
held by members who qualiﬁed as independent at the time of their appointment and throughout theirterm of ofﬁce.
The HCGE considers:

Proportion of independent members on the Audit
Committee (Article 17.1)

s in its 2014 report “that an Audit Committee with, for example, three independent membersout of five remains compliant with the spirit of the Code, provided that the Chairman is anindependent member”;
s in its 2017 report “that it would prefer to see the proportions not completely achieved rather
than having the independence criteria interpreted too freely (for example by excluding thecriterion requiring 12 years of service on the Board), and that it considers that 60%
independent members on the Audit Committee or 50% on the other two committees does notconstitute a serious deviation”.

3

There are no immediate plans to increase the proportion of independent members of the Audit andRisk Committee to two‑thirds, however the Board will review the matter at each annual evaluation.

Severance payment (Article 26.5.1)
The performance requirements set out by Boards forthese beneﬁts must be evaluated over at least two
ﬁnancial years. They must be demanding and may notallow for the indemniﬁcation of a director unless his or
her departure is forced, regardless of the form of thisdeparture.

The Company made a commitment to pay Mr Axel Dumas a severance payment under the conditions
described in § 3.8.1.2.4.
Given the importance of the role of the Active Partner in a société en commandite par actions(partnership limited by shares) - who has the power to appoint and dismiss any Executive Chairman and in the case of a legal entity, its legal representative, it was considered that the termination ofduties as Executive Chairman of Mr Axel Dumas, which would result from the replacement of the
Chairman of Émile Hermès SAS, should be treated as a forced departure.
The Supervisory Board therefore considered that the deferred compensation commitment made to Mr
Axel Dumas complied with the requirements of the Afep‑Medef Corporate Governance Code.
In its November 2018 report on corporate governance and Senior Executive compensation, the AMF
recommends that the Board carry out a regular review of the components of compensation that may
be due at the time of or subsequent to the departure of a Senior Executive and that it questions thepossibility and desirability of compliance with new Code provisions.

Provisions of the Afep‑Medef Code excluded for other reasons

Explanations

None

The compliance measures carried out during the last update of the Afep‑Medef Code in December 2022 were described on page 257 of the2022 universal registration document (which is available on the website https://ﬁnance.hermes.com/en/, under “General Meetings”).

Corporate governance award
True to the values of the craftspeople and the authenticity of its
craftsmanship model, Hermès is committed to seeking quality in all
domains and is constantly reinventing itself in a spirit of continuous
progress.
Since 2009, the Grand Prix de la transparence, now known as theTransparency Awards, have rewarded the quality of regulated
information of French SBF 120 companies. The objective of theseawards is to enable issuers to measure their performance each year
in terms of transparency and to identify market best practices.
The Transparency Awards are based on the criteria of accessibility,
accuracy, comparability, availability and clarity of information ineach company’s key media (universal registration document,
ﬁnance website, notice of general meeting brochure). An
independent Scientiﬁc Committee ensures the neutrality andfairness of the ranking. It is composed of approximately 10
members of organisations and associations representing users of
information, including Paris Europlace, Euronext, AMF, IFA, SFAF,
AFG and F2ic. These awards recognise the work of all the House’s
teams who contribute to the production of regulated information.
s 2023: Winner of the “CAC Large 60” (CAC 40 and CAC Next 20)
Transparency Award and nominated for the “ESG Information”,“Universal registration document” and “Notice of meeting”
awardss 2022: Winner of the “SBF 120” Transparency Award (Allcategories) and nominated for the “ESG Information”, “Universal
registration document”, “Website” and “Notice of meeting”
awardss 2021: Winner of the “CAC Large 60” (CAC 40 and CAC Next 20)
Grand Prix de la Transparence and nominated for the “Allcategories” and “Website” awardss 2020: Winner of the “Notice of meeting” Grand Prix de laTransparences 2019: Nominated for the “Clarity of the registration document”
awards 2018: Winner of the “Best progress” Grand Prix de laTransparence

Launched in 2004, the AGEFI Corporate Governance Awards havebecome a benchmark over the years for best practices ingovernance.
s 2017: Winner of the “Governance Dynamics” Gold Grand Prix
s 2014: Winner of the “Operation of corporate bodies” Silver
Governance Grand Prix

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

277

3

CORPORATE GOVERNANCEAMBITIOUS AND BALANCED GOVERNANCE

3.2

AMBITIOUS AND BALANCED GOVERNANCE

3.2.1

ORGANISATIONAL STRUCTURE OF HERMÈS INTERNATIONAL AS AT 31 DECEMBER 2023HERMÈS FAMILY GROUP
Individuals and legal entities (H51, H2 and ÉMILE HERMÈS SAS in particular)

PUBLICACTIVE PARTNER
LIMITED PARTNERS

ÉMILE HERMÈS SAS
Chairman of the Company and Chairmanof the Executive Management Board
Mr Henri-Louis Bauer

Executive Management BoardHERMÈS INTERNATIONAL
Mr Axel Dumas
ÉMILE HERMÈS SAS

Executive Committee

Operations Committee

GOVERNING BODIES

278

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALGROUP MANAGEMENT

Executive Management

TREASURY SHARESSupervisory Board
Chairman
Mr Éric de Seynes

CORPORATE GOVERNANCEAMBITIOUS AND BALANCED GOVERNANCE

3.2.2

TWO TYPES OF PARTNERS

Hermès International was converted into a société en commandite par actions (partnership limited by shares – SCA) by a decision of theExtraordinary General Meeting held on 27 December 1990, in order to preserve its identity and culture and thus ensure its sustainability overthe long term, in the interests of the Group and all shareholders. This singular legal form, whose capital is divided into shares, brings together
two types of partners:

The Active Partner (Émile Hermès SAS) – § 3.3.1

The Limited Partners (shareholders) – chapter 7 “Information on the
Company and its share capital”, § 7.2.2

The Active Partner Émile Hermès SAS is involved in the operation andorganisation of the Company. It has structuring powers.

The Limited Partners or shareholders, who provide capital, enjoy
limited prerogatives.

Powers:s determining for the Group: (i) strategic options, (ii) consolidated
operating and investment budgets, and (iii) proposals to the General
Meeting for the distribution of share premiums, reserves andretained earnings;
s approving the decisions of the General Meeting of Limited Partners(except those falling within their own powers);s appointing or dismissing the Executive Chairmen;s establishing the compensation policy for the Executive Chairmen;s authorising all significant transactions (loans, guarantees,
investments, etc.) when their amount exceeds 10% of the HermèsGroup’s net consolidated financial position;s formulating recommendations to the Executive Management on all
issues of general interest to the Group;s proposing the appointment or dismissal of members of theSupervisory Board.

Powers:s voting the parent company financial statements and theconsolidated financial statements approved by Executive
Management;s determining the allocation of net income (including the distributionof dividends);
s approving related‑party agreements;
s appointing the Statutory Auditors;s appointing and dismissing the members of the Supervisory Board.

3

Any other decision of the shareholders is only valid if approved on thesame terms by the Active Partner.
The law explicitly prohibits them from any interference in the
Company’s management, for any reason whatsoever, on pain of being
liable under the same conditions as the Active Partner.
The liability of the shareholders is limited to the amount of theircontribution.
Shareholders receive a share of the proﬁts in the form of dividends.
The main Limited Partners are listed in chapter 7 "Information on the
Company and its share capital", § 7.2.2.5.

Émile Hermès SAS has been the sole Active Partner of HermèsInternational since 1 April 2006.
The Executive Management Board of Émile Hermès SAS exercises thepowers attached to being an Active Partner of the Company.
The Active Partner cannot participate in the vote on the appointment ofmembers of the Supervisory Board at a General Meeting. The shares
held in the Company are therefore removed from the quorum of theresolutions of the General Meetings concerned.
The Active Partner is jointly and severally liable for all the Company’s
debts, for an indeﬁnite period of time.
In accordance with Article 26 of the Articles of Association, each year,
the Company pays the Active Partner an amount equal to 0.67% of the
distributable proﬁts.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

279

3

CORPORATE GOVERNANCEAMBITIOUS AND BALANCED GOVERNANCE

3.2.3

GOVERNANCE BY NATURE DISSOCIATED

The organisation of governance within an SCA follows the principle of the separation of powers. Executive powers are exercised by the Executive
Management and control powers by the Supervisory Board. Hermès International’s governance therefore has a structure that is by nature
dissociated.

Executive Management – § 3.3.2

Supervisory Board – § 3.4

The Company is currently administered and managed by two Executive
Chairmen, one of whom is the Active Partner.
The role of Executive Chairman is to manage the Group.

The Supervisory Board is an offshoot of the General Meeting of Limited
Partners. The appointment of members of the Board (except for theemployee representatives) is solely that body’s responsibility.

Powers:s defining and implementing the Group’s strategy in accordance withthe strategic options adopted by the Active Partner;s directing the Group’s operations;s establishing and implementing internal control and risk
management procedures;s approving the parent company and consolidated financial
statements;s convening General Meetings and setting their agendas;s preparing the management report for the General Meeting;s exercising the broadest of powers to act on behalf of the Company
in all circumstances with regard to third parties, subject to the limitsof the corporate purpose and powers granted to the Supervisory
Board and to Shareholders’ General Meetings.

Powers:s controlling the management of the Company (power comparable tothat of the Statutory Auditors): audit of the parent company andconsolidated financial statements and respect for equality between
shareholders;s determining the allocation of net income to be put to the General
Meeting each financial year;s convening the Shareholders’ General Meeting whenever it deems it
appropriate;s preparing the corporate governance report;s preparing a report to the General Meeting on the performance of its
duties;s authorising or downgrading related‑party agreements;
s authorising the Executive Management to grant sureties,
endorsements and guarantees;s establishing the compensation policy for the members of theSupervisory Board;s deliberating on the actual compensation of the Executive Chairmen;s approving any proposed new wording of certain clauses of the
Articles of Association of Émile Hermès SAS;s is required to be consulted by the Active Partner with regard to: (i)strategic options, (ii) consolidated operating and investment
budgets, (iii) proposals to the General Meeting pertaining to theappropriation of share premiums, reserves or retained earnings,
and (iv) setting the compensation policy for the Executive Chairmen;s issuing, for the intention of the Active Partner, a reasoned opinion
on: (i) any appointment or dismissal of any Executive Chairman of
the Company, and (ii) the reduction in the notice period in the eventof resignation of the Executive Chairman.

The Executive Management is controlled by a Supervisory Board
representing the Limited Partners.
The Afep‑Medef Code qualiﬁes the Executive Chairmen as “Executive
Corporate Ofﬁcers”.
The Executive Management is assisted by the Executive Committee(see § 3.3.3.1) and the Operations Committee (see § 3.3.3.2), whichconstitute the Governing bodies.

The functions exercised by the Supervisory Board do not entail any
interference with the Executive Management, or any liability arisingfrom the management’s actions or from the results of such actions.
The Joint Council – § 3.5.2.2
The Joint Council, composed of the members of the Executive
Management Board of Émile Hermès SAS (see § 3.3.1.4), the ActivePartner (see § 3.2.2 and § 3.3.1) and the members of the HermèsInternational Supervisory Board (see § 3.4), is a consultation body thathas no decision‑making powers of its own.
It is aware of all issues that are submitted to it or that it takes up,
without being able to replace the bodies to which the decision‑making
powers are assigned.
Nevertheless, the Active Partner, through the Executive Management
Board, and the Supervisory Board may, as the Joint Council if they sowish, take any decisions or issue any opinions within their competence.

280

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The law does not confer any other powers on the Supervisory Board.
Consequently, it may neither appoint or dismiss the Executive
Chairmen, nor set their compensation policy.
The Afep‑Medef Code qualiﬁes the Chairman and the members of theSupervisory Board as “non‑Executive Corporate Ofﬁcers”.
The Board is supported by the work of two permanent committees:s the Audit and Risk Committee;s the Compensation, Appointments, Governance and CSR Committeeor “CAG‑CSR Committee”.
These committees act under the collective and exclusive responsibilityof the Supervisory Board. Their role is to discuss, analyse and prepare
for certain deliberations of the Board, to which they submit theiropinions, proposals or recommendations.

CORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIES

3.3

ADMINISTRATIVE AND MANAGEMENT BODIES

3.3.1

THE ACTIVE PARTNER AND ITS EXECUTIVE MANAGEMENT BOARD

Composition at 31/12/2023
ACTIVE PARTNER
Émile Hermès SAS
Represented by its Executive Management Board:
Mr Henri‑Louis Bauer
Chairman of Émile Hermès SAS, Chairman and member of the Executive Management Board
Mr Frédéric Dumas
Vice‑Chairman and member of the Executive Management Board
Ms Pascale Mussard
Vice‑Chairwoman and member of the Executive Management Board
Other members of the Executive
Management Board:

3.3.1.1

3s Ms Sandrine Brekkes Ms Capucine Bruets Ms Alice Charbins Mr Édouard Guerrand

PRESENTATION

Émile Hermès SAS is a société par actions simpliﬁée à capitalvariable (simpliﬁed joint stock company with variable capital),
incorporated under French law, created on 2 November 1989, whose
partners are the direct descendants of Mr Émile‑Maurice Hermès(see chapter 1 “Presentation of the Group and its results”, § 1.1) andhis wife. It is registered with the Trade and Companies Register under
number 352 258 115 RCS Paris. Its registered ofﬁce is located at 23,
rue Boissy d’Anglas, 75008 Paris, France.
Its sole purpose is:s to serve as Active Partner and, if applicable, as Executive
Chairman of Hermès International;s potentially, to hold direct or indirect equity interests in HermèsInternational; ands to carry out all transactions in view of pursuing and accomplishingthese activities and to ascertain that any liquid assets it may holdare appropriately managed.

The role and powers of the Active Partner are described in § 3.2.2.
The control exercised by Émile Hermès SAS over Hermès Internationalis described in chapter 7 “Information on the Company and its sharecapital”, § 7.2.2.3.
The company Émile Hermès SAS, incorporated as a SARL (société à
responsabilité limitée, or limited liability company), was transformed
in 2021 into a SAS (société par actions simpliﬁée, or simpliﬁed
joint‑stock company). This transformation took effect on 4 May 2021.
The aim is to allow a number of partners that may exceed 100, thelimit provided for in Article L. 223‑3 of the French Commercial Code
(Code de commerce) for SARLs.
The economy and the essential characteristics of the company, suchas its operations, the organisation of its governance and the powersof its various corporate bodies, remain unchanged.

3.3.1.2

s Mr Laurent E. Momméjas Mr Jean‑Baptiste Puechs Mr Guillaume de Seynes

PARTNERS

Only the following may be partners in Émile Hermès SAS:s the descendants of Mr Émile‑Maurice Hermès and his wife, born
Julie Hollande; ands their spouses, but only as usufructuaries of shares.

All partners of Émile Hermès SAS must have, for each share they holdon to deposit with the social funds:s either a number of Hermès International shares, undivided andfree from any encumbrance or other commitment to third parties,
equal to 2,250; ors the beneficial or bare ownership of a number of HermèsInternational shares, free from any encumbrance or commitment tothird parties, equal to 4,500.

Any transaction that would result in a change of owner, even for the
beneﬁt of a spouse, ascendant or descendant of a partner, ofwholly‑owned shares, shares in bare ownership or usufruct,
immediately, in the future or on option, is subject to the approval of
the group of partners of Émile Hermès SAS. Nevertheless, transfers
between partners may be freely made. The subscription of shares,
other than by persons who are already partners, is also subject tothis approval.

3.3.1.3

CHAIRMAN

Émile Hermès SAS is chaired by Mr Henri‑Louis Bauer, a direct
descendant of Mr Émile‑Maurice Hermès.
He has been a legal representative since 1 July 2012, ﬁrst as
Executive Chairman and then as Chairman since the transformationof the company into a simpliﬁed joint‑stock company (société paractions simpliﬁée) on 4 May 2021.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

281

3

CORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIES

3.3.1.4

EXECUTIVE MANAGEMENT BOARD

Émile Hermès SAS has an Executive Management Board with 10
members, including the Chairman, who is an ex‑oﬃcio member andchairs the Board.
The Executive Management Board appoints two Vice‑Chairmen fromamong its members.

3.3.2

The members of the Executive Management Board are all natural
persons chosen from among the shareholders of Émile Hermès SAS.
The Executive Management Board of Émile Hermès SAS exercises thepowers attached to being an Active Partner of the Company.

EXECUTIVE MANAGEMENTThe Executive Chairmen are appointed by the Active Partner, after
consultation with the Supervisory Board. In accordance with the
Articles of Association, the Executive Management comprises one or
two Executive Chairmen, who are natural persons, Active Partners orfrom outside the Company, each having the same powers. The term ofofﬁce of the Executive Chairmen is open‑ended.

The role and powers of Executive Management are described in§ 3.2.3.
The Executive Chairmen’s roles are distributed as follows: Axel Dumas
is in charge of strategy and operational management and Émile
Hermès SAS, through its Executive Management Board, is responsible
for vision and strategic priority areas.

Composition at 31/12/2023
Mr Axel Dumas
Executive Chairman
Appointed by decision of the Active Partner dated 4 June 2013 (effective 5 June 2013)
Émile Hermès SAS
Executive Chairman (represented by Mr Henri‑Louis Bauer)
Appointed by decision of the Active Partner dated 14 February 2006 (effective 1 April 2006)
s Changes among the Executive Management in financial year 2023: None.
s Changes among the Executive Management since 31 December 2023: None.

3.3.2.1

TO BE HELD BY THE EXECUTIVE CHAIRMEN

At its meeting of 21 March 2017, the Supervisory Board decided that
the Executive Chairmen should each be required to hold a minimumof 1,000 Hermès International shares pursuant to Article 24 of theAfep‑Medef Code revised in December 2022.

282

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The two Executive Chairmen fulﬁl this obligation as at 31 December
2023.
Information concerning restrictions relating to the sale of shares by
the Executive Chairmen is provided in § 3.10.2.3.

CORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIES

3.3.2.2

PROFILE, EXPERIENCE AND EXPERTISE OF THE EXECUTIVE CHAIRMENAge
53 years 1

AXEL DUMAS(3 July 1970)

Executive Chairman
A direct descendant of Mr Émile‑Maurice Hermès

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
11,638 full ownership and 30 in usufruct andregistered
Date of ﬁrst appointment
5 June 2013
Term of current oﬃce
Open‑ended
Oﬃces and positions
held during ﬁnancial
year 2023

In Hermès Group
companies

Outside HermèsGroup companies

Summary of main areas of expertise and experience
Mr Axel Dumas is a graduate of the Institut d’Études Politiques de Paris and Harvard Business
School (AMP 179). He also has a bachelor’s degree in philosophy and a master’s degree inbusiness law. He began his career at BNP Paribas in China from 1995 to 1997 and then in the
United States from 1999 to 2003.
Mr Axel Dumas joined the Hermès Group in 2003. He served as Director of Sales in France andheaded up the Jewellery division from 2006 to 2008, followed by the Leather Goods & Saddlery
division from 2008 to 2011. He was appointed Managing Director of Operations and member ofthe Executive Committee on 2 May 2011.
He was appointed Executive Chairman by the Active Partner on 4 June 2013 (effective 5 June2013).
French companies ▲Foreign companies ▲s Hermès International ●Co‑Executive Chairmans Comptoir Nouveau de la Parfumerie Permanent Representative of HermèsInternational, Directors Hermès Sellier
Chairmans Faubourg Middle East (United Arab Emirates)
Directors Hermès Of Paris (United States)
Chairman and Director

French companies

Foreign companiess Axam 2
Managers H51
Directors Krefeld
Directors MaiaManagers MathelManagers Exor N.V. (Netherlands) ●Independent Director and member of theCompensation and Appointments Committee

3(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

283

3

CORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIES

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

s L'Oréal - ●Director and member of the Audit and Risk
Committee(term ended on 18/04/2019)s Hermès Sellier Executive Corporate Officer of the divisions:s Hermès Bijouterie(term ended on 01/04/2019)s Hermès Commercial(term ended on 01/04/2019)s Hermès Femme(term ended on 01/04/2019)s Hermès Homme(term ended on 01/04/2019)s Hermès Maison(term ended on 01/04/2019)s Leather Goods & Saddlery(term ended on 01/04/2019)s Hermès Group Services(term ended on 01/04/2019)s Hermès Soie et Textiles(term ended on 01/04/2019)s Hermès Vente aux voyageurs – Travel
Retail(term ended on 01/04/2019)s Hermès Asia Pacific - (Hong Kong)
Director(term ended on 15/05/2021)
s Hermès China - (China)
Chairman and Director(term ended on 09/04/2021)
s Hermès China Trading - (China)
Chairman and Director(term ended on 09/04/2021)
s Hermès Japan - (Japan)
Director(term ended on 30/03/2021)
s Hermès Korea - (South Korea)
Chairman (term ended on 05/08/2021) andDirector (term ended on 26/03/2021)
s La Montre Hermès - (Switzerland)
Director (term ended on 30/06/2021)- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

284

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIES

Address
c/o Hermès International

ÉMILE HERMÈS SAS

24, rue du Faubourg Saint‑Honoré

Executive Chairman
Represented by its Chairman, Mr Henri‑Louis Bauer

75008 Paris
Shares held as at 31 December 2023
49,792in full ownershipregistered shares
Date of ﬁrst appointment
From 27 December 1990 to 31 December 1994
and again since 1 April 2006
Term of current oﬃce
Open‑ended

Main activities outside the Company
In Hermès Group
companies

Summary of main areas of expertise and experience
Émile Hermès SAS is a société par actions simpliﬁée à capital variable (simpliﬁed joint stockcompany with variable capital), incorporated under French law, whose partners are the direct
descendants of Mr Émile‑Maurice Hermès and his wife.
It is represented by its Chairman, Mr Henri‑Louis Bauer.
Émile Hermès SAS’s main purpose is to be the Active Partner of Hermès International. Its operation
is presented in § 3.3.1.
Émile Hermès SAS has been the Active Partner of Hermès International since 27 December 1990.
Émile Hermès SAS was appointed as Executive Chairman on that date and held that ofﬁce until
31 December 1994. Since 1 April 2006, it has again been Executive Chairman of HermèsInternational for an open‑ended term.
It does not now hold nor has in the past held any ofﬁces in any other company.

3

None
Émile Hermès SAS

Henri‑Louis Bauer

A direct descendant of Mr Émile‑Maurice Hermès
French companies ▲s Hermès International ●Active Partner and Co‑Executive
ChairmanFrench companies ▲None
Foreign companies ▲Foreign companies ▲Oﬃces and positions
held during ﬁnancial
year 2023

None
Outside HermèsGroup companies

None

French companies

French companies

Nones Émile Hermès SAS
Company Chairman and Chairman of the
Executive Management Boards Aucleris 2
Managers H2
Directors H51
Directors Krefeld
Directors Micolline invest I
Managers Sabarots
Managers Samain B2
Managers SIFAH
Director and partner

Foreign companies

None

Foreign companies

None
Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

French companies

French companies

None

None

Foreign companies

Foreign companies

None

None

- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

285

3

CORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIES

3.3.3

GOVERNING BODIESThe deﬁnition of the Governing bodies retained for a number of years includes the committees established by the Executive Management several
years ago to regularly assist it in exercising its general duties, namely:s the Executive Committee;s the Operations Committee.

This scope complies with the deﬁnition of Article L. 23‑12‑1 of the French Commercial Code (Code de commerce) in its wording resulting from law
no. 2021‑1774 of 24 December 2021 aimed at accelerating economic and professional equality (known as the Rixain law).
As Hermès International employs fewer than 1,000 employees, it is not subject to the obligations of the Rixain law.
The policy of non‑discrimination and gender balance within the Governing bodies is described in § 3.3.4.

3.3.3.1

EXECUTIVE COMMITTEE

3.3.3.1.1

Role and composition

Role

Composition at 31/12/2023

The Executive Chairmen are supported in their management of theGroup by the Executive Committee. This consists of Executive
Vice‑Presidents, each of whom has well‑deﬁned areas of responsibility.
The role of the Executive Committee is to oversee the Group’s strategicand operational management.
The Executive Committee meets every two weeks.
Its composition reﬂects the Group’s main areas of expertise.

11
MEMBERS40%
9 years
AVERAGE LENGTH OFWOMENSERVICE ON THE(EXCLUDING THE
EXECUTIVE CHAIRMAN) EXECUTIVE COMMITTEE

20 years
AVERAGE LENGTH OF SERVICE
IN THE GROUP

56 years

AVERAGE AGE 1

Members of the Executive Committee in the Pantin leather goods workshop in Île de France. From left to right: Agnès de Villers, Pierre-Alexis Dumas, Olivier Fournier,
Sharon MacBeath, Guillaume de Seynes, Axel Dumas, Catherine Fulconis, Florian Craen, Charlotte David, Wilfried Guerrand, Éric du Halgouët

286

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIESMr Axel Dumas
Executive Chairmans Mr Florian Craen
Executive Vice‑President
Sales & Distributions Ms Charlotte David
Executive Vice‑President
Communications Mr Pierre‑Alexis Dumas
Artistic Executive
Vice‑Presidents Mr Olivier Fournier
Executive Vice‑President Corporate Development andSocial Affairss Ms Catherine Fulconis
Executive Vice‑President Leather Goods & Saddlery(which also includes Ateliers Horizons andEquestrianism) and petit hs Mr Wilfried GuerrandManaging Director Métiers, Information Systems andData

s Mr Éric du Halgouët
Executive Vice‑President Finances Ms Sharon MacBeath
Group Director of Human Resourcess Mr Guillaume de Seynes
Executive Vice‑President Manufacturing Division &Equity Investmentss Ms Agnès de Villers
Chairwoman and Executive‑Vice President of Hermès
Perfume and Beauty

Changes in the Executive Committee in ﬁnancial year 2023: None.
(1) Average calculated on the basis of the age of the members of the Executive Committee, determined on a full‑year basis as at 31 December 2023.

3.3.3.1.2

3

Profile, experience and expertise of the members of the Executive Committee

Name
Age
Date of birth
Nationality

Date ofappointment to
the Executive
Committee
Educations Axel Dumas
53 years 1
03/07/1970
French02/05/2011 see § 3.3.2.2

s Florian Craen
53 years 1
31/10/1970
French01/09/2013 École Supérieure duCommerce Extérieurde Paris (1992)
Harvard Business
School (AMP 184)

Executive Vice‑President Sales & Distribution ofHermès International (since 1 September 2013)
Managing Director of Hermès North Asia (2009)Managing Director of Hermès Great Britain (2006)
International Director of Hermès Travel Retail(2001)
European Director of Hermès Travel Retail (1997)s Charlotte David
48 years 1
28/03/1975
French12/10/2015 Essec (1997)

Executive Vice‑President Communication (since
12/10/2015)s Pierre‑Alexis Dumas
57 years 1
04/06/1966
French01/10/2005 Graduate in visualarts from Brown
University (1991)

Artistic Executive Vice‑President (since
01/10/2005)s Olivier Fournier
62 years 1
10/07/1961
French01/06/2015 EM Lyon (1983)
Graduate degree inaccounting andﬁnanceChairman of the Fondation
Executive Vice‑President Corporate Development
and Social Affairs of Hermès International (2015) d’entreprise Hermès (since
08/02/2016)
Executive Vice‑President Hermès Sellier
craftsmanship division (2008)
Managing Director of Holding Textile Hermès (2001)
Managing Director of Bucol (1998)
Managing Director of Sport Soie (1994)
Director of Internal Audit and Taxation of HermèsInternational (1991)s Catherine Fulconis
62 years 1
01/09/1961
French01/04/2019 École des hautes
Executive Vice‑President Leather Goods & Saddleryétudes commerciales (which also includes Ateliers Horizons and(HEC) (1983)
Equestrianism) and petit h (since 01/04/2019)
Executive Vice‑President Hermès
Maroquinerie‑Sellerie and Chairwoman of the Boardof Directors of Hermès Parfums (2015)
Chairwoman and Managing Director of Hermès
Parfums (2010)
Managing Director and Chairwoman of theManagement Board of Hermès Parfums (2006)

Positions held within the Hermès Group(date of appointment)

Other positions

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

287

3

CORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIES

Name
Age
Date of birth
Nationality

Date ofappointment to
the Executive
Committee
Educations Wilfried Guerrand
52 years 1
01/02/1971
French01/07/2014 Neoma Business
Managing Director Métiers (Hermès Femme,
Director of Icicle Carven
School (1993, Rouen) Hermès Homme, Hermès Bijouterie, Hermès Soie et China France (“ICCF”) (since
Textiles and Hermès Maison), Information Systems 23/11/2023)
MBA from London
School of Economics, and Data (since 01/04/2019)
NYU Stern and HEC Executive Vice‑President Digital Projects and(2011, TRIUM)
E‑commerce of Hermès International (2014)
Managing Director of Hermès Femme (2012)Managing Director Europe of Hermès International(2009)
Group Director of Sales of Hermès International(2007)
Managing Director Hermès France for Hermès
Sellier (2004)
Director of Industrial Development of HermèsInternational (2002)
Advisor to the Chairman of Hermès Sellier (1999)
Financial Controller for Hermès Sellier (1995)s Éric du Halgouët
60 years 1
14/03/1963
French01/06/2015 Neoma Business
Executive Vice‑President Finance of Hermès
School (1986, Rouen) International (2015)
Graduate degree in Chief Financial Ofﬁcer (2007)
accounting andDirector of Consolidation and Financial Control
ﬁnance(2006)

s Sharon MacBeath
54 years 1
30 March 1969
British01/03/2022 University of Glasgow Group Director of Human Resources
Master’s degree in(since 17/06/2019)
psychology &Member of the Supervisory Board
management (1990) (from 2016 to 2019)
University
Member of the Audit and Risk Committee
Panthéon‑Sorbonne (from 2016 to 2019)
Paris I
Member of the CAG‑CSR Committee (from 2017 to
Master's degree in2019)
HR (1994)
INSEAD (2004)s Guillaume de Seynes
66 years 1
14/10/1957
French01/01/2005 Graduate in law andpolitical science inParis (1978) and an
Essec graduate(1982)s Agnès de Villers
54 years 1
24/12/1969
French01/03/2022 Institut d'études
Managing Director of Hermès Perfume and Beauty Director of CEW (since 2015)
politiques de Paris(since 01/05/2015) and Chairwoman of the Board Director of the FEBEA
Economics andof Directors (since 06/06/2019)(Fédération des Entreprises
Finance (graduated inde la Beauté)
1993)
Director of SFP (Syndicat
University of Paris X
Français de la Parfumerie)
Master’s in Economic
History (1991)
Hypokhâgne/Khâgne
Modern Letters(1988‑1989)

Positions held within the Hermès Group(date of appointment)

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Coface – Independent
Director and Chairwoman of
the Appointments,
Compensation and CSR
Committee (since
01/07/2014)

Executive Vice‑President Manufacturing Division & Chairman of the Colbert
Equity Investments of Hermès International (since Committee (since
02/05/2011)10/06/2016 and until June
2022)
Chairman of John Lobb (2007)
Deputy Managing Director of Hermès International Chairman of the Strategic
Committee, Fashion and(2006)
Managing Director Métiers of Hermès Sellier (2004) Luxury sector (from 2018 toNovember 2023)
Managing Director of La Montre Hermès (1999)
Director of Sales and Marketing of La Montre
Hermès (1997)(1) The ages indicated are determined in number of full years as at 31 December 2023.

288

Other positions

CORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIES

3.3.3.2

OPERATIONS COMMITTEE
Composition as at 02/01/2024 1

Role
The Operations Committee, which reports to the Executive Management, ismade up of certain members of the Executive Committee and the Senior
Executives of the main métiers and geographical areas, as well as thesales and support functions of the Group.

24

70%

30%

MEMBERSWOMENFOREIGN NATIONALS

Its duties are:s to involve Senior Executives in the Group’s major issues and strategicorientations;s to promote communication, sharing and reasonable exchanges
amongst its members in their area of responsibility;
s to enable the Executive Committee to take certain decisions.
The Operations Committee meets two or three times a year.

(EXCLUDING THE EXECUTIVE CHAIRMAN AND
MEMBERS OF THE EXECUTIVE COMMITTEE)

Composition of the Operations Committee as at 1 February 2024 1

3

Executive Committee members(see § 3.3.3.1)

s Mr Florian Craen
Executive Vice‑President Sales & Distributions Ms Catherine Fulconis
Executive Vice‑President Leather Goods &Saddlerys Mr Wilfried GuerrandManaging Director Métiers, Information
Systems and Datas Ms Agnès de Villers
Executive Executive‑Vice President of Hermès
Perfume and Beautys Mr Julien Faurie
Shoes
s Ms Ly Lallier
Leather goodss Ms Véronique Nichanian
Men's ready‑to‑wears Ms Anne‑Sarah PanhardHomes Ms Élodie Potdevin
Fashion accessories and IoT
s Ms Ambre Pulcini
Jewellerys Ms Caroline Jacques 2 3Frances Mr Éric FestySouth Asia
s Mr Luc Hennard 2
Europes Ms Diane Mahady 2
United States and Latin Americas Ms Sophie Vissing 2
Greater China

Senior Executives of the métierss Ms Alix Coindreau
Silk and Textiless Mr Laurent Dordet
Watchess Ms Cielo Dunbavand
Women’s ready‑to‑wear
Senior Executives of the Geographical areass Mr Masao Ariga 2Japan
s Ms Ségolène Audras‑Verdillon
Travel Retail

Senior Executives Sales and support functionss Ms Corinne Fénéon
s Mr Frédéric Agostini
Hermès Commercial (central logistics, services Retail operations (Supply chain Retail,eco‑responsibility)
to subsidiaries, after‑sales service)s Ms Caroline Jacques 2 3
Retail activities (customer experience,customer services and relationships, Retail)s Ms Hinde Pagani
Digital Sales and Services Ms Paola Triolo 2
Information systems

Changes in the Operations Committee in ﬁnancial year 2023
- 01/01/2023: Mr Luc Hennard took over the general management of the Europe region.
- 18/01/2023: the composition of the Operations Committee was refocused on the market métier and support functions. At this time, Mr Frédéric

Agostini, Ms Corinne Fénéon, Ms Caroline Jacques, Ms Ly Lallier and Ms Paola Triolo joined the Operations Committee.
- 31/03/2023: Ms Diane Mahady took over the general management of the United States, replacing Mr Robert Chavez.
- 01/07/2023: Mr Julien Faurie took over the Shoes division, replacing Ms Ambre Pulcini.
- 20/10/2023: Ms Sophie Vissing took over the general management of Greater China, replacing Mr Luc Hennard.

Changes in the Operations Committee since 31 December 2023
- 01/01/2024: Since this date, the monitoring of activities in the Middle East (United Arab Emirates, Qatar, Kuwait, Bahrain and Lebanon) has been

separated from the South Asia region and transferred to the Europe region.
- 01/02/2024: Ms Caroline Jacques took over the general management of the France region, replacing Ms Hélène Dubrule.

(1) The appointment to the Operations Committee on 1 February 2024 changed its composition. As at 31 December 2023, it was composed as follows:s 25 members;
s 71% women and 29% foreign nationals (excluding the Executive Chairman and members of the Executive Committee).
(2) Members with a foreign nationality.
(3) Ms Caroline Jacques took over the general management of the France region on 1 February 2024, replacing Ms Hélène Dubrule. She retains her position as Directorof Retail Activities (customer experience, customer services and relationships, Retail).
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

289

3

CORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIES

3.3.4

NON‑DISCRIMINATION AND DIVERSITY POLICY

3.3.4.1

GENDER BALANCE POLICY WITHIN GOVERNING
BODIESThe Executive Management has set Company gender balance
objectives since 2020 as follows:

In accordance with the provisions of 2 of Article L. 22‑10‑10 of theFrench Commercial Code (Code de commerce), the way in which theCompany seeks balanced representation of men and women on thecommittees established, where relevant, by the Executive
Management, in order to regularly assist it in exercising its general
duties, is presented below, alongside the results in terms of genderbalance in the 10% of management positions with the greatest
responsibility.

Overall gender balance target for Governing bodies: that the
proportion of members of each gender be at least equal to 40%.
The scope of the Governing bodies selected includes thecommittees established by the Executive Management several
years ago to regularly assist it in exercising its general duties,
namely:Since 2018, the Supervisory Board has been tasked with ensuringthat the Executive Chairmen implement a non‑discrimination anddiversity policy in the Governing bodies.
This policy was presented to the Supervisory Board in late 2018.
Pursuant to Article 8 of the Afep‑Medef Code, updated in December
2022, Boards are recommended to set gender balance objectives
within Governing bodies.
The HCGE implementation guide revised in June 2022 stipulates thatin sociétés en commandite par actions (partnerships limited byshares):s it is the responsibility of the Executive Management to set genderbalance objectives and the time frame for attaining them, as wellas to determine how these objectives and the action plan are
implemented;s the Executive Committee (role and composition described in§ 3.3.3.1);s the Operations Committee (role and composition described in§ 3.3.3.2).

Time horizon: the proportion set having already been reached in
2019, the Executive Management has set the target ofmaintaining the current balance (over both the medium and longterm).
Action plan: for several years now, the Company has beenencouraging female representation among Senior Executives,
which should help achieve this goal.

The diversity policy applied to the members of the Supervisory Board
is described in § 3.4.3.

s the Supervisory Board ensures compliance with and monitoring of
this recommendation. It is informed annually by the Executive
Management of the results obtained so that they can be includedin the corporate governance report.

3.3.4.2

GENDER BALANCE OF GOVERNING BODIESThe table below illustrates gender balance on the governance bodies, on the Supervisory Board and in the Senior Executives category:As at 1 February 2024 1

As at 31 December 2022

Governing bodies (Executive Committee and Operations Committee, excluding
the Executive Chairmen)
Proportion of women
Proportion of men

60% 1

18/30

54.2%

1

12/30

45.8%

40%

Overall female representation
Supervisory Board(excluding the employee representatives on the Supervisory Board)

50.0%

50.0%

CAG‑CSR Committee

66.7%

66.7%

Audit and Risk Committee

40.0%

40.0%

47.0%

47.0%

Senior Executives

2(1) Ms Caroline Jacques took over the general management of the France region on 1 February 2024, replacing Ms Hélène Dubrule. This appointment changed thecomposition of the governing bodies. As at 31 December 2023, the proportions were as follows (excluding the Executive Chairman):s Proportion of women: 61.3%, i.e. 19 women out of 31 members (excluding the Executive Chairman);s Proportion of men: 38.7%, i.e. 12 men out of 31 members (excluding the Executive Chairman);s 71% women and 29% foreign nationals (excluding the Executive Chairman and members of the Executive Committee).
(2) Within the meaning of Article L. 3111‑2 of the French Labour Code. This category consists of 100 positions with the highest responsibility in the classification adopted
by the Group.

290

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIES

Hermès International is fourth in the general ranking of the number ofwomen in governing bodies published on 19 December 2023, which
establishes the ranking of the 120 largest French companies,
according to their commitment to increase the number of women on
governing bodies and more generally in favour of gender equality atwork.

3.3.4.3

PROFESSIONAL GENDER EQUALITY INDEXThe Hermès Group is committed to the principles of recognition
and respect, irrespective of one’s origin, gender, family situation or
position. Employees are reminded of this respect for differences inthe ethics charter (available at https://ﬁnance.hermes.com/en/
ethics‑human‑rights‑and‑diversities/) ensuring objectivity andequal opportunities and promoting diversity and inclusion in
recruitment, career development and day‑to‑day management.

As the results published below illustrate, the Hermès Group isconstantly committed to promoting gender equality. Particularattention is paid to equality, particularly in the awarding of equal pay
for equal work and ensuring equal opportunities in access toemployment and internal promotions. At all levels of the organisation,equality of opportunity, diversity and inclusion in terms of
employment, training, supervision and compensation are backed by
the House’s commitment, with the objective of taking concrete andsustainable actions.
Since 2019, Hermès has harmonised its international maternity leavepractices by deﬁning a minimum maternity leave period of 16 weeks,maintaining 100% of basic pay and making 100% coverage ofmaternity expenses available in all locations.
In addition, in order to offer an increasingly inclusive framework forparenthood and to support the professional careers of women, since
1 January 2022, the Group has been offering paternity or adoption
leave for employees in France (i.e. 62% of the House’s workforce) by
maintaining the compensation of the persons concerned at 100%.
This policy was extended on 1 January 2023 to the rest of thesubsidiaries worldwide.
In July 2023, an agreement on “Work‑life balance” was signed with all
representative trade unions at Group level. It aims to support
employees faced with personal situations impacting their professional
daily life: caregivers, parents or those in vulnerable situations. For
these three aspects, various measures were negotiated, taking care
to provide responses adapted to the diversity of the situations
encountered:s supporting caregiver employees:s preventing and supporting people in vulnerable situations:long‑term illnesses such as cancer, professional burnout,
bereavement, domestic violence, addictions or excess debt.

In France, agreements or action plans relating to professional equality
are regularly renewed in order to reafﬁrm the guarantee of a balancedsalary positioning between men and women, as well as respect forequal treatment in the allocation of salary increases. These
agreements deﬁne progress targets in order to promote the role offathers in the exercise of family responsibility, and to enable womento carry out a professional activity corresponding to their wishes.
Women in managerial roles and positions of responsibility at
production sites also beneﬁt from personalised coaching support.
In accordance with Article L. 1142‑8 of the French Labour Code
(Code du travail), on 1 March 2024 Hermès International
published the professional gender equality index for 2023, which
was 98/100.

This index measures the gender pay gap within a single company. It
takes into account all components of a compensation package andmust be calculated each year, thereby serving to identify any points ofprogress. This index includes the following ﬁve indicators (the results
obtained for each indicator are given in brackets):s gender pay gap (38/40);
s difference in the breakdown of individual pay increases (20/20);s breakdown of promotions (15/15);
s number of employees receiving a pay increase upon their returnfrom maternity leave (15/15);
s number of employees of the under‑represented gender among the
10 highest‑paid employees (10/10).

The methodology for calculating the index includes all compensation
paid (ﬁxed + beneﬁts).
The overall weighted average index of the Group for ﬁnancial year
2023 was 92/100.
The results of the other Group companies are available at https://ﬁnance.hermes.com/en/ethics‑human‑rights‑and‑diversities/.

3.3.4.4

DIVERSITY POLICY AND RESULTS IN TERMS OF
GENDER BALANCE IN THE TOP 10% OF
POSITIONS WITH THE HIGHEST RESPONSIBILITY

Whether appointments to governing bodies, recruitment or theappointment of any employee, the Hermès Group is particularlycommitted to compliance with the principle of non‑discrimination.

(i) by providing an information and assistance platform for themost common situations,;

Whenever possible, all employees are reminded of the importance of
this principle.

(ii) by offering flexibility in more demanding situations,

The “Hermès, a Responsible Employer” policy insists on compliancewith two essential principles: the principle of non‑discrimination andthe principle of gender equality. This policy is described in chapter 2“Corporate social responsibility and non‑ﬁnancial performance”,§ 2.2.

(iii) by freeing up time through financial support in the most difficult
situations;s supporting parenting before and upon arrival and following thebirth of a child;32023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

291

3

CORPORATE GOVERNANCE
ADMINISTRATIVE AND MANAGEMENT BODIESThe Group has also made commitments to promote the professional
integration and employment of people with disabilities (see inchapter 2 “Corporate social responsibility and non‑ﬁnancial
performance”, § 2.2.3.6).
In 2021, 13 women from different backgrounds in the House took the
initiative to create Hécate, a network of Hermès women, whose
ambition is to enable each woman to be a driving force in her own
development at Hermès. Hécate aims to be active in three areas:
networking, inspiration and development. Since its creation, Hécate
has brought together more than 100 women, who have begun tostructure the network and reﬂect on themes as varied as parenthood,

3.3.5

careers and vulnerabilities. The network continued its work in 2023
to promote inclusion and diversity at all levels of the organisation.
The Group has put in place an “Alterego” training programme which
focuses on integration and diversity management. This training is
attended by all Management Committee members and the Group’s
local managers. It takes the form of a one‑day programme, whichalternates between a theory‑based and a more hands‑on approach,for preventing and identifying all forms of discrimination (direct,
indirect or even involuntary) and reafﬁrming the Group’s zerotolerance with regard to this type of practice.

SUCCESSION PLAN FOR SENIOR EXECUTIVESIt should be noted that the existence of two Executive Chairmen,
one of which is a legal entity, guards against the Executive
Management falling vacant unexpectedly.

plan. In early 2024, it noted that it remained unchanged andmaintained its assessment that this plan is understandable, of goodquality and sufﬁciently protective to ensure business continuity.

3.3.5.2
The succession plan for the Chairman of the Supervisory Board ispresented in § 3.4.4.

An annual Talent Review process was rolled out throughout the Group
in 2020, with the following objectives:

3.3.5.1

s take stock of our leadership talents to ensure succession within
Hermès;

SUCCESSION PLAN FOR EXECUTIVE
MANAGEMENT

A succession plan was established in 2016 for the Executive
Management. This succession plan, which has been set down in
writing since 2019, covers:s temporary interim succession (temporary absence of an Executive
Chairman, e.g. due to illness or accident);s unplanned succession (permanent impairment, death orresignation of an Executive Chairman in the short or medium term).

Every year, the CAG‑CSR Committee conducts an annual review of this292

TALENT REVIEW

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

s improve anticipation of succession plans;s engage a stronger dynamic in the development of talents.

This Talent Review covers the succession of the members of the
Executive Committee and of the members of the Operations
Committee.
The Talent Review and succession plans for the Executive
Management and the Chairman of the Supervisory Board arepresented to the CAG‑CSR Committee every year.

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4

ORGANISATION OF THE SUPERVISORY BOARD

3.4.1

KEY DATA ON THE SUPERVISORY BOARD AS AT 31 DECEMBER 2023
SUPERVISORY BOARD

14

3

50%

members

PROPORTION
OF WOMEN 1

7 meetings in 2023 I 93.88% attendance

3

1/3
2 committees

PROPORTION
OF INDEPENDENTMEMBERS 1

COMPENSATION, APPOINTMENTS,
GOVERNANCE AND CSR COMMITTEE

AUDIT AND RISK COMMITTEE

53members

members

6 meetings in 2023 I 100% attendance

6 meetings in 2023 I 94.44% attendance

60% independence I 10 years' average length of service2
40% women including the Chairwoman

67% independence I 10 years' average length of service2
67 % women including the Chairwoman

Age

Seniority

Average

Average

54

1/3

9

years 2

5

Number of termsof office expiring
per years 5

years 2

5

5

4

4

4

3
2

2

35
to 44 years

1.
2.
3.
4.
5.

45
to 54 years

55
to 64 years

65
and over

2

2

2

Less
BetweenBetweenBetweenthan 3 years 3 and 5 years 6 and 8 years 9 and 11 years

2

12 yearsand over2024 GM

2025 GM

2025 GMEnd of 20264

The members of the Supervisory Board representing employees are not taken into account for the calculation of these proportions.
Average calculated on the basis of ages and lengths of service of members of the Supervisory Board, determined on a full-year basis as at 31 December 2023
12 members are appointed by the Shareholders' General Meeting and two members, representing employees, are appointed by the Group Works Council.
Supervisory Board members representing employees.
Excluding Supervisory Board members representing employees.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

293

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.2

APPLICABLE PRINCIPLES

Number of Supervisory Board members
The Supervisory Board is composed of between three and 15
members (not including members representing employees). These
members are chosen from among shareholders who are neither
Active Partners nor legal representative of the Active Partner nor
Executive Chairmen (Article 18.1 of the Articles of Association). They
are appointed by the Shareholders’ Ordinary General Meeting.
The Afep‑Medef Code qualiﬁes the Chairman and the members of
the Supervisory Board as “non‑Executive Corporate Ofﬁcers”. The
Supervisory Board accordingly does not include any Executive
Corporate Ofﬁcers.

3.4.2.1
3.4.2.1.1

SELECTION PROCESS FOR NEW MEMBERS
OF THE SUPERVISORY BOARD
Members of the Supervisory Board appointed by
the General Meeting (Article L. 226‑4 of the French
Commercial Code (Code de commerce))

Two Supervisory Board members (one woman and one man)representing the Group’s employees are designated by the Group
Works Council in accordance with the provisions of Article L.
225‑79‑2 of the French Commercial Code (Code de commerce).
The diversity policy applied within the Supervisory Board isdescribed in § 3.4.3.

Conditions of eligibility are as follows:s to have or have had an employment contract for at least two years
with the Company or one of its direct or indirect subsidiaries having
its registered office in France or abroad;s to have a clean criminal record;

The selection process for Supervisory Board members appointed by
the General Meeting is as follows:s to complete the application form prepared by the Group Works
Council.

s the Supervisory Board sets objectives for changes in its
composition in accordance with the diversity policy (see § 3.4.3);

Each trade union active at Group level may submit a candidate
through its union representative on the Group Works Council.

s a recruitment advisor is tasked with identifying candidates (maleand/or female) in addition to those proposed by the Executive
Management Board and Supervisory Board;

Each Economic and Social Committee may nominate one candidateby secret ballot.

s the profiles of male or female candidates from a variety ofbackgrounds and likely to be interested in joining the Supervisory
Board are then preselected by the recruitment advisor;s on the basis of a detailed report and an oral presentation from therecruitment advisor, the Chairman of the Supervisory Board and amember of the CAG‑CSR Committee draw up a shortlist of
candidates whom they will meet individually;s the selected candidates then meet the other members of the
CAG‑CSR Committee and the Executive Chairmen;s the CAG‑CSR Committee discusses the results of these interviews
and submits its recommendations to the Émile Hermès SAS
Executive Management Board and the Supervisory Board;s this selection is carried out taking into account the personal andprofessional qualities of the candidates and ensuring that they areable to comply with the guiding principles for exercising the duties
of Supervisory Board member laid down in the rules of procedure(Article 2.2.2.1).

3.4.2.1.2

Members of the Supervisory Board representing
employees appointed by the Group Works Council(Article L. 225‑79‑2 of the French Commercial
Code (Code de commerce))

Pursuant to Article L. 225‑79‑2 of the French Commercial Code (Codede commerce), a Supervisory Board of more than eight members
must appoint two employee representatives, respecting gender parity.

294

When appointments to the Supervisory Board come up for renewal,
the number of Supervisory Board members is set by a decision
adopted by the Active Partner.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALAs an exception, companies with more than 300 employees may
present two candidates (one male and one female).
Candidates submitted by representative trade union organisations
and employee representative bodies are examined by the Group
Works Council, which appoints two employee representatives to theSupervisory Board, one male and one female, in two rounds.
Since late 2019, the Supervisory Board has included two members
representing employees.

3.4.2.1.3

Effective implementation

The selection process was not implemented in 2023.
It was not implemented at the beginning of 2024 insofar as no
appointment of new members of the Supervisory Board is proposedto the General Meeting of 30 April 2024.

3.4.2.2

APPOINTMENT OF THE CHAIRMAN
AND VICE‑CHAIRMENThe Supervisory Board elects a Chairman (a natural person) and twoVice‑Chairmen from among its members (Article 19.2 of the Articles
of Association) whose duties are described respectively in § 3.5.1.2
and § 3.5.1.3.

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.2.3

TERM OF OFFICE

Category

Appointment procedures

Term of oﬃce

NumberBoard members

Appointment by the Shareholders’ General 3 years (until the end of the third Ordinary General Meeting 12
Meeting
following their appointment)

Board members representing
employees

Designated by the Group Works Council

3 years (from the date of their appointment)

2

The term of ofﬁce of the members of the Supervisory Board is three
years (Article 18.2 of the Articles of Association).

3.4.2.6

This duration may be less:Pursuant to Article 18.3 of the Articles of Association: “No person
over the age of 75 may be appointed to the Supervisory Board if
their appointment would result in more than one‑third of Board
members being over that age” (collective age limit).

s at the time of first appointment, in accordance with the principle ofreplacing one‑third of the Supervisory Board, as set out in Article
18.2 of the Articles of Association;s if there is a renewal, in accordance with the rules relative to theduration of the term of office for independent members or to theage limit.

Following the General Meeting of 2 June 2009, the Company has
introduced, in accordance with the recommendations of theAfep‑Medef Code, the practice of replacing one‑third of Supervisory
Board members each year.

3.4.2.4

CO‑OPTATIONIn the event of a vacancy, the Supervisory Board may appoint a newmember of the Board on a provisional basis, subject to ratiﬁcation by
the next Ordinary General Meeting, for the remaining term of ofﬁce of
his or her predecessor.

3.4.2.5

NUMBER OF SHARES TO BE HELD BY MEMBERS
OF THE SUPERVISORY BOARD

The rules of procedure (Article 2.2.1), since their adoption in 2009,require Supervisory Board members, except for the employee
representatives, for whom this requirement is waived, to own arelatively signiﬁcant number of registered shares. The number was
originally set at 200. In view of the high Hermès International shareprice, the number of shares to be held by the members of the Board
was reduced in 2019 to 100 shares.
At the Hermès International share price as at 29 December 2023(€1,918.80), this represents an average of more than two and a halfyears of compensation for a member of the Board.
The Supervisory Board meeting of 11 January 2024 noted that all
members of the Supervisory Board continued to comply with thisobligation as at 31 December 2023.
The number of shares held by each member of the Supervisory Boardis shown in § 3.10.1.
Information on the restrictions on the sale of shares by members of
the Supervisory Board is provided in § 3.10.2.3.

AGE LIMIT

3
In 2021, the Supervisory Board's rules of procedure (Article 2.1.7.1)
provide that, as an internal rule, no person may be appointed to theSupervisory Board or have his or her term renewed if they havereached the age of 80 (individual age limit).
The Chairman and Vice‑Chairmen are not subject to any age limit
other than the age limits applicable to all Board members (individualand collective).
No member of the Supervisory Board has reached the age of 75 andthe oldest member was 70 in 2023.
The breakdown of Board members by age group is detailed in § 3.4.1.

3.4.2.7

EMPLOYEE REPRESENTATION ON
THE SUPERVISORY BOARD

3.4.2.7.1

Employee representative members of theSupervisory Board (with voting rights)

Pursuant to Article L. 225‑79‑2 of the French Commercial Code
(Code de commerce), two members of the Supervisory Board
representing the Group’s employees (one woman and one man) siton the Board with voting rights.

The process for selecting the members of the Supervisory Board
representing employees is described in § 3.4.2.1.2.
They have the same status, rights and obligations as any othermember of the Supervisory Board, including conﬁdentiality. They are
required to comply with the Board’s rules of procedure.
The members of the Supervisory Board representing employees are
not counted for the purpose of determining the minimum andmaximum number of members of the Supervisory Board, nor for the
calculation of the diversity of the Board or the proportion of
independent members.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

295

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

Their term of ofﬁce as a member of the Supervisory Board is three
years.

During the ﬁrst year of their term of ofﬁce, Ms Anne‑Lise Muhlmeyer
and Mr Prescience Assoh completed the following training program:Notwithstanding the rule contained in Article 18.1 of the Articles of
Association, the members of the Supervisory Board representing
employees are not required to be shareholders.

s internal training: On‑boarding;

They have a credit of 15 hours per meeting (plus meeting time) tocarry out their duties.
In accordance with Article L. 225‑30‑2 of the French Commercial
Code (Code de commerce), the members of the Supervisory Board
representing employees receive training adapted to the performanceof their duties, at the expense of the Company. This training mustensure that they acquire and improve the knowledge and techniques
required to carry out their duties. It mainly concerns the role andfunctioning of the Supervisory Board, the rights and obligations of themembers of the Supervisory Board and their responsibilities, as wellas the organisation and activities of the Group.
This training period, which may not be less than 40 hours per year, is
not deducted from the hours credited. A portion of this training time iscarried out within the Group but most of it is carried out by an
external training organisation (in particular the IFA). After obtaining
the favourable opinion of the members concerned, the Supervisory
Board determines the training programme for the year at the
beginning of each year.

s internal training: Family group / Emile Hermès SAS;s IFA training: Being a salaried director;s IFA training: Fundamentals of finance;s IFA training: The Board and CSR;s internal training: networking at the Ateliers d’Ennoblissementd'Irigny.

3.4.2.7.2

Representative of the Social and Economic
Committee (without voting rights)

In accordance with the provisions of Article L. 2312‑75 of the French
Labour Code (Code du travail), a full member of the Social andEconomic Committee (SEC) appointed by the latter attends all
meetings of the Supervisory Board in an advisory capacity (meetingsand site visits). The SEC has decided to set up a rotation in order toallow several representatives of the SEC to sit on it for one year each.
The SEC representative receives the same documents as those
provided to the members of the Supervisory Board and at the sametime. During the meeting, he or she has the opportunity to take theﬂoor and give opinions on the items on the agenda.

3.4.3

DIVERSITY POLICY APPLIED WITHIN THE SUPERVISORY BOARD

3.4.3.1

CHANGES IN THE COMPOSITION OF
THE SUPERVISORY BOARD

Since 2011, the CAG‑CSR Committee has been assigned the duty toadvise the Supervisory Board of its recommendations as to thechanges in the Board’s composition.

The Supervisory Board is composed of members, one‑third ofwhom are independent, with qualiﬁcations or a professional
background enabling them to contribute effectively to the work of
the Supervisory Board, as a collegiate body, in all its areas ofactivity and to the quality of the discussions.

The Supervisory Board has set itself objectives or principles in termsof optimal Board size, age limit, number of independent members anddiversity (representation of women and men, nationalities,
international experience, expertise, etc.) and has gradually changed
the composition of the Board to achieve this.

In accordance with the provisions of Article L. 22‑10‑10 (2) of theFrench Commercial Code (Code de commerce), the diversity policy
applied to members of the Supervisory Board is presented below,
based on criteria such as age, gender or qualiﬁcations andprofessional experience, along with a description of the objectives ofthis policy, its means of implementation and the results obtained in
the ﬁnancial year ended.

296

s internal training: Stock market ethics;

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The work carried out has been presented in each subsequent
registration document/universal registration document.
At the end of 2020, the Supervisory Board reviewed and approved
the diversity policy applied to the members of the Supervisory Board,
taking into account the changes in the composition of the Board inrecent years, as set out in § 3.4.3.2.
At the end of 2023, it reviewed the diversity policy applied within the
Supervisory Board and considered that there was no need to change
the composition of the Board for 2024.

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.3.2

SUMMARY TABLE OF THE DIVERSITY POLICY APPLIED TO MEMBERS OF THE SUPERVISORY BOARD

Size (number of Board members)
Pursuant to Article 18.1 of the Articles of Association, the Supervisory Board comprises between three and 15 members
appointed by the General Meeting.
Objective:
Maintain the size of the Board at 14 members, which is satisfactory, ensures a balanced representation of men andwomen, meets the legal obligation to appoint two members representing employees and fulﬁls the market
recommendations in terms of proportion of independent members.
This objective could be reconsidered if new constraints lead to the need to review the size of the Board.
Implementation procedures and results obtained:
Since November 2019, the Board has comprised 12 members appointed by the General Meeting and two members
representing employees, appointed by the Group Works Council.

14 members

Age
Pursuant to Article 18.3 of the Articles of Association, the number of members aged over 75 cannot exceed one‑third of
the total (collective age limit).
Since 2021, pursuant to Article 2.1.7.1 of the Board’s rules of procedure, as an internal rule, no person may be
appointed to the Supervisory Board or have his or her term renewed if they have reached the age of 80 (individual age
limit).
Objective:
Maintain the current statutory age limit rule, which is satisfactory.
Implementation procedures and results obtained:
As at 31 December 2023:
s no member was over the age of 75;s the members of the Board were between the ages of 40 and 70;s the average age of Board members was 54;
s as shown in the “Age” chart in § 3.4.1, the breakdown of age groups within the Board is balanced.

3
Average age:
54 years

Gender parity 1
Article L. 22‑10‑74 of the French Commercial Code (Code de commerce) requires a minimum of 40% of each gender.
Objective:
Maintain a proportion of women and men in line with legal requirements.
Implementation procedures and results obtained:
Since the end of 2017: 50% women and 50% men; the legal requirement is therefore exceeded.

50%
women 1

Number of independent members 1
In accordance with Article 10.3 of the Afep‑Medef Code revised in December 2022, independent members must makeup at least one‑third of the Supervisory Board in controlled companies as deﬁned by Article L. 233‑3 of the French
Commercial Code (Code de commerce). This minimum proportion has been included in the Supervisory Board’s rules ofprocedure (Article 2.1.5.3).
Objective:
Maintain the proportion of independent members, which is satisfactory and complies with market recommendations.
Implementation procedures and results obtained:
The proportion of one‑third independent members has been met since it was introduced in 2009, i.e. as at 31 December
2023, four out of 12 members appointed by the General Meeting.

1/3
independent(1) Only Board members appointed by the General Meeting are included in the calculation of the percentages of women members (Article L. 225‑79, II of the French
Commercial Code (Code de commerce)) and independent members (Afep‑Medef Code – Article 10.3), not employee representatives.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

297

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

Nationalities, experience and expertise
Objectives:s retain a variety of skills and experience that can cover each of the seven areas of expertise and experience (see § 3.4.5.2) corresponding to the
Hermès Group’s major operational challenges and the main issues that the Supervisory Board and its committees are required to monitor as partof their duties:s business management/operational management of companies/director of large companies,s finance/internal control/risks,s human resources/CSR,s international/Asia,s legal/ethics/compliance/governance,s IT/cybersecurity/artificial intelligence/digital,s knowledge of the history and culture of Maison Hermès;s maintain a composition that takes into account the specific nature of the Maison Hermès with members:s all French‑speaking, culture of the Maison Hermès being very French,s benefiting from experience or belonging to a family group (collective rather than individual ambition),s having a good knowledge of the history and culture of the Maison Hermès,s without experience in the luxury goods sector (given potential conflicts of interest).
Implementation procedures and results obtained:
As at 31 December 2023:
s the proportion of Board members competent in each of the seven areas of expertise and experience (see § 3.4.5.2) corresponded to the HermèsGroup’s major operational challenges and the main issues that the Supervisory Board and its committees are required to monitor as part of theirduties;s the composition takes into account the specific nature of the Maison Hermès:s all members were French‑speaking,s a majority of members are direct descendants of Mr Émile‑Maurice Hermès, belonging to the Hermès family, who bring to the Board theirknowledge of the history and culture of Maison Hermès,s no member had experience in the luxury goods sector.

3.4.3.3

NUMBER OF MEMBERS AND REPRESENTATION OF WOMEN AND MEN ON THE SUPERVISORY BOARD

31/12

2021

2022

2023

Members appointed by the General Meeting

12

12

12

Employee representative members appointed by the Group Works Council

2

2

2

Women 1

50%

50%

50%

Men 1

50%

50%

50%

(1) Only Board members appointed by the General Meeting are included in the calculation of these percentages (Article L. 225‑79‑2, II of the French Commercial Code
(Code de commerce)), not employee representatives.
n/a: not applicable.

3.4.4

SUCCESSION PLAN FOR THE CHAIRMAN OF THE SUPERVISORY BOARD

A succession plan for the Chairman of the Supervisory Board was
drawn up in 2018.
This succession plan, which has been set down in writing since 2019,
covers:s temporary interim succession (temporary
Chairman, e.g. due to illness or accident);

absence of thes unplanned succession (permanent impairment, death
resignation of the Chairman in the short or medium term);

298

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALors normal succession (medium and long term).

The succession plan for the Chairman of the Supervisory Board wasco‑signed by Ms Dominique Senequier then placed in two sealed
envelopes, one of which was handed to the Chairwoman of the
CAG‑CSR Committee and the other to the legal department.
Every year, the CAG‑CSR Committee conducts an annual review of thisplan. In early 2024, it noted that it remained unchanged andmaintained its assessment that this plan is of good quality andappropriate.

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.5

COMPOSITION OF THE SUPERVISORY BOARD

3.4.5.1

COMPOSITION OF THE SUPERVISORY BOARD AS
AT 31 DECEMBER 2023

The Company has a Supervisory Board comprising 14 members,
including:s 7 women and 7 men (i.e. 50% of each gender);s 4 independent members (i.e. one‑third, see § 3.4.6); andAs the provisions of Article L. 225‑79‑2 of the French Commercial
Code (Code de commerce) apply to the Company, two members of theSupervisory Board representing employees are appointed by theGroup Works Council, given the role of this employee representative
body which is the preferred contact for management and whose
members are drawn from the Social and Economic Committees of theGroup companies.
All the Supervisory Board members are French except Ms Olympia
Guerrand, who is Franco‑Portuguese.

s 2 members representing employees (see § 3.4.2.1.2).

Twelve members are appointed by the General Meeting from among
the shareholders who are neither the Active Partner nor the legal
representative of the Active Partner nor Executive Chairman.

Ms Nathalie Besombes, Director of Corporate law and Stock
Exchange regulations and Compliance Ofﬁcer, is the Supervisory
Board Secretary.

3

MEMBERS APPOINTED BY THE GENERAL MEETING

Éricde Seynes
ChairmanMonique
Cohen

Dominique
Senequier★✱★✿Vice-Chairwoman Vice-Chairwoman

DorothéeAltmayerCharles-Éric
EstelleBauer
Brachlianoff★✿✱✱

Matthieu
Dumas

BlaiseGuerrandJulie
GuerrandOlympia
GuerrandRenaudMomméja

Alexandre
Viros

✱

★✱

✿

MEMBERS REPRESENTING EMPLOYEES APPOINTED BY THE GROUP WORKS COUNCIL

Prescience Anne-Lise
Assoh
Muhlmeyer★ Independence ✿ CAG-CSR Committee ✱ Audit and Risk Committee

Main areas of skills and expertise of the members of the Board appointed by the General Meeting 1 - 2
2/12

Areas of skills and experience

IT/CYBERSECURITY/ARTIFICIAL INTELLIGENCE/DIGITAL

8/12

INTERNATIONAL / ASIA / RETAIL AND E-COMMERCE

9/12

HUMAN RESOURCES/CSR
LEGAL/ETHICS/COMPLIANCE/GOVERNANCE

10/12

9/12

KNOWLEDGE OF THE HISTORY AND CULTURE OF MAISON HERMÈS

10/12

FINANCE AND AUDIT/INTERNAL CONTROL/RISKS
BUSINESS MANAGEMENT/OPERATIONAL MANAGEMENT OF COMPANIES/
DIRECTOR OF LARGE COMPANIES

12/12
Number of members

1. Excluding Supervisory Board members representing employees.
2. According to the annual declarations of the Board members.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

299

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

SUMMARY PRESENTATION OF THE MEMBERS OF THE SUPERVISORY BOARD AS AT 31 DECEMBER 2023
Personal details

Gender, nationality,
age 1, date of birthExperience
Numberof shares(direct
holding)

Numberof oﬃcesin listedcompanies 5

Position on the Board

Membership of Board committees

Date term ends

Length ofservice on
the Board 1

07/06/2010
03/03/2011(Chairman)

2026 GM

13 years√

03/06/2014

2026 GM

9 years√

04/06/2013

2025 GM

10 years

Independence 2

Date of ﬁrst
appointment

Audit and Risk
Committee

CAG‑CSR
Committee

Members of the Supervisory Board appointed by the General Meeting
Éric de Seynes (M)(Chairman)
Nationality: French
63 years old - 09/06/1960

226(BO) 6 285

Monique Cohen (F)(Vice‑Chairwoman)
Nationality: French
67 years old - 28/01/1956

250

Dominique Senequier (F)(Vice‑Chairwoman)
Nationality: French
70 years old - 21/08/1953

200

Dorothée Altmayer (F)Nationality: French
62 years old - 01/03/1961

200

06/06/2017

2026 GM

6 years

Charles-Éric Bauer (M)Nationality: French
59 years old - 09/01/1964

75,74803/06/2008

2025 GM

15 years√Estelle Brachlianoff (F)Nationality: French
51 years old - 26/07/1972

100

04/06/2019

2025 GM

4 years√

Matthieu Dumas (M)Nationality: French
51 years old - 06/12/1972

1,433(US) 7 30

03/06/2008

2024 GM

15 yearsBlaise Guerrand (M)Nationality: French
40 years old - 04/06/1983

200

29/05/2012

2024 GM

11 years

Julie Guerrand (F)Nationality: French
48 years old - 26/02/1975

6,825

02/06/2005

2025 GM

18 years

Olympia Guerrand (F)Nationality: French andPortuguese
46 years old - 07/10/1977

600

06/06/2017

2024 GM

6 years

Renaud Momméja (M)Nationality: French
61 years old - 20/03/1962

3,959(US) 7
109,944

02/06/2005

2026 GM

18 years√

Alexandre Viros (M)Nationality: French
45 years old - 08/01/1978

100

04/06/2019

2024 GM

4 years√2
BNP Paribas
Safran1Veolia√√√(Chairwoman)√(Chairwoman)√√

Members of the Supervisory Board representing employees appointed by the Group Works Council
Prescience Assoh (M)Nationality: French
40 years old - 26/01/1983

13 3

n/a 4

15/11/2022

15/11/2025

1 yearAnne‑Lise Muhlmeyer (F)Nationality: French
58 years old - 10/10/1965

32 3

n/a 4

15/11/2022

15/11/2025

1 yearAverage: 9 years(1) The ages and length of service indicated are determined in number of full years as at 31 December 2023.
(2) The independence criteria for its members, formalised since 2009 by the Supervisory Board, are described in § 3.4.6.1.
(3) The obligation to hold a minimum number of Company shares does not apply to members of the Board representing employees.
(4) n/a: not applicable. In accordance with the provisions of the Afep‑Medef Code (Article 10.3), employee representatives are not included in the calculation of
independent members.
(5) Other than the Company. In accordance with the recommendation of the Afep‑Medef Code (Article 20.4), a member of the Supervisory Board may not hold more thanfour other offices in listed companies outside the Group, including foreign ones.
(6) BO: Bare ownership.
(7) US: Usufruct.

300

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.5.2

MAIN AREAS OF EXPERTISE AND EXPERIENCE OF BOARD MEMBERS

Each member of the Supervisory Board is asked to make a declaration listing the areas in which he or she has particular expertise. Thisdeclaration is made upon their appointment and again each year when the universal registration document is prepared.
The seven areas proposed correspond to:s the Hermès Group’s major operational issues;s the main subjects that the Supervisory Board and its committees are required to monitor as part of their duties (see § 3.4.3.2); ands CSR issues resulting from the materiality analysis presented in chapter 2 “Corporate social responsibility and non‑financial performance”,§ 2.1.3.

The chart “Main areas of experience and expertise of the members of the Board appointed by the General Meeting” in § 3.4.5.1 indicates:s the seven areas of expertise selected;s the number of Board members for each area of expertise.

3

A description of the main areas of expertise and experience of each Board member can be found in the individual presentations in § 3.4.8.

Criteria for the validation of expertiseComputing

Several years' training or experience, technical or managerial, in information
technology.

Cybersecurity

Several years' training or experience, technical or managerial, in cybersecurity,
data processing or networks.

Digital/Artiﬁcial intelligence/New technologies/Innovation

Expertise and knowledge in the digital sector, digitization, data and innovativetechnologies, artiﬁcial intelligence.
Experience in digital transformation.

International experience

Several years' professional experience abroad or at the head of departments incharge of or present in international/geographically varied markets.

Asian markets

More speciﬁc knowledge of the Asian market or several years' professional
experience in an Asian country.

Retail/e‑commerce

Several years' expertise and knowledge, technical or managerial experience in
the Retail and distribution sector.
Development experience in e‑commerce.

Human resources/Social issues

Degree in human resources, psychology or sociology.
Experience in a human resources department or committee of listedcompanies dealing with these subjects.
Experience as a manager.

Sustainable development/Management of raw materials
and supplies/
Resource and waste management

Attendance at a training course covering these topics, including those offeredby Hermès (water, sustainable forest, sustainable development, etc. - see §3.5.6.1.2).
Experience in a sustainable development department or equivalent.
Experience as a member of a CSR Committee for a listed company.
Experience in sustainable development strategy.

Climate change/Biodiversity

Attendance at a training course covering these topics, including those offeredby Hermès (climate change, biodiversity, animal welfare, etc. - see § 3.5.6.1.2).
Signiﬁcant contribution to sustainable development in the context of theiractivities or known for their promotion of sustainable activities in the economy
in general.
Experience as a member of a CSR Committee for a listed company.

-

-

-

Legal

Legal training or professional experience in a legal profession.

Ethics/ComplianceExperience and theoretical knowledge in ethics, human rights, compliance andgovernance.
Member of the Ethics Committee of a listed company.

Governance

IFA membership.
Knowledge of corporate governance through training.
Experience within a governance committee of a listed company.

-

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

301

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

Criteria for the validation of expertise---

Knowledge of the history and culture of Maison Hermès

Direct descendant of the founder, in‑depth knowledge of the House’s history
and culture.

Finance and audit

Experience in banking, investment, corporate ﬁnance, restructuring, mergers
and acquisitions, audit and control processes, risk management, as well as
accounting.
Member of an Audit Committee (or equivalent) of a listed company.

Internal control/Management control

Experience in internal control and management control, in a ﬁnancedepartment or general management.

Risk management

Experience in the ﬁeld of insurance or risk mapping.
Company Senior Executive.

Executive of a listed company

Several years' management experience in listed companies, as a Chief
Executive Ofﬁcer, Senior Executive or in other senior management positions.

Executive of an unlisted company

Several years' management experience in unlisted companies, as a Chief
Executive Ofﬁcer, Senior Executive or in other senior management positions.

Director of a listed company

One or more terms of ofﬁce in a listed company.

Director of an unlisted company

One or more terms of ofﬁce in an unlisted company.

Consulting
Skills and experience matrix as at 31/12/2023 1
Computing---Overall ratein %CAG‑CSR
Committee

Audit and Risk
Committee

216.67%

1

2

2

16.67%

1

2

Digital/Artiﬁcial intelligence/New technologies/Innovation

2

16.67%

1

2

7

58.33%

2

3

Asian markets

433.33%

1

1

Retail/e‑commerce

433.33%

0

2

8

866.66%

3

4

Sustainable development/Management of raw materials andsupplies/
Resource and waste management758.33%

3

2

Climate change/Biodiversity

3

25.00%

1

2

Legal

-

By sub‑domain
2

Human resources/Social issues-

By domain 2

Cybersecurity

International experience

-

9

4

33.33%

2

1

Ethics/Compliance10541.66%

2

3

Governance8

66.66%

2

2

Knowledge of the history and culture of Maison Hermès

9975.00%

2

2

Finance and audit

10975.00%

3

4

6

50.00%

2

2

6

50.00%

1

3

3

25.00%

1

2

8

66.66%

2

4

Internal control/Management control
Risk management
Executive of a listed company-

12

Executive of an unlisted company
Director of a listed company

325.00%

2

2

Director of an unlisted company

12100.00%35(1) Excluding Supervisory Board members representing employees.
(2) Combines the skills and experience mastered in the sub‑fields by at least one member.

302

Specialised committees

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.5.3

CHANGES IN THE SUPERVISORY BOARD DURING FINANCIAL YEAR 2023

The General Meeting of 20 April 2023 renewed the terms of ofﬁce asmembers of the Supervisory Board of Ms Dorothée Altmayer and Ms
Monique Cohen, as well as Messrs. Renaud Momméja and Éric deSeynes, for a term of three years expiring at the end of the Annual
Ordinary General Meeting called in 2026 to approve the ﬁnancial
statements for the ﬁnancial year ending 31 December 2025.

SUMMARY OF CHANGES IN THE COMPOSITION OF THE SUPERVISORY BOARD OVER THE PAST THREE FINANCIAL YEARS

Departures

Appointments

Renewals

2021

s Ms Olympia Guerrand (04/05/2021)
s Mr Matthieu Dumas (04/05/2021)
s Mr Blaise Guerrand (04/05/2021)
s Mr Alexandre Viros (04/05/2021)

2022

s Ms Pureza Cardoso (12/11/2022) s Mr Prescience Assoh (15/11/2022)
s Mr Rémy Kroll (12/11/2022)
s Ms Anne‑Lise Muhlmeyer (15/11/2022)

2023

s Ms Estelle Brachlianoff (20/04/2022)
s Ms Dominique Senequier(20/04/2022)
s Ms Julie Guerrand (20/04/2022)
s Mr Charles-Éric Bauer (20/04/2022)

3

s Ms Dorothée Altmayer (20/04/2023)
s Ms Monique Cohen (20/04/2023)
s Mr Renaud Momméja (20/04/2023)
s Mr Éric de Seynes (20/04/2023)

Changes in termsof diversiﬁcation(representation of
women, nationality
or experience) orchange with respect
to corporate
governance

The renewal of Board members in 2021, 2022 and 2023 made it possible for:s the proportion of independent members on the Board (1/3), the Audit and Risk Committee (60%) and the CAG‑CSR
Committee (2/3) to be maintained;s the proportion of women (50%) to be maintained;s the balance of powers within the Board to be maintained;s the proportion of employee representative members to be maintained (2).

A summary of changes in the composition of the Board committees can be found in § 3.6.1.2.

3.4.5.4

CHANGES IN THE SUPERVISORY BOARD AFTER 31 DECEMBER 2023

None.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

303

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.5.6

FUTURE CHANGES TO THE SUPERVISORY BOARD

The “Number of terms expiring” chart in § 3.4.1 indicates the number of terms of ofﬁce expiring over the next three years.
SUMMARY OF TERMS OF OFFICE

Maturity

Member concerned

2024 GMMr Matthieu Dumas
Mr Blaise Guerrand
Ms Olympia Guerrand2025 GMOﬃce(s) concerned

Impacted functions
Member of the CAG‑CSR Committee

Board member appointed by theGeneral Meeting

Mr Alexandre Viros

Member of the Audit and Risk Committee

Ms Dominique SenequierVice‑Chairwoman of the Board
Chairwoman and member of the CAG‑CSR Committee

Mr Charles-Éric Bauer
Ms Estelle Brachlianoff

Member of the Audit and Risk Committee

Board member appointed by theGeneral Meeting

Member of the Audit and Risk Committee
Member of the CAG‑CSR Committee

Ms Julie Guerrand
End 2025

Mr Prescience AssohMs Anne‑Lise Muhlmeyer

2026 GM

Member of the Board representing
employees appointed by the Group
Works Council

Mr Éric de Seynes

Chairman of the Board

Ms Monique Cohen
Board member appointed by theGeneral Meeting

Vice‑Chairwoman of the Board
Chairwoman and member of the Audit and Risk
Committee

Ms Dorothée Altmayer
Member of the Audit and Risk Committee

Mr Renaud Momméja

3.4.5.6.1

Renewal of terms of office expiring in 2024

The terms of ofﬁce of four members of the Supervisory Board (MsOlympia Guerrand and Messrs Matthieu Dumas, Blaise Guerrand andAlexandre Viros) expire in 2024 and all four wish to present
themselves as candidates for their own succession.
It is proposed that the General Meeting of 30 April 2024 renew theirterms of ofﬁce for the period of three years as set out in the Articles
of Association, for the reasons set out in chapter 8 “Combined
General Meeting of 30 April 2024”, § 8.2.1 “Explanatory statement to
the thirteenth to sixteenth resolutions”.

304

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

3.4.5.6.2

Non‑renewal of terms of office expiring in 2024

As indicated above, it is proposed that the General Meeting of
30 April 2024 renew all terms of ofﬁce expiring in 2024.

3.4.5.6.3

Appointment of new members of the Supervisory
Board proposed to the General Meeting of 30 April2024

No appointment of new members of the Supervisory Board is
proposed to the General Meeting of 30 April 2024.

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.6

INDEPENDENCE OF THE MEMBERS OF THE SUPERVISORY BOARD

3.4.6.1

DEFINITION AND INDEPENDENCE CRITERIA

Members of the Supervisory Board are independent if they have no relationship of any kind whatsoever with the Company, its group or its
management that is liable to compromise the exercise of their freedom of judgement in any way (Article 2.1.5 of the rules of procedure). This
independence allows for freedom of expression and judgment that contributes to the quality of the Board’s debates and deliberations.
In 2009, the Supervisory Board formally adopted the following criteria for its members to be deemed independent:s comply with the criteria set out in the Afep‑Medef Code revised in December 2022 (Articles 10.5 to 10.7):

Criterion 1:

Employee or Corporate Oﬃcer in the previous ﬁve years
Not to be and not to have been during the course of the previous ﬁve years:s an employee or Executive Corporate Officer of the Company;s an employee, Executive Corporate Officer or a director of a company consolidated by the Company;s an employee, Executive Corporate Officer or a director of the Company’s parent company or a company consolidated by this parent.

Criterion 2:

Cross‑directorships
Not to be an Executive Corporate Ofﬁcer of a company in which the Company holds a directorship, directly or indirectly, or in which an
employee appointed as such or an Executive Corporate Ofﬁcer of the Company (currently in ofﬁce or having held such ofﬁce during thelast ﬁve years) is a director.

Criterion 3:

Signiﬁcant business relationships
Not to be a customer, supplier, commercial banker, investment banker or consultant:s that is material to the Company or its group;s or for which the Company or its group represents a significant part of its business.
The evaluation of the signiﬁcant or non‑signiﬁcant relationship with the Company or its group must be debated by the Board and thequantitative and qualitative criteria that lead to the evaluation (continuity, economic dependence, exclusivity, etc.) must be explicitly
stated in the corporate governance report.

Criterion 4:

Family ties
Not to be related by close family ties to a Corporate Ofﬁcer.

Criterion 5:

Statutory Auditors
Not to have been a Statutory Auditor of the Company within the previous ﬁve years.

Criterion 6:

Term of oﬃce exceeding 12 years
Not to have been a Director of the Company for more than 12 years. The status of independent director is lost as soon as the 12 years
is reached.

Criterion 7:

Status of non‑Executive Corporate Oﬃcer
A non‑Executive Corporate Ofﬁcer cannot be considered as independent if he/she receives variable compensation in cash or in sharesor any compensation linked to the performance of the Company or the Group.

Criterion 8:

Status of main shareholder
Directors representing main shareholders of the Company or its parent company can be considered as independent provided that they
do not contribute to the control of the Company. However, beyond the threshold of 10% shareholding or voting rights, the Board, basedon the report of the Appointments Committee, systematically reviews the qualiﬁcation of independence, by taking into account theshare ownership in the Company and the existence of a potential conﬂict of interest.

3

s comply with an additional criterion specific to Hermès International:

Criterion 9:

Status of partner or member of the Executive Management Board of the Active Partner
Not to be a partner or member of the Executive Management Board of Émile Hermès SAS, Active Partner.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

305

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.6.2

SITUATION AS AT 31 DECEMBER 2023 WITH REGARD TO THE INDEPENDENCE CRITERIA SET OUT ABOVE

3.4.6.2.1

Independence of the Supervisory Board

The proportion of independent members on the Supervisory Board
has been one‑third (i.e. four out of 12 members appointed by theGeneral Meeting) since the criteria were introduced in 2009. In
accordance with the provisions of the Afep‑Medef Code, revised in
December 2022 (Article 10.3), employee representative membersof the Board are not taken into account when calculating this
proportion.

This proportion is consistent with:

As at 31 December 2023, the CAG‑CSR Committee examined thesituation of each of its members in respect of the above criteria on acase‑by‑case basis, and deemed four of them to be “independent”:
Mses Estelle Brachlianoff, Monique Cohen, Dominique Senequier and
Mr Alexandre Viros.

s in order to categorise Board members as independent under thecriteria set out above;

This analysis is carried out each year on the basis of a questionnaire
sent to all Supervisory Board members (see § 3.4.7.5) in which they
are asked to make a sworn statement:

In particular, the Board identiﬁed no signiﬁcant business relationships
between its members and the Company.

s the recommendations of the Afep‑Medef Code (Article 10.3) for
controlled companies within the meaning of Article L. 233‑3 of
the French Commercial Code (Code de commerce);s the Supervisory Board rules of procedure (Article 2.1.5.1).

s to detail the business relationships with the Group during the year
and to confirm that these are not likely to create a potential conflictof interest.

The table below summarises the criteria satisﬁed for each member of the Supervisory Board:

Criteria

Monique Dominique
Éric deCohen Senequier
Seynes(Vice(Vice(Chairman) Chairwoman) Chairwoman)

Criterion 1

Prescience
Assoh
Dorothée(employee Charles-Éric
EstelleAltmayer representative)
Bauer Brachlianoﬀ√√

Criterion 2

√

√

√

√

√

√

√

Criterion 3

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

Criterion 8

√

√

√

Criterion 9√√

INDEPENDENT√√

Criterion 4
Criterion 5√

Criterion 6
Criterion 7√

Matthieu
Dumas

BlaiseGuerrand

√

√

Julie
GuerrandOlympia
GuerrandAnne‑Lise
Muhlmeyer
Renaud(employee
Momméja representative)√

Alexandre
Viros
√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

N/A

√

N/A

√

√

√
√

√

√

√
√

√

√

√

√
√

√

√

√

√
√

√

√

√: represents an independence criterion satisﬁed.
n/a: not applicable.

3.4.6.2.2

Independence of the CAG‑CSR Committee

The proportion of independent members on the CAG‑CSR Committee
is two‑thirds (i.e. two out of three members), including its
Chairwoman.
This proportion is in line with the recommendations of the Afep‑Medef
Code, revised in December 2022 (Article 19.1).

3.4.6.2.3

Independence of the Audit and Risk Committee

The proportion of independent members on the Audit and Risk
Committee is 60% (i.e. three out of ﬁve members), including its
Chairwoman.

306

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

This proportion is slightly lower than the recommendation of theAfep‑Medef Code revised in December 2022 (Article 17.1). The Board
considered however that it enabled the Committee to function
properly. In its 2014 report, the HCGE considered “that an Audit
Committee with, for example, three independent members out of ﬁve
remains compliant with the spirit of the Code, provided that the
Chairman is an independent member”, as is the case for thisCompany.

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.7

SUPERVISORY BOARD ETHICS

3.4.7.1

SUPERVISORY BOARD RULES OF PROCEDURE

At its meeting of 18 March 2009, the Supervisory Board adopted
its rules of procedure, which set out the terms governing thestructure and functioning of Hermès International’s Supervisory
Board and its committees, in addition to applicable legal andstatutory provisions. Their purpose is to enhance the quality of theBoard’s work by promoting the application of good corporate
governance principles and best practices, in the interests of ethics
and greater effectiveness.
These rules of procedure are regularly reviewed to adapt to legal
and regulatory changes and to take into account therecommendations of the French Financial Markets Authority (AMF)
and revisions to the Afep‑Medef Code.
The full text of the Supervisory Board’s rules of procedure ismade available at each update at https://ﬁnance.hermes.com/
en/governing‑bodies‑rules‑procedure‑articles‑association/.

3.4.7.3

STOCK MARKET ETHICS CODE

On 1 February 2017, the Supervisory Board adopted a HermèsGroup Stock Market Ethics Code as recommended by the AMF. Its
purpose is to describe the measures put in place within the
Hermès Group to prevent market abuse in Hermès International
shares.
This Stock Market Ethics Code is regularly reviewed to adapt tolegislative and regulatory changes and to take into account therecommendations of the French Financial Markets Authority (AMF).
A summary of the Hermès Group Stock Market Ethics Code can befound in chapter 7 “Information on the Company and its sharecapital”, § 7.2.4.
It is made available at each update at
ﬁnance.hermes.com/en/
governing‑bodies‑rules‑procedure‑articles‑association/.

It covers the following measures:

The main provisions of the Supervisory Board and committee rules ofprocedure are set out in this chapter 3.

s prevention of insider trading;

It details in particular the ethics principles during the holding of ofﬁce:s stock market ethics;s duties: guiding principles;s abstention requirement (blackout periods);

s confidentiality;s reporting obligation.

s prevention of insider trading – stock market ethics – abstention
obligation – reporting obligation;

This code is sent to all members of the Supervisory Board each time
it is updated.

s business relationships,
statements.

The members of the Supervisory Board are subject to blackout
periods. They are also required to report transactions in HermèsInternational shares to the AMF within three trading days. The AMF
General Regulation provides that the reporting obligation only applies
when the total amount of transactions carried out during the calendar
year is greater than €20,000.

3.4.7.2

conflicts of interest and personal

COMMITTEE RULES OF PROCEDURE

Committee rules of procedure are described in § 3.6.2.2 for the
CAG‑CSR Committee and § 3.6.3.2 for the Audit and Risk Committee.
The full text of the committees’ rules of procedure is madeavailable at each update at https://ﬁnance.hermes.com/en/
governing‑bodies‑rules‑procedure‑articles‑association/.

3

https://The declarations made during 2023 are listed in chapter 7“Information on the Company and its share capital”, § 7.2.3.
They may seek the advice of the Compliance Ofﬁcer prior to carryingout a transaction.
In addition, the Company has developed an e‑learning training courseon the prevention of market abuse, which all Supervisory Board
members must follow.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

307

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.7.4

ATTENDANCEThe Supervisory Board’s rules of procedure (Article 2.2.2.1) state that
Supervisory Board members undertake to participate actively in all
meetings of the Board and of the specialised committees of which
they are a member.

During ﬁnancial year 2023, seven meetings of the Supervisory
Board, six meetings of the Audit and Risk Committee and six
meetings of the CAG‑CSR Committee were held, with the regularattendance of almost all members, as shown in the table below:
10 of the 14 members attended all Board meetings.

The compensation policy for members of the Supervisory Board
established by the Board is described in § 3.8.1.3.

Each absence was the subject of a precise and detailed
justiﬁcation by the relevant Board members.

This policy includes a majority variable component proportional toattendance at meetings (see tables in § 3.5.7.1).

All members were physically present at the meetings in which they
participated (no remote participation by videoconference).

Barring an unforeseen obstacle or exceptional circumstances, remoteparticipation by telecommunication means should remain exceptional
but is remunerated under the same conditions.

2023
Total number of meetings
Overall attendance rate

Attendance at Supervisory Attendance at Audit andBoard meetings Risk Committee meetings

Attendance at CAG‑CSR
Committee meetings

7

6

6

93.88%

100.00%94.44%

Éric de Seynes (Chairman)

100.00%n/an/aMonique Cohen (Vice‑Chairwoman)

100.00%100.00%n/aDominique Senequier (Vice‑Chairwoman)

57.14%

n/a

83.33%

Dorothée Altmayer

100.00%n/a

n/aPrescience Assoh (employee representative)

100.00%n/an/aCharles-Éric Bauer

100.00%100.00%n/aEstelle Brachlianoff

85.71%

100.00%100.00%Matthieu Dumas

100.00%n/a

100.00%Blaise Guerrand

100.00%n/an/aJulie Guerrand

100.00%n/an/aOlympia Guerrand

100.00%n/an/aRenaud Momméja

85.71%

100.00%n/aAnne‑Lise Muhlmeyer (employee representative)

85.71%n/an/aAlexandre Viros

100.00%100.00%n/aAttendance calculated by establishing the ratio between the number of actual attendance or attendance using telecommunication and the number of meetings applicable toeach member.
n/a: not applicable.

308

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.7.5

MEASURES TAKEN TO ENSURE A BALANCE
OF POWERS WITHIN THE BOARD AND AVOIDPOTENTIAL CONFLICTS OF INTEREST

The governance of the Company is by nature dissociated (see§ 3.2.3), which guarantees a strict separation of executive powers
and control powers.
The Supervisory Board comprises at least one‑third independent
members (see § 3.4.3.2). The Audit and Risk Committee isthree‑ﬁfths independent members and the CAG‑CSR Committee
two‑thirds.
In accordance with Article 2.2.2.4 of the Supervisory Board’s rules ofprocedure, each member of the Supervisory Board shall at all times
maintain his or her independence of thought, analysis, judgment andaction and shall endeavour to this end to avoid any conﬂicts ofinterest.
Each member shall inform the Supervisory Board of any conﬂicts ofinterest in which they might be involved. In the event of a potential
conﬂict of interest, the member concerned must immediately notify
the Chairman of the Supervisory Board, who then informs the
CAG‑CSR Committee so that, based on an analysis of the situation
declared, it can form an opinion. This opinion is then submitted to theSupervisory Board and, if the Board decides to follow it, is thennotiﬁed to the person concerned by the Chairman of the Board. The
Board’s decision is recorded in the minutes of the meeting. The
Supervisory Board member concerned shall refrain from attending
the discussions and from voting on the corresponding deliberation
and any decisions on the matters in question.

The declaration serves as a basis to evaluate the material nature ofbusiness relationships that could affect the independence of aSupervisory Board member as required by recommendation 10.5.3 of
the Afep‑Medef Code revised in December 2022. The business
relationship evaluation criteria are quantitative (amount of sales orrevenue generated during the ﬁnancial year and the percentage
represented by those amounts in relation to the counterparty’s total
sales or revenue) and qualitative (nature of existing business
relationships).
As regards the quantitative criteria, the Supervisory Board did notconsider it appropriate, given the diversity of possible situations, toset a threshold below which a business relationship would be
deemed immaterial. The evaluation is made on a case‑by‑case basis.
Mses Monique Cohen and Estelle Brachlianoff, and Mr Alexandre
Viros did not declare any business relationship with the Company.

After examining each of these situations in early 2024, the
CAG‑CSR Committee concluded that none of them were of such anature as to constitute a conﬂict of interest for the persons
concerned and that none of the independent members of theBoard had, directly or indirectly, signiﬁcant business relationships
with the Company or its group.

More speciﬁcally, the member concerned shall inform the Chairmanof the Supervisory Board of their intention to accept a new corporateofﬁce or any involvement in the specialised committees of a corporate
body, or any new position, such that the Supervisory Board, upon the
proposal of the CAG‑CSR Committee, may decide on the compatibilityof such an appointment with the term of ofﬁce as a member of theCompany’s Supervisory Board.

3.4.7.6

At the end of their term of ofﬁce, members of the Supervisory Board
must respect a minimum period of three years before seeking and/or
accepting the exercise of a term of ofﬁce in a company conducting
activities that compete with those of the Group and/or in a company
in which the Group holds a signiﬁcant investment.

Each member of the Supervisory Board must disclose the list ofofﬁces and positions held in any company during the last ﬁve years at
the time of his or her ﬁrst appointment and each year when theuniversal registration document is being prepared. The information
disclosed, and in particular the ofﬁces held in listed companies, isdetailed in the information on each individual Board member
presented in § 3.4.8.

Each member of the Supervisory Board must also make a sworn
statement stating whether or not there is a conﬂict of interest, even a
potential one:s at the time of his or her appointment;s each year when the universal registration document is being
prepared.

The declaration describes all possible situations, with precise
examples, inviting the members of the Board to declare all situations
that could represent a potential conﬂict of interest.

3

Ms Dominique Senequier declared a non‑signiﬁcant business
relationship described in chapter 5 “Consolidated ﬁnancial
statements”, § 5.6 (Note 13.2 [Ardian Holding]) under related‑party
transactions.

PLURALITY AND NUMBER OF OFFICES

The ofﬁces of members of the Supervisory Board are not taken into
account when calculating the plurality of ofﬁces, Articles L. 225‑21
and L. 225‑77 of the French Commercial Code (Code de commerce)being expressly excluded from the provisions applicable to sociétés
en commandite par actions (partnerships limited by shares).

The examination of the situation of each member of the Supervisory
Board and of the Executive Chairmen as regards the plurality andnumber of ofﬁces, showed that no member of the Supervisory Board
or Executive Chairman was in a situation of concurrent holding ofofﬁces, with regard to both the legal rules and to the principles set out
in Article 20.4 of the Afep‑Medef Code revised in December 2022.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

309

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8

INFORMATION ON SITTING MEMBERS OF THE SUPERVISORY BOARD

3.4.8.1

MR ÉRIC DE SEYNES
Age
63 years 1(9 June 1960)

ÉRIC DE SEYNES

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
226 full ownership and 285 bare ownershipand registered—
Date of ﬁrst appointment
Supervisory Board
7 June 2010 (he previously held this ofﬁce from2005 until 2008)
Chairman of the Supervisory Board
3 March 2011
Éric de Seynes was also:a member of the Audit and Risk Committee from2005 to 2008 and a member of the Executive
Management Board of Émile Hermès SAS (SARL
at that time) from 2008 to 2010
Term of current ofﬁce
2026 GM
Main activities outside the Company

In Hermès Group
companies

Oﬃces and positions
held during ﬁnancial
year 2023

Outside HermèsGroup companies

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

Member of the Hermès International Supervisory Board (Chairman)
A direct descendant of Mr Émile‑Maurice Hermès

Summary of main areas of expertise and experience
Mr Éric de Seynes is a graduate of the École Supérieure Libre des Sciences Commerciales Appliquées(ESLSCA) with a specialisation in marketing.
Prior to 2017, he was successively: Head of Marketing for Mobil Oil Française, Director of Sponsoring for
Seita, Marketing Director for Sonauto‑Yamaha, Director of Marketing and Sales for Yamaha Motor France,
Chairman of the Option group, Chairman and Chief Executive Ofﬁcer of Yamaha Motor France, Operational
Director of Yamaha Motor Europe, and Chief Operating Ofﬁcer of Yamaha Motor Europe.
Since 1 January 2018, he has been Chairman and Chief Executive Ofﬁcer of Yamaha Motor Europe, as well
as Executive Ofﬁcer of Yamaha Motor Co. Ltd (Japan) since 2016 and member of the Executive Committee ofthe Association of European Motorcycle Manufacturers (ACEM) since 2014.
He was appointed Senior Executive Ofﬁcer of Yamaha Motor Co. Ltd (Japan) in 2020, Vice‑Chairman of ACEM
in 2022 and has been Chairman of the International Motorcycle Manufacturers' Association (IMMA) since2023.

Key skills
He brings to the Board his in‑depth knowledge of the history and culture of Hermès, alongside his leadershipskills. His professional background, his extensive managerial experience, his skills as an operational andfunctional executive of an industrial group with an international dimension, and the commitment with which
he carries out his duties and chairs the Board enable him to make an effective contribution to the quality ofthe discussions and work of the Board in all of its areas of responsibility.

Chairman and Chief Executive Ofﬁcer of Yamaha Motor Europe.
Chairman of the International Motorcycle Manufacturers' Association (IMMA).
French companies ▲Foreign companies ▲s Hermès International ●Chairman and member of theSupervisory Boards Hermès Sellier
Member of the Management Board

None

French companies

Foreign companies

s CAPI
Co‑Executive Chairmans Groupe option SARLManagers GuiseMember of the Management Committees H51
Directors Krefeld
Directors MBK SA Directors Sféric 2
Managers Yamaha Motor France Finance SAS
Directors Yamaha Motor Europe NV (Netherlands)
Chairman and Chief Executive Officers Inha Works Limited (Finland)
Directors Motori Minarelli (Italy)
Directors Yamaha Motor Research & Development Europe
S.p.A (Italy)
Director

French companies

Foreign companiess Les Producteurs SA
Director (ended in January 2019)s Sféric SAS
Chairman (term ended on
25/11/2022)

s Yamaha Motor Germany GmbH (Germany)
Chairman(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

310

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.2

MS MONIQUE COHENAgeMONIQUE COHEN

67 years 1(28 January 1956)

Independent member of the Hermès International Supervisory Board(Vice‑Chairwoman)
Member of the Audit and Risk Committee (Chairwoman)

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
250
full ownership and registered—
Date of ﬁrst appointment

Summary of main areas of expertise and experience
Ms Monique Cohen is a graduate of École Polytechnique (X76), and holds a master’s degree inmathematics and a degree in business law.
She began her career in 1979 at Paribas as a senior banker, then as the worldwide manager for
equity‑related métiers. From 2000 to 2020, she was a partner at Apax Partners, in charge ofinvestments in business services, ﬁnancial services and healthcare. Since July 2020, she has
been Senior Advisor at Apax Partners.
Ms Monique Cohen is a lead independent Director of the Safran group. She was appointed to theBoard of Directors of BNP Paribas on 12 February 2014. Until September 2014 she sat on the
Board of the French Financial Markets Authority (AMF).

3

Supervisory Board
3 June 2014
Audit and Risk Committee
3 June 2014
Term of current ofﬁce
2026 GM
Main activities outside the Company
In Hermès Group
companies

Oﬃces and positions
held during ﬁnancial
year 2023

Outside HermèsGroup companies

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

Key skills
Her professional background, her experience as a manager and director of large internationalgroups, her knowledge of ﬁnancial and banking markets, her expertise in managing equity
investments and her ﬁnancial vision of shareholders, and the commitment with which she carries
out her duties and chairs the Audit and Risk Committee enable her to make an effective
contribution to the quality of the discussions and work of the Board in all of its areas of
responsibility.
Senior Advisor at Apax Partners (since 01/07/2020).
French companies ▲Foreign companies ▲s Hermès International ●Vice‑Chairwoman and member of theSupervisory Board, Chairwoman of the
Audit and Risk Committee

None

French companies

Foreign companiess BNP Paribas ● Director, member of the Internal
Control, Risks and Compliance
Committee, Chairwoman of theGovernance, Ethics, Appointments andCSR Committees Fidès Participations
Member of the Supervisory Boards Safran ● Lead Director and Chairwoman of theCompensation and Appointments
Committees SC Fabadari
Managing Partners Proxima Investissement (Luxembourg)
Chairwoman of the Board of Directors and Director

French companies

Foreign companiess Apax Partners MidMarket
Director (term ended on 30/06/2020)

None(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

311

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.3

MS DOMINIQUE SENEQUIERAgeDOMINIQUE SENEQUIER

70 years 1(21 August 1953)

Independent member of the Hermès International Supervisory Board(Vice‑Chairwoman)
Member of the CAG‑CSR Committee (Chairwoman)

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
200
full ownership and registered—
Date of ﬁrst appointment
Supervisory Board

Summary of main areas of expertise and experience
Ms Dominique Senequier is a graduate of École Polytechnique (X72) and holds a postgraduate
diploma (DEA) in Currency Banking Finance from the Sorbonne University.
She began her career at GAN (1980) where she started up and developed the subsidiary GAN
Participations, after being Acquisitions Manager for the group and spending ﬁve years in theinsurance inspectorate.
In 1996, she joined the AXA group and founded AXA Private Equity. At the end of 2013, AXA Private
Equity became the Ardian group, of which she is currently Chairwoman.
Ms Dominique Senequier has been an Academic at the Académie des sciences morales etpolitiques since 16 January 2023 and member of the Board of Directors of the Fondation duCollège de France since 14 December 2023.

4 June 2013
CAG‑CSR Committee
4 June 2013
Term of current ofﬁce
2025 GM

Main activities outside the Company

In Hermès Group
companies

Oﬃces and positions
held during ﬁnancial
year 2023
Outside HermèsGroup companies

Key skills
She brings to the Board her expertise in the ﬁelds of ﬁnance and private equity, as well as her
understanding of global macroeconomic and geopolitical issues. Her grasp of corporate
governance, her international dimension acquired in China, the United States, the Middle East andemerging countries, and the commitment with which she carries out her duties and directs thework of the CAG‑CSR Committee enable her to make an effective contribution to the quality of the
discussions and work of the Board in all of its areas of responsibility.
Chairwoman of the Ardian Group.
Ms Dominique Senequier is a qualiﬁed member of the Board of Directors and Treasurer of the
Fondation Jean‑Jacques Lafont - Toulouse Sciences Économiques (TSE) and a qualiﬁed member ofthe Board of Directors of the Singer‑Polignac Foundation.
French companies ▲Foreign companies ▲s Hermès International ●Vice‑Chairwoman and member of theSupervisory Board, Chairwoman of the
CAG‑CSR Committee

None

French companies

Foreign companiess Ardian Holding
Permanent Representative of Senus
SAS, Chairwomans SCI 30 rue Jacob SCIManagers Senus SAS
Chairwomans William Christie (Association loi 1901)
Member of the Board of Directorss Ardian Investment Switzerland AG (Switzerland),
Director (term ended on 08/11/2023)
s Ardian Investment Switzerland Holding AG(Switzerland), Director (term ended on
08/11/2023)
s Ardian US LLC (United States)
Member of the ANAF II Investment Committees Paros Properties Corp. (United States)
Chairwoman(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

312

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

Other oﬃces and positions held during theprevious four ﬁnancial years and having ended
before 1 January 2023

French companies

Foreign companiess Théâtre des Champs-Élysées SA
Director (term ended on 31/08/2020)s Ardian Investment Switzerland AG(Switzerland) Chairwoman of the Board of
Directors (term ended on 19/09/2022)s Ardian Investment Switzerland Holding AG(Switzerland) Chairwoman of the Board of
Directors (term ended on 19/09/2022)s Ardian Investment UK Ltd (United Kingdom)
Member of the Board of Directors (term ended
on 22/03/2022)s Ardian US LLC (United States)
Chairwoman of the Supervisory Committee,
member of the SOLAR Investment Committee,
member of the ANAF II Investment Committee(term ended on 04/11/2022)s Ardian US LLC (United States)
Member of the ASF III‑2, AESF III‑2 and AESF IV
Investment Committees (term ended on
26/06/2020)s Ardian Beijing Consulting Limited Company
LLC (China)
Member of the Board of Directors (term ended
on 13/05/2019)s Ardian Investment Singapore Pte Ltd(Singapore)Member of the Board of Directors (term ended
on 13/05/2019)s Seneq Srl (Belgium)Managing Director (term ended on
30/06/2022)

3- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

313

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.4

MS DOROTHÉE ALTMAYER
Age
62 years 1

DOROTHÉE ALTMAYER(1 March 1961)

Member of the Supervisory Board of Hermès International
A direct descendant of Mr Émile‑Maurice Hermès

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
200
full ownership and registered—
Date of ﬁrst appointment
Supervisory Board
6 June 2017
Term of current ofﬁce
2026 GM

Main activities outside the Company
In Hermès Group
companies

Oﬃces and positions
held during ﬁnancial
year 2023

Outside HermèsGroup companies

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

Summary of main areas of expertise and experience
Ms Dorothée Altmayer holds a degree in clinical psychology from École de Psychologues Praticiens(EPP/Psychoprat) (1984), a diploma in graphology from the Société française de graphologie(1987) and a diploma in plastic arts mediation psychotherapy (2006).
She ﬁrst worked as a recruitment and outplacement consultant at International Business Drive(Algoe Executive group). Since 2000 she has been a practising clinical psychologist.
She has held temporary positions at the Hôpital Necker, the Main dans la main association, theInstitut Mutualiste Montsouris (day hospital for adolescents) and the Centre Recherches etRencontres.
From 2007 to 2020, she ran her own private practice, specialising in parent‑child interviews,
psychological evaluations and individual art therapy sessions for children. Since the end of 2020
she has continued to carry out this activity in reduced form, with her current customers.
Key skills
She brings to the Board her in‑depth knowledge of the history and culture of Hermès. Her
professional background, her skills in human resources, and the commitment with which she
carries out her duties enable her to make an effective contribution to the quality of the discussions
and work of the Board in all of its areas of responsibility.
Clinical psychologist specialised in parent‑child interviews and individual art therapy sessions forchildren.
French companies ▲Foreign companies ▲s Hermès International ●Member of the Supervisory Boards Comptoir Nouveau de la Parfumerie Director

None

French companies

Foreign companies

s Alvila 2Managers Jeanstedor
Member of the Management Board

None

French companies

Foreign companies

s Alvila
Manager (term ended on 10/12/2020)s Alvila Immobilier
Manager (term ended on 10/10/2022)

None(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

314

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.5

MR PRESCIENCE ASSOHPRESCIENCE ASSOHAge
40 years 1

Employee representative member of the Supervisory Board of HermèsInternational(26 January 1983)
Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
13
full ownership and registered—
Date of ﬁrst appointment
Supervisory Board

Summary of main areas of expertise and experience
Holder of a Baccalaureate in industrial science and technology with a speciality in civil engineering,
Mr Prescience Assoh has been working in the luxury goods sector for 20 years (notably inwatchmaking). He joined the Group less than eight years ago as a sales associate at the Hermès
store on rue de Sèvres in Paris, ﬁrst in the Watches department, then in the Jewellery Accessories
department, and currently works in the leather goods department.
From 2018 to 2022, he was employee representative in the Hermès Distribution France division.

3

Key skills
He brings to the Board his internal knowledge of the Maison Hermès, and more speciﬁcally the
Hermès Distribution division, retail store sales and the vision of the employees he represents.

(Designated by the Group Works Council)
15 November 2022
Term of current ofﬁce
15 November 2025
Main activities outside the Company
Oﬃces and positions
held during ﬁnancial
year 2023

In Hermès Group
companies
Outside HermèsGroup companies

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

None
French companies ▲Foreign companies ▲

None

None

French companies

Foreign companies

None

None

French companies

Foreign companies

Member of the Hermès Sellier SEC (HDF
division)

None(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

315

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.6

MR CHARLES-ÉRIC BAUERAgeCHARLES-ÉRIC BAUER

59 years 1(9 January 1964)

Member of the Supervisory Board of Hermès International, member of the
Audit and Risk Committee
A direct descendant of Mr Émile‑Maurice Hermès

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
75,748full ownership and registered—
Date of ﬁrst appointment
Supervisory Board
3 June 2008
Audit and Risk Committee
26 January 2005

Summary of main areas of expertise and experience
Mr Charles-Éric Bauer holds graduate degrees of École d’Administration et Direction des Affaires(EAD) business school, with an option in ﬁnance. He also holds a degree in technical analysis from
Institut des Techniques de Marchés.
He also served as Co‑Managing Director and Head of Mutual Fund Management at CaixaGestion
from 2000 to 2005, and as Director of Corporate and Institutional Clients, CaixaBank France from2005 to 2007.
Since March 2007 he has been the Managing Partner of Hem‑Fi Conseil, a private equity ﬁrm.
Key skills
He brings to the Board his in‑depth knowledge of the history and culture of Hermès. His expertisein banking and ﬁnance, and the commitment with which he carries out his duties and participatesin the Audit and Risk Committee enable him to make an effective contribution to the quality of the
discussions and work of the Board in all of its areas of responsibility.

Term of current ofﬁce
2025 GM
Main activities outside the Company
In Hermès Group
companies
Oﬃces and positions
held during ﬁnancial
year 2023

Outside HermèsGroup companies

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

Associate Director of Hem‑Fi Conseil, a capital investment company.
French companies ▲Foreign companies ▲s Hermès International ●Member of the Supervisory Board andAudit and Risk Committee

None

French companies

Foreign companiess Almareen 2Managers H51
Directors Hem‑Fi Conseil
Associate Directors Krefeld
Directors Sabarots
Managers Samain B2
Managers YundalManagers ZumseeManagers Carlynedie (Spain)
Manager

French companies

Foreign companies

None

None

(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

316

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.7

MS ESTELLE BRACHLIANOFFAgeESTELLE BRACHLIANOFF

51 years 1(26 July 1972)

Independent member of the Supervisory Board of Hermès International
Member of the Audit and Risk Committee
Member of the CAG‑CSR Committee

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
100
full ownership and registered—
Date of ﬁrst appointment
Supervisory Board

Summary of main areas of expertise and experience
Ms Estelle Brachlianoff is a graduate of École Polytechnique and École Nationale des Ponts et
Chaussées.
Ms Estelle Brachlianoff began her career in transport infrastructure and worked with the Prefect ofthe Île‑de‑France Region on transport and urban planning issues. She joined Veolia in 2005, andwas appointed head of Industrial Cleaning and Facilities Management in 2007 before serving ashead of the Waste Management business in the Île‑de‑France region from 2010 and then the UKfrom 2012.
A member of Veolia’s Executive Committee since 2013 and Director of the United Kingdom &Ireland zone from 2013 to 2018, then Deputy Managing Director of Operations from 2018 to2022, Ms Estelle Brachlianoff has been Managing Director of Veolia since 1 July 2022.

3

4 June 2019
Audit and Risk Committee
4 June 2019
CAG‑CSR Committee
4 June 2019
Term of current ofﬁce

Key skills
Her experience as a high‑level manager in a group with an international dimension, steering
structures undergoing transformation, as well as her expertise in CSR and the commitment withwhich she carries out her duties and participates in the Audit and Risk Committee and the
CAG‑CSR Committee enable her to make an effective contribution to the quality of the discussions
and work of the Board in all of its areas of responsibility. She also brings her dynamism, intellectual
agility and the special care she gives to the quality of human relations in organisations.

2025 GM
Main activities outside the Company
In Hermès Group
companies
Oﬃces and positions
held during ﬁnancial
year 2023
Outside HermèsGroup companies

Managing Director of Veolia.
French companies ▲Foreign companies ▲s Hermès International ●Member of the Supervisory Board,
member of the Audit and Risk
Committee and member of the CAG‑CSR
Committee

None

French companies

Foreign companiess Eaux de Marseille
Chairwoman and Directors Veolia ● Managing Director and directors Veolia Eau – Compagnie Générale desEauxMember of the Supervisory Board

None(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

317

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

French companies

Foreign companiess SARP
Director (term ended on 07/11/2022)
s SARP Industries
Director (term ended on 26/09/2022)
s Veolia Africa
Chairwoman and Executive
Vice‑President (term ended on
03/04/2019)s Veolia Eau – Compagnie Générale desEauxMember of the Supervisory Board (termended on 30/06/2022)
s Veolia Énergie France
Chairwoman (term ended on
20/09/2022)
s Veolia Énergie International
Chairwoman and Executive
Vice‑President and Director (termended on 03/03/2022)
s Veolia Propreté
Chairwoman (term ended on
12/10/2022)
s Veolia Water
Chairwoman (term ended on
19/09/2022)

s Comgen Australia (Australia)
Chairwoman and Director (term ended on
31/12/2022)
s Veolia China Holding (China)
Chairwoman and Director (term ended on
13/09/2022)
s Veolia Decommissioning Services Norway AS(Norway)
Chairwoman and Director (term ended on
19/09/2019)s Veolia Energy UK Plc. (United Kingdom)
Director (term ended on 03/10/2022)
s Veolia Environmental Services Australia(Australia)
Chairwoman and Director (term ended on
31/12/2022)
s Veolia Environmental Services China (China)
Chairwoman and Director (term ended on
13/09/2022)
s Veolia Environmental Services UK (United
Kingdom)
Director (term ended on 10/10/2022)
s Veolia ES Holding UK (United Kingdom)
Director (term ended on 03/10/2022)
s Veolia Holding America Latina, S.A. (Spain)
Chairwoman (term ended on 02/09/2022)
s Veolia Japan K.K. (Japan)
Director (term ended on 28/12/2022)
s Veolia UK Limited (United Kingdom)
Director (term ended on 03/10/2022)
s Veolia Water UK Limited (United Kingdom)
Director (term ended on 03/10/2022)- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

318

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.8

MR MATTHIEU DUMASAgeMATTHIEU DUMAS

51 years 1(6 December 1972)

Member of the Supervisory Board of Hermès International, member of the
CAG‑CSR Committee
A direct descendant of Mr Émile‑Maurice Hermès

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
1,433 full ownership and 30 in usufruct andregistered—
Date of ﬁrst appointment
Supervisory Board
3 June 2008

Summary of main areas of expertise and experience
Mr Matthieu Dumas holds a master’s degree in law from Université Paris II‑Panthéon‑Assas and amaster’s degree in management, majoring in strategic marketing, development and corporate
communication from the Institut Supérieur de Gestion.
From 2001 to 2003 he was Head of Promotion and Partnerships at Cuisine TV (Canal+ group) andthen Director of Marketing and Business Development from 2003 to 2006. In 2008 he wasappointed Brand Manager of 13e Rue, NBC Universal group, then Deputy Managing Director of all
Pure Screens brands in 2010, and was Director of Marketing and Communication of the Discovery
Channel in France from 2011 to 2013.
Mr Matthieu Dumas has been certiﬁed as a Company director (ASC France) by the IFA and
Sciences Po since 2015.
Since 2013, he has been the Manager of Eaque.

3

CAG‑CSR Committee
3 June 2008
Term of current ofﬁce
2024 GM

Main activities outside the Company
In Hermès Group
companies

Oﬃces and positions
held during ﬁnancial
year 2023

Outside HermèsGroup companies

Key skills
He brings to the Board his in‑depth knowledge of the history and culture of Hermès. His
professional background, his skills in the ﬁelds of governance and CSR, as well as his expertise in
the operational management of companies and the commitment with which he carries out his
duties and participates in the CAG‑CSR Committee enable him to make an effective contribution to
the quality of the discussions and work of the Board in all of its areas of responsibility.
Manager of Eaque.
French companies ▲Foreign companies ▲s Hermès International ●Member of the Supervisory Board andthe CAG‑CSR Committees Comptoir Nouveau de la Parfumerie Director

None

French companies

Foreign companies ▲s AsopeManagers Axam 2
Managers BovesManagers ChantierManagers DCRManagers DRestauration
Managers EaqueManagers H2
Director

None(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

319

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

Oﬃces and positions
held during ﬁnancial
year 2023

Outside HermèsGroup companies

French companies

Foreign companies ▲s Hestia
Managers Krefeld
Chairman and Directors Krefeld Aref
Managers Krefeld ImmoManagers Krefeld InfraManagers Krefeld Invest
Managers La PerriereManagers LDMDManagers MagvinumManagers MathelManagers Micoline invest I
Managers SCI Englesqueville 51
Managers SIFAH
Directors Xenia
Chairman

None

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

French companies

Foreign companiess Hecate
Manager (term ended on 14/11/2020)

None- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

3202023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.9

MR BLAISE GUERRAND
Age
40 years 1

BLAISE GUERRAND(4 June 1983)

Member of the Supervisory Board of Hermès International
A direct descendant of Mr Émile‑Maurice Hermès

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
200
full ownership and registered—
Date of ﬁrst appointment
Supervisory Board

Summary of main areas of expertise and experience
Mr Blaise Guerrand is a graduate of HEC Paris.
He began his career as an Analyst in the equity capital markets department of NM Rothschild &Sons in London between 2005 and 2006. From 2007 to 2010 he was an Associate, then Directorof Equity Investments for the Indian subsidiary of Ashmore Investment Management, one of theworld’s leading investors in emerging countries, with more than $75 billion under management andlisted on the London Stock Exchange.
Since 2011 he has been a Managing Partner in corporate takeovers. Moreover, since 2007 he has
been Director of the ACCESS Health International foundation which works in partnership with theRockefeller Foundation to improve access to health care for the underprivileged in certain
developing countries.

3

29 May 2012
Term of current ofﬁce
2024 GM

Main activities outside the Company
In Hermès Group
companies

Oﬃces and positions
held during ﬁnancial
year 2023

Outside HermèsGroup companies

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

Key skills
He brings to the Board his in‑depth knowledge of the history and culture of Hermès, and emerging
countries. His professional background, his expertise in the ﬁelds of ﬁnance, private equity andbusiness management, and the commitment with which he carries out his duties enable him to
make an effective contribution to the quality of the discussions and work of the Board in all of its
areas of responsibility.
Managing partner in a company takeover.
French companies ▲Foreign companies ▲s Hermès International ●Member of the Supervisory Boards Hermès Sellier
Member of the Management Board

None

French companies

Foreign companiess SCI Sèvres SCIFAH
Managers ACCESS Health International (United States)
Directors Jakyval (Luxembourg)
Director

Frenchcompanies

Foreign companies

None

None

(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

321

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.10

MS JULIE GUERRAND
Age
48 years 1

JULIE GUERRAND(26 February 1975)

Member of the Supervisory Board of Hermès International
A direct descendant of Mr Émile‑Maurice Hermès

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
6,825
full ownership and registered—
Date of ﬁrst appointment
Supervisory Board
2 June 2005
Ms Julie Guerrand was also a member of the
Audit Committee (now the Audit and Risk
Committee) from its inception on 26 January2005 until 2 March 2011.
Term of current ofﬁce
2025 GM
Main activities outside the Company
In Hermès Group
companies
Oﬃces and positions
held during ﬁnancial
year 2023

Outside HermèsGroup companies

Summary of main areas of expertise and experience
Ms Julie Guerrand holds a DEUG advanced degree in applied mathematics and social sciences
and a master’s degree in Economics and Industrial Strategy from the Université Paris IX‑Dauphine.
From 1998 to 2006 she worked in the Financial Affairs department (mergers and acquisitions
consulting) of the investment bank Rothschild & Cie. From 2007 to 2011, she was Investments
Director in the investment team of Paris Orléans (a holding company listed on Euronext andcontrolled by the Rothschild family).
She held positions in the Hermès Group from 2011 to 2017 as Director of Corporate Developmentof Hermès International before becoming Deputy Managing Director – Finance and Organisation of
the Hermès Cuirs Précieux division.
Ms Julie Guerrand has been certiﬁed as a Company director (ASC France) by the IFA and Sciences
Po since 2014.
Key skills
She brings to the Board her in‑depth knowledge of the history and culture of Hermès. Her
experience in the ﬁelds of ﬁnance and M&A, as well as her legal expertise and the commitment
with which she carries out her duties enable her to contribute actively to the quality of the
discussions and work of the Board in all of its areas of responsibility.
Company director.
French companies ▲Foreign companies ▲s Hermès International ●Member of the Supervisory Board

None

French companies

Foreign companiess Antonino
Managers EDVChairwomans H51
Chairwomans Jerocaro
Managers Krefeld
Directors La Mazarine‑Scifah
Managers Les domaines Barons de Rothschild(Lafite)Member of the Supervisory Boards SCI ApremontManagers SCI 8 Drouot
Managers SIFAH
Directors Jakyval (Luxembourg)
Director(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

322

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

Oﬃces and positions
held during ﬁnancial
year 2023

Outside HermèsGroup companies

French companies

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

French companies

Foreign companiess Idi
Member of the Supervisory Board (termended on 25/06/2020)s SCI Briand Villiers II
Manager (term ended on 04/12/2019)s Vie et Véranda group
Director (term ended on 28/01/2019)Nones Société Immobilière du Dragon
Managers Val d’Isère Carojero
Manager- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

32023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

323

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.11

MS OLYMPIA GUERRAND
Age
46 years 1

OLYMPIA GUERRAND(7 October 1977)

Member of the Supervisory Board of Hermès International
A direct descendant of Mr Émile‑Maurice Hermès

Nationality
Franco‑Portuguese
Address
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
600
full ownership and registered—
Date of ﬁrst appointment
Supervisory Board
6 June 2017
Term of current ofﬁce

Summary of main areas of expertise and experience
Ms Olympia Guerrand spent nearly one year (2005‑2006) working in the communications
department of the subsidiary Hermès Of Paris in New York, performing assignments in the areas ofadvertising, public relations and event management. She then joined Hermès International until
2007, carrying out assignments within various Hermès Group departments (ﬁnance, legal, métiers,
production units and stores).
She has been a real estate administrator since 2008.
Key skills
She brings to the Board her in‑depth knowledge of the history and culture of Hermès. Her
experience in the ﬁelds of communications and public relations, her business management skills,
and the commitment with which she carries out her duties enable her to contribute actively to thequality of the discussions and work of the Board in all of its areas of responsibility.

2024 GM
Main activities outside the Company
In Hermès Group
companies

Oﬃces and positions
held during ﬁnancial
year 2023

Company director.
French companies ▲Foreign companies ▲s Hermès International ●Member of the Supervisory Boards Hermès Sellier
Member of the Management Board

None

Outside HermèsGroup companies

French companies

Foreign companies

Nones Clementsvale LDA (Portugal)
Managers Zelliv LDA (Portugal)
Co‑Manager

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

French companies

Foreign companies

None

None

(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

324

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.12

MR RENAUD MOMMÉJAAgeRENAUD MOMMÉJA

61 years 1(20 March 1962)

Member of the Supervisory Board of Hermès International, member of the
Audit and Risk Committee
A direct descendant of Mr Émile‑Maurice Hermès

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
3,959 full ownership and 109,944 in usufruct
and registered—
Date of ﬁrst appointment
Supervisory Board
2 June 2005
Audit and Risk Committee

Summary of main areas of expertise and experience
Mr Renaud Momméja is a graduate of the École Supérieure Libre des Sciences Commerciales
Appliquées (ESLSCA).
He has been Manager of SARL Tolazi since 2004, a corporate property management, organisationand strategy consulting ﬁrm. Since 2006 he has been the Representative of SC Lor on the
Executive Management of SC du Château Fourcas Hosten.
Key skills
He brings to the Board his in‑depth knowledge of the history and culture of Hermès, as well as thatof Asia. His professional background, his expertise in the ﬁelds of real estate, ﬁnance, corporate
strategy and CSR, and the commitment with which he carries out his duties and participates in the
Audit and Risk Committee enable him to make an effective contribution to the quality of the
discussions and work of the Board in all of its areas of responsibility.

3

3 June 2008
Term of current ofﬁce
2026 GM
Main activities outside the Company
In Hermès Group
companies
Oﬃces and positions
held during ﬁnancial
year 2023

Outside HermèsGroup companies

Manager of SARL Tolazi and Representative of SC Lor on the Executive Management of SC duChâteau Fourcas Hosten.
French companies ▲Foreign companies ▲s Hermès International ●Member of the Supervisory Board andAudit and Risk Committees JL & Co (United Kingdom)
Director

French companies

Foreign companiess Altizo
Managers BincManagers GFA Château Fourcas Hosten
Co‑Managers H2
Directors Huso Directors Lor
Co‑Manager
s Rose Investissement
Managers SARL Tolazi
Managers SCI AJImmo
Co‑Managers SCI Auguste Hollande
Co‑Managers SCI Briand Villiers I
Chairman of SIFAH, Manager

None(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

325

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

Oﬃces and positions
held during ﬁnancial
year 2023

Outside HermèsGroup companies

French companies

Foreign companiess SCI de l’Univers
Managers SCI Zotila Vaugirard
Chairmans SIFAH
Chairmans Société Civile du Château Fourcas
HostenPermanent representative of Lor,
Manager

None

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

French companies

Foreign companiess Comptoir Nouveau de la Parfumerie Director (term ended on 02/06/2022)
s H2
Chairman (term ended on
14/04/2022)
s SCI Briand Villiers I
Manager (term ended on 05/06/2019)s SCI Briand Villiers II
Manager (term ended on 04/12/2019)s SCI du 74, rue duFaubourg‑Saint‑Antoine
Co‑Manager (term ended on
18/01/2019)s SCI Tibemo
Co‑Manager (term ended on
27/04/2022)

None- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

326

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.13

MS ANNE‑LISE MUHLMEYERAge
58 years 1

ANNE‑LISE MUHLMEYER(10 October 1965)

Employee representative member of the Supervisory Board of HermèsInternational

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023

Summary of main areas of expertise and experience
Ms Anne‑Lise Muhlmeyer holds a technical vocational qualiﬁcation as a local authority employee
and has been working in the textile industry for 40 years. She joined the Group in 2000 as a Textile
inspector (quality control) at Ateliers A.S.
In 2012, she joined Ateliers d'ennoblissement d’Irigny as an Inspection preparation coordinator.

32
full ownership and registered—
Date of ﬁrst appointment

Key skills
She brings to the Board her internal knowledge of the Maison Hermès, and more speciﬁcally the
Textile métier, and the vision of the employees she represents.

3

Supervisory Board(Designated by the Group Works Council)
15 November 2022
Term of current ofﬁce
15 November 2025
Main activities outside the Company
Oﬃces and positions
held during ﬁnancial
year 2023

In Hermès Group
companies
Outside HermèsGroup companies

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

None
French companies ▲Foreign companies ▲

None

None

French companies

Foreign companies

None

None

French companies

Foreign companies

None

None

(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

327

3

CORPORATE GOVERNANCE
ORGANISATION OF THE SUPERVISORY BOARD

3.4.8.14

MR ALEXANDRE VIROSAge
45 years 1

ALEXANDRE VIROS(8 January 1978)

Independent member of the Supervisory Board of Hermès International,
Member of the Audit and Risk Committee

Nationality
FrenchAddress
c/o Hermès International
24, rue du Faubourg Saint‑Honoré
75008 Paris
Shares held as at 31 December 2023
100
full ownership and registered—
Date of ﬁrst appointment
Supervisory Board
4 June 2019
Audit and Risk Committee
4 June 2019

Summary of main areas of expertise and experience
Mr Alexandre Viros is a qualiﬁed philosophy teacher (professeur agrégé), holds a post‑graduate
degree in cognitive science from the École des Hautes Études en Sciences Sociales (EHESS) andis a graduate of the Institut d’études politiques de Paris.
Mr Alexandre Viros began his career in higher education and research in 2001. In 2004, he joined
the Boston Consulting Group (BCG) where, for four years, he worked mainly in services (transport,
banking, insurance, media).
In 2008, he joined the strategy department of the Fnac group and was then appointed Director in
charge of music and audio. He then took over as Sales Director and Chairman of France Billet. In
2016, he was appointed Director of Marketing and E‑commerce of the Fnac‑Darty group andjoined the Executive Committee.
In 2018, he became Chief Executive Ofﬁcer of OUI.sncf (formerly voyages‑sncf.com), a member ofthe Executive Committee of SNCF Mobilités and then Managing Director of Voyageurs SNCF.
In September 2020, Mr Alexandre Viros was appointed Chairman of the Adecco group in France,
where he stayed until 29 December 2023.

Term of current ofﬁce
2024 GM

Main activities outside the Company
In Hermès Group
companies

Key skills
His expertise in the world of e‑commerce and distribution, his knowledge of customer relationships
and human resources, as well as his ability to evolve in industries undergoing profoundtransformation and disruptive models, and the involvement with which he carries out his ofﬁce andparticipates in the Audit and Risk Committee, enable him to make a very effective contribution to
the quality of the discussions and the work of the Board in all its areas of intervention. Through his
career, he also brings a very open‑minded stance, an innovative approach to topics and a keen eye
on the digital world.
Chairman France of Adecco (until 29/12/2023).
French companies ▲Foreign companies ▲s Hermès International ●Member of the Supervisory Board andthe Audit Committee

None

Outside HermèsGroup companies

French companies

Foreign companies

s The Adecco Group France
Chairman France (term ended
on 29/12/2023)

None

Other oﬃces and positions held during theprevious four ﬁnancial years and having
ended before 1 January 2023

French companies

Foreign companiess Agence Oui.sncf (SAS)
Chairman (term ended on
31/08/2020)
s E‑Voyageurs group (SAS)Director and Chief Executive Officer(term ended on 31/08/2020)
s OUI.sncf
Chief Executive Officer, member of the
Executive Committee (term ended on
31/08/2020)s Rail Europe SAS
Member of the Supervisory Board (termended on 31/08/2020)s Loco 2 Holding (United Kingdom)
Director (term ended on 31/08/2020)

Oﬃces and positions
held during ﬁnancial
year 2023(1) The ages indicated are determined in number of full years as at 31 December 2023.
- Hermès Group company. ● Listed company. - Ofﬁces taken into account when calculating plurality of ofﬁces.

328

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
FUNCTIONING OF THE SUPERVISORY BOARD

3.5

FUNCTIONING OF THE SUPERVISORY BOARD

3.5.1

ROLE OF THE SUPERVISORY BOARD

3.5.1.1

DUTIES OF THE SUPERVISORY BOARD

3.5.1.1.1

Principle of collegiality

The conﬁdentiality of the Board’s work and the principle of collegiality
prevent any individual public position being taken by members of theSupervisory Board.

3.5.1.1.2

Certain decisions of the Supervisory Board are prepared by
specialised committees (see § 3.6).
Details of the subjects dealt with by the Supervisory Board in 2023
are provided in § 3.5.4.

3.5.1.2

DUTIES OF THE CHAIRMAN OF THE
SUPERVISORY BOARD

3.5.1.2.1

General duties

Legal and statutory duties

The duties of the Supervisory Board of a société en commandite
par actions (partnership limited by shares) are mainly to exercise
permanent control over the management of the Company inaccordance with the law and the Articles of Association.
The role and powers assigned by law and the Articles of
Association to the Supervisory Board are described in § 3.2.3.

In relations with the other bodies of the Company and vis-à-vis third
parties, the Chairman is the sole person authorised to speak and act
on behalf of the Board, other than in exceptional circumstances.

3

The Chairman ensures the proper functioning of the Supervisory
Board.
In this respect:

The Supervisory Board describes the due diligence procedures it
carried out during the ﬁnancial year ended 31 December 2023 in areport presented to the General Meeting called to approve theﬁnancial statements (see chapter 8 “Combined General Meeting of
30 April 2024”, § 8.3).
In accordance with Article L. 22‑10‑78 of the French Commercial
Code (Code de commerce), the Supervisory Board also presents thiscorporate governance report.

3.5.1.1.3

Governance assignments not covered by the
ArticlesThe rules of procedure (Article 1.1.3) provide, in respect ofgovernance assignments not covered by the Articles of Association,that the Supervisory Board:s approves or refuses the acceptance by an Executive Chairman of
any new office in a listed company;s is informed about market developments, the competitiveenvironment and the most important issues facing the Company,
including in the area of social and environmental responsibility andnon‑financial performance;s regularly reviews, via the Audit and Risk Committee, theopportunities and risks, such as financial, legal, operational, socialand environmental risks, as well as the measures taken
accordingly;s is regularly informed of the Company’s financial position, cash
position and commitments;s ensures the establishment of a system for preventing anddetecting corruption and influence‑peddling;s ensures that the Executive Corporate Officers implement a policyof non‑discrimination and diversity, notably with regard to thebalanced representation of men and women on the Governing
bodies;s examines the desired balance between its composition and that ofits committees, and defines its diversity policy (see § 3.4.3).

s with the support of the CAG‑CSR Committee, the approval of theBoard and of the Shareholders’ General Meeting whereappropriate, he or she strives to create an effective and balanced
Board, and to manage the replacement and succession planning
processes concerning the Board and the appointments for which itis responsible;s he or she may attend all the committees and may add to theagenda any subject he or she considers relevant;s he or she ensures that the members of the Board have thedocumentation and information they need to carry out their duties
in a timely manner, in a clear and appropriate form.

The Chairman organises and directs the work of the Supervisory
Board in order to enable it to perform all its duties. In this respect,
he or she:s calls meetings of the Supervisory Board, determines theagenda and chairs the meetings;
s organises the proceedings, leads discussions of theSupervisory Board and reports on these to the General
Meeting, and coordinates its work with that of the specialisedcommittees;s ensures the quality of discussions and the collegiality of Board
decisions;s oversees the proper functioning of the Board and its
committees in accordance with the principles of good
governance and ensures that the members of the Board areable to fulfil their duties;s chairs and directs discussions at Shareholders’ General
Meetings;s deals with any conflicts of interest that may arise within the
Supervisory Board as part of the procedure for managing
conflicts of interest described in the rules of procedure.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

329

3

CORPORATE GOVERNANCE
FUNCTIONING OF THE SUPERVISORY BOARD

As in previous years, the Chairman of the Supervisory Board wasinvited to attend all meetings of the Executive Management Board ofÉmile Hermès SAS.

3.5.1.2.2

Duties relating to shareholder dialogue
and the activity review

Since 20 March 2018, the Chairman of the Supervisory Board has
been responsible for communicating with shareholders, on behalf of
the Supervisory Board, with a view to:s explaining the positions taken by the Supervisory Board in its areasof competence (particularly with regard to governance and Senior
Executive compensation), which were previously the subject of acommunication;s ensuring that shareholders receive the information they expectfrom the Company.

The Chairman may seek the assistance of internal experts in theseareas (in particular the Director of Financial and Non‑Financial
Communications and Investor Relations or the Director of Corporate
Law and Stock Exchange Regulations, Supervisory Board secretary
and Compliance Ofﬁcer).
The Chairman must report annually to the Supervisory Board on theexecution of his or her duties.
No additional compensation is allocated to the Chairman for
executing these duties.
In early 2024, the Chairman reported to the Supervisory Board on theperformance of his duties in 2023. He was mainly asked to answer
questions from institutional shareholders.
Hermès International did not receive any questions from individual
shareholders in 2023.

MEETINGS OF THE SUPERVISORY BOARD
AND THE JOINT COUNCIL

3.5.2.1

SUPERVISORY BOARD MEETINGSThe Supervisory Board is a collegial body in which decisions are takencollectively.
The procedures for convening meetings and the rules of quorum andmajority are described in chapter 7 “Information on the Company andits share capital”, § 7.1.3 (Article 19 of the Articles of Association).
The Board’s operations are described in detail in Article 1.2 of theSupervisory Board’s rules of procedure.
The Chairman of the Supervisory Board sets the agenda for each
Board meeting with the secretary of the Board.
The Supervisory Board meets as often as the interests of theCompany require and at least twice a year. In practice, theSupervisory Board meets at least seven times each year, as was thecase in 2023.
The schedule of meetings is drawn up annually for the following year
and distributed at the beginning of the ﬁrst half of each year.
The Statutory Auditors and a representative of the Social andEconomic Committee (see § 3.4.2.7.2) are invited to all Supervisory
Board meetings.
The Executive Management must be convened (see chapter 7“Information on the Company and its share capital”, § 7.1.3 [Article
19.2 of the Articles of Association]) and may attend meetings of theSupervisory Board but without voting rights. At each Board meeting,the Executive Management informs its members of the mainsigniﬁcant facts and events affecting the life of the Group that haveoccurred since the date of the previous Board meeting.

The AMF recommends that issuers establish a dialogue between the
Board and shareholders, through the intermediary of a Lead Director,
where applicable, on the main topics of concern to shareholders, inparticular questions relating to strategy and social, environmental
and governance (ESG) performance. It is speciﬁed that the replies tothe questions relating to strategy and social, environmental andgovernance (ESG) performance, as well as to the written questions
addressed to the Company at the General Meeting, are theresponsibility of the Executive Management.

In accordance with the provisions of Article 19.2 of the Articles of
Association, meetings of the Supervisory Board are validly held whenhalf of the members are present or represented, it being speciﬁedthat members who participate in the meeting by videoconference or
telecommunication means allowing their identiﬁcation andguaranteeing their effective participation by the use of technicalmeans allowing the continuous and simultaneous retransmission of
the deliberations are deemed present.

In 2023, the Board did not entrust any other duties to the Chairmanof the Supervisory Board.

In practice, meetings held by videoconference or mixed mode arereserved exclusively for exceptional situations.

3.5.1.3

An attendance register is kept that lists the names of the memberspresent physically or by means of videoconference or
telecommunication, or represented or absent. Proxies are appended
to the attendance register.

DUTIES OF THE VICE‑CHAIRSOF THE SUPERVISORY BOARD

Two Vice‑Chairmen are appointed by the Supervisory Board fromamong its members.
In practice, the Vice‑Chairmen are the Chairmen of one of the twocommittees.
In accordance with the Articles of Association, in the absence of the
Chairman, the oldest Vice‑Chairman shall perform his duties.

330

3.5.2

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

A ﬁle containing background documents related to issues on theagenda is sent via Herboard (see § 3.5.3.2) to each Board member
prior to the meeting, at least ten days in advance whenever possible,
and a minimum of 48 hours prior to each meeting, unless there is anurgent situation or a need to ensure total conﬁdentiality.

CORPORATE GOVERNANCE
FUNCTIONING OF THE SUPERVISORY BOARD

Persons who are not Board members, in particular members of the
Executive and Operations Committees, may be invited to attend
Board meetings at the Chairman’s discretion, in order to provide any
information that members of the Board might require to reach a fullunderstanding of certain matters on the agenda and which aretechnical in nature or require special expertise. These people usuallyattend only the part of the meeting that concerns them.
Minutes are drawn up by the Board secretary at the end of eachmeeting and sent to all Board members, who are invited to comment.
Any comments are discussed at the next Supervisory Board meeting,which approves the ﬁnal text of the minutes of the previous meeting.

3.5.2.2

MEETINGS OF THE JOINT COUNCIL

Whenever it considers it necessary, the Executive Management ofHermès International or the Chairman of the Supervisory Board ofHermès International calls a Joint Council between the Executive
Management Board of Émile Hermès SAS and the Supervisory Boardof Hermès International.
The role and powers assigned by law and the Articles of
Association to the Joint Council are described in § 3.2.3.

In practice, the Joint Council meets at least three times each year, as
was the case in 2023.

s the CAG‑CSR Committee rules of procedure;s the Hermès Group Stock Market Ethics Code;s a calendar of closed periods applicable to Permanent Insiders;s the AMF Guide to Permanent Information and Management of
Inside Information (DOC 2016‑08);s regulations regarding the declaration obligations of Senior
Executives and registration of shares;s principles governing the allocation of compensation to Supervisory
Board members;s rules on the reimbursement of expenses;s certification and summary of Corporate Officers’ civil liability
insurance;s the last three registration documents/universal registration
documents;s the notice of meeting for the last General Meeting;s a summary of the results of the last formal three‑year evaluation of
the Supervisory Board;s presentations made during site visits since 2011 (see § 3.5.3.5);s the Hermès Group code of business conduct (Hermès Group
guidelines);s anti‑corruption code of conduct;Its recurring work consists mainly of:s professional whistleblowing system notice;s be given a presentation by the Executive Management on theannual and half‑year consolidated financial statements and parent
company financial statements and related draft financial press
releases;s ethics charter of the Hermès Group;s review the budget for each financial year;s the Afep‑Medef Corporate Governance Code revised in December2022.

s review documents on forecasting and planning;s approve the explanatory statements and the resolutions put to theGeneral Meeting and acquaint itself with the reports drawn up by
the Executive Management.

3.5.3

INFORMATION AND TRAINING
OF THE SUPERVISORY BOARD

3.5.3.1

SUPERVISORY BOARD’S MASTER FILE

Since 2011, a “master ﬁle” has been provided to the members of theSupervisory Board. This master ﬁle has been available since 2016 on
the Board’s collaborative platform, Herboard (see § 3.5.3.2).
It currently contains the following sections:3s presentations of Hermès International and Émile Hermès SAS;s the annotated Articles of Association;

This master ﬁle is updated on a regular basis.

3.5.3.2“HERBOARD” DIGITAL PLATFORM

Since 2016, the Supervisory Board has made use of a secure
digital Board management platform hosted in France by Oodriveand customised for Hermès.

Dubbed “Herboard” at Hermès, the platform is accessible from a web
browser or via a tablet application and can be used to:s organise Board and committee meetings (scheduling of meetings,
sending of meeting invitations, tracking of attendance);s a list with contact details of the members of the Executive
Committee, Supervisory Board, Statutory Auditors and the Board
secretary;s provide highly secure and paperless documents relating to Boardand committee meetings and to the Supervisory Board’s master
file in real time (via a username, password and confirmation code
sent via SMS);s a table of the dates of terms of office;s manage document permissions and track document use;s the Supervisory Board rules of procedure;s circulate minutes and reports.

s the Audit and Risk Committee rules of procedure;

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

331

3

CORPORATE GOVERNANCE
FUNCTIONING OF THE SUPERVISORY BOARD

Following the implementation of Herboard, an iPad® was issued toSupervisory Board members who requested one.

Pursuant to Article L. 225‑30‑2 of the French Commercial Code (Codede commerce), the members representing employees must follow a
training programme under the conditions described in § 3.4.2.7.1.

Herboard is also available to the Statutory Auditors and therepresentative of the Social and Economic Committee for documents
relating to Board meetings.

Since 2022, all members of the Supervisory Board must take andpass an e‑learning training course on the prevention of market abuse.

3.5.3.3

3.5.3.4

TRAINING OF MEMBERS OF THE SUPERVISORY
BOARD – INDUCTION PROGRAMME

Members of the Supervisory Board receive press releases andinformation intended for shareholders (universal registration
document, letters to shareholders) and the press review.

MAJOR ANNUAL THEMESEvery year, one or more detailed presentations are made by therelevant management team on a speciﬁc or general topic relating to
the Group’s activities.
In 2023, the Board:

They are regularly informed of CSR issues (see § 3.5.6) or in terms of
ethics/compliance/personal data protection (see § 3.5.5).

s attended a presentation of the exceptional sales strategy in theface of the issues of destruction;

Each year at least two major annual themes are presented to theBoard (see § 3.5.3.4) and an on‑site visit is organised (see § 3.5.3.5).

s attended a presentation on the roll‑out of the cosmetics range.

Supervisory Board members can make use of the Company’s Group
membership of the IFA (Institut Français des Administrateurs), andthereby take advantage of all of its services and training. Ms Julie
Guerrand became a certiﬁed Company director (receiving the ASC
France Certiﬁcate) in 2013 and Mr Matthieu Dumas in 2015. Other
Board members will likely be taking part in this company governancecertiﬁcation programme carried out by IFA in partnership with
Sciences Po.
In 2014, the CAG‑CSR Committee set up an induction and training
programme for new Board members, which entails:s presentation by the Board secretary:• the SCA legal form and the role of the members of theSupervisory Board,• confidentiality rules,• the Group’s organisation chart,• the Hermès Sellier divisional organisation chart;s minutes of the Supervisory Board for the last three financial years
together with those of the current year;s meetings with the Director of Sustainable Development, the Group
Director of Human Resources, the General Counsel and all
members of the Executive Committee (for external members);s receipt of a new Supervisory Board member integration kit of legal
and governance documents containing:• the Supervisory Board’s master file (see § 3.5.3.1),

MAJOR THEMES IN PREVIOUS YEARS
2011 s Presentation of the Group’s human resources policy
2012 s Report on the strategy seminars Strategy to combat counterfeiting and prevent the risk ofbrand democratisation2013 s Customer survey carried out using CRM (customer relationshipmanagement)s Market abuse training
2014 s Update on the vertical integration of the métiers following
recent acquisitions
2015 s The strategy of a growth driver: shoess Subcontractors in women’s ready‑to‑wears Leather subcontractors
2016 s Presentation of the Group’s digital strategys Presentation on shareholding, institutional investorss Customer service and price trends by geographical areas Communication and media
2017 s La Montre Hermèss Real estate strategy
2018 s Group disability agreement and discussion on well‑being at
work
s Presentation of sustainable development and CSR issues
2019 s Feedback from the first year of the new e‑commerce site
s Internal communication objectives and actionss Hermès Parfums new product development strategys enrolment in an in‑house “Mosaïque” immersion training session
with employees (for external members);

2020 s Presentation on the measures implemented to protect
employees and customers of the Group’s stores in the context
of Covid‑19
s Presentation of investment projects
s Cybersecurity within the Groups briefing on the Company’s ownership structure and Active Partner(Émile Hermès SAS);

2021 s IT strategy within the Groups HR strategys IFA training (particularly for new members).

2022 s Analysis of customer behaviour and the customer experiences Digital communication policy• the IFA Director’s Vade‑Mecum;2023 s Exceptional sales strategy facing the issues of destructions Roll‑out of the cosmetics range

332

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
FUNCTIONING OF THE SUPERVISORY BOARD

3.5.3.5

SITE VISITSSITE VISITS IN PREVIOUS YEARS

Since 2011, the Board has devoted one of its meetings to a site visit
to improve its knowledge of one of the Group’s subsidiaries or to gaina concrete understanding of an area of the Group’s activity.
These site visits are an opportunity for Board members to meet anddiscuss with the Group’s Senior Executives and employees.
In 2023, the Board visited the Textile division production site in
Pierre‑Bénite, where it was able to beneﬁt from:2011 s Leather goods and silk printing site at Pierre‑Bénite
2012 s Cristallerie Saint‑Louis2013 s Puiforcat workshops and archives then Cité des MétiersHermès in Pantin
2014 s Tannerie Gordon Choisy in Montereaus Podiums (Buyer days)2015 s Maroquinerie Iséroise in Les Abretss SIEGL in Le Grand‑Lemps (wide‑web cashmere printing site)s a presentation of the activity and results of the Textile division (seechapter 1 “Presentation of the Group and its results”, § 1.6.7.4);

2016 s Hermès Parfums in Vaudreuils Maroquinerie de Normandie sites a presentation of the Passerelles project;2017 s John Lobb in Northamptons a visit to the new Ateliers A.S. printing workshops and the officebuilding housing the support services and development
department teams.

2018 s John Lobb (bespoke workshops) in Mogadors Finishing workshops from Irigny to Pierre‑Bénite
s Ateliers de Tissages de Bussières et de Challes in Bussières

32019 s Logistics in Bobigny
2020 s Hermès Horizons in Pantins Conservatoire des Créations Hermès in Pantin
2021 s Compagnie des Arts de la Table et de l’Émail in Nontron
2022 s Hermès Of Paris (American subsidiary) in New York2023 s Passerelles site in Pierre‑Bénite

3.5.4

MAIN DUTIES OF THE SUPERVISORY BOARD AND WORK CARRIED OUT IN 2023

The purpose and nature of the main duties and work carried out by the Supervisory Board in 2023 were as follows:

PurposeMain duties and work carried out in 2023 1

Group activity and ﬁnances be updated on the Group’s activities by the Executive Management at each meeting;s be given a presentation by the Executive Management on the annual and half‑year consolidated financial
statements and parent company financial statements and related draft financial press releases;s be informed about the Company’s financial position, cash position and commitments;s be informed of the Statutory Auditors’ conclusions relating to the annual and half‑year consolidated financial
statements;s review the budget for each financial year;s review documents on forecasting and planning;s review the situation of certain affiliates;s formally note proposals for Group acquisitions, disposals and equity investments;s formally note investment proposals;s examine and/or approve the reports and work of the Audit and Risk Committee described in § 3.6.3.4;
s regularly review, via the Audit and Risk Committee, the opportunities and risks, such as financial, legal, operational,social and environmental risks, as well as the measures taken accordingly;- be informed of changes in the composition of the Executive Committee [n/a in 2023];- be informed of changes made by the Executive Management to the list of banks, the list of bank signatories and theprudential rules;s attend a presentation on the stock market performance of Hermès International shares.

General Meetingof 20 April 2023

s be informed of the Executive Management’s decision to pay an interim dividend;s decide the proposed allocation of net income to be submitted to the General Meeting;s prepare the Supervisory Board’s corporate governance report;s prepare the Supervisory Board’s report to the General Meeting;s approve the explanatory statements and the resolutions put to the General Meeting and acquaint itself with thereports drawn up by the Executive Management.

Appointments- decide how new independent members would be recruited and how the target profile would be defined [n/a in2023];
s approve the proposals of reappointment or replacement of members of the Supervisory Board to be considered at
the General Meeting;- decide on the renewal of the duties of the Chairman and Vice‑Chairmen after the General Meeting;s decide on the renewal of the composition of the Audit and Risk Committee and the CAG‑CSR Committee.

(1) List not exhaustives Annual topics ● Occasional or multi‑year topics.
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

333

3

CORPORATE GOVERNANCE
FUNCTIONING OF THE SUPERVISORY BOARD

PurposeMain duties and work carried out in 2023 1

Governances keep itself informed at each meeting of all transactions carried out by the Executive Chairmen pursuant to the AMF’s
position‑recommendation set out in DOC‑2016‑08 “Guide to Permanent Information and Management of Inside
Information”;
s examine and/or approve the reports and work of the CAG‑CSR Committee described in § 3.6.2.4 and be informed ofgovernance news (AMF reports, Afep‑Medef reports, HCGE report and application guide, IFA studies, etc.);
s annually review the individual situation of the members of the Supervisory Board with regard to independence,plurality of offices, potential conflicts of interest and compliance with the threshold of 100 shares;- approve the revised rules of procedure of the Supervisory Board, the CAG‑CSR Committee and the Audit and Risk
Committee [n/a in 2023];
s review the annual report of the Chairman of the Supervisory Board on his duties with regard to shareholder dialogue;s take note of the succession plans in place for Senior Executives and issue an assessment of the quality andappropriateness of these plans;s take note of the gender equality objectives set by the Executive Management, as well as its implementation methods
and the results obtained;- approve or refuse the acceptance by an Executive Chairman of any new office in a listed company [n/a in 2023];
s ensure that the Executive Corporate Officers implemented a policy of non‑discrimination and diversity, notably withregard to the balanced representation of men and women on Governing bodies;s decide on the diversity policy applied to the Supervisory Board (representation of women and men, nationalities,
ages, qualifications and professional experience, etc.);s conduct a periodic self‑assessment of its operation (see § 3.7);
s set the amount of preparation time allocated to the members of the Supervisory Board representing employees tocarry out their duties (minimum 15 hours per Board meeting);s determine the content of the training program to be followed by the employee representative members of theSupervisory Board (see § 3.4.2.7.1);

CSR/HRs be informed through the CAG‑CSR Committee of the main challenges facing the Company in the area of corporatesocial responsibility and non‑financial performance;s be informed through the CAG‑CSR Committee of the main HR issues facing the Company;s assess, through the CAG‑CSR Committee, the level of achievement of the CSR criterion attached to thecompensation of the Executive Chairmen (see § 3.8.2.1.2).

(see § 3.5.6)

Compensations establish the compensation policy applicable to members of the Supervisory Board;s issue an advisory opinion on the compensation policy for Executive Chairmen established by the Active Partner;s set the allocation and payment of compensation of members of the Board and committees;- be informed of the adoption of free share allocation plans by the Executive Management;- be informed of the payment of additional profit‑sharing decided by the Executive Management [n/a in 2023]- be informed of the general increase in the gross monthly compensation of all employees in France.

Ethics and compliance
Personal data protections regularly review, through the Audit and Risk Committee, the anti‑corruption system;s ensure, through the Audit and Risk Committee, the implementation of a system for the prevention and detection ofcorruption and influence‑peddling and be regularly informed of the Group’s situation;s be informed, through the Audit and Risk Committee, of the personal data protection system put in place within theGroup and its compliance with the GDPR regulation (European regulation of 27 April 2016 no. 2016/679).

(see § 3.5.5)

Recommendations,authorisations and otheritems

s authorise and declassify, where applicable, related‑party agreements and carry out an annual review of those
whose effect persisted over time (see the Supervisory Board’s report to the General Meeting in chapter 8“Combined General Meeting of 20 April 2023”, § 8.3);
s take note of the annual report of the Current Agreements Committee (see § 3.9.1.3);
s discuss the Company’s policy with regard to gender equality and equal pay;s authorise the Executive Management to grant sureties, endorsements and guarantees to commitments by thecompanies controlled without limit of amount and time and be informed annually by the Executive Management of
the guarantees granted;
s conduct an annual review of all sureties, endorsements and guarantees granted that are still in force;s take note of the opinion of the Social and Economic Committee on the strategic orientations of the Company, on
which the Executive Management is required to formulate a reasoned response;- take note of the update of the Hermès Group Stock Market Ethics Code;s remind the relevant persons of the responsibility inherent in holding inside information and take note of the blackout
periods applicable to Permanent Insiders;- approve the amendment of certain articles of the Articles of Association of Émile Hermès SAS, Active Partner [n/a in2023];- approve the renewal of the Fondation d’entreprise Hermès.

Major annual themes – site s attend several detailed presentations in the year on a specific or general topic relating to the Group’s activity;
visitss devote one of its meetings to a site visit to improve its knowledge of one of the Group’s subsidiaries or to gain a(see § 3.5.3.4 and § 3.5.3.5)
concrete understanding of an area of the Group’s activity.
(1) List not exhaustives Annual topics ● Occasional or multi‑year topics.

334

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
FUNCTIONING OF THE SUPERVISORY BOARD

3.5.5

ETHICS AND COMPLIANCE – PERSONALDATA PROTECTION

The systems implemented in the Group are described in chapter 2“Corporate social responsibility and non‑ﬁnancial performance”,§ 2.8.

3.5.5.1

ETHICS AND COMPLIANCE – ROLE
AND TRAINING OF THE BOARD
AND COMMITTEES

A presentation to the Audit and Risk Committee on the progress of theaction plan presented in 2022 is scheduled for 2024.

3.5.6

CORPORATE SOCIAL RESPONSIBILITY(CSR)

The governance bodies’ responsibilities in terms of CSR are describedin chapter 2 “Corporate social responsibility and non‑ﬁnancial
performance”, § 2.1.6.

Ethics and compliance issues as well as the related programmes
have been shared regularly with the Supervisory Board since 2015. It
is regularly informed about the ethics and compliance programmes
and on the progress of the corruption prevention plan within theGroup in compliance with law no. 2016‑1691 of 9 December 2016,
known as “Sapin II”.

3.5.6.1

ROLE AND TRAINING OF THE SUPERVISORY
BOARD

3.5.6.1.1

Role of the Board in terms of CSR

Since 11 September 2018, the Supervisory Board’s rules ofprocedure have included duties relating to the system for theprevention and detection of corruption and inﬂuence‑peddling (Article
1.1.3.2), following the revision of the Afep‑Medef Code in June 2018.

s the Board is informed, in particular through the CAG‑CSR
Committee, of the main issues faced by the Company in the area ofcorporate social responsibility and non‑financial performance;

As a result, on 16 November 2018, the Audit Committee was
assigned a new duty relating to the prevention of corruption: “ensure
the implementation of a system for the prevention and detection ofcorruption and inﬂuence‑peddling”. On 19 March 2019, it was
accordingly renamed the “Audit and Risk Committee”.
Since 2021, the Supervisory Board has delegated the regular reviewof the anti‑corruption system to the Audit and Risk Committee.

In 2023, the Chief Compliance Ofﬁcer presented the vigilance plan
to the Audit and Risk Committee (see § 3.6.3.4).

In 2024, a presentation is planned to the Audit and Risk Committeeof the measures implemented to strengthen all the key processes
deployed within the Group, including those relating to the assessmentof third parties and the H‑Alert! whistleblowing system (see § 2.8.4)

3.5.5.2

PERSONAL DATA PROTECTION – ROLE AND
TRAINING OF THE BOARD AND COMMITTEES

A presentation to the Supervisory Board on the personal dataprotection system, in accordance with the GDPR (EU Regulation no.
2016/679 of 27 April 2016), implemented in the Group, was made in
2019.

The duties of the Supervisory Board in terms of CSR are as follows(Article 1.1.3.2 of the rules of procedure):

3s the Board regularly reviews, via the Audit and Risk Committee, thesocial and environmental opportunities and risks, as well as themeasures taken as a result.

A presentation of CSR challenges has been made to the Board
regularly since 2015.
As part of its management control role, the multi‑year strategic
guidelines in terms of CSR and their implementation methods were
presented to the Supervisory Board.
The results obtained are presented each year to the CAG‑CSR
Committee, which reports to the Supervisory Board.

3.5.6.1.2

CSR training for Board members

A comprehensive training program has been set up for Supervisory
Board members on environmental and climate issues.
In 2024, the model for the annual declaration of the members of theSupervisory Board was completed to enable each member to conﬁrm
the CSR training courses actually attended.
Practical training
During visits to production sites (see 3.5.3.5), members of the Board
receive a presentation on the CSR issues of the site concerned.

In 2023, the Data Protection Ofﬁcer presented to the Audit andRisk Committee:s the latest developments in terms of personal data, and inparticular, international data transfers;s an update on the follow‑up to the data protection audit carriedout in 2022.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

335

3

CORPORATE GOVERNANCE
FUNCTIONING OF THE SUPERVISORY BOARD

IFA training
All members of the Supervisory Board have access to training provided by the Institut français des administrateurs.
Education

Learning objectives

The Board and CSR(1 day)s understand the issues and themes covered by CSR;s become familiar with the current and future legislative and regulatory framework;s identify the role and expectations of stakeholders;s assess the impact of these issues on the directors’ responsibilities and due diligence;s contribute to the optimal mobilisation of the Board on CSR issues and dialogue with the executive team.

Number of members who completed
the training as at 31/12/2023
3

E‑learning modules
Since 2023, all members of the Supervisory Board have access to internal e‑learning training modules and are encouraged to participate inthem:
Number of members who validated
the module as at 31/12/2023

Modules

Learning objectives

Climate change(20 minutes)

s understand the mechanisms of climate change, the associated issues, risks and consequences,

7

Animal welfare(15 minutes)

s understand what animal welfare is, what the associated issues are and what the House’s strategy is,7

Biodiversity(15 minutes)

s understand what biodiversity is, what the associated issues are and what the House’s strategy is,

7

Fundamentals ofsustainable development(30 minutes)

s understand what sustainable development is, how Hermès’ strategy is organised and, as an employee,

7

as well as the House’s strategy and its objectives in this area.
as well as the objectives sought.
as well as the objectives sought.

how everyone can contribute whatever their job.

WWF conferences
Since 2023, all members of the Supervisory Board have been invited to participate in presentations organized jointly by WWF France and thesustainable development department.
In 2023, the talks proposed covered the following topics:
Number of members who attended
or viewed the talk as at 31/12/2023

Modules

Learning objectives

Biodiversity and COP 15(120 minutes)
5 January 2023

s presentation by WWF of the conclusions of their latest “Living Planet” report on the state of biodiversity

11

Water
(90 minutes)
28 June 2023s overview by WWF on the issues facing water and sharing of water, around the world and in France;s the Group’s ambition and operational successes in this area.

11

and the decisions of the COP 15 biodiversity conference in Montreal;s link with the Group’s direct activities or within supply chains.

Sustainable forest,s definition by WWF of the concepts of imported deforestation and sustainably managed forests,
non‑deforestation & restoration as well as their application in companies, with a section on restoration and offsetting;(90 minutes)s the Group’s ambition and operational successes in this area.
20 September 2023
Climate change and UN
Climate COP(90 minutes)
12 December 2023

11

s presentation by WWF France’s climate and advocacy experts of the negotiations and the latest progress

11

made at COP 28 held in Dubai;s the Group’s climate ambition and operational successes in this area.

The video recording and presentation of each talk are made available in Herboard.
Multi‑year CSR training programme
A multi‑year training programme (2023‑2026) on environmental and climate issues was created in 2023 in collaboration with PWC. This
programme is structured according to future European ESRS reporting standards to address essential topics, from the environment to ethics.
In 2023, the training offered focused on the following topics:
Learning objectives

Session1 (60 minutes)
15 June 2023

s kick‑off session: major political, geopolitical, regulatory and economic developments to date on the subject,

12

Session 2 (60 minutes)
23 November 2023

s ESRS 1 and 2: general principles of CSRD/strategy/double materiality analysis:

12presentation of major strategic regulations.

How a company should structure its CSR training in terms of strategy and governance. What is expected?
s taxonomy (Part 1).

The video recording and presentation of each session are available in Herboard.
336

Number of members who attended
or viewed the session

Modules2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
FUNCTIONING OF THE SUPERVISORY BOARD

3.5.6.2

ROLES OF THE COMMITTEES IN TERMS OF CSR

Preparatory work on topics related to CSR is carried out by the Supervisory Board’s specialised committees.

CAG‑CSR Committee

Audit and Risk Committee

The duties of the CAG‑CSR Committee in terms of CSR are as follows:

Executive Management is responsible for setting up the information andgovernance systems that enable the preparation of non‑ﬁnancial
information.
A scoping study was conducted in 2023 with the following objectives:s assist the Supervisory Board in monitoring matters relating to CSR
in order that the Hermès Group better anticipate associatedopportunities, challenges and risks;s assist the Supervisory Board in monitoring the Hermès Group’ssocial policy and the policy of non‑discrimination and diversity;s annually assess the achievement of the three indices making up the
CSR criterion of the variable compensation of the Executive
Chairmen (see § 3.8.1.2.4 and § 3.8.2.1.2).
The topics addressed in 2023 concerned:s the assessment of the CSR criterion on which the variable
compensation of the Executive Chairmen for 2022 was based;s the external evaluation;s the guidelines for the 2023 financial year;s the presentation of CSR risks;s the presentation of the new features of the NFPS in the universal
registration document;s the presentation of the main achievements in the 2022 financial
year compared to the objectives set and in particular:s define and structure non‑financial information and indicators;s measure and monitor the achievements against the Group’s
objectives;s ensure the relevance and integrity of the CSR information provided
to the Supervisory Board, in particular on the basis of the report ofthe independent third party (see chapter 2 “Corporate social
responsibility and non‑financial performance”, § 2.10);
s ensure consistency between non‑financial and financial information.
The conclusions of this study may be presented to the Audit and Risk
Committee in 2024.

3- environmental issues,- climate policy,- the compensation policy,- biodiversity;s the presentation of the Company’s social model and policy withregard to gender equality and equal pay;s the presentation of the “Human Resources” outlook and issues forthe coming years.

Joint meeting of the CAG‑CSR Committee and the Audit and Risk Committee
Since 2021, a joint meeting has been organised between the CAG‑CSR Committee and the Audit and Risk Committee dedicated to the presentation of CSR
risk exposure. This joint meeting is held every year. This practice makes it possible to comply with the recommendations of the Afep‑Medef Code, updated in
December 2022 (Article 16).

Duties in terms of sustainability
European Directive No. 2022/2464 of 14 December 2022 on the publication of information on sustainability by companies (Corporate Sustainability Reporting
Directive or "CSRD") introduced the requirement to provide detailed information on sustainability issues. It was transposed into national law by Order No.
2023‑1142 of 6 December 2023 on the publication and certiﬁcation of information on sustainability and the environmental, social and corporate governanceobligations of commercial companies.
Article L. 821‑67 of the French Commercial Code (Code de commerce) resulting from this transposition provides that the current prerogatives and duties of the
Audit and Risk Committee relating to the duty of certifying the ﬁnancial statements are extended to the duty of certifying information in terms of sustainability.
However, it speciﬁes that these prerogatives and duties may be exercised by a separate committee.
These duties will mainly consist of:s monitoring the process of preparing information on sustainability and, where appropriate, making recommendations to ensure its integrity;s monitoring the process implemented to determine the disclosures to be made in accordance with sustainability reporting standards;s monitoring the effectiveness of the internal control and risk management systems, as well as, where applicable, the internal audit, with regard to
the procedures relating to the preparation and processing of sustainability information;s issuing a recommendation to the Supervisory Board on the Statutory Auditors certifying the sustainability information or the independent third
party proposed for appointment by the General Meeting;s monitoring the performance of sustainability information certification assignments;s ensuring compliance with the independence conditions required for stakeholders to carry out sustainability information certification assignments;s regularly reporting to the Supervisory Board on the results of sustainability information certification assignments.
They may, if necessary, be adapted to take into account the speciﬁcities of the société en commandite par actions (partnership limited by shares) and the
distribution of powers between the Executive Management and the Supervisory Board.
In 2024, the Supervisory Board will reﬂect on the specialised committee to which these duties will be entrusted under the collective and exclusive responsibilityof the Supervisory Board.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

337

3

CORPORATE GOVERNANCE
FUNCTIONING OF THE SUPERVISORY BOARD

3.5.6.3

CSR PRESENTATION TO THE GENERAL MEETINGIn accordance with the provisions of the Afep‑Medef Code (Article5.4), the climate strategy – which is aligned with a trajectory of lessthan 1.5°C – validated by the Science Based Targets (SBTi) initiative,
and the main CSR actions are presented each year to the General
Meeting.

The items presented to the 2023 General Meeting are available on the
Hermès Finance website (https://ﬁnance.hermes.com/), section“General Meetings”.

3.5.7

COMPENSATION AND REIMBURSEMENT OF EXPENSES

3.5.7.1

COMPENSATION OF MEMBERS OF THE SUPERVISORY BOARD

Information relating to the compensation of members of the Supervisory Board is presented in § 3.8.1.1 and § 3.8.1.3.

Position

Compensation policy for Board members applicable in 2023
COMMITTEEMEMBER

40%

BOARD
MEMBER

33.33%

60%

66.66%COMMITTEECHAIRMAN

100%

BOARD
CHAIRMAN

100%
0%

20 %

40 %

60 %

80 %

100 %

120 %

Percentage of compensation
Variable component

3.5.7.2

Fixed component

REIMBURSEMENT OF EXPENSES

Supervisory Board members are reimbursed for travel, accommodation and restaurant expenses incurred to attend Supervisory Board meetings,
upon presentation of substantiating documents or receipts. These reimbursements are capped and based on the rules applicable to Group
employees.

338

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
SPECIALISED COMMITTEES

3.6

SPECIALISED COMMITTEES

3.6.1

APPLICABLE PRINCIPLESSupervisory Board

Compensation, Appointments, Governanceand CSR (CAG-CSR) Committee

Audit and Risk Committee

3
Since 2005, the Supervisory Board has relied on the work of two
permanent specialised committees:s the Audit Committee (26 January 2005), set up in application of
Article L. 823‑19 of the French Commercial Code (Code decommerce), whose remit was subsequently extended by the
Board and which was renamed the Audit and Risk Committee(19 March 2019);

These committees act under the collective and exclusive
responsibility of the Supervisory Board. Their role is to discuss,analyse and prepare for certain deliberations of the Board, to which
they submit their opinions, proposals or recommendations. Their
powers do not reduce or limit the powers of the Board and theopinions, proposals or recommendations made are in no way
binding on the Board.

s the Compensation Committee (26 January 2005), which was
subsequently assigned new duties and responsibilities by the
Board and renamed the Compensation and Appointments(18 March 2009), Governance (20 January 2010) and CSR(16 November 2018) Committee or the “CAG‑CSR Committee”.

The members of the committees do not incur any legal
responsibilities in respect of their duties other than those of
members of the Supervisory Board.

The Company’s CAG‑CSR Committee is not tasked with setting thecompensation of the Executive Chairmen, a task governed by theprovisions of the Articles of Association and which falls within theremit of the Active Partner and not the Supervisory Board. It wastherefore not relevant to create separate Compensation andAppointments Committees.

The current composition of each committee is in line with thisobjective.

The Supervisory Board decides on the composition of the specialisedcommittees, taking into account the skills of the Board members in
the areas in question and their availability, as well as the legal
requirements (Article L. 823‑19 of the French Commercial Code
(Code de commerce)) and the recommendations of the Afep‑Medef
Code updated in December 2022 (see § 3.1.2).

3.6.1.1

COMMITTEE MEMBER SKILLS REQUIREDThe skills of the members of a committee must correspond to themissions entrusted to this committee (see § 3.6.2.4 and § 3.6.3.4).

The skills and experience matrix presented in § 3.4.5.2 lists the skillsof the members of each committee.

3.6.1.2

CHANGES IN THE COMPOSITION OF THE
COMMITTEES OVER THE FINANCIAL YEARThe Supervisory Board meeting of 20 April 2023:
s reappointed as members of the Audit and Risk Committee
Mses Monique Cohen (Chairwoman) and Estelle Brachlianoff and
Messrs Charles-Éric Bauer, Renaud Momméja and Alexandre Viros;s reappointed as members of the CAG‑CSR Committee
Mses Dominique Senequier (Chairwoman) and Estelle Brachlianoffand Mr Matthieu Dumas.

SUMMARY OF CHANGES IN 2023

Departures
Audit and Risk Committee

CAG‑CSR Committee

Appointments

Renewals
Ms Monique Cohen, Chairwoman (20/04/2023)
Ms Estelle Brachlianoff (20/04/2023)
Mr Charles-Éric Bauer (20/04/2023)
Mr Renaud Momméja (20/04/2023)
Mr Alexandre Viros (20/04/2023)
Ms Dominique Senequier, Chairwoman (20/04/2023)
Ms Estelle Brachlianoff (20/04/2023)
Mr Matthieu Dumas (20/04/2023)
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

339

3

CORPORATE GOVERNANCE
SPECIALISED COMMITTEES

3.6.1.3

FUTURE CHANGES TO COMMITTEES

The terms as members of the Supervisory Board of Messrs Matthieu
Dumas and Alexandre Viros expire in 2024.

3.6.2

CAG‑CSR COMMITTEE

3.6.2.1

COMPOSITION AS AT 31 DECEMBER 2023

No changes are currently planned in the composition of thecommittees, subject to the renewal of their terms as members of theSupervisory Board by the General Meeting of 30 April 2024.

Its rules of procedure provide that the CAG‑CSR Committee iscomposed of at least three members of the Supervisory Board withexpertise in or carrying out professional activities in the areas inwhich the Committee performs its duties.

At least half of its members must, at the time of their appointment
and for the entire term of their ofﬁce, be qualiﬁed as independent
under the Supervisory Board’s rules of procedure. This is currently
the case.

The CAG‑CSR Committee does not include any Executive Corporate
Ofﬁcers.

The main areas of expertise and experience, and the key skills of themembers of the CAG‑CSR Committee are presented in the information
concerning them (see § 3.4.8).

It is chaired by Ms Dominique Senequier, Vice‑Chairwoman of theBoard, who is independent.
Changes in the composition of the CAG‑CSR Committee are presented
in § 3.6.1.2.

As at 31 December 2023, the CAG‑CSR Committee was composed of the following three members, including two women and one man:2023 data

3
MEMBERS-

6

MEETINGS--67%

INDEPENDENT
--

67%

WOMEN

Personal details

Independence

Date of Expiry of term of Length of service
appointment oﬃce on the Board on the Committee 1

Attendance

Dominique Senequier (F)(Chairwoman)
Nationality: French
70 years old 1 –21/08/1953√

04/06/2013

2025 GM

10 years

83.33%

Estelle Brachlianoff (F)Nationality: French
51 years old 1 –26/07/1972√

04/06/2019

2025 GM

4 years

100.00%03/06/2008

2024 GM

15 years

100.00%AVERAGE ATTENDANCE

94.44% 2

Matthieu Dumas (M)Nationality: French
51 years old 1 –06/12/1972(1) The ages and length of service indicated are determined in number of full years as at 31 December 2023.
(2) This figure reflects the average attendance of the members of the CAG‑CSR Committee in office as at 31 December 2023, and does not take into account members
who left the Committee during the year, where applicable.

340

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
SPECIALISED COMMITTEES

3.6.2.2

RULES OF PROCEDURE

On 24 March 2010, the Supervisory Board adopted rules ofprocedure which specify the rules governing the composition,
powers and operating procedures of the CAG‑CSR Committee.
These rules of procedure are regularly reviewed to adapt to legal
and regulatory changes and to take into account therecommendations of the French Financial Markets Authority (AMF)
and revisions to the Afep‑Medef Code.

Before each CAG‑CSR Committee meeting, Committee members aresent, in good time, with reasonable lead time and subject to
conﬁdentiality requirements, a ﬁle containing documentation on itemson the agenda requiring prior analysis and review.
The Executive Vice‑President Corporate Development and Social
Affairs, and the Group Director of Human Resources, systematicallyparticipate in the meetings of the CAG‑CSR Committee. The Group
Director of Sustainable Development participates at least twice ayear for subjects relating to CSR.

The full text of the CAG‑CSR Committee’s rules of procedure ismade available at each update at https://ﬁnance.hermes.com/
en/governing‑bodies‑rules‑procedure‑articles‑association/.

The secretarial duties of CAG‑CSR Committee meetings are provided
by the Director of Corporate Law and Stock Exchange Regulations andCompliance Ofﬁcer, and secretary of the Supervisory Board, under
the responsibility of the Chairwoman, or by a member of the CAG‑CSR
Committee appointed as rapporteur by the Chairwoman.

The main provisions of the CAG‑CSR Committee’s rules of procedure
are set out in chapter 3 of the universal registration document.

At the ﬁrst Supervisory Board meeting following a meeting of the
CAG‑CSR Committee, the Chairwoman gives an oral report on theCommittee’s work to the members of the Board, a summary of whichis then included in the minutes of the Board meeting.

3.6.2.3

OPERATION

The operation of the CAG‑CSR Committee complies with the principles
applicable to Board committees (see § 3.6.1).

The CAG‑CSR Committee uses the Herboard secure digital platform(see § 3.5.3.2).

The Chairman of the Supervisory Board can be invited to certain
CAG‑CSR Committee meetings in order to hear his or her opinion inmatters of appointments or governance, which was not the case in
2023.

Minutes of CAG‑CSR Committee meetings are drawn up at the end ofeach meeting and sent to all members of the Committee, who areinvited to comment. Any observations are discussed at the next
Committee meeting, which approves the ﬁnal text of the minutes ofthe previous meeting.

As part of its responsibilities in terms of social and environmental
responsibility, a meeting dedicated to the presentation of exposure to
CSR risks has been held every year since 2021 with the Audit andRisk Committee. The purpose of this joint meeting is to strengthen
coordination and sharing between the two committees on this related
subject.

3

The CAG‑CSR Committee uses a dashboard to plan and prepare its
work in a balanced way over the year.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

341

3

CORPORATE GOVERNANCE
SPECIALISED COMMITTEES

3.6.2.4

MAIN DUTIES AND WORK CARRIED OUT IN 2023

Without prejudice to the powers of the Supervisory Board, which it does not replace, the main duties of the CAG‑CSR Committee and the work
carried out in 2023 are as follows:

Purpose of duties

Main duties of the Committee and work carried out in 2023 1

Generals conduct a periodic self‑assessment of its operation;s approve the revision of the CAG‑CSR Committee rules of procedure [n/a in 2023].

Compensation

Compensation of the Executive Chairmen and the Supervisory Boards assess the achievement of the indices making up the CSR criterion of the variable compensation of the Executive
Chairmen (see § 3.8.2.1.2);
s check the compliance of the actual compensation of the Executive Chairmen with the Articles of Association and thecompensation policy established by the Active Partner;s make any proposals on the compensation policy for members of the Supervisory Board and committees;s check the compliance of the planned distribution of the compensation of the members of the Supervisory Board withthe compensation policy;s assist the Supervisory Board in determining the conditions and performance criteria to be applied to awarding
options to subscribe for or purchase shares, performance‑based shares and/or supplemental pensions to the
Executive Chairmen [n/a in 2023];
s review the explanatory statements to the resolutions of the General Meeting on Senior Executive compensation (Sayon Pay).
Compensation of the Group Executive Committee and Senior Executivess be consulted and prepare the recommendations of the Supervisory Board to the Executive Management on theterms of compensation (fixed compensation for 2023, actual bonus for 2022 and target bonus for 2023) of themembers of the Executive Committee;
s approve the compensation arrangements (fixed compensation for 2023, actual bonus for 2022 and target bonus for2023) of the Executive Corporate Officers of the French subsidiaries paid for their office;- review proposals for plans to award options to subscribe for or purchase shares and grant free share awards toSenior Executives to enable the Supervisory Board to determine the aggregate or individual number of options orshares allotted and the terms and conditions of allotment.
Group compensation policys review proposals for plans to award options to subscribe for or purchase shares and grant free share awards toemployees and draw up recommendations thereon to Executive Management;s examine the achievement of the performance conditions and its consequences on the number of free sharesactually awarded to beneficiaries;s carry out specific tasks entrusted to it by the management or supervisory bodies of the Hermès Group’s main French
subsidiaries [n/a in 2023];
s be informed of the Company’s policy with regard to gender equality and equal pay.

Appointmentss organise a selection procedure in conjunction with the Executive Chairmen for future independent members of theBoard and carry out its own research on potential candidates [n/a in 2023];
s prepare the Board’s proposals to the Active Partner concerning the composition of the Supervisory Board after
having examined all the elements that it must take into account in its deliberation: desired balance in thecomposition of the Board in relation to the diversity policy applied within the Supervisory Board, the composition andchanges in the Company’s shareholding structure, search for and assessment of potential candidates, opportunity
for reappointments;s set up and participate in the induction and training programme for new members of the Supervisory Board [n/a in2023];
s ensure the existence of a talent succession plan, which covers the members of the Executive Committee and the
Operations Committee;
s ensure the existence of a succession plan for the Executive Chairmen and the Chairman of the Supervisory Boardand conduct an annual review.

(1) List not exhaustives Annual topics ● Occasional or multi‑year topics.

342

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCE
SPECIALISED COMMITTEES

Purpose of duties

Main duties of the Committee and work carried out in 2023 1

Governances propose regular updates to the governance rules taking into account the recommendations issued by the
Afep‑Medef Code, the application guide of the High Committee on Corporate Governance (HCGE) and the French
Financial Markets Authority (AMF) in its annual report on corporate governance and Senior Executive compensation;s periodically verify the situation of the members of the Supervisory Board with regard to the independence criteria set
by the rules of procedure, the number of directorships, potential conflicts of interest and compliance with therequirement to hold a minimum of 100 shares;s review the composition of the specialised committees;s determine at least annually the members of the Audit and Risk Committee with specific expertise in finance or
accounting and risk management;s oversee the annual debate and evaluation of Supervisory Board practices;s manage the formal three‑year assessment of the Supervisory Board: use or not of an external consultant,assessment process and questionnaire, launch of the assessment, summary and analysis of results, areas for
improvement [n/a in 2023];
s update the Supervisory Board’s permanent file;- analyse related‑party agreements before reclassifying them and giving an opinion to the Supervisory Board [n/a in2023];- give an opinion to the Supervisory Board on the classification of an agreement entered into under arm’s length
conditions [n/a in 2023];
s review chapter 3 on corporate governance of the universal registration document and in particular the provisions of
the Afep‑Medef Code that have been set aside and the related explanations;s approve the revision of the CAG‑CSR Committee rules of procedure [n/a in 2023].

HR/CSR(see § 3.5.6)

3

HR challenges
s assist the Supervisory Board in monitoring social, non‑discrimination and diversity policies;s be informed of the annual rankings regarding the representation of women in large companies and the criteria taken
into account in their preparation;s be informed of the summary of the talent review and leadership development actions;s be informed of the publication of the Hermès International gender equality index;- be informed of recruitment issues, employer brand and support for growth;- be informed of the Group’s approach to diversity, inclusion and gender balance.
CSR challenges
s assist the Supervisory Board in monitoring CSR issues;s be informed of sustainable development and CSR issues;s be informed of the achievements of the past financial year in relation to the objectives set;s be informed of the CSR outlook;s monitor non‑financial performance indicators and consideration of social and environmental issues;s be regularly informed of the assessments of non‑financial agencies;s be informed of the content of the Non‑Financial Performance Statement (NFPS);
s be informed of the main new features of chapter 2 “Corporate social responsibility and non‑financial
performance” (NFPS) of the universal registration document;s be informed of the Group’s energy situation;(1) List not exhaustives Annual topics ● Occasional or multi‑year topics.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

343

3

CORPORATE GOVERNANCE
SPECIALISED COMMITTEES

3.6.3

AUDIT AND RISK COMMITTEE

3.6.3.1

COMPOSITION AS AT 31 DECEMBER 2023

The Audit and Risk Committee does not include any Executive
Corporate Ofﬁcers.

Its rules of procedure provide that the Audit and Risk Committee iscomposed of at least four members of the Supervisory Board withexpertise in or carrying out professional activities in the areas inwhich the Committee performs its duties; and in particular interms of ﬁnance, risk management and CSR.

It is chaired by Ms Monique Cohen, Vice‑Chairwoman of the Board,
who is independent and an expert in ﬁnance.
Changes in the composition of the Audit and Risk Committee arepresented in § 3.6.1.2.
The main areas of expertise and experience of the members of the
Audit and Risk Committee are presented in the information
concerning them (see § 3.4.8).

At least half of its members must, at the time of their appointment
and for the entire term of their ofﬁce, be qualiﬁed as independent
under the Supervisory Board’s rules of procedure. This is currently
the case.

As at 31 December 2023, the Audit and Risk Committee comprised the following ﬁve members, including two women and three men:

2023 data

Personal details

5
6

MEETINGS--60%

INDEPENDENT-WOMEN

Expiry of termof oﬃce on
the Board

Length ofservice on theCommittee1

Attendance√

03/06/2014

2026 GM

9 years

100.00%26/01/2005 2

2025 GM

18 years

100.00%04/06/2019

2025 GM

4 years

100.00%03/06/2008

2026 GM

15 years

100.00%04/06/2019

2024 GM

4 years

100.00%AVERAGE ATTENDANCE

100.00% 3

Monique Cohen (F)(Chairwoman)
Nationality: French
67 years old 1 –28/01/1956

MEMBERS--40%

Independence

Date ofappointment

Charles-Éric Bauer (M)Nationality: French
59 years old 1 –09/01/1964
Estelle Brachlianoff (F)Nationality: French
51 years old 1 –26/07/1972√

Renaud Momméja (M)Nationality: French
61 years 1 - 20/03/1962
Alexandre Viros (M)Nationality: French
45 years old 1 –08/01/1978√(1) The ages and length of service indicated are determined in number of full years as at 31 December 2023.
(2) Mr Charles-Éric Bauer was appointed to the Audit and Risk Committee before joining the Supervisory Board (before Order no. 2008‑1278 of 8 December 2008, there
was no law requiring Board membership).
(3) This figure reflects the average attendance of the members of the Audit and Risk Committee in office as at 31 December 2023, and does not take into accountmembers who left the Committee during the year, where applicable.

3.6.3.2

RULES OF PROCEDURE

On 24 March 2010, the Supervisory Board adopted rules ofprocedure which specify the rules governing the composition,
powers and operating procedures of the Audit and Risk
Committee.
These rules of procedure are regularly reviewed to adapt to legal
and regulatory changes and to take into account therecommendations of the French Financial Markets Authority (AMF)
and revisions to the Afep‑Medef Code.
The full text of the Audit and Risk Committee rules of procedure ismade available at each update at https://ﬁnance.hermes.com/
en/governing‑bodies‑rules‑procedure‑articles‑association/.

344

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The main provisions of the Audit and Risk Committee’s rules ofprocedure are set out in this chapter 3 of the universal registration
document.

3.6.3.3

OPERATION

The operation of the Audit and Risk Committee complies with theprinciples applicable to the Supervisory Board committees (see§ 3.6.1).
The Audit and Risk Committee meets as many times as necessary
and usually six times per ﬁnancial year, including once before theapproval of the annual ﬁnancial statements by the Executive
Management and once before the review of the half‑yearly ﬁnancial
statements by the Supervisory Board.

CORPORATE GOVERNANCE
SPECIALISED COMMITTEESAs part of its responsibilities in terms of social and environmental
responsibility, a meeting dedicated to the presentation of CSR risk
exposure has been held every year since 2021 with the CAG‑CSR
Committee. The purpose of this joint meeting is to strengthen
coordination and sharing between the two committees on this related
subject.
The Audit and Risk Committee meets when convened by its
Chairwoman, who sets the agenda of the meeting in writing orverbally, in any location indicated in the notice of meeting.
Before each Audit and Risk Committee meeting, Committee members
are sent, in good time, with reasonable lead time and subject to
conﬁdentiality requirements, a ﬁle containing documentation on itemson the agenda requiring prior analysis and review.
The Executive Vice‑President Corporate Development and Social
Affairs, systematically participates in the meetings of the Audit andRisk Committee.
The Director of Audit and Risk Management is responsible for the
Secretariat under the responsibility of the Chairwoman.

The Statutory Auditors attend the two meetings relating to the reviewof the annual and half‑year ﬁnancial statements.
At the ﬁrst Supervisory Board meeting following a meeting of the Audit
and Risk Committee, the Chairwoman gives an oral report on theCommittee’s work to the members of the Board, a summary of whichis then included in the minutes of the Board meeting.
The Audit and Risk Committee uses the Herboard secure digitalplatform (see § 3.5.3.2).
Minutes of Audit and Risk Committee meetings are prepared at theend of each meeting and sent to all members of the Committee.
The Audit and Risk Committee uses a dashboard to plan and prepare
its work in a balanced way over the year.

3.6.3.4

MAIN DUTIES AND WORK CARRIED OUT IN 2023

3

In accordance with Article L. 823‑19 of the French Commercial Code
(Code de commerce) and without prejudice to the powers of theSupervisory Board, which it does not replace, the main duties of the
Audit and Risk Committee performed in 2023 are as follows:

Purpose of duties

Main duties and work carried out in 20231

General- conduct a periodic self‑assessment of its operation;- approve the revision of the Audit and Risk Committee rules of procedure [n/a in 2023].

Preparation of accounting
and ﬁnancial informations be informed of the budget for the financial year;s review and comment on the parent company and consolidated financial statements before they areapproved by Executive Management and presented to the Supervisory Board;s note the consensus of financial analysts on the full‑year and interim results;s review press releases on quarterly revenue, full‑year and interim results;
s ensure that the accounting policies applied are relevant and consistent;s verify that internal data collection and control procedures guarantee the quality of the information
provided;s review the work programme and results of audit assignments;s monitor the process of preparing financial information and, where appropriate, make recommendations toensure its integrity;s monitor the effectiveness of internal control and risk management systems and internal audits regarding
the procedures for preparing and processing accounting and financial information, without jeopardising
its independence.

(1) List not exhaustives Annual topics ● Occasional or multi‑year topics.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

345

3

CORPORATE GOVERNANCE
SPECIALISED COMMITTEES

Purpose of duties

Main duties of the Committee and work carried out in 2023 1

Audit of accounting and ﬁnancial
information and the work of the
Statutory Auditorss issue a recommendation to the Supervisory Board on the Statutory Auditors proposed for appointment or
renewal by the General Meeting;s monitor the performance by the Statutory Auditors of their assignment (audit approach, audit conclusions,presentation of the Board’s fees);s ensure that the Statutory Auditors comply with the independence conditions;s hold in closed session with the Statutory Auditors;s approve, on a case‑by‑case basis, the provision by the Statutory Auditors of services other than thecertification of the financial statements;
s report on the results of the engagement regarding the certification of the financial statements, on the way
the engagement contributed to the integrity of the financial reporting and the role it has played in thisprocess.

Control of risk exposure
and prevention of corruptions be informed of the security system by analysing the incidents of the past financial year and the actions
implemented;

s be informed of the results of risk management, audit and internal control activities;s be informed of the audit plan;s regularly review exposure to risks such as financial, legal, operational, social ands environmental risks and the actions taken as a result;s be informed, in a joint meeting with the CAG‑CSR Committee, of exposure to CSR risks (see § 3.5.6.2);
s be informed of personal data risks and the corresponding action plans;s be informed of risks related to the duty of care;s be informed of operational risk mapping: in 2023, Hermès Femme;● be informed every three years of the Group risk mapping;● be informed of Group risk factors and the corresponding action plans;s be informed annually of IT risks, in particular cyber risks, and the corresponding action plans;s proofread chapter 4 “Risk factors and management” of the universal registration document;s ensure the establishment of a system for preventing and detecting corruption and influence‑peddling;s be informed of the update of the plan to prevent and fight against corruption;● be informed of the vigilance plan;● be informed of the establishment of a new banking relationship;● be informed of the means implemented by the Group to ﬁght against counterfeiting.

(1) List not exhaustives Annual topics ● Occasional or multi‑year topics.

As part of its duties, the Audit and Risk Committee heard in particularfrom the Executive Vice‑President Finance, with regard to bothaccounting data and treasury data, the Director of Consolidation,
Taxation and Management Control, the Director of Audit and Risk
Management, the Director of Group Safety, the Director of Group IT(and members of her team), the Director of Information Systems

346

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Security, the Director of Financial and Non‑Financial Communication
and Investor Relations, the Director of Financial Operations, the Chief
Financial Ofﬁcer of the Hermès Femme division, the Director of Legal
Compliance, the Data Protection Ofﬁcer, the Group General Counsel,
the Director of Sustainable Development and the Statutory Auditors.

CORPORATE GOVERNANCEEVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES

3.7

EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES

3.7.1

METHODOLOGY

3.7.1.1

WHETHER OR NOT TO USE AN EXTERNALADVISOR

During the formal 2022 evaluation, the CAG‑CSR Committee
considered, as it had done in 2019, that it was undesirable to call on
an outside ﬁrm to conduct the formal evaluation of the Supervisory
Board. The reasons for this decision are as follows:s confidentiality issues raised by giving information on the
Supervisory Board to a third party;s the relative absence of weak signals raised by previous
evaluations;s the steady progress made in terms of governance;s the small amount of added value expected from an external firm,
particularly given the specific nature of a société en commandite
par actions (partnership limited by shares), which provides for few
comparable companies.

3.7.1.2

EVALUATION PROCESSThe evaluation is carried out, in accordance with therecommendations of the Afep‑Medef Code revised in December 2022
(Article 11.3), as follows:s a formal evaluation is carried out every three years (year N). It is
implemented, under the direction of the CAG‑CSR Committee, withthe help of the secretary of the Board;

3.7.2

CHANGES SINCE THE LAST EVALUATIONS

3.7.2.1

ANNUAL INFORMAL EVALUATION IN 2021s the following year (year N+1), the Supervisory Board organizes anin‑meeting discussion, during which a review is undertaken of theactions carried out since the last evaluation in order to respond to
the areas for improvement identified;s the following year (year N+2), the Chairman of the Supervisory
Board meets individually with each member of the Supervisory
Board in order to discuss in particular the functioning of the Board
since the last evaluation and to assess the individual contributionof its members;s the shareholders are informed each year in the corporate
governance report of the performance of the assessments and,
where applicable, the follow‑up given to them.

3.7.1.3

EVALUATION OBJECTIVESThe evaluation shall have three objectives (Article 11.2 of theAfep‑Medef Code updated in December 2022):
s review the Board’s operating procedures;s check that key issues are properly prepared and discussed;s measure the continuous and permanent improvement in theeffective contribution of each Board member to the work of theBoard by virtue of his or her skills and involvement in discussions.

The evaluation also covers the diversity policy applied within the
Supervisory Board and the skills matrix deﬁned (see § 3.4.3 and3.4.5.2), in order to ensure the coherence of the overall compositionof the Board and to question the relevance of the objectives set.

s the provision of continuous training offer to enable members who
so wish to maintain and develop their level of skills;

The results, the areas for improvement identiﬁed and the actions
carried out since the last informal evaluations are detailed in the2022 universal registration document (§ 3.7.2. pages 327 and 328).

s extension of site visits to distribution subsidiaries;

3.7.2.2

No new areas for improvement were identiﬁed with regard to theBoard Committees.

THREE‑YEARLY FORMAL EVALUATION IN 2022

The results and areas identiﬁed for improvement during the last
three‑year formal self‑assessment of the Supervisory Board andcommittees, which took place in 2022, are detailed in the 2022
universal registration document (§ 3.7.3. pages 328 and 329).
Some members wished to see changes on the following points, which
the Board, on the proposition of the CAG‑CSR Committee, hasdecided to adopt as areas for improvement for the future:3s ever greater monitoring of CSR issues.

3.7.2.3

ANNUAL INFORMAL EVALUATION IN 2023

In late 2023, Board members were able to discuss the functioning of
the Board and its committees.
As in previous evaluations, the Supervisory Board considered that its
functioning and that of its committees remained very satisfactory.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

347

3

CORPORATE GOVERNANCEEVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES

3.7.2.3.1

Evaluation of the Supervisory Board in 2023

The Board wished to highlight the actions carried out in 2022 and 2023 to meet the expectations expressed during the last formal evaluation.

Areas identiﬁed for improvementin the 2022 formal evaluation

Actions taken in 2022 and 2023

Supervisory Board
The provision of continuous training offer to enable
members who so wish to maintain and develop
their level of skills

Each year, at least two major annual topics are presented to the Board (see § 3.5.3.4) and an on‑site
visit is organised (see § 3.5.3.5), which gives members practical training on Group practices.
Supervisory Board members can make use of the Company’s Group membership of the IFA (Institut
Français des Administrateurs), and thereby take advantage of all of its services and training.
In 2023, it was decided to focus on CSR training, with the implementation of a comprehensive
multi‑year programme described in § 3.5.6.1.2.

Extension of site visits to distribution subsidiaries

At the end of 2022, it was decided to organise a visit to a distribution subsidiary every two years (ineven years), preferably abroad.
In late 2022, the members of the Board were able to discover the American subsidiary Hermès Of
Paris. In 2024, the Board is expected to travel to Italy, to visit the distribution and production
subsidiaries there.

Ever greater monitoring of CSR issues

By the Supervisory Board:s Presentation by the sustainable development department of sustainable development and CSR
issues (see § 3.5.4):- work carried out on the major issues in 2022:- CSR governance (see chapter 2 "Corporate social responsibility andnon‑financial performance" § 2.1.6),- taxonomy/TSFD/SASB projects and assessments,- implementation of the CSR strategy within the Group,- employee CSR training,- Diversity & Inclusion global participatory projec,- energy sobriety policy,- external certification of the sustainable construction framework,- environmental information and labelling for customers,- raising supplier awareness,- implementation of anti‑destruction measures;- focus on the carbon trajectory (see chapter 2 “Corporate social responsibility
and non‑financial performance”, § 2.5):- SBTI audit,- reminder of the Group’s commitment,- results and outlook;- voluntary carbon offset policy via Livelihoods (see chapter 2 “Corporate social responsibility
and non‑financial performance”, § 2.5.6.3.2. and 2.7.2.1.4);- external CSR assessments (see chapter 2 "Corporate social responsibility and non‑financial
performance", § 2.7.3.3);
s Launch of a multi‑year CSR training programme for Board members (see § 3.5.6.1.2);
s sustainable water management in the textile sector (during the Passerelles site visit).
By the Audit and Risk Committee and/or the CAG‑CSR Committee:
s presentation of CSR risks;s presentation of the CSR / NFPS chapter of the universal registration document;s CSR achievements in 2022 in relation to the objectives set;s CSR guidelines for 2023;
s Presentation of the social model/Update on the work of the women’s network.

CAG‑CSR Committee
No new areas were identiﬁed for improvement.
Audit and Risk Committee
No new areas were identiﬁed for improvement.

The next formal self‑assessment of the Board will take place in 2025.

3.7.2.3.2

Evaluation of the CAG‑CSR Committee and the
Audit and Risk Committee in 2023

In 2023, the CAG‑CSR and Audit and Risk Committees respectively
discussed their functioning. The results of these self‑evaluations
show that their functioning, work and composition and the individual

3482023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

contributions of each of their members are satisfactory. The membersof these committees also stressed that all areas for improvement
identiﬁed during the previous evaluation were taken into account (see§ 3.7.2.2). No new areas for improvement were identiﬁed by thecommittees.

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8

COMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8.1

COMPENSATION POLICY FOR THE EXECUTIVE CHAIRMEN (EXECUTIVE CORPORATE OFFICERS)
AND MEMBERS OF THE SUPERVISORY BOARD (NON‑EXECUTIVE CORPORATE OFFICERS)

System applicable since 2020
Order no. 2019‑1234 of 27 November 2019 established amechanism applicable to sociétés en commandite par actions(partnerships limited by shares) as regards Corporate Ofﬁcers
compensation.
This text came into force for the Company from the date of the
Combined General Meeting of 24 April 2020.
The new system is based on a dual vote by the Ordinary General
Meeting and the Active Partner:s an initial annual ex‑ante vote will be taken on the compensation
policy for Corporate Officers (i.e. the Executive Chairmen andmembers of the Supervisory Board). This policy must set out the
principles and criteria, aligned with the interests of the Company,
determining the compensation of Corporate Officers. The policy isbinding, which means that compensation paid to Corporate
Officers is confined to that set out in a previously approved
compensation policy;s if a new compensation policy is rejected, the most recent approved
policy continues to apply and a revised compensation policy is
submitted to the Company’s next Ordinary General Meeting. In theabsence of a previously approved compensation policy,
compensation is determined in accordance with the compensation
granted for the previous financial year or, in the absence ofcompensation granted for the previous financial year, in
accordance with existing practices within the Company;s in exceptional circumstances, it is possible to depart from theapplication of the compensation policy if this departure is
temporary, aligned with the corporate interest and necessary toguarantee the Company’s sustainability or viability;s a second ex‑post vote is taken on the content of the corporate
governance report setting out the compensation paid or awarded
to Corporate Officers during the prior financial year, as well as
certain additional information, in particular equity ratios.
Several resolutions must therefore be presented:

If rejected, a revised compensation policy is submitted to theCompany’s next Ordinary General Meeting. The payment ofcompensation to Supervisory Board members for the current
financial year is suspended until a revised compensation policy
is approved. If the revised compensation policy is rejected, thesuspended amounts are not paid and the compensation of themembers of the Supervisory Board for the current financial year
is suspended,3• a resolution (individual ex‑post vote) for each Executive
Chairman and a resolution for the Chairman of the Supervisory
Board concerning the total compensation and benefits of any
kind paid during or awarded in respect of the prior financial
year (Supervisory Board members are not subject to individual
votes). The payment of the variable and exceptional portion of
the compensation of the relevant person is subject to the priorapproval of the resolution concerning him/her.

3.8.1.1

GENERAL PRINCIPLES OF THE COMPENSATIONPOLICY FOR CORPORATE OFFICERS

Pursuant to paragraph 4 of Article L. 22‑10‑76, I of the French
Commercial Code (Code de commerce), resulting from theaforementioned order, the compensation policy for Corporate Ofﬁcers(Executive Chairmen and members of the Supervisory Board) ispresented below.
This policy describes all components of ﬁxed and variable
compensation and explains the decision‑making process applied forits determination, review and implementation.
The operating rules speciﬁc to sociétés en commandite paractions (partnerships limited by shares) and the Company’s
governance system have resulted in the establishment of thecompensation policy for Senior Executives (Executive Chairmen)
and other Corporate Ofﬁcers (Supervisory Board members) being
entrusted to the Active Partner and the Supervisory Board
respectively.

• a resolution (global ex‑post vote) relating to the informationreferred to in Article L. 22‑10‑9, I of the French Commercial
Code (Code de commerce), for all Corporate Officers (i.e. theExecutive Chairmen, the Chairman of the Supervisory Boardand the other members of the Supervisory Board). This
information reflects, for each of these officers, the actual
application of the compensation policy for the past financial
year, including details of the compensation and benefits paid orawarded.

After outlining the general principles applicable to all Corporate
Ofﬁcers, the speciﬁc principles of the compensation policy for the
Executive Chairmen will be outlined, followed by the speciﬁc principlesof the compensation policy for the members of the Supervisory
Board.
In application of Article L. 22‑10‑77, II of the French Commercial Code
(Code de commerce), the compensation policy for Corporate Ofﬁcers
will be the subject of two separate resolutions at the General Meetingof 20 April 2023: the ﬁrst will deal with the compensation policy for
the Executive Chairmen and the second with the compensation policy
for the members of the Supervisory Board.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

349

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8.1.1.1

Manner in which the compensation policy respects
the interests of the Company and contributes to
the Company’s commercial strategy andsustainability (Article R. 22‑10‑40, I‑1° of theFrench Commercial Code (Code de commerce))

The compensation policies for the Executive Chairmen andSupervisory Board members are aligned with the corporate interest
and contribute to the Company’s commercial strategy andsustainability for the following reasons:
As regards the Executive Chairmen:s since the Company’s transformation into a société en commandite
par actions (partnership limited by shares), the maximum amountof variable compensation set by the Articles of Association(“statutory compensation”) of the Executive Chairmen has been
determined by the Articles of Association (Article 17);s the maximum amount of fixed (“additional”) compensation of the
Executive Chairmen and the terms of its indexation were
determined by the Ordinary General Meeting of 31 May 2001. On
7 February 2024, Émile Hermès SAS, Active Partner, decided tocap this indexation (see § 3.8.1.2.1);s the compensation of the Executive Chairmen is determined on
the basis of clear, quantifiable criteria (notably growth inrevenue and change in consolidated net income before tax, as
described in § 3.8.1.2.4 below) that are relevant to its businessmodel and have remained unchanged for a considerable
number of years;s the variable compensation is subject in part (10%) to a CSR
criterion reflecting the Group’s firm and ongoing commitments tosustainable development (for the composition of the CSR criterion,see § 3.8.1.2.4);s the composition of compensation is simple and clear – fixed andvariable compensation, without resorting to complex deferredcompensation mechanisms and without guaranteeing a minimum
variable compensation in the event of a poor economic
performance by the Company;s the Executive Management Board of Émile Hermès SAS, ActivePartner, sets the actual amount of each Executive Chairman’s
annual compensation set by the Articles of Association (“statutorycompensation”). To this end, it uses the recommendations of the
CAG‑CSR Committee and in particular, in addition to the level ofachievement of CSR criteria, takes into account in its decision theperformance achieved by the Group in respect of the previous
financial year, the strategic challenges in respect of the Group’s
medium- and long‑term development and the competitiveenvironment in which it operates.

As regards the members of the Supervisory Board:s the principles governing allocation set out in the compensation
policy for members of the Supervisory Board result in amounts
being awarded on the basis of the tasks entrusted to them andtheir attendance at meetings;s these principles are periodically reviewed in line with market
practices.

350

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

3.8.1.1.2

Manner in which the conditions of compensationand employment of the Company’s employees aretaken into account in the decision‑making process(Article R. 22‑10‑40, I‑3° of the French Commercial
Code (Code de commerce))

The conditions of compensation and employment of the Group’s
employees are described in chapter 2 “Corporate social responsibility
and non‑ﬁnancial performance”, § 2.2.6
With regard more speciﬁcally to the conditions governingcompensation, Hermès’ economic successes are regularly sharedwith all Group employees, both in France and around the world, invarious forms. The aim is to acknowledge the contribution made byemployees to the House’s development, regardless of their role inthe value‑creation chain, in order to share the beneﬁts of our
growth over the long term.

The Group’s policy is to allow its employees to beneﬁt from its
long‑term growth prospects through various mechanisms:s in general, in all the countries where the Company operates, its
employees are paid in line with market standards in terms of their
total compensation;s the Company also offers its employees:• employee shareholding plans: such plans have been in place
for many years (the first plan dates back to 1993) andacknowledge the contribution made by employees to theHouse’s development, regardless of their role or geographicallocation, by providing a single component of compensation inorder to share the benefits of our growth, enabling employees
to identify more closely with decisions having an impact on
Hermès’ long‑term growth,• incentive schemes involving employees with the development oflocally determined indicators that are relevant with regard to
the activity and environment of each of the French subsidiaries,
notably quality, safety and productivity,• a Group profit‑sharing agreement giving all employees ofcompanies in France a share of the Group’s profits in aharmonised manner,• other mechanisms enabling employees of foreign subsidiaries
to benefit from additional compensation adapted to local
performance and practices,• lastly, voluntary and supra‑legal social protection and pension
plans, set up by the subsidiaries in order to supplement theemployer offer in a comprehensive and competitive manner andto offer compensation and social protection schemes in the
short, medium and long term.

The Group’s employee compensation policy is ambitious andcomprehensive; it incorporates a wide range of compensation tools.

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

The budget guidelines for wage increases during the annual salary
review take account of inﬂation and changes in local wage markets.
Particular attention is paid to gender equality and gaps in relation to
the markets (internal and external). Speciﬁc budgets may be provided
if adjustments are necessary.
The desire to reward both collective and individual performance canalso be seen in the development of variable compensation at bothindividual and collective levels in recent years.

3.8.1.1.3

Measures to avoid or manage conflicts of interest(Article R. 22‑10‑40, I‑2° of the French Commercial
Code (Code de commerce))

A number of measures have been implemented to prevent possible
conﬂicts of interest:s the maximum amount of variable compensation set by the Articles
of Association (“statutory compensation”) of the Executive
Chairmen is determined by the Articles of Association (Article 17);s the maximum amount of fixed (“additional”) compensation of the
Executive Chairmen and the terms of its indexation were
determined by the Ordinary General Meeting of 31 May 2001. On
7 February 2024, Émile Hermès SAS, Active Partner, decided tocap this indexation (see § 3.8.1.2.1);
s since its creation on 24 March 2010, the CAG‑CSR Committee of
the Supervisory Board of Hermès International has been tasked
each year with ensuring that compensation paid to the Executive
Chairmen complies with the provisions of the Articles of Associationand the decisions made by the Active Partner;s changes to the two components of the compensation of Executive
Chairmen depend on objective and comprehensible quantifiable

3.8.1.2

qualitative criteria unaltered for many years, that are public andpredefined by nature, as described in § 3.8.1.2;
s when setting the actual amount of each Executive Chairman’scompensation set by the Articles of Association (“statutorycompensation”), the Executive Management Board of Émile
Hermès SAS uses the recommendations of the CAG‑CSR
Committee and takes into account in its decision the performanceachieved by the Group in respect of the prior financial year, thestrategic challenges in respect of the Group’s medium- andlong‑term development and the competitive environment in which it
operates;s since 2020, the compensation policy for the Executive Chairmen
has been subject to the advisory opinion of the Supervisory Boardand the approval of the General Meeting, and the actual
compensation of the Executive Chairmen is subject to a decisionby the Supervisory Board.

3.8.1.1.4

3

Procedures for publishing the compensation of
Corporate Officers

Pursuant to Article R. 22‑10‑40, V of the French Commercial Code
(Code de commerce), the compensation policy for Corporate Ofﬁcers,
together with the date and result of the last ex‑ante vote in the
General Meeting, is disclosed on the Company’s ﬁnancial website on
the business day following the date of the vote.
Pursuant to Article 27.1 of the Afep‑Medef Code updated in
December 2022, all potential or vested compensation of the
Executive Chairmen is disclosed on the Company’s ﬁnancial website
https://ﬁnance.hermes.com/en/corporate‑ofﬁcers immediately after
the meeting of the Executive Management Board of Émile HermèsSAS, Active Partner, that approved it.

SPECIFIC PRINCIPLES APPLICABLE TO THE COMPENSATION POLICY FOR THE EXECUTIVE CHAIRMEN (EXECUTIVECORPORATE OFFICERS)

Decision‑making process followed for its determination, review and implementation

COMPENSATION POLICYFOR EXECUTIVE CHAIRMEN

ActivePartner
Establishment of a draftcompensation policy taking
into account the guidelines
laid down in the Articles
of Association

Supervisory
Board
Advisory opinion on
the draft compensation
policyOrdinary General
MeetingEx-ante vote oncompensation policy

ACTUAL COMPENSATION OF
THE EXECUTIVE CHAIRMEN

ActivePartner
Determinationof the actual
compensation
proposed

CAG-CSR
Committee
Verification that the actual
compensation proposed complies
with the Articles of Association andthe compensation policy. Assessmentof the achievement of CSR criteria
for variable compensation

Ordinary
General Meeting

Supervisory
Board

Ex-post voteon actualcompensation

Decision on actual
compensation

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

351

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

Decision‑making process relating to the establishment of the
Executive Chairmen’s compensation policy (Article R. 22‑10‑40, I‑2°of the French Commercial Code (Code de commerce))

The components of the Executive Chairmen’s compensation policy are
established by Émile Hermès SAS, Active Partner. The decision ismade by taking into account the principles and conditions provided
for in Article 17 of the Articles of Association with respect to thevariable compensation set by the Articles of Association (“statutorycompensation”) and, by reference to the Articles of Association, thedecision of the Ordinary General Meeting of 31 May 2001 withrespect to ﬁxed (“additional”) compensation.
The Supervisory Board issues an advisory opinion on thecompensation policy for the Executive Chairmen.
Since 2020, the compensation policy for the Executive Chairmen is
submitted each year to the Ordinary General Meeting for approval(ex‑ante vote).
Decision‑making process followed for the determination of the actual
compensation of the Executive Chairmen (Article L. 22‑10‑76 of theFrench Commercial Code (Code de commerce))

The actual amount of the Executive Chairmen’s compensation isdetermined each year by Émile Hermès SAS, Active Partner, in
accordance with the approved compensation policy, which is thensubmitted to the Supervisory Board for approval.
The CAG‑CSR Committee of the Supervisory Board:s evaluates the achievement of the indicators comprising the CSR
criterion for Executive Chairmen’s variable compensation;

The principles of comprehensiveness, balance between thecomponents of compensation, comparability, consistency, intelligibilityof the rules and measurement have guided this change.
The second change concerns the supplemental pension plan. Mr Axel
Dumas, as an Executive Chairman who is a natural person, potentially
beneﬁts from a deﬁned‑beneﬁt pension plan (see § 3.8.1.2.4 –Supplemental pension plan – Deﬁned‑beneﬁt pension plan [Article 39of the French General Tax Code - Article L. 137‑11 of the FrenchSocial Security Code]).
You are reminded that, in accordance with Order no. 2019‑697 of
3 July 2019 relating to deﬁned‑beneﬁt occupational plans, no newmembers may join this scheme from 4 July 2019 and no new
conditional right to beneﬁts may be awarded for periods of
employment after 31 December 2019.
This freezing of the system initially set up in 1991 - and from which
the natural person Executive Chairman potentially beneﬁts - led theGroup to conduct a study on the pension system that would be themost relevant and the most suitable to replace it. The study was
conducted on the basis of a precise benchmark of market practices,the purpose of which was in particular to reference the principles andmethods implemented, the performance criteria generally used, orthe commonly accepted contribution amounts (as a percentage of thebenchmark compensation). The Group was also supported by aspecialised external service provider (Deloitte) to carry out this study.

s checks that the actual compensation of the Executive Chairmen
complies with the Articles of Association and the compensation
policy.

The system ultimately selected is an “Article 82” typedeﬁned‑contribution pension plan, with reference to the French
General Tax Code (which is described in detail in § 3.8.1.2.4 Supplemental pension plan - Deﬁned‑contribution pension plan
[Article 82 of the French General Tax Code]).

Since 2020, the actual overall compensation of Corporate Ofﬁcers(including that of the Executive Chairmen) and the actual individualcompensation of each Executive Chairman will be subject, each year,
to approval by the Ordinary General Meeting (ex‑post votes).

In accordance with the provisions of the French Commercial Code
(Code de commerce) (Article R. 22‑1‑40 II, 7°) and the Afep‑Medef
Code (Article 26.6.1):

3.8.1.2.1

Changes made to the compensation policy for the
Executive Chairmen since the last General Meeting(Article R. 22‑10‑40, I‑5° of the French Commercial
Code (Code de commerce))

The General Meeting of 20 April 2023 approved, at 91.59% andwithout reservation, the compensation policy for the Executive
Chairmen (see § 3.8.5).
In accordance with the decision‑making process described in§ 3.8.1.2, the Executive Management Board of Émile Hermès SAS, at
its meeting of 7 February 2024, proposed renewing thiscompensation policy for the 2024 ﬁnancial year while making twochanges.
The ﬁrst change concerns ﬁxed compensation - or additional
compensation according to the Articles of Association. The decision of
the Ordinary General Meeting of 31 May 2001 set the ceiling at€457,347.05 and provides for indexation, in an upward direction only,
linked to the increase in consolidated revenue achieved in respect ofthe previous ﬁnancial year, at constant scope and exchange rates,
compared to that of the prior ﬁnancial year. Émile Hermès SAS, ActivePartner, proposed limiting the annual change in the ﬁxed
compensation of the Executive Chairmen to 5%. In other words, theindexation of the ﬁxed compensation will continue to be aligned with352

the increase in consolidated revenue achieved in respect of theprevious ﬁnancial year, at constant scope and exchange rates,
compared to that of the prior ﬁnancial year, but without exceeding a
5% increase compared to the previous ﬁxed compensation (limit).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

s the acquisition of rights related to this defined‑contribution pension
plan is subject to clear, detailed and varied performance
conditions, of both a financial and non‑financial nature, which
contribute to the objectives of the compensation policy describedin § 3.8.1.1;s the principles of comprehensiveness, balance between thecomponents of compensation, comparability, consistency,
intelligibility of the rules and measurement were taken into accountand applied rigorously in the allocation of this defined‑contribution
pension plan.

This system, the terms of which are described in § 3.8.1.2.4, is not
limited to Executive Chairmen but is intended to beneﬁt a wider groupof Senior Executives, with different funding methods. Émile HermèsSAS, a legal entity, is not eligible for a supplemental pension plan.
These changes to the compensation policy made by Émile HermèsSAS, Active Partner (implementation of a new deﬁned‑contribution
pension plan following the freezing of the deﬁned‑beneﬁt pension planand cap on the indexation of ﬁxed compensation), were presented to
the CAG‑CSR Committee and then to the Supervisory Board, whichunanimously issued a favourable advisory opinion.
The compensation policy for Executive Chairmen had remained
unchanged since 2020 when a CSR criterion was introduced forvariable compensation.

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

Its objectives are to:s allow the continuity of the pension schemes put in place within theGroup, following the freezing of conditional rights under thedefined‑benefit pension plan (provided for by Article 39 of theFrench General Tax Code);s offer a supplemental pension plan structure in line with market
practices;s sustain the principle of measuring the compensation policy for the
Executive Chairmen, which aims to achieve a fair balance andtakes into account the Company’s corporate interest, market
practices, the performance of the Executive Chairmen, and theCompany's stakeholders.

In accordance with the provisions of Article R. 22‑1‑40 of the French
Commercial Code (Code de commerce), the following elements weretaken into account in proposing this revision:s the manner in which the compensation policy respects thecorporate interest and contributes to the Company’s commercial
strategy and sustainability;s the manner in which the compensation and employment conditionsof the Company’s employees are taken into account in thedecision‑making process;s measures for avoiding or managing conflicts of interest;s the most recent shareholder votes on the compensation policy.

This amended compensation policy is subject to the approval of the
Combined General Meeting of 30 April 2024 (see chapter 8“Combined General Meeting of 30 April 2024”, § 8.2.1 - explanatory
statement to the 11th resolution).

3.8.1.2.2

Terms of application to newly appointed orreappointed Executive Chairmen (Article
R. 22‑10‑40, I‑6° of the French Commercial Code
(Code de commerce))

The term of ofﬁce of the Executive Chairmen is indeﬁnite under theterms of the Articles of Association, and is therefore not subject torenewal.
The compensation policy would apply to newly appointed Executive
Chairmen on a pro rata basis in accordance with their presence
during the ﬁrst year of their term.

3.8.1.2.3

Exceptions to the application of the compensation
policy (Article R. 22‑10‑40, I‑7° of the French
Commercial Code (Code de commerce))

In the event that exceptional circumstances should arise, theExecutive Management Board of Émile Hermès SAS is authorised,
under the conditions provided for by law, to waive the application of
the compensation policy used to set the variable compensation of the
Executive Chairmen, within the limit authorised by the Articles of
Association, and after the favourable opinion of the Supervisory
Board.

3.8.1.2.4

Specific elements comprising the compensation
policy for the Executive Chairmen (Article
R. 22‑10‑40, II of the French Commercial Code
(Code de commerce))

Pursuant to Articles L. 22‑10‑76 and R. 22‑10‑40, II of the French
Commercial Code (Code de commerce), the speciﬁc components

comprising the compensation policy for the Executive Chairmen are
set out below.
When the office is taken up

No such commitment exists.
During their term of office

The term of ofﬁce of the Executive Chairmen is open‑ended. The
Executive Chairmen may be dismissed by a decision of the ActivePartner.
Annual ﬁxed and variable compensation and respective importance –CSR criterion for variable compensation

In accordance with the principles set out in Article 17 of the Articles
of Association, each Executive Chairman is entitled to ﬁxed
compensation (referred to as “additional” in the Articles of
Association) for which the maximum amount is determined by theOrdinary General Meeting with the unanimous approval of the ActivePartners and, potentially, variable compensation set by the Articles of
Association (“statutory compensation”):

3

s fixed compensation (referred to as “additional compensation” in
the Articles of Association) was introduced by the Ordinary General
Meeting of 31 May 2001, which set a limit of €457,347.05, andprovided for it to be indexed upwards only, in accordance with any
increase in consolidated revenue for the previous financial year
over the year prior to that, at constant scope and exchange rates.
Fixed compensation is, therefore, set on an annual basis. In
accordance with this principle and to facilitate understanding of
how the additional compensation of Executive Chairmen is
calculated before indexing, it is referred to as “fixedcompensation” by analogy with market practices. As indicated in§ 3.8.1.2.1 above, the Executive Management Board of Émile
Hermès SAS decided to limit the indexation of fixed compensation
to 5%. Subject to the approval by the General Meeting of 30 April
2024 of the compensation policy for the Executive Chairmen as
revised on this point, this limit will apply to the fixed compensationof the Executive Chairmen paid in 2025;s the calculation of the variable compensation referred to as“compensation set by the Articles of Association (“statutorycompensation”)” – set by Article 17 of the Articles of Association –has remained constant since the IPO on 3 June 1993. This
compensation is capped at 0.20% of the consolidated net income
before tax generated in the previous financial year. This mode of
determination naturally leads to a strict variability in thecompensation set by the Articles of Association (“statutorycompensation”) of Executive Chairmen, in a transparent way andwithout any guarantee of a minimum amount. With the aim ofclarity, the compensation set by the Articles of Association(“statutory compensation”) of the Executive Chairmen is referred toas “variable compensation”, by analogy with market practices.

The variable compensation of the two Executive Chairmen is partiallyconditioned (10%) on a “CSR” criterion reﬂecting the Group’s statedand constant commitments in respect of sustainable development.
The CSR criterion contributes to the objectives of the Executive
Chairmen’s compensation policy.
This way of structuring the variable component of compensation wasapplied for the ﬁrst time when evaluating variable compensation
owing for 2019, which was measured and paid in 2020.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

353

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

The indicators making up the CSR criterion relate to the following:s decoupling between business growth at constant scope andexchange rates and the evolution of industrial energy consumption(quantifiable environmental criterion);s actions implemented in favour of the Group’s local integration in
France and throughout the world, excluding major cities (qualitative
societal criterion);s Group initiatives in favour of gender balance (qualitative social
criterion).

These indices are in line with the CSR strategy and the action
priorities presented in chapter 2 “Corporate social responsibility andnon‑ﬁnancial performance”, § 2.1.5).
The Executive Management Board of Émile Hermès SAS, ActivePartner, sets the actual amount of the annual compensation of each
Executive Chairman, not exceeding the maximum amount of theapproved compensation policy deﬁned herein, and in accordance withthe criteria and targets set out in § 3.8.1.1 and § 3.8.1.2, as follows:s target variable compensation as set by the Articles of Association(“statutory compensation”) is set by applying the strict variability of
the consolidated net income before tax, 10% of which isconditional on the achievement of the targets making up the CSR
criterion (see above);s fixed (“additional”) compensation is set by applying the strictvariability, upwards only, of revenue to the compensation of theprevious financial year;s the other components of compensation are set in strict applicationof the compensation policy for the Executive Chairmen.

The two components of the Executive Chairmen’s compensation
are changed according to clear and objective quantiﬁable criteria,
unaltered for many years, that are publicly available andpredeﬁned by nature, as described in paragraphs 1 and 2 above.
Thus, no minimum variable compensation set by the Articles of
Association (“statutory compensation”) is guaranteed for the Executive
Chairmen.
The quantiﬁable criteria are paramount in the calculation of the variable
compensation of the Executive Chairmen.
The Executive Management Board of Émile Hermès SAS, Active Partner,
relies on the recommendations of the CAG‑CSR Committee.
Mr Henri‑Louis Bauer, the Legal Representative of Émile Hermès SAS(Executive Chairman), does not personally receive any compensation from
Hermès International. He receives compensation from Émile Hermès SAS
for his functions as Executive Chairman of this company, which isunrelated to the appointment of Émile Hermès SAS as Executive Chairmanof Hermès International.
The Executive Chairmen do not receive any compensation or beneﬁts ofany kind from the subsidiaries of Hermès International.
The breakdown of the actual compensation of the Executive Chairmen forthe last two ﬁnancial years is shown in § 3.8.4.2.
Each year, the CAG‑CSR Committee of the Supervisory Board of HermèsInternational is tasked with ensuring that the Executive Chairmen’scompensation is compliant with the Articles of Association and thecompensation policy.
No predetermined weighting is applied with respect to ﬁxed and variable
compensation, which depend on the components described above.

HISTORY OF FIXED AND VARIABLE COMPENSATION PAID TO THE EXECUTIVE CHAIRMEN OVER THE LAST THREE FINANCIAL YEARS ANDRESPECTIVE IMPORTANCE

Proportion (not2023 pre‑established)

Mr Axel Dumas

2022

Proportion (notpre‑established)

2021

Fixed compensation (referred to as “additional”
in the Articles of Association)€2,203,574

38%€1,785,716 1

40%€1,623,378

Variable compensation set by the Articles of
Association (“statutory compensation”) awarded
in respect of the previous ﬁnancial year

€3,648,702

62%€2,700,742

60%€1,559,319€4,486,458

100%

of which CSR criterion
TOTAL

10%
€5,852,276

10 %

n/a
€3,182,697(1) Mr Axel Dumas waived more than 75% of the increase, provided for by the applicable compensation policy, in his fixed compensation for 2022 (“additional”). Thus, Mr
Axel Dumas received actual fixed compensation in 2022 that increased by 10% from his actual fixed compensation for 2021.
n/a: not applicable.

2023

Proportion (notpre‑established)

2022

Proportion (notpre‑established)

2021

Fixed compensation (referred to as “additional”
in the Articles of Association)€749,081

31%€607,035 1

33%€551,850

Variable compensation set by the Articles of
Association (“statutory compensation”) awarded
in respect of the previous ﬁnancial year

€1,701,490

69%€1,259,430

67%

Émile Hermès SASof which CSR criterion
TOTAL

10%
€2,450,571€727,153
10%€1,866,465

100%€1,279,003(1) Émile Hermès SAS waived more than 75% of the increase, provided for by the applicable compensation policy, in its fixed compensation for 2022 (“additional”). Thus,
in 2022, Émile Hermès SAS received actual fixed compensation up 10% from its actual fixed compensation for 2021.
n/a: not applicable.

354

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

Methods for assessing the achievement of performance criteria forvariable compensation or share‑based compensation (Article
R. 22‑10‑40, I‑4° of the French Commercial Code (Code decommerce))

The variable compensation set by the Articles of Association(“statutory compensation”) of the Executive Chairmen is evaluated inaccordance with the change in consolidated net income before tax forthe prior ﬁnancial year compared with the preceding ﬁnancial year,
and conditioned in the proportion of 10% on the achievement of the
CSR criterion.
The evaluation of the amount of compensation subject to the CSR
criterion is limited to a target of 100%, with no possibility of exceedingthat limit.
Each of the three indices mentioned in § 3.8.1.2.4 “Annual ﬁxed andvariable compensation and respective importance – CSR criterion forvariable compensation”:
s shall count as one‑third of the CSR criterion;s has an annual reference period;s is subject to an annual evaluation of their achievement by the
CAG‑CSR Committee.

Deferred or multi‑year variable compensation

The allocation to Executive Chairmen of deferred or multi‑year variable
compensation is not provided for.
Exceptional compensation

The allocation of exceptional compensation to the Executive Chairmen
is not provided for.
Share‑based compensation (Article R. 22‑10‑40, II‑2° of the French
Commercial Code (Code de commerce))

The current compensation policy does not provide that the Executive
Chairmen are entitled to share‑based compensation.
In accordance with Article 26.3.3 of the Afep‑Medef Code, Executive
Chairmen who are natural persons and who are beneﬁciaries of stock
options and/or performance‑based shares must make a formal
commitment not to hedge their risk on options or on shares resulting
from the exercise of options or on performance‑based shares, until
the end of the share retention period.
Mr Axel Dumas, the only eligible Executive Chairman, has not received
any stock options or performance‑based shares since he wasappointed Executive Chairman.
Émile Hermès SAS, a legal entity, is not eligible for the stock option or
performance‑based share plans.
Employment contract

In order to comply with the Afep‑Medef Code, Mr Axel Dumas decided,on 5 June 2013, to end his employment contract with immediate
effect upon his appointment as Executive Chairman of HermèsInternational.
Service agreements

No Executive Chairman directly or indirectly invoices services to theCompany.
Compensation of Board members in the Company and the Group’s
subsidiaries

members paid by the Company or by the Group's subsidiaries.
Similarly, note that the Group’s allocation rules specify that themembers of the Executive Committee of Hermès International who
are directors in subsidiaries do not receive compensation in thatcapacity.
Death and disability plan

Mr Axel Dumas is eligible for the mandatory collective death anddisability plan established by the Group for the beneﬁt of all staff ofFrench entities that have joined this plan (decision taken by theSupervisory Board on 19 March 2014).
It provides, as is the case for all employees, the following gross
lifetime beneﬁts:
s A. a disability pension at 51% of reference compensation in thecase of Category 1 disability and 85% of reference compensationin the case of Category 2 or 3 disability. The referencecompensation (gross annual compensation) is capped at 8x theannual social security ceiling (PASS). The payment of the disability
pension is discontinued when the recipient in question is no longer
categorised as having the disability or permanent impairment and,at the latest, on the day of the normal or early liquidation of an old
age insurance pension from the mandatory retirement plan, for any
reason whatsoever;3s B. a death benefit equal to a maximum of 380% of the referencecompensation, capped at 8x PASS, depending on the family
situation;s C. contributions paid to the insurer are split between the Company(1.54% for tranche A, and 1.64% for tranches B and C) and thebeneficiary (1.06% for tranche A and 1.16% for tranches B and C);s D. these contributions are deductible from the corporation tax
base, subject to corporate social contributions at the rate of 8%,
and excluded from the base for social security contributions, within
the limit of an amount equal to the sum of 6% of PASS and 1.5% ofcompensation retained within the limit of 12x PASS.

Beneﬁts of any kind

Mr Axel Dumas has a company car constituting his only beneﬁt inkind.
Mr Axel Dumas beneﬁts from the mandatory collective healthcare
plan implemented by the Group for the beneﬁt of all staff of French
entities that have joined this plan (decision made by the Supervisory
Board on 19 March 2014).
Émile Hermès SAS does not receive any beneﬁts in kind.
At the end of the term of office

Severance payment

The Company made a commitment to pay Mr Axel Dumas severance
payment in an amount equal to 24 months of total compensation(variable compensation set by the Articles of Association (“statutorycompensation") and “additional” ﬁxed compensation) in the event of
the termination of his duties as Executive Chairman (decision of theSupervisory Board of 4 June 2013, approved by the General Meetingof 3 June 2014 − 10th resolution “Approval of the commitments
owed to Mr Axel Dumas in respect of the termination of his duties as
Executive Chairman" − in accordance with Article L. 225‑42‑1 of theFrench Commercial Code (Code de commerce) applicable at that
date).

The Executive Chairmen do not receive any compensation as Board

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

355

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

The payment of a severance payment is subject to the termination ofduties as Executive Chairman resulting:s either from a decision taken by Mr Axel Dumas by reason of achange of control over the Company, a change in the Chairman ofÉmile Hermès SAS, which is an Executive Chairman of theCompany, or a change in the Company’s strategy; ors from a decision taken by the Company.

Given the importance of the role of the Active Partner in a société encommandite par actions (partnership limited by shares) – who has
the power to appoint and dismiss any Executive Chairman, and in thecase of a legal entity, its legal representative, it was considered thatthe termination of duties as Executive Chairman of Mr Axel Dumas,
which would result from the replacement of the Chairman of Émile
Hermès SAS, should be treated as a forced departure.

Deﬁned‑beneﬁt pension plan (Article 39 of the French General Tax
Code – Article L. 137‑11 of the French Social Security Code)Mr Axel Dumas is also eligible for the supplemental pension planestablished in 1991 for Company Senior Executives (decision by theSupervisory Board on 4 June 2013, approved by the General Meetingof 3 June 2014 − 5th resolution “Approval of related‑party
agreements and commitments”).

The criteria for granting severance payments are therefore strictly
conﬁned to cases of forced departure.

This provision is not limited solely to the Executive Chairmen but also
encompasses a wider group of Senior Executives. It may beterminated, in the case of Mr Axel Dumas, by decision of theSupervisory Board.

Moreover, the payment of such compensation is subject to thefollowing performance conditions, such that the conditions of his
departure are in equilibrium with the situation of the Company:
achieving budget targets in at least four out of the ﬁve previous years(with revenue and operating income growth measured at constantrates), without deterioration in the Hermès brand image.

In accordance with Order no. 2019‑697 of 3 July 2019 relating todeﬁned‑beneﬁt occupational plans, no new members may join thisscheme from 4 July 2019 and no new conditional right to beneﬁts
may be awarded for periods of employment after 31 December 2019.

The Supervisory Board therefore considered that the deferredcompensation commitment made to Mr Axel Dumas complied with therequirements of the Afep‑Medef Corporate Governance Code.
No such agreement has been entered into with Émile Hermès SAS.
Non‑compete indemnity

Mr Axel Dumas is not subject to any non‑competition agreement,
therefore no compensation is made in this respect.
No such agreement has been entered into with Émile Hermès SAS.
Supplemental pension plan

The total compensation of Mr Axel Dumas was determined taking into
account the beneﬁt of a supplemental pension plan.
Deﬁned‑contribution pension plan (Article 83 of the French General
Tax Code)

As a fundamental condition of the pension regulations, in order to beeligible for the scheme, beneﬁciaries must have reached the end of
their professional career with the Company, have at least ten years ofseniority as evaluated at 4 July 2019 given the provisions of theaforementioned order of 3 July 2019, and be eligible to draw pension
beneﬁts under the statutory French social security regime.
Each participant gradually acquires potential rights, calculated eachyear on the basis of his or her annual reference compensation, it
being speciﬁed that 2019 is the last year taken into account whencalculating such rights (in application of Order no. 2019‑697 of 3 July2019). These potential rights represent, depending on the seniority
and for each year, a percentage of the reference compensation
ranging between 0.9% and 1.5%.
If all the eligibility conditions are met, the annual pension under thisscheme would be based on:s the average yearly compensation for the last three years;

Mr Axel Dumas is eligible for the supplementary deﬁned‑contribution
pension plan established for all employees of the Group’s French
companies that have joined it (decision by the Supervisory Board on
4 June 2013 approved by the General Meeting of 3 June 2014 − 5thresolution “Approval of related‑party agreements and commitments”).

s a percentage of the reference compensation, ranging from 0.9% to1.5% per year of service (as at 31 December 2019). In accordancewith the regulations, as Mr Axel Dumas has a length of service
exceeding 16 years, this percentage is set at 1.50%. It is in any
event, below the legal limit of 3%.

As with all employees of the Group:

In addition, the regulation provides for the application of two ceilings
to the ﬁnal amount of the annual pension:s the defined‑contribution pension plan is funded as follows: 1.1%
for the reference compensation for an amount of 1x PASS, 3.3% for
the reference compensation between 1x and 2x PASS, and 5.5%on the reference compensation between 2x and 6x PASS.
Reference compensation means the gross annual compensation inaccordance with Article L. 242‑1 of the French Social Security Code
(Code de la sécurité sociale);s these premiums are shared between the Company (90.91%) andthe beneficiary (9.09%);356

s the employer contributions are deductible from the corporation tax
base, subject to corporate social contributions at the rate of 20%
and excluded from the base for social security contributions within
the limit of the higher of the following two values: 5% of the PASS or
5% of the compensation retained within the limit of 5x PASS(€219,960 in 2023).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

s the amount of the annual pension is capped at 8x PASS, i.e.
€351,936 in 2023; ands the sum of (i) pensions accrued in respect of statutory andcollective agreement plans (excluding increases for children
raised) including rights accrued in overseas pension plans,
pensions resulting from any supplementary plan that may be put inplace within the Hermès Group and (ii) the amount of the top‑up
pension resulting from the regulations is capped at 70% of the lastreference compensation.

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

For information, subject to fulﬁlling the conditions of the plan at thetime of the liquidation of his pension, the maximum amount of the
future pension, limited by the plan’s regulations to eight times theannual social security limit, compared with the compensation forﬁnancial year 2022 of the natural person Executive Chairman would
represent a replacement rate (excluding mandatory plans) of 4.83%.
The plan is ﬁnanced by the Company through a contract taken out
with an external insurance company, and, if necessary, additional
provisions are recorded in the ﬁnancial statements.
The following income tax and social security charges are currently
applicable to the plan:This plan is also set up for certain Senior Executives in the form of
free share allocations calculated based on their ﬁxed and variable
compensation, this latest being subject to the achievement of
performance criteria.
For the constitution of the rights of Mr Axel Dumas in his capacity as
Executive Chairman, this plan provides for a gross annual contribution
based on the “Reference Compensation” of the Executive Chairman,
consisting, at the payment date, of (i) the annual ﬁxed compensation
for year N and (ii) the annual variable compensation awarded in
respect of year N‑1 and paid in year N (subject to approval by the
Shareholders’ General Meeting).

s with regard to social security contributions, using an irrevocable
option, the Company has chosen to apply the fixed contribution set
out in Article L. 137‑11 of the French Social Security Codeconcerning the premiums paid to the external insurance firm at therate of 24%. The beneficiary must pay – as for all replacement
income – CSG (social security tax) and CRDS (social security debt
repayment tax), in addition to healthcare contributions and an
additional solidarity contribution for autonomy (CASA) on theamount of the pension. In the specific case of pensions resulting
from defined‑benefit pension plans, the beneficiary of the pension
must also pay a social security contribution, at a rate that varies
depending on the amount of the pension and its liquidation date;

The contribution is calculated by applying a rate to the Reference
Compensation that varies from 0% to 20% depending on theachievement of the applicable performance conditions, as shown inthe diagram below.

s with regard to taxation, the premiums paid to the external insurance
firm may be deducted from the tax base for corporation tax.

s Achievement of performance conditions in respect of the reference
financial year between these two limits (i.e. between 50 and 80%):
payment of the contribution according to a straight‑line increase;s achievement of 80% of the performance conditions for thereference financial year: maximum payment of the contribution, i.e.
20% of the Reference Compensation;s achievement of 50% of the performance conditions in respect of
the reference financial year: lower limit payment, i.e. 10% of theReference Compensation;s achievement of performance conditions below 50% of targets: nopayment.

Émile Hermès SAS, a legal entity, is not eligible for a supplemental
pension plan.
Deﬁned‑contribution pension plan (Article 82 of the French General
Tax Code)
Subject to the approval by the General Meeting of 30 April 2024 of
the compensation policy for the Executive Chairmen as revised on thispoint, Mr Axel Dumas will be eligible for the "Article 82" typedeﬁned‑contribution funded pension plan as provided for under the
French General Tax Code.

100%

Percentage allocation

As indicated in § 3.8.1.2.1, the freezing of the system initially set up
in 1991 and from which the Executive Chairman potentially beneﬁts,
led the Group to conduct a study on the pension system that would
be the most relevant and the most suitable to replace the one set out
in Article 39 of the French General Tax Code. The system ultimately
selected is a deﬁned‑contribution supplemental pension plan, as
provided for by Article 82 of the French General Tax Code, andpresented below.

3

By way of illustration:

75%

50%

Zone ofachievement
and acquisitionof partial rights

25%

0%

0%

50%

Zone ofacquisitionof 100%rights80%

100%

Achievement rate of performance conditions

The acquisition rate of the rights will vary according to the achievement rate of the performance criteria, as follows:

Performance criteria

WeightingSales growth

40%

Recurring operating income40%

CSR criterion
20%
Objectives related to decoupling between activity
growth at constant scope and exchange rates
and the evolution of industrial energy
consumption

Performance% allocation

Lower limit

50% of target (annual budget)

50%

Target

80% of target (annual budget)

100%

Lower limit

50% of target (annual budget)

50%

Target

80% of target (annual budget)

100%

Lower limit

50% of target

50%

Target

80% of target

100%2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

357

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

The payment of contributions, the rate of which is set according to theprinciples and conditions set out above, constitutes a beneﬁt for the
Executive Chairman, fully subject to social security contributions andtaxation on entry, entirely at the expense of the beneﬁciary.

These payments will be paid in full by the Company and subject tosocial security contributions.
Émile Hermès SAS, a legal entity, is not eligible for a supplemental
pension plan.

SUMMARY OF COMPENSATION AND BENEFITS POTENTIALLY OWING TO THE EXECUTIVE CHAIRMAN, MR AXEL DUMAS (A NATURAL PERSON), IN
THE EVENT OF HIS DEPARTURE

Method of determination at 31/12/2023
Voluntary departure(excluding retirement)

Forced departure

Retirement

Severance payment

n/aSubject to the applicable
performance conditions:
24 months’ compensation(ﬁxed and variable)n/aNon‑compete indemnity

n/a

n/a

n/a

Supplementary deﬁned‑beneﬁt pension n/a(Article 39 of the French General Tax Code– Article L. 137‑11 of the French Social
Security Code)n/aAnnual pension amount:
Number of years' length of service
x (0.9% to 1.5%) x average annualcompensation for the last threeyears
The pension will be capped at 8x
PASS

Additional deﬁned‑contribution pension(Article 83 of the French General Tax
Code)

The annual amount of the pension will be determined by conversion to a pension annuity of savings
established as at the date of liquidation of retirement entitlements.

Supplemental deﬁned‑contribution
pension ("Article 82" type under the
French General Tax Code)1

The annual amount of the pension will be determined by conversion to a pension annuity of savings
established as at the date of liquidation of retirement entitlements

n/a: not applicable.
(1) Subject to approval by the General Meeting of 30 April 2024 of the 11th resolution (see chapter 8 “Combined General Meeting of 30 April 2024”, § 8.2.1 - explanatory
statement to the 11th resolution).

3.8.1.3

SPECIFIC PRINCIPLES APPLICABLE TO THE COMPENSATION POLICY FOR MEMBERS OF THE SUPERVISORY
BOARD (NON‑EXECUTIVE CORPORATE OFFICERS)

Decision‑making process followed for its determination, review and implementation

COMPENSATION POLICY FOR MEMBERS
OF THE SUPERVISORY BOARD

Ordinary General
Meeting
Determination of the
maximum annual
total amount

358

Supervisory
Board

Establishment of acompensation policy

ACTUAL COMPENSATION OF MEMBERS
OF THE SUPERVISORY BOARD

Supervisory
Board

Actual allocationof compensation

CAG-CSR
Committee

Actual compensation
compliance check

Ordinary General Meeting

Ordinary General Meeting

Ex-ante vote oncompensation policy

Ex-post vote on
actual compensation

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

Decision‑making process relating to the compensation policy formembers of the Supervisory Board (Article R. 22‑10‑40, IV of theFrench Commercial Code (Code de commerce)

The General Meeting sets the maximum annual total amount ofcompensation for the Supervisory Board.
The components of the compensation policy for Supervisory Board
members are established by the Supervisory Board.
Since 2020, the compensation policy for members of the Supervisory
Board has been submitted to the Ordinary General Meeting each year
for approval (ex‑ante vote).
Decision‑making process relating to the actual compensation ofmembers of the Supervisory Board (Article L. 22‑10‑76 of the French
Commercial Code (Code de commerce)

The actual annual amount of compensation paid to the members of
the Supervisory Board is determined by the Supervisory Board at thestart of the year in respect of the previous year by applying thecompensation policy and taking into account the individual
attendance of each member during the previous ﬁnancial year.
The Supervisory Board’s CAG‑CSR Committee checks that the actual
compensation of Supervisory Board members complies with the total
amount set by the General Meeting and the compensation policy forthe members of the Supervisory Board.
Since 2020, the actual application of the compensation policy(including the overall actual compensation paid, and/or awarded) of
the Corporate Ofﬁcers (including that of Supervisory Board members)
and the actual individual compensation of the Chairman of theSupervisory Board will be submitted each year to the approval of theOrdinary General Meeting (ex‑post vote).

3.8.1.3.1

Changes made to the compensation policy formembers of the Supervisory Board since the lastGeneral Meeting (Article R. 22‑10‑40, I‑5° of theFrench Commercial Code (Code de commerce))

The General Meeting of 20 April 2023 approved at 99.94%, without
reservation, the revision of the total annual amount of compensation
attributable to the members of the Supervisory Board, increasing itfrom €600,000 to €900,000, as well as the modiﬁcation of theallocation criteria that make up the compensation policy for
Supervisory Board members (see § 3.8.5).
The objectives of these proposals were:s to maintain the appeal of the Board;s to remain competitive in the search for profiles in line with theBoard’s diversity policy (see § 3.4.3);
s to offer the Supervisory Board the necessary flexibility to be able toanticipate any change in its composition and/or its functioning;s to take into consideration the development of the activities and theheterogeneity of the subjects with which the Board and its
committees must deal.

This new compensation policy is applicable to the amounts awarded
at the beginning of 2024 in respect of the 2023 ﬁnancial year, anduntil a further decision by the General Meeting.

3.8.1.3.2

Terms of application to newly appointed orreappointed members of the Supervisory Board(Article R. 22‑10‑40, I‑6° of the French Commercial
Code (Code de commerce))

If a member is appointed during the year, the ﬁxed component isshared between the outgoing member and his or her replacement,
and the variable component is allocated according to attendance atmeetings.
The compensation policy applies without interruption to members
whose term of ofﬁce is renewed.

3.8.1.3.3

Exemptions provided by the Supervisory Board(Article R. 22‑10‑40, I‑7° of the French Commercial
Code (Code de commerce))

There are currently no temporary exceptions from the application of
the compensation policy for the Supervisory Board members subject
to the occurrence of exceptional circumstances.

3.8.1.3.4

3

Specific elements comprising the compensation
policy for members of the Supervisory Board(Article R. 22‑10‑40, II of the French Commercial
Code (Code de commerce))

Compensation of Supervisory Board and committee members

Supervisory Board members receive compensation in a total amountthat is approved by the General Meeting and for which the allocation
criteria are laid down in the Supervisory Board’s compensation policy.
Compensation paid to members of the Audit and Risk Committee andthe CAG‑CSR Committee is deducted from the total amount ofcompensation of Supervisory Board members.
The General Meeting of 20 April 2023 set the maximum annual
amount of compensation allocated to the Supervisory Board and its
committees at €900,000.
The allocation criteria (on a full‑year basis) approved by the Board on
24 November 2023 and set out in Article 5.1 of the Board’s rules ofprocedure are as follows:s the maximum amounts that may be allocated to each member are
set out in the table below;s the variable component proportional to the actual attendance atmeetings is preponderant;s employee representatives on the Supervisory Board do not receive
compensation as members of the Supervisory Board;s the variable component proportional to a member’s attendance atmeetings is calculated by applying to the maximum amount of thevariable component the ratio between the number of meetings
attended (in the numerator) and the total number of meetings held
during the last financial year (in the denominator);s no variable component is allocated to the Chairman of theSupervisory Board or the Chairs of the committees, since theymust chair all meetings, unless they are prevented from doing so;s the fixed and variable components are determined by the Board atits first meeting of the year following the year for which thecompensation is paid.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

359

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

Allocation criteria applicable
to 2023

Variable component
proportional
to attendance
Proportion
at meetings

Fixed component

Proportion

Maximum amounts attributable

SUPERVISORY BOARD

Chairman€180,000

100.00%n/an/a€180,000

100.00%Vice‑Chairmen€12,000

33.33%€24,000

66.66%€36,000

100.00%Members€12,000

33.33%€24,000

66.66%€36,000

100.00%

n/a

n/a

n/a

n/a

n/a

n/a

Chairman€40,000

100.00%n/an/a€40,000

100.00%Members€8,00040.00%€12,000

60.00%€20,000

100.00%Chairman€40,000

100.00%n/an/a€40,000

100.00%Members€8,00040.00%€12,000

60.00%€20,000

100.00%

Employee representative members
CAG‑CSR COMMITTEE

AUDIT AND RISK COMMITTEE

n/a: not applicable.

The allocation criteria include a ﬁxed component and a majority
variable component proportional to actual attendance at meetings(66.66% for the Board and 60.00% for the specialised committees).
No additional compensation is paid to Board members who are notresident in France.
The attendance record and the corresponding allocation of annualcompensation for a ﬁnancial year are prepared by the CAG‑CSR
Committee and then approved by the Supervisory Board in the ﬁrst
quarter of the following ﬁnancial year.
Employment contract

The members of the Supervisory Board of a société en commandite
par actions (partnership limited by shares) may be bound to theCompany by an employment contract with no condition other thanthat resulting from the existence of a relationship of subordination
with the Company and the recognition of effective employment.
s Ms Anne‑Lise Muhlmeyer (Preparationd’Ennoblissement d'Irigny); andManager–

Atelierss Mr Prescience Assoh (Sales associate – Hermès Sellier),

3.8.2

No other members of the Supervisory Board, and in particular Mr Éricde Seynes, Chairman, are bound to the Company by an employment
contract.
Options to subscribe for and purchase shares

No options to subscribe for or purchase shares were granted toSupervisory Board members in ﬁnancial year 2023, nor were any
such options exercised by them.
Allocation of free sharesNo free shares were allocated to members of the Supervisory Board
during the 2023 ﬁnancial year (with the exception of employee
representative members who beneﬁt from the employee shareholding
plans set up within the Group, see chapter 2 “Corporate social,societal and environmental responsibility and non‑ﬁnancial
performance”, § 2.2.6).

OVERVIEW OF COMPENSATION AND BENEFITS OF ALL KINDS FOR CORPORATE OFFICERS

In accordance with the provisions of Article L. 22‑10‑77 of the French
Commercial Code (Code de commerce), the corporate governancereport must present all compensation and beneﬁts of all kinds paid to
Corporate Ofﬁcers during the ﬁnancial year or allocated in respect of
their duties in 2023.

s enable comparison between (i) the compensation of the Executive
Corporate Officers (i.e. the Executive Chairmen) and thenon‑Executive Chairman (i.e. the Chairman of the Supervisory
Board) on the one hand, and (ii) the average and mediancompensation of the Company’s employees on the other hand.

The report must also:This section presents the aforementioned items, which will be subject
to global and individual ex‑post votes at the General Meeting of
30 April 2024 (see chapter 8 “Combined General Meeting of 30 April2024”, § 8.2.1 – Explanatory statement to the 7th to 10th
resolutions).

s disclose any compensation paid or granted by a company in thescope of consolidation;

360

employee representative members of the Supervisory Board since
15 November 2022, hold employment contracts within the HermèsGroup and receive compensation in this respect that was not grantedby virtue of their ofﬁces. Consequently, and for reasons of
conﬁdentiality, their salaries are not disclosed.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8.2.1

COMPENSATION PAID TO THE EXECUTIVECHAIRMEN OR GRANTED IN RESPECT OF THE
2023 FINANCIAL YEAR (EXECUTIVE CORPORATEOFFICERS) (ARTICLE L. 22‑10‑77 OF THE
FRENCH COMMERCIAL CODE (CODE DE
COMMERCE))

3.8.2.1.1

Compensation paid in financial year 2023

All the ﬁxed, variable and exceptional components of the totalcompensation and beneﬁts of any kind paid during the 2023 ﬁnancial
year to Mr Axel Dumas, on the one hand, and Émile Hermès SAS, on
the other hand, in respect of their terms of ofﬁce as Executive
Chairmen, appear in chapter 8 “Combined General Meeting of
30 April 2024”, § 8.2.1 - Explanatory statement to the 8th and 9th
resolutions).
These elements are all consistent with the compensation policy for
the Executive Chairmen presented in § 3.8.1.1 and § 3.8.1.2 above
and approved by the General Meeting of 20 April 2023.

3.8.2.1.2

Compensation awarded in respect of financial year2023

The 2024 variable compensation of the Executive Chairmen, awarded
in respect of ﬁnancial year 2023, must be submitted to the General
Meeting for approval prior to payment.

CSR criteria indicators
Quantiﬁable
environmental
criterion:

Importance
1/3

All the ﬁxed, variable and exceptional components of the totalcompensation and beneﬁts of any kind granted in respect of ﬁnancial
year 2023 to Mr Axel Dumas, on the one hand, and Émile HermèsSAS, on the other hand, in respect of their terms of ofﬁce as Executive
Chairmen, appear in chapter 8 “Combined General Meeting of 30
April 2024”, § 8.2.1 - Explanatory statement to the 8th and 9th
resolutions).
These elements are all consistent with the compensation policy for
the Executive Chairmen presented in § 3.8.1.1 and § 3.8.1.2 above
and approved by the General Meeting of 20 April 2023.
The CAG‑CSR Committee evaluated the level of achievement of the
CSR criterion applicable to 10% of the variable compensation of
the Executive Chairmen at its meeting of 11 January 2024 andnoted that the three indicators making up the criterion were fully
achieved (see table below).

Level of achievement and justiﬁcation
100%
Constant improvements to equipment, buildings and energy‑consuming industrial processes, particularly as part of“decarbonisation” and "sobriety" plans, continued to bear fruit with a further reduction in energy consumption, andin particular that of fossil fuels, while consolidated revenue increased signiﬁcantly over the reference period.

Decoupling between
activity growth atconstant scope andexchange rates and theevolution of industrial
energy consumptions the Group’s consolidated revenue at constant exchange rates grew by +20.6%;s total industrial energy consumption (including any scope effects) amounted to 149,979 MWh, a decreaseof -5% (compared with 160,256 MWh previously).

Link with strategy and
NFPS indicators:

Overall energy consumption fell for the second consecutive year. The “defossilisation” plan, launched three years
ago, and the “sobriety” plan continue to show very positive results.
More speciﬁcally:

See chapter 2 "Corporatesocial responsibility andnon‑ﬁnancial
performance" § 2.1.5,§ 2.5 and § 2.5.3

Review of the indicatorby the independent
third party:
See chapter 2 "Corporatesocial responsibility andnon‑ﬁnancial
performance" § 2.10

3Consequently, the 2024 variable compensation, awarded in
respect of ﬁnancial year 2023, has been calculated by applying
the change in the Company’s consolidated net income before tax
for ﬁnancial year 2023 compared with ﬁnancial year 2022, i.e. anincrease of +26.9%, to the variable compensation paid in 2023 inrespect of 2022.

During the reference period – from 1 November 2022 to 31 October 2023:

s gas consumption fell sharply, while electricity consumption rose by only 4% in a context of growth in thenumber of industrial sites and activities;s in the HCP division, significant gas savings were made in the tanneries, in particular by optimising theoperation of the boilers (-3,315 MWh);s Compagnie des Cristalleries de Saint‑Louis’s gas consumption decreased by one‑third compared to theprevious furnace in the first year of full operation of the new gas melting furnace burning oxy‑fuel (mixtureof oxygen and gas);s in the HMS division, work on insulation and phasing out the use of fossil fuels in the heating systems in
the production units, coupled with the application of the energy sobriety plan, made it possible to offset
the additional consumption of the new leather goods workshops and to generate energy savings;
s in the HTH division, the decrease in energy consumption is the result of the métier's plan to reduce its
carbon footprint (insulation, reducing the use of fossil fuels in the production of energy and increasing
employee awareness).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

361

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

CSR criteria indicators

Importance

Qualitative societal
criterion:

1/3

Actions taken to promote
the Group’s local
integration in France andaround the world, outsideof major cities

Link with strategy and
NFPS indicators:
See chapter 2 "Corporatesocial responsibility andnon‑ﬁnancial
performance" § 2.1.5 and§ 2.7

Level of achievement and justiﬁcation
100%
The House continued its ambitious policy and numerous local anchoring actions in 2023, both in France andabroad, the relevance and scope of which have been recognised by several environmental, social and societal
performance awards and rankings.
These actions are closely aligned with the House’s model, which includes, at the heart of its strategy, authenticity,
responsibility, humanism, a long‑term vision and generosity – the desire to give back to the world part of what it hasgiven us.
Job creation
Our actions in favour of strong local anchoring continued in 2023 throughout the country and through a very broad
network, concretely reﬂecting the House’s commitment to act as a humanist, responsible company involved in thecreation of jobs.
These actions have been recognised by various rankings and awards, where Hermès has often won ﬁrst place.

s the House’s policies and actions to ensure strong local anchoring, and more generally its commitment to aprocess of constant improvement of its social, societal and environmental performance, were recognisedwith several awards, in particular:s Hermès won the Grand Prix Emploi for the third time, awarded by Humpact, a non‑financial rating
agency (ESG) dedicated to social issues. This award recognises companies for their outstanding social
policies, in particular their achievements in terms of job creation, gender parity and integration ofpeople with disabilities, young people and seniors;s the House was included on the CDP A list, which brings together the 330 companies deemed to be thebest performing worldwide on environmental issues;s Challenges magazine ranked Mr Axel Dumas in first place in the list of the most successful CAC 40
owners, a ranking established by the experts at Roland Berger and Ethics & Boards;s Hermès was identified as the best player in the Textiles & Apparel (out of 191 companies) and Luxury
Goods (out of 102 companies) sectors by Sustainalytics in its analysis of companies’ ESG risk
exposure;s the House continued its integration in the regions with very strong job creation outside major urban areas.
Thus, the total number of employees in this scope increased by +12.5% (compared with +8.6% from2021 to 2022) to reach a total of more than 7,700 employees, of whom 94% in production. This
represents 35% of job creation;s 855 new employees joined the Group, excluding major cities, between 2022 and 2023. 812 of themjoined the production sector.
Disability policy - Craftsmanship models the Group’s disability policy reached a new milestone in 2023 and also illustrates the reality of particularly
strong local anchoring:s 6.85% direct employment rate for people with disabilities in France in 2022 (compared to 3.5% at thelaunch of the first Group disability agreement in 2017);
s 16 disability officers representing each of the House’s metiers;s 130 disability ambassadors;s 760 RQTH (Recognition as a worker with a disability) employees in France;s €5.2 million in purchases of services from more than 100 adapted structures (in the subsidized
sector);s a week for the employment of people with disabilities in France and abroad;s 140 Duodays in 2023;
s sixth edition of the Handi'Cap forum;s new episodes in the “In full agreement” series to concretely illustrate the four pillars of the GroupDisability Agreement approach.
s the École Hermès des Savoir‑Faire, created in September 2021, which awards a State diploma, the CAP
vocational qualification in leather goods, confirmed the Qualiopi certification during the oversight audit,
supported 855 learners in 2023, in eight training schools in the regions, of which 441 were registered for
the CAP examination session in 2024 and 100% of people registered were awarded their certification,with 89% of people having been confirmed on permanent employment contracts at the end of theirtraining course;s the “Young Tanners” programme at Hermès Cuirs Précieux welcomes engineering students from various
engineering schools as part of their end‑of‑studies internship. This programme, lasting 18 months, withthree assignments involving three tanneries and two countries, is an opportunity to experience different
approaches in the field and in cross‑functional areas and to learn about team management. The aim is toultimately offer participants a permanent position in which they can make a strong contribution having
already been trained in all Tannery métiers;s the “Pépins” programme within Holding Textile Hermès is a programme intended for newly‑qualified
engineers or those with some initial experience. For three years, these engineers are entrusted withvarious assignments of around six months in three major areas of the Textile sector: Supply Chain,
Product Development and Industrialisation or Quality. At the end of this programme, depending on theirprofile, the experience acquired and opportunities, they will usually be offered a permanent position.

362

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

CSR criteria indicators
Qualitative social
criterion:
Group initiatives in favourof gender equality

Link with strategy and
NFPS indicators:
See chapter 2 "Corporatesocial responsibility andnon‑ﬁnancial
performance" § 2.1.5 and§ 2.2

3.8.2.2

Importance
1/3

Level of achievement and justiﬁcation
100%
Hermès, a responsible employer, promotes genuine equal opportunities, diversity and inclusion in terms of
employment, training, supervision and compensation, at all levels of the organisation.
The House strongly reafﬁrms its commitment and its strategy of global performance and virtuous long‑term growth.

s Gender Equality Index: the weighted average index for the Group in France is 95/100 and 99/100 for
Hermès International. In 60% of the entities concerned, the index is higher than 90/100, including inindustrial environments such as Tanneries de Montereau (99/100), HMM/J3L (91/100), CATE (97/100),
HMM Fabrique de Champigny‑sur‑Marne/Lasco (97/100); in the other entities, it is higher than 75/100.
s Gender diversity within governing bodies: Hermès climbed to fourth place in the Women in governing
bodies rankings published in December 2023, an improvement of 12 places compared to the previous
year.
s Global Diversity & Inclusion (D&I) approach: the global Diversity & Inclusion approach continued in 2023,
in particular with the launch of a network of 28 contacts, aimed at ensuring for each of our employees an
inclusive, respectful and harmonious working environment that resonates with the local environment of
our subsidiaries and built around three common pillars:s respect for the principle of non‑discrimination and equal opportunities;s diversity and gender equality;s disability.
s Awareness‑raising and training actions on unconscious bias:s the entire community of the Group’s D&I contacts was trained on the issues of diversity and inclusion
through the Diversity Fresco in March 2023, as well as on unconscious bias;s an e‑learning awareness module on “unconscious biases and micro‑inequities” was made available in
11 languages in June 2023. It is mandatory for managers and the HR community in France andinternationally and open to all employees. 211 employees have already had their awareness raised in
France and abroad;s more than 950 managers have already been trained in diversity management since the launch of the
ALTEREGO training (including 205 in 2023).
s Group agreement on work‑life balance:s signature of a Group agreement in France on the work‑life balance on 19 July 2023, structured aroundthree components – Caregivers, Parenthood, Vulnerabilities;s the agreement provides for parenting support measures in all their facets (traditional parenting,adoption, homoparentality, single parenthood, blended families, etc.) before and upon arrival and after
the birth of the child;s measures taken include in particular – leave of absence as part of a medically assisted procreation
programme, return to work part‑time following parental leave, breastfeeding facilitation and support for
single parents.
s The HECATE women’s network has more than 100 members and is continuing its work to promote
inclusion and diversity at all levels of the organisation.
s Prevention of sexist behaviour and harassment:s e‑learning modules for the prevention of sexist behaviour and harassment have been set up for
managers and all employees. In France, 86% of managers have completed this module, bringing thenumber to 2,066 managers trained in 2023;
s the modules are also available internationally;s in addition, 55 pairs of harassment officers were trained with an investigation procedure put in place.

3

COMPENSATION PAID TO THE CHAIRMAN OF THE SUPERVISORY BOARD IN THE COURSE OF OR ALLOCATEDIN RESPECT OF FINANCIAL YEAR 2023

All the ﬁxed, variable and exceptional components comprising thetotal compensation and beneﬁts in kind paid in the course of orawarded in respect of ﬁnancial year 2023 to the Chairman of theSupervisory Board, on which the shareholders are asked to give abinding ex‑post vote, are set out in chapter 8 “Combined General
Meeting of 30 April 2024”, § 8.2.1 – Explanatory statement to the10th resolution.

These elements are all in line with the compensation policy for the
Chairman of the Supervisory Board presented in § 3.8.1.1 and§ 3.8.1.3 above and approved by the General Meeting of 20 April
2023.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

363

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8.2.3

RATIOS AND ANNUAL CHANGE IN COMPENSATION, COMPANY PERFORMANCE, AVERAGE EMPLOYEECOMPENSATION AND RATIOS (ARTICLE L. 22‑10‑9 – 6° AND 7° OF THE FRENCH COMMERCIAL CODE (CODE DE
COMMERCE))

We present below:s the changes over the last five years in the ratios between the levelof compensation of each Executive Chairman and the Chairman of
the Supervisory Board and:• on the one hand, the average pay on a full‑time equivalentbasis of the Company’s employees other than Corporate
Officers,• on the other hand, the median pay on a full‑time equivalent• the fixed compensation paid during the financial year underreview,• the variable compensation paid during the financial year underreview in respect of the prior year,

basis of the Company’s employees other than Corporate
Officers;• the exceptional compensation paid, if any, during the financials the annual change in the compensation of the Executive Chairmen
and Chairman of the Supervisory Board, the performance of theCompany, the average compensation on a full‑time equivalentbasis of Company employees other than Senior Executives, andratios, over the past five years.

• other long‑term compensation instruments, in particular grants

3.8.2.3.1• employee savings: profit‑sharing and incentive schemes;

Methodology used

The methodology used, in line with the Afep guidelines updated in
February 2021, is as follows:s the notion of full‑time equivalent (FTE) reflects a job performed ona full‑time basis, i.e. as per legal working hours. As such, forpart‑time employees, compensation has been reconstituted on afull‑time basis;s based on the INSEE definition, the median wage is that which
splits the Company’s employees into two equal parts, such that
half of the employees of the company in question earn less and theother half earn more. It differs from the average wage, which is theaverage of all wages in the company in question;s the numerator shows the gross compensation (excluding social
security contributions) paid to each Executive Chairman during thefinancial year, i.e.:• the fixed (“additional”) compensation paid during the financial
year under review,• the variable compensation set by the Articles of Association(“statutory compensation”) paid during the financial year underreview in respect of the prior year,• the exceptional compensation paid, if any, during the financial
year under review,• other long‑term compensation instruments and multi‑year
variable compensation paid, where applicable, during thefinancial year under review (taken at their IFRS value);364s the denominator shows the gross compensation (excluding social
security contributions) of employees (continuously present in theyear under review between 1 January and 31 December) of
Hermès International – paid during the financial year, i.e.:

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

year under review,of free shares, when the rights were allocated or were vesting
during the current financial year; measured at their IFRS value,less an annual amount depending on the length of the vesting
period(s),s the scope used in the denominator is that provided for by law, i.e.
employees of the listed company Hermès International whose
headcount is representative within the meaning of the law for thedetermination of the ratios. It represented 463 employees as at
31 December 2023. In addition to strict compliance with the legal
requirement, this choice is likely to facilitate understanding ofchanges in ratios and the consistency of the calculation basis overtime, which will be less affected by changes in the scope of
consolidation (acquisitions/disposals) within the Group;s the following are excluded from the numerator and denominator:• severance payments and non‑compete payments, which do notconstitute recurring compensation,• the defined‑contribution supplemental pension plan (Article 83of the French General Tax Code), which is a post‑employment
benefit,• the defined‑benefit supplemental pension plan (Article 39 of
the French General Tax Code), which cannot be valued insofar
as payment is conditional on the completion of the beneficiary’s
career in the Company,• benefits in kind, which represent an insignificant amount of thecompensation of the Executive Chairmen.

With regard to the Company’s performance, it was decided to use
the consolidated revenue (at constant rates) and the consolidated
income before tax, which serve as a reference for thecompensation of the Executive Chairmen and which are
performance indicators that are particularly relevant to theGroup’s business model. In addition, they are commonly used inresults press releases.

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERSAMOUNT OF COMPENSATION USED WITH REFERENCE TO THE NUMERATOR
2023

2022

2021

2020

2019

MR AXEL DUMAS€5,582,276€4,486,458 1€3,182,697€3,403,423€3,403,423

ÉMILE HERMÈS SAS€2,450,571€1,866,465 1€1,279,003€1,381,933€1,381,933

MR ÉRIC DE SEYNES€140,000€140,000€140,000€140,000€140,000(1) The Executive Chairmen waived more than 75% of the increase, provided for by the applicable compensation policy, in their fixed compensation for 2022(“additional”).
Thus, in 2022, the Executive Chairmen received actual fixed compensation up 10% from their actual fixed compensation for 2021.

3.8.2.3.2

Presentation of ratios and annual change in compensation, the performance of the Company, the averagecompensation of employees and ratios

Mr Axel Dumas – Executive Chairman
Change in total compensation paid during the ﬁnancial year
compared with the previous ﬁnancial year

2023

2022

2021

2020

2019

24.4%

41.0%

- 6.5%

0,0%

10.0%

Ratio compared with the average compensationof employees Change compared with the previous
ﬁnancial year26
+4 points

22+5 points

17
0 point

17-1 point

18
0 point

Ratio compared with the median compensationof employees Change in % compared with the previous
ﬁnancial year53
+9 points

44+10 points

34-3 points

37-1 point

38+3 points

2023

2022

2021

2020

2019

Émile Hermès SAS – Executive Chairman
Change in total compensation paid during the ﬁnancial year
compared with the previous ﬁnancial year

31.3%

45.9%

- 7.4%

0,0%

10.0%

Ratio compared with the average compensationof employees Change compared with the previous
ﬁnancial year11
+2 points

9+2 points

70 point

7
0 point

7
0 point

Ratio compared with the median compensationof employees Change in % compared with the previous
ﬁnancial year22
+4 points

18+4 points

14-1 point

15
0 point

15+1 point

Mr Éric de Seynes – Chairman of the Supervisory Board

2023

2022

2021

2020

2019

Change in total compensation paid during the ﬁnancial year
compared with the previous ﬁnancial year

0.0%

0,0%

0,0%

0,0%

0,0%

Ratio compared with the average compensationof employees Change compared with the previous
ﬁnancial year

1
0 point

1
0 point

1
0 point

1
0 point

1
0 point

Ratio compared with the median compensationof employees Change in % compared with the previous
ﬁnancial year

1
0 point

1
0 point

1-1 point

2
0 point

2
0 point

Employees of the listed company

2023

2022

2021

2020

2019

Change in the average compensation comparedwith the previous ﬁnancial year

9.0%

8.0%

- 3.8%

3.4%

10.4%

Group performance

2023

2022

2021

2020

2019

Change in consolidated revenue at constant rates

20.6%

23.4%

41.8%

- 6.0%

12.4%

Change in consolidated net income before tax

26.9%

35.1%

73.2%

- 12.4%9.9%

The changes over the ﬁve ﬁnancial years presented in the tables
above take into account the overall change in payroll.

periods, the portion relating to these allocations may lead to a certain
variation in the average and median compensation of employees in
the reference scope.

The change in overall employee compensation also reﬂects (i) apositive dynamic of salary measures throughout the years presented,
as well as (ii) the impact of allocations under employee shareholding
plans and in particular the latest plan awarded on 15 June 2023.
Depending on the plans and the respective duration of the vesting

The overall policy, and all of the components of the compensation
awarded to employees of the listed company, and those of otherGroup entities in France and abroad, are presented and set out inchapter 2 “Corporate social responsibility and non‑ﬁnancial
performance”, § 2.2.2.6.

Explanatory notes on the employees

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

3

365

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8.2.4

COMPENSATION OF THE SUPERVISORY BOARD, AUDIT AND RISK COMMITTEE AND CAG‑CSR COMMITTEE
ALLOCATED IN RESPECT OF 2023 OR PAID IN 2023

Compensation awarded to and received by members of theSupervisory Board in the last two ﬁnancial years by HermèsInternational and the entities it controls as deﬁned by Article
L. 233‑16 of the French Commercial Code (Code de commerce) is
detailed in § 3.8.4.3. This compensation constitutes the only
elements referred to in Article L. 22‑10‑9, I of the French Commercial

Code (Code de commerce) awarded in respect of 2023 or paid in
2023. Data relating to the past ﬁnancial year will be voted on by theGeneral Meeting in 2024 (“global” ex‑post vote), see chapter 8“Combined General Meeting of 30 April 2024, § 8.2.1 – Explanatory
statement to the 7th resolution.

3.8.3

ALLOCATION OF FREE SHARES AND STOCK OPTIONS

3.8.3.1

GENERAL POLICIES FOR THE ALLOCATION OF
FREE SHARES AND STOCK OPTIONSAllocations of stock options and free share awards form part of the
Hermès Group’s long‑term compensation and retention policy. Such
allocations have historically been made on a multiyear basis (seecomments below on the plans in force); they are exceptional and their
beneﬁts have always extended beyond the Corporate Ofﬁcers andSenior Executives of the Group.
Additional information on free share awards carried out by the
Hermès Group and on the general long‑term compensation policy andother initiatives involving employees in the Group’s performance aredescribed in chapter 2 “Corporate social responsibility andnon‑ﬁnancial performance”, § 2.2.2.6.

3.8.3.2

FREE SHARE ALLOCATION PLANS IN FORCE

In accordance with Article L. 225‑197‑4 of the French Commercial
Code (Code de commerce), information is provided on free shareallocation plans carried out in ﬁnancial year 2023.
Executive Management was authorised by the Extraordinary General
Meetings of 31 May 2016, 24 April 2020, 4 May 2021 and 20 April
2023 to award free existing shares in the Company, on one or more
occasions, to employees of the Company or certain categories
thereof, or Senior Executives, as well as to employees and Senior
Executives of companies afﬁliated to the Company. The conditions ofdelegations of authority still in force are shown in § 3.9.4.
The total number of free shares awarded under each of thesedelegations and the total number of stock options granted and not yet
exercised are limited to 2% of the number of shares in the Company
on the day of allocation, without taking into account those alreadygranted under previous delegations.
The Executive Management, making use of these authorisations,
allocated shares in 2023 under both general and selective plans, it
being speciﬁed that Mr Axel Dumas, the only natural person Executive
Chairman, did not receive any free share allocations under these twoplans.

Details of free share award plan terms and conditions (and, inparticular, vesting periods and the application of performance
conditions, where applicable) are presented in § 3.8.4.10 and detailsof free shares awarded to the top 10 employee beneﬁciaries who are
not Corporate Ofﬁcers are presented in § 3.8.4.11.
In accordance with the provisions of Articles L. 225‑197‑1 et seq. of
the French Commercial Code (Code de commerce), these awards arealways contingent on presence conditions and, for certain plans, also
on performance conditions. To harmonise the vesting conditions, thefree shares granted by Executive Management in 2019 (plans [h] and[i]) and in 2023 (plans [j] and [k]) were subject to identical vesting
periods for Group employees in France and internationally. In line with
its long‑term strategy, the Executive Management has set the vesting
periods for these awards at four and ﬁve years. However, as
permitted by applicable law (Articles L. 225‑197‑1 et seq. of theFrench Commercial Code (Code de commerce)) and in accordancewith the provisions of the 15th resolution of the Combined General
Meeting of 31 May 2016 (see page 293 of the 2016 registration
document) and the 28th resolution of the Combined General Meetingof 20 April 2023 (see page 544 of the 2022 universal registration
document), no lock‑up period was established, leaving eachbeneﬁciary employee free to decide how long to hold the sharesacquired.
Free share awards do not dilute the share capital because they
consist exclusively of existing shares in the Company. Their value atthe grant date, calculated according to the method used for the
consolidated ﬁnancial statements, is shown in chapter 5“Consolidated ﬁnancial statements”, § 5.6 (Note 5.4).

3.8.3.3

STOCK OPTIONSThe Executive Management was authorised by the Extraordinary
General Meeting to grant stock options to certain employees andCorporate Ofﬁcers of the Company and of afﬁliated companies.
These delegations of authority were not used in 2023.
There were no stock option plans in place as at 31 December 2023,
as indicated in § 3.8.4.8.

3.8.3.4

STOCK SUBSCRIPTION OPTIONSAll subscription option plans lapsed in 2009. No authorisation fromthe General Meeting allows the Executive Management to grant
subscription options.

366

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8.4

TABLES DRAWN UP IN ACCORDANCE WITH AMF POSITION‑RECOMMENDATION DOC -2021‑02(§ 13.3) OF 5 JANUARY 2022 ON THE PRESENTATION OF COMPENSATIONThe standardised presentation of all the components of compensation provided for in Appendix 2 of position recommendation DOC‑2021‑02 of
5 January 2022 is presented below.

3.8.4.1

TABLE 1SUMMARY TABLE OF COMPENSATION AND OPTIONS AND SHARES ALLOCATED TO EACH EXECUTIVE CHAIRMAN

Mr Axel Dumas

2023

2022

From 01/01/2023 to
31/12/2023

From 01/01/2022 to
31/12/2022€5,852,276€4,486,458

Compensation awarded in respect of the ﬁnancial year (detailed in Table 2)
Valuation of multi‑year variable compensation awarded during the ﬁnancial year

n/a

n/a

Valuation of options granted during the ﬁnancial year (detailed in Table 4)

n/a

n/a

Valuation of free shares allocated (detailed in Table 6)

n/a

n/a

Valuation of other long‑term compensation plans

n/a

n/a

Total natural person as Executive Chairman€5,852,276€4,486,458 1

From 01/01/2023 to
31/12/2023

From 01/01/2022 to
31/12/2022€2,450,571€1,866,465

Émile Hermès SAS
Compensation awarded in respect of the ﬁnancial year (detailed in Table 2)
Valuation of multi‑year variable compensation awarded during the ﬁnancial year

n/a

n/a

Valuation of options granted during the ﬁnancial year (detailed in Table 4)

n/a

n/a

Valuation of free shares allocated (detailed in Table 6)

n/a

n/a

Valuation of other long‑term compensation plans

n/a

n/a

€2,450,571€1,866,465 1

Total legal entity as Executive Chairman

3(1) The Executive Chairmen waived more than 75% of the increase, provided for by the applicable compensation policy, in their fixed compensation for 2022(“additional”).
Thus, in 2022, the Executive Chairmen received actual fixed compensation up 10% from their actual fixed compensation for 2021.
n/a: not applicable.

3.8.4.2

TABLE 2SUMMARY TABLE OF THE COMPENSATION OF EACH EXECUTIVE CHAIRMAN 1
2023
Gross annual compensation of the Executive Chairmen

Amounts awarded

2022
Amounts paid

Amounts awarded

Amounts paid

Mr Axel Dumas
Fixed compensation (referred to as “additional” in the Articles of Association)€2,203,574€2,203,574€2,301,950€1,785,716 1

Annual variable compensation set by the Articles of Association (“statutorycompensation”)€3,648,702€3,648,702€2,700,742€2,700,742

Multi‑year variable compensation

n/a

n/a

n/a

n/a

Exceptional compensation

n/a

n/a

n/a

n/a

€5,852,276€5,852,276€5,002,692€4,486,458

n/a

n/a

n/a

n/a

Representation

Representation

Representation

Representation

Total compensation
Compensation allocated on account of the ofﬁce as member of the Board
Beneﬁts in kind
Émile Hermès SAS
Fixed compensation (referred to as “additional” in the Articles of Association)€749,081€749,081€782,523€607,035 1

Annual variable compensation set by the Articles of Association (“statutorycompensation”)€1,701,490€1,701,490€1,259,430€1,259,430

Multi‑year variable compensation

n/a

n/a

n/a

n/a

Exceptional compensation

n/a

n/a

n/a

n/a
€1,866,465€2,450,571€2,450,571€2,041,953

Compensation allocated on account of the ofﬁce as member of the Board

Total compensation

n/a

n/a

n/a

n/a

Beneﬁts in kind

n/a

n/a

n/a

n/a

(1) The Executive Chairmen waived more than 75% of the increase, provided for by the applicable compensation policy, in their fixed compensation for 2022(“additional”). Thus, in 2022, the Executive Chairmen received actual fixed compensation up 10% from their actual fixed compensation for 2021.
n/a: not applicable.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

367

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8.4.3

TABLE 3

TABLE OF COMPENSATION RECEIVED BY SUPERVISORY BOARD MEMBERS
Amounts awarded in respect ofAmounts awarded in respect of 2023 ﬁnancial year 2022 and amounts paid
and amounts paid in 2024
in 2023
Total amount of compensation allocated by the General Meeting of Hermès International€900,000€600,000

Total amount of compensation actually awarded by Hermès International€758,857€573,800

Compensation as Chairman of the Supervisory Board€180,000€140,000

Compensation as member of the Hermès Sellier Management Board€1,500 1€3,000n/an/aCompensation as member of the Supervisory Board€36,000€28,200s fixed component€12,000€10,000s variable component based on attendance€24,000€18,200

Compensation as Chairwoman of the Audit and Risk Committee€40,000€28,000

Mr Éric de Seynes

Mr Prescience Assoh (employee representative) 2
Compensation as member of the Supervisory Board

Ms Monique Cohen

Ms Dominique SenequierCompensation as member of the Supervisory Board€25,714€23,000s fixed component€12,000€10,000s variable component based on attendance€13,714€13,000

Compensation as Chairwoman of the CAG‑CSR Committee€40,000€28,000

Ms Dorothée Altmayer
Compensation as member of the Supervisory Board€36,000€28,200s fixed component€12,000€10,000s variable component based on attendance€24,000€18,200

Compensation as Director of Comptoir Nouveau de la Parfumerie€3,000 1€2,000Compensation as member of the Supervisory Board€36,000€28,200s fixed component€12,000€10,000s variable component based on attendance€24,000€18,200

Compensation as member of the Audit and Risk Committee€20,000€13,000s fixed component€8,000€5,200s variable component based on attendance€12,000€7,800Mr Charles-Éric Bauer

Ms Estelle Brachlianoff
Compensation as member of the Supervisory Board€32,571€28,200s fixed component€12,000€10,000s variable component based on attendance€20,571€18,200

Compensation as member of the Audit and Risk Committee€20,000€10,400s fixed component€8,000€5,200s variable component based on attendance€12,000€5,200Compensation of member of the CAG‑CSR Committee€20,000€10,400s fixed component€8,000€5,200s variable component based on attendance€12,000€5,200Compensation as member of the Supervisory Board€36,000€28,200s fixed component€12,000€10,000s variable component based on attendance€24,000€18,200

Compensation of member of the CAG‑CSR Committee€20,000€13,000s fixed component€8,000€5,200s variable component based on attendance€12,000€7,800Compensation as Director of Comptoir Nouveau de la Parfumerie€3,000 1€3,000Mr Matthieu Dumas

368

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

Amounts awarded in respect ofAmounts awarded in respect of 2023 ﬁnancial year 2022 and amounts paid
and amounts paid in 2024
in 2023
Mr Blaise GuerrandCompensation as member of the Supervisory Board€36,000€28,200s fixed component€12,000€10,000s variable component based on attendance€24,000€18,200

Compensation as member of the Hermès Sellier Management Board€3,000 1€3,000

Ms Julie GuerrandCompensation as member of the Supervisory Board€36,000€28,200s fixed component€12,000€10,000s variable component based on attendance€24,000€18,200

Compensation as member of the Supervisory Board€36,000€28,200s fixed component€12,000€10,000s variable component based on attendance€24,000€18,200

Compensation as member of the Hermès Sellier Management Board€3,000 1€3,000Ms Olympia Guerrand3

Mr Renaud Momméja
Compensation as member of the Supervisory Board€32,571€28,200s fixed component€12,000€10,000s variable component based on attendance€20,571€18,200

Compensation as member of the Audit and Risk Committee€20,000€13,000s fixed component€8,000€5,200s variable component based on attendance€12,000€7,800n/an/aCompensation as member of the Supervisory Board€36,000€28,200s fixed component€12,000€10,000s variable component based on attendance€24,000€18,200

Compensation as member of the Audit and Risk Committee€20,000€13,000s fixed component€8,000€5,200s variable component based on attendance€12,000€7,800

Ms Anne‑Lise Muhlmeyer (employee representative) 2
Compensation as member of the Supervisory Board

Mr Alexandre Virosn/a: not applicable.
(1) Subject to the decisions of the company Boards concerned.
(2) Employee representative member of the Supervisory Board appointed on 15 November 2022.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

369

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8.4.4

TABLE 4OPTIONS TO SUBSCRIBE FOR OR PURCHASE SHARES GRANTED DURING THE FINANCIAL YEAR TO THE EXECUTIVE CHAIRMEN BY HERMÈS
INTERNATIONAL AND BY ANY GROUP COMPANY

Name of the Executive Corporate Oﬃcer

Number anddate of plan

Valuation of
options according
to the method
used for the
consolidated
Natureﬁnancialof options
statements

Numberof options
granted during
the ﬁnancial
year

Exercise
price

ExerciseperiodMr Axel Dumas

n/a

n/a

n/a

n/a

n/a

n/a

TOTAL

n/a

n/a

n/a

n/a

n/a

n/a

n/a: not applicable.

3.8.4.5

TABLE 5EXERCISE OF OPTIONS TO SUBSCRIBE FOR OR PURCHASE SHARES DURING THE FINANCIAL YEAR BY THE EXECUTIVE CHAIRMEN OF HERMÈS
INTERNATIONAL

Number anddate of plan

Number of options
exercised during
the ﬁnancial year

Exerciseprice

Mr Axel Dumas

n/a

n/a

n/a

TOTAL

n/a

n/a

n/a

Name of the Executive Corporate Oﬃcern/a: not applicable.

3.8.4.6

TABLE 6

FREE SHARES ALLOCATED DURING THE FINANCIAL YEAR TO EACH EXECUTIVE CHAIRMAN

Performance‑based share distributions awarded
by the Shareholders’ General Meeting during
the ﬁnancial year to each Corporate Oﬃcer
by the issuer and by all companies of the Group(nominative list)

Valuation of sharesaccording to themethod used for
Number of shares the consolidated
Number and awarded during
ﬁnancial
date of plan the ﬁnancial year
statements

Vestingdate

Availability
date

Performance
conditions

Mr Axel Dumas

n/a

n/a

n/a

n/a

n/a

n/a

TOTAL

n/a

n/a

n/a

n/a

n/a

n/a

n/a: not applicable.

3.8.4.7

TABLE 7

FREE SHARES ALLOCATED AND BECOMING AVAILABLE DURING THE FINANCIAL YEAR FOR EACH EXECUTIVE CHAIRMAN

Number anddate of plan

Number of sharesacquired during
the ﬁnancial year

Vesting
conditions

Mr Axel Dumas

n/a

0

n/a

TOTAL

n/a

0

n/a

Name of the Corporate Oﬃcern/a: not applicable.

370

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8.4.8

TABLE 8HISTORY OF ALLOCATION OF OPTIONS TO SUBSCRIBE FOR OR PURCHASE SHARESINFORMATION ON THE STOCK SUBSCRIPTION OR PURCHASE OPTIONSGeneral Meeting of 25/05/1998 (6th resolution) – Subscription or purchase options

Plans 1 to 4 expired

General Meeting of 03/06/2003 (15th resolution) – Purchase options

Plans 5 and 6 expired

General Meeting of 06/06/2006 (9th resolution) – Purchase options

Plan 7 expired

General Meeting of 02/06/2009 (14th resolution) – Purchase options

No plan implemented in 2009, 2010 or 2011

General Meeting of 30/05/2011 (21st resolution) – Purchase options

No plan implemented in 2011 or 2012

General Meeting of 29/05/2012 (13th resolution) – Purchase options

No plan implemented in 2012 or 2013

General Meeting of 04/06/2013 (18th resolution) – Purchase options

No plan implemented in 2013 or 2014

General Meeting of 03/06/2014 (16th resolution) – Purchase options

No plan implemented in 2014 or 2015

General Meeting of 02/06/2015 (14th resolution) – Purchase options

No plan implemented in 2015 or 2016

General Meeting of 31/05/2016 (14th resolution) – Purchase options

No plan implemented from 2016 to 2019

General Meeting of 24/04/2020 (18th resolution) – Purchase options

No plan implemented from 2020 to 2022

General Meeting of 20/04/2022 (18th resolution) – Purchase options

No plan implemented in 2022 or 2023

3.8.4.9

3

TABLE 9OPTIONS TO SUBSCRIBE FOR OR PURCHASE SHARES GRANTED TO THE TOP 10 EMPLOYEES (NOT CORPORATE OFFICERS) RECEIVING OPTIONSAND OPTIONS EXERCISED BY THEM

Total number of shares
granted/shares subscribedor purchased

Weighted
average price

Options granted during the ﬁnancial year by the issuer and any entity
within the option allocation scope to the 10 employees of the issuer
and any entity within this scope for whom the number of options thus
granted is the highest (overall information)

n/a

n/a

Options held on the issuer and aforementioned entities exercised
during the ﬁnancial year by the 10 employees of the issuer and these
entities, for whom the number of options thus purchased or subscribedis the highest (overall information)

n/a

n/a

Plans 1 to 7

Plans expired

n/a: not applicable.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

371

3

CORPORATE GOVERNANCECOMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8.4.10

TABLE 10HISTORY OF FREE SHARE AND PERFORMANCE SHARE ALLOCATION PLANS STILL IN FORCE AS AT 1 JANUARY 2023
INFORMATION ON FREE SHARES ALLOCATED

Plan hPlan iPlan jPlan k31/05/2016(15th resolution)

31/05/2016(15th resolution)

20/04/2023(28th resolution)

20/04/2023(28th resolution)

01/07/2019

01/07/2019

15/06/2023

15/06/2023

310,944 2

189,600 2

210,168 2

92,400 2

Shares allocated to Senior Executives 3

192

24,000120

10,500

Number of Senior Executives 3 concerned

8

8

10

10

n.m.

0.02%

n.m.

0.01%

Date of General Meeting
Date of the decision by the Executive Management
Total number of shares allocated 1

Proportion of allocations of shares to Senior Executives as % ofshare capital
French tax residents on the grant date
Vesting period
Date of transfer of ownership of shares
End of the retention period
Tax residents outside France on the grant date
Vesting period
Date of transfer of ownership of shares
End of the retention period

2 tranches of 12
shares

1 tranche of 12
shares

4/5 years

4 years

4 years

4 years

03/07/2023
01/07/2024

03/07/2023

15/06/2027

15/06/2027

n/a

n/a

n/a

n/a

2 tranches of 12
shares

1 tranche of 12
shares

4/5 years

4 years

4 years

4 years

03/07/2023
01/07/2024

03/07/2023

15/06/2027

15/06/2027

n/a

n/a

n/a

n/a

No

Yes 4

No

Yes

Number of shares vested 5 as at 31/12/2023

131,952

136,125

120Number of shares lost as at 31/12/2023

50,23253,4752,820

120

Performance conditions

n.m.: not material; n/a: not applicable.
(1) Maximum.
(2) At the end of the employee acceptance period.
(3) The following are treated as Senior Executives in this Table 10: the Executive Chairmen, members of the Supervisory
Board (excluding employee representatives) and members of the Executive Committee of the issuer on the grant date.
(4) On 17 February 2021, the CAG‑CSR Committee noted that the performance conditions relating only to financial year
2020 had not been achieved.
(5) Including by early release in accordance with the regulations of the plan (death, disability).

3.8.4.11

TABLE 10 BIS (DRAWN UP PURSUANT TO ARTICLE L. 225‑197‑4 OF THE FRENCH COMMERCIAL CODE
(CODE DE COMMERCE))

FREE SHARES AWARDED TO THE TOP 10 EMPLOYEES (NOT CORPORATE OFFICERS)

Shares awarded during the ﬁnancial year to the 10 employees of the issuer and any entity
included in this scope for whom the number of shares thus granted is the highest (overall
information)n/a: not applicable.

372

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Total numberof shares awarded

Date of plans

10,82015/06/2023 (plans [j] and [k])

CORPORATE GOVERNANCEOTHER INFORMATION

3.8.4.12

TABLE 11

Senior Executives (natural persons)

Employment contract

Supplemental
pension plan

No 2

Yes

Mr Axel Dumas, Executive Chairman
Date of start of term of ofﬁce:
05/06/2013
Date of end of term of ofﬁce:
open‑ended

Compensation or beneﬁts due
or liable to be due because of
the cessation of or change Compensation relative to ain duties 1
non‑compete clause

Yes

No

(1) Details of these commitments can be found in chapter 8 “Combined General Meeting of 30 April 2024”, § 8.2.1 – Explanatory statement to the 8th resolution.
(2) Since 5 June 2013.

3.8.5

SUMMARY TABLE OF THE VOTES OF THE GENERAL MEETING ON THE RESOLUTIONS RELATING
TO THE COMPENSATION OF CORPORATE OFFICERS

3

The summary table below shows the results of the votes on all the resolutions relating to the compensation of Corporate Ofﬁcers.

2023 GM(ﬁnancial year 2022) 1
Approval of total compensation and beneﬁts of all kinds paid during or awarded in respect of the ﬁnancial year ended to
the Corporate Ofﬁcers (global ex‑post vote) – 7th resolution

Resolution approved
at 92.15%

Approval of the total compensation and beneﬁts of all kinds paid during or awarded in respect of the ﬁnancial year
ended to Mr Axel Dumas, Executive Chairman (individual ex‑post vote) – 8th resolution

Resolution approved
at 92.12%

Approval of total compensation and beneﬁts of all kinds paid during or awarded in respect of the ﬁnancial year ended tothe company Émile Hermès SAS, Executive Chairman (individual ex‑post vote) – 9th resolution

Resolution approved
at 92.07%

Approval of the total compensation and beneﬁts of all kinds paid during or awarded in respect of the ﬁnancial year
ended to Mr Éric de Seynes, Chairman of the Supervisory Board (individual ex‑post vote) – 10th resolution

Resolution approved
at 99.97%

Approval of the compensation policy for the Executive Chairmen (ex‑ante vote) – 11th resolution

Resolution approved
at 91.59%

Approval of the compensation policy for Supervisory Board members (ex‑ante vote) – 12th resolution

Resolution approved
at 99.94%(1) Details of the results of the votes at the General Meeting are available on the Company’s financial website https://finance.hermes.com/en/general‑meetings/.

3.9

OTHER INFORMATION

3.9.1

AGREEMENTS

3.9.1.1

RELATED‑PARTY AGREEMENTS
AND TRANSACTIONS

Information on the related‑party agreements described in thesummary table below and the status of current agreements ispresented in chapter 8 “Combined General Meeting of 30 April2024” in the report of the Supervisory Board to the General
Meeting, § 8.3 and in the Statutory Auditors’ special report,§ 8.4.3.

In application of Articles L. 226‑10 and L. 225‑38 to L. 225‑43 of theFrench Commercial Code (Code de commerce), any agreement
entered into directly or through an intermediary between the Company
and:s one of its Executive Chairmen;s one of the members of the Supervisory Board; ors one of its shareholders holding a fraction of the voting rights
greater than 10% or, in the case of a shareholder company, thecompany controlling it within the meaning of Article L. 233‑3 of theFrench Commercial Code (Code de commerce),

must be subject to the prior authorisation of the Board.
These provisions are applicable to agreements in which one of these
persons has an indirect interest.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

373

3

CORPORATE GOVERNANCEOTHER INFORMATION

Agreements entered into directly or through an intermediary between
the Company and a company are also subject to prior authorisationby the Supervisory Board if:
s one of its Executive Chairmen; ors one of the members of the Supervisory Board,is an owner, partner with unlimited liability, Executive Chairman,
Director, Chief Executive Ofﬁcer, member of the Management Boardor member of the Supervisory Board of the company.
The foregoing provisions are not applicable either to agreements oncurrent transactions entered into on an arm’s length basis or toagreements concluded between two companies in which one holds,
directly or indirectly, the entire share capital of the other, whereapplicable, after deduction of the minimum number of sharesrequired by law. These agreements are communicated by the person
concerned to the Chairman of the Supervisory Board, who
communicates the list to the members of the Board and to the
Statutory Auditors.

In accordance with the provisions of Article L. 225‑38 of the French
Commercial Code (Code de commerce), authorisation decisions of
the Supervisory Board since 1 August 2014 are all supported byjustiﬁcation.
A review of the related‑party agreements entered into during previous
ﬁnancial years and whose execution has continued over time iscarried out by the Supervisory Board each year in accordance withthe provisions of Article L. 225‑40‑1 of the French Commercial Code
(Code de commerce).
Following the review of 2023, the Board had no comments to make.
None of these agreements changed signiﬁcantly with respect toamounts or ﬁnancial terms in 2023.
Related‑party transactions are shown in chapter 5 “Consolidated
ﬁnancial statements”, § 5.6 (note 13).

SUMMARY OF RELATED‑PARTY AGREEMENTS IN FORCE DESCRIBED IN THE STATUTORY AUDITORS’ SPECIAL REPORTNature of the agreement

Persons concerned

Nature, purpose and terms of the agreement

AmountService agreement with
Studio des Fleurs

Mr Frédéric Dumas,
member of the Executive
Management Board ofÉmile Hermès SAS,
Executive Chairman of
Hermès International

The Supervisory Board authorised the conclusion of acontract between Hermès International and Studio desFleurs relating to photography and retouching services
for e‑commerce product packshots.
Reasons why the agreement is beneﬁcial for theCompany
Studio des Fleurs agreed to the following points, whichwere fundamental to Hermès International:s Studio des Fleurs' obligations: compliance with very
precise specifications, duty of advice, monitoring ofservices, quality control;s criteria for monitoring performance indicators;
s no minimum order guaranteed;s fixed three‑year term followed by indefinite duration;s long notice of termination (18 months);s no exclusivity;s undertaking by Studio des Fleurs to take thenecessary measures to maintain its economic
independence (in particular by expanding anddiversifying its customer base) from the HermèsGroup;s confidentiality and prohibition on using Hermès as areference;s no revision of rates before the expiry of three years,
and then revision possible but capped.
Date of approval by the Supervisory Board
20 March 2018 Contract
29 July 2021 New commercial conditions

For ﬁnancial year 2023,
Hermès International was
invoiced €3,632,760 forservices provided under theagreement.

Design agreement witharchitectural ﬁrm RDAI 1

Sandrine Brekke, partnerwith a stake of more than
10% in RDAI and member ofthe Management Board ofÉmile Hermès SAS, legal
manager (gérant) of HermèsInternational.

The Supervisory Board authorised a new frameworkagreement between Hermès International and all thecompanies that it controls either directly or indirectly, andRDAI, deﬁning the outline of RDAI’s assignment for the
exclusive application of the architectural concept inHermès projects.
Date of approval by the Supervisory Board
7 July 2017 and 13 September 2017

For ﬁnancial year 2023,
invoicing for these services
amounted to €16,547.

(1) At the time of approval of this agreement, related‑party agreements did not need to be justified.

374

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCEOTHER INFORMATION

3.9.1.2

AGREEMENTS ENTERED INTO BETWEENSENIOR EXECUTIVES OR SHAREHOLDERS
OF THE COMPANY AND CONTROLLEDCOMPANIES (ARTICLE L. 225‑37‑4‑2°
OF THE FRENCH COMMERCIAL CODE
(CODE DE COMMERCE)

Pursuant to the provisions of Article L. 225‑37‑4 of the French
Commercial Code (Code de commerce), this report must disclose any
agreements entered into, directly or through an intermediary,
between, on the one hand, an Executive Chairman, a member of theSupervisory Board or one of the shareholders holding more than 10%of the voting rights of the Company and, on the other hand, anothercompany controlled by said other party within the meaning of Article
L. 233‑3 of the French Commercial Code (Code de commerce).
These are not related‑party agreements subject to prior approval by
the Supervisory Board, as Hermès International is not a party to theagreement. Agreements entered into with a wholly owned subsidiary
are not excluded (Order no. 2014‑863 of 31 July 2014 relating tocompany law).
You are advised that no such agreements were entered into during
the ﬁnancial year ended 31 December 2023.

3.9.1.3

MONITORING ONGOING AND STANDARD
AGREEMENTS AND IMPLEMENTATION

The procedures for the regular evaluation of agreements relating toongoing transactions concluded on an arm’s length basis are thendescribed:
s periodicity of the assessment: annual;s nature of the work required to carry out the evaluation:• determining each year the scope of the agreements to beassessed, for example by selecting a category of agreementtaking into account duration, maturity, importance (in particular,
financial), nature or by adopting a risk‑based approach,• assessing the relevance of the criteria used to distinguishbetween ongoing transactions concluded on an arm’s length
basis and related‑party agreements, and their correct
application in the Company,• carrying out a review of the terms and conditions applicable to• detecting any anomalies that could make it necessary tosupplement existing internal control procedures;s consequences of the evaluation;s report to the Supervisory Board and follow‑up.

3.9.1.3.2

Implementation

Pursuant to the provisions of Article L. 22‑10‑12 of the French
Commercial Code (Code de commerce), the Company has put inplace a procedure to regularly assess whether agreements relating
to current transactions and concluded under normal conditions
meet these conditions.

In 2023, the Current Agreements Committee conducted a full reviewof the agreements relating to ongoing transactions and entered into
on an arm’s length basis and concluded that all these agreements
continue to meet these two conditions. A report was presented to theSupervisory Board, which took note of it.

3.9.1.3.1

An in‑depth annual review will be carried out on signiﬁcantagreements to ensure that they continue to meet the criteria for
ongoing and normal agreements.

ProcedureThis procedure, which applies only to Hermès International and not to
its subsidiaries, was approved by the Supervisory Board on
25 February 2020.
Its purpose is to enable Hermès International to periodically assess
the appropriateness of the classiﬁcation used for ongoing agreements
entered into during the ﬁnancial year, those that continue over several
years, and any agreements that may have been modiﬁed.
A “Current Agreements Committee” tasked with conducting theevaluation has been established; it comprises the following members
as a minimum:s a representative of the legal, corporate law and securities law
department;s a representative of the finance department.

The procedure ﬁrst entails the presentation of:s the notion of agreements bearing on ongoing transactions enteredinto on an arm’s length basis and transactions deemed to beongoing and entered into on an arm’s length basis within the
Hermès Group;s the notions of related‑party agreement and prohibited agreement;s the roles and responsibilities related to the identification ofrelated‑party agreements and the control and disclosure procedure
applicable to them.

3

these agreements in order to ensure, for those that may berevised or renewed in the coming year, that they still qualify as
ongoing transactions concluded on an arm’s length basis, inparticular in view of the criteria used,

3.9.2

CAPITAL STRUCTURE AND FACTORSLIABLE TO AFFECT THE OUTCOME
OF A PUBLIC OFFERINGIn accordance with Article L. 22‑10‑11 of the French Commercial
Code (Code de commerce), you are informed of the elements likely tohave an impact on a possible public tender or exchange offering for
Hermès International shares.
As a société en commandite par actions (partnership limited byshares), Hermès International is governed by certain provisions
speciﬁc to its legal form, stipulated by law or the Articles of
Association, which are liable to have an effect in the case of a public
offering, namely:

3.9.2.1

STRUCTURE OF THE COMPANY'S SHARECAPITAL/DIRECT OR INDIRECT AFFILIATES IN
THE SHARE CAPITAL

Information on share capital and shareholding is presented inchapter 7 “Information on the Company and its share capital”,§ 7.2.2. The control held by the Hermès family group is likely to havean impact in the event of a public offering.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

375

3

CORPORATE GOVERNANCEOTHER INFORMATION

3.9.2.2

STATUTORY RESTRICTIONS ON THE EXERCISE
OF VOTING RIGHTS AND SHARE TRANSFERS

Statutory restrictions on the exercise of voting rights and sharetransfers are as follows:s voting rights are exercised by the bare owners for all decisions
taken at all General Meetings except for decisions regarding theallocation of earnings, for which the usufructuary shall exercise thevoting rights;s the amendment of the Articles of Association is only valid if it has
been approved in advance by the Active Partner;s the Executive Management benefits from delegations of authority
to decide on share buybacks and capital increases, which aredescribed in § 3.9.4.

3.9.2.6s double voting rights are allocated to each registered share after
being held for a period of four consecutive years;s any shareholder who comes to hold 0.5% of the share capital and/or voting rights, or any multiple of that percentage, must disclosethe crossing of ownership thresholds (Article 11 of the Articles of
Association);s Émile Hermès SAS, the Active Partner, must retain in its Articles of
Association certain provisions concerning its legal form, corporate
purpose and the conditions to be met to qualify as an ActivePartner (see chapter 7 “Information on the Company and its sharecapital”, § 7.1.3 [Article 14.3 of the Articles of Association]);A certain number of agreements entered into by the Company provide
for a change of control clause, but none of them are of a nature to becovered by paragraph 9 of Article L. 22‑10‑11 of the French
Commercial Code (Code de commerce).

3.9.2.7s Hermès International may only be converted into a société
anonyme (public limited company) with the consent of the ActivePartner;s except for decisions falling within their exclusive remit, any
decision taken by the Limited Partners (shareholders) at General
Meetings is only valid if it has been approved by the Active Partner
no later than the end of said Meeting.

3.9.2.3

CONTROL MECHANISMS PROVIDED FOR IN A
POTENTIAL EMPLOYEE SHAREHOLDING SYSTEM

Not applicable.

3.9.2.4

AGREEMENTS BETWEEN SHAREHOLDERS OF
WHICH THE COMPANY IS AWARE AND WHICH
MAY RESULT IN RESTRICTIONS ON THE
TRANSFER OF SHARES AND THE EXERCISE OF
VOTING RIGHTS

A priority right to acquire Hermès International shares, granted by themembers of the Hermès family group, and descendants of thesemembers, to H51, is explained in chapter 7 “Information on the
Company and its share capital”, § 7.2.5.2.

3.9.2.5

RULES APPLICABLE TO THE APPOINTMENT AND
REPLACEMENT OF THE EXECUTIVE CHAIRMENAND TO THE AMENDMENT OF THE COMPANY’S
ARTICLES OF ASSOCIATION/POWERS OF THE
EXECUTIVE MANAGEMENT, IN PARTICULAR AS
REGARDS THE ISSUE OR BUYBACK OF SHARES

These rules are as follows:s the Executive Chairmen may only be appointed or dismissed by the
Active Partner;

AGREEMENTS ENTERED INTO BY THE COMPANY
THAT ARE AMENDED OR TERMINATED IN THE
EVENT OF A CHANGE OF CONTROL OF THE
COMPANY, UNLESS SUCH DISCLOSURE, EXCEPTIN THE CASE OF A LEGAL OBLIGATION TODISCLOSE, WOULD SERIOUSLY HARM ITSINTERESTS

AGREEMENTS PROVIDING FOR COMPENSATIONFOR THE EXECUTIVE CHAIRMEN OR
EMPLOYEES, IF THEY RESIGN OR ARE
DISMISSED WITHOUT REAL AND SERIOUS
CAUSE OR IF THEIR EMPLOYMENT ISTERMINATED DUE TO A PUBLIC TENDER OREXCHANGE OFFERINGThe Company made a commitment to pay Mr Axel Dumas a severance
payment under the conditions described in chapter 8 “Combined
General Meeting of 30 April 2024”, § 8.2.1 - Explanatory statement to
the 8th resolution. Given the importance of the role of the ActivePartner in a société en commandite par actions (partnership limitedby shares) - who has the power to appoint and dismiss any Executive
Chairman - and in the case of a legal entity, its legal representative, it
was considered that the termination of duties as Executive Chairmanof Mr Axel Dumas, which would result from the replacement of the
Chairman of Émile Hermès SAS, should be treated as a forced
departure.

3.9.3

SPECIAL CONDITIONS FOR ATTENDING
GENERAL MEETINGSIn accordance with Article L. 22‑10‑10 of the French Commercial
Code (Code de commerce), you are advised that General Meetings
are called, except in exceptional circumstances, under the conditions
set by law and Article 24 of the Articles of Association (see chapter 7“Information on the Company and its share capital”, § 7.1.3).
Any shareholder or shareholder representative has the right to attend
the General Meeting and take part in the deliberations, regardless ofthe number of shares. However, shareholders will only be permitted toattend this Meeting, to be represented or to vote by post if they havepreviously provided proof of their status by registering their shares intheir own name (or that of the intermediary registered on their behalf
if they are not domiciled in France) on the second business day (= i.e.
stock market trading days) preceding the meeting at midnight (Paristime) [record date]:s in the registered securities accounts held for the Company by its
agent BNP Paribas Securities Services; or3762023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCEOTHER INFORMATIONs in the bearer share accounts held by the financial intermediarywith which its shares are registered.

In the event of a sale of shares before this date, the shareholding
certiﬁcate will be invalidated and the votes by post or powers sent to
the Company will also be invalidated. In the event of disposal after
this date, the shareholding certiﬁcate will remain valid and the votes
cast or the powers given will be taken into account.
Shareholders may choose one of the following three options to attend
the General Meeting:s attend the General Meeting in person;s by post: vote or be represented by giving proxy to the Chairman of
the General Meeting or a proxy;s by Internet: vote or be represented by giving proxy to the Chairmanof the General Meeting or a proxy.

3.9.4

In accordance with Articles L. 225‑96 and L. 225‑98 of the French
Commercial Code (Code de commerce), only votes cast byshareholders present or represented are taken into account in thecalculation of the quorum. The votes cast do not include abstentions,blank votes, invalid votes, or shareholders who did not take part in
the vote for the resolution in question. Postal voting forms giving no
meaning or expressing an abstention will no longer be considered as
negative votes. They will not be taken into account in the votes cast.
Double voting rights are allocated under the conditions set out in
Article 12 of the Articles of Association (see chapter 7 “Informationon the Company and its share capital”, § 7.1.3).
In the event that a legal (Articles L. 233‑7 of the French Commercial
Code (Code de commerce) and L. 433‑3 et seq. of the French
Monetary and Financial Code) or internal threshold is crossed (Article
11 of the Articles of Association – see chapter 7 “Information on the
Company and its share capital”, § 7.1.3 and § 7.5.8) with regard toequity and/or voting rights, a declaration in accordance with theconditions set out in the aforementioned texts must be made, failingwhich the shares will be deprived of voting rights at General
Meetings.

3

SUMMARY TABLE OF THE USE OF FINANCIAL DELEGATIONS OF AUTHORITY

In accordance with the provisions of Article L. 225‑37‑4‑3° of the French Commercial Code (Code de commerce), the table below shows all thedelegations of competence and powers granted by the General Meeting to the Executive Management in ﬁnancial matters, distinguishing
between delegations that were valid, and delegations used, in the 2023 ﬁnancial year, as applicable.
Date of General Meeting
Resolution no.

Delegations valid in 2023

Limit common to several
authorisations

Use in 2023

STOCK OPTIONS/FREE SHARES
20 April 2022
18th resolution

Authorisation: allocation of stock options
Duration (expiry): 38 months (20 June 2025)
Individual limit: 2%

20 April 2022
19th resolution

Authorisation: allocation of existing free ordinary shares 1
Duration (expiry): 38 months (20 June 2025) 2
Individual limit: 2%

20 April 2023
28th resolution

Authorisation: allocation of existing free ordinary shares 1
Duration (expiry): 38 months (20 June 2026)
Individual limit: 2%

None
2%

2%

None

See § 3.8.3.2 and 3.8.4.10

BUYBACK/CANCELLATION OF SHARES
20 April 2022
Sixth resolution

Authorisation: share buyback
Duration (expiry): 18 months (20 October 2023) 2
Individual limit: 10% of the share capital – maximum amount of €3billion – maximum price per share: €1,900

See chapter 7 “Informationon the Company and its
share capital”, § 7.2.2.10

20 April 2022
17th resolution

Authorisation: cancellation of shares
Duration (expiry): 24 months (20 April 2024) 2
Individual limit: 10% of the share capital

None

20 April 2023
Sixth resolution

Authorisation: share buyback
Duration (expiry): 18 months (20 October 2024) 1
Individual limit: 10% of the share capital – maximum amount of €4.5
billion – maximum price per share: €2,200

See chapter 7 “Informationon the Company and its
share capital”, § 7.2.2.10

20 April 2023
19th resolution

Authorisation: cancellation of shares
Duration (expiry): 24 months (20 April 2025) 1
Individual limit: 10% of the share capital

None(1) These delegations are intended to be cancelled, for the remaining duration and for the unused fraction, in the case of the adoption of new resolutions concerning new delegationsof the same nature by the General Meeting of 30 April 2024 (see chapter 8 “Combined General Meeting of 30 April 2024”, § 8.2.1 and § 8.2.2 – Explanatory statement to the 6th
and 19th resolutions).
(2) These authorisations were cancelled, for the remaining duration and for the unused fraction, by delegations of the same nature authorised by the General Meeting of 20 April 2023.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

377

3

CORPORATE GOVERNANCEOTHER INFORMATION

Date of General Meeting
Resolution no.

Delegations valid in 2023

Limit common to several
authorisations

Use in 2023

EQUITY SECURITIES
4 May 2021
18th resolution

Authorisation: capital increase by incorporation of reserves
Duration (term): 26 months (4 July 2023) 2
Individual limit: 40% of the share capital

4 May 2021
19th resolution

Authorisation: issue with preemptive subscription rights maintained
Duration (term): 26 months (4 July 2023) 2
Individual limit: 40% of the share capitalNone

4 May 2021
20th resolution

Authorisation: issue with preemptive subscription rights cancelled
Duration (term): 26 months (4 July 2023) 2
Individual limit: 40% of the share capitalNone

4 May 2021
21st resolution

Authorisation: capital increase reserved for members of a company orgroup savings plan
Duration (term): 26 months (4 July 2023) 2
Individual limit: 1% of the share capitalNone

4 May 2021
22nd resolution

Authorisation: issue by private placement
Duration (term): 26 months (4 July 2023) 2
Individual limit: 20% of the share capital per year

None

4 May 2021
23rd resolution

Authorisation: issue to compensate contributions in kind
Duration (term): 26 months (4 July 2023) 2
Individual limit: 10% of the share capital

None

20 April 2023
20th resolution

Authorisation: capital increase by incorporation of reserves
Duration (expiry): 26 months (20 June 2025) 1
Individual limit: 40% of the share capital

20 April 2023
21st resolution

Authorisation: issue with preemptive subscription rights maintained
Duration (expiry): 26 months (20 June 2025) 1
Individual limit: 40% of the share capital

None

20 April 2023
22nd resolution

Authorisation: issue with preemptive subscription rights cancelled
Duration (expiry): 26 months (20 June 2025) 1
Individual limit: 40% of the share capital

None

20 April 2023
23rd resolution

Authorisation: capital increase reserved for members of a company orgroup savings plan
Duration (expiry): 26 months (20 June 2025) 1
Individual limit: 1% of the share capital

20 April 2023
24th resolution

Authorisation: issue by private placement
Duration (expiry): 26 months (20 June 2025) 1
Individual limit: 20% of the share capital per year

None

20 April 2023
25th resolution

Authorisation: issue to compensate contributions in kind
Duration (expiry): 26 months (20 June 2025) 1
Individual limit: 10% of the share capital

None

n/a

None

40%

None
n/a

None
40%

(1) These delegations are intended to be cancelled, for the remaining duration and for the unused fraction, in the case of the adoption of new resolutions concerning new delegationsof the same nature by the General Meeting of 30 April 2024 (see chapter 8 “Combined General Meeting of 30 April 2024”, § 8.2.1 and § 8.2.2 – Explanatory statement to the 6th
and 19th resolutions).
(2) These authorisations were cancelled, for the remaining duration and for the unused fraction, by delegations of the same nature authorised by the General Meeting of 20 April 2023.

378

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCEOTHER INFORMATION

Date of General Meeting
Resolution no.

Limit common to several
authorisations

Delegations valid in 2023

Use in 2023

DEBT SECURITIES
4 May 2021
19th resolution

Authorisation: issue with preemptive subscription rights maintained
Duration (term): 26 months (4 July 2023) 1
Individual limit: €1 billion

None

4 May 2021
20th resolution

Authorisation: issue with preemptive subscription rights cancelled
Duration (term): 26 months (4 July 2023) 1
Individual limit: €1 billion

None

4 May 2021
22nd resolution

Authorisation: issue by private placement
Duration (term): 26 months (4 July 2023) 1
Individual limit: €1 billion

4 May 2021
23rd resolution

Authorisation: issue to compensate contributions in kind
Duration (term): 26 months (4 July 2023) 1
Individual limit: €1 billion

None

20 April 2023
21st resolution

Authorisation: issue with preemptive subscription rights maintained
Duration (expiry): 26 months (20 June 2025)
Individual limit: €1 billion

None

20 April 2023
22nd resolution

Authorisation: issue with preemptive subscription rights cancelled
Duration (expiry): 26 months (20 June 2025)
Individual limit: €1 billion

None

20 April 2023
24th resolution

Authorisation: issue by private placement
Duration (expiry): 26 months (20 June 2025)
Individual limit: €1 billion

20 April 2023
25th resolution

Authorisation: issue to compensate contributions in kind
Duration (expiry): 26 months (20 June 2025)
Individual limit: €1 billion€1 billion€1 billion

None

3

None

None

MERGER BY ABSORPTION, SPIN‑OFF, PARTIAL CONTRIBUTION OF ASSETS
4 May 2021
24th and 25th resolutions

Authorisation: operation(s) involving a merger by absorption, spin‑off orpartial contribution of assets subject to the spin‑off regime, andresulting capital increase
Duration (term): 26 months (4 July 2023) 2
Individual limit: 40% of the share capital

40% (25th resolution)

None

20 April 2023
26th and 27th resolutions

Authorisation: operation(s) involving a merger by absorption, spin‑off orpartial contribution of assets subject to the spin‑off regime, andresulting capital increase
Duration (term): 26 months (4 July 2024)
Individual limit: 40% of the share capital

40% (27th resolution)None(1) These delegations are intended to be cancelled, for the remaining duration and for the unused fraction, in the case of the adoption of new resolutions concerning new delegationsof the same nature by the General Meeting of 30 April 2024 (see chapter 8 “Combined General Meeting of 30 April 2024”, § 8.2.1 and § 8.2.2 – Explanatory statement to the 6th
and 19th resolutions).
(2) These authorisations were cancelled, for the remaining duration and for the unused fraction, by delegations of the same nature authorised by the General Meeting of 20 April 2023.

The General Meeting of 30 April 2024 is asked to renew:s the authorisations to carry out share buybacks/cancellations (seechapter 8 “Combined General Meeting of 30 April 2024”, § 8.2.1
and § 8.2.2 – Explanatory statements to the 6th and 18th
resolutions);s the delegation to Executive Management to allocate free existing
shares (see chapter 8 “Combined General Meeting of 30 April2024”, § 8.2.2 – Explanatory statement to the 19th resolution).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

379

3

CORPORATE GOVERNANCEOTHER INFORMATION FROM THE EXECUTIVE MANAGEMENT REPORT

3.10 OTHER INFORMATION FROM THE EXECUTIVE MANAGEMENT REPORT
3.10.1

INTERESTS OF CORPORATE OFFICERS AND EXECUTIVE COMMITTEE MEMBERS IN THE SHARECAPITAL

In accordance with point 16.1 of Annex 1 to European Commission Delegated Regulation (EU) 2019/980, the direct interests of Senior
Executives in the Company’s share capital as at 31 December 2023, as reported to the Company, were as follows.
Shares in full ownership or with usufruct 1(Ordinary General Meeting votes on the allocation of net income)

Full or bare ownership shares 1(other General Meeting votes)

Number of shares%

Number of votes%

Number of shares%

Number of votes%

105,569,412

100.00%178,478,552

100.00%105,569,412

100.00%178,478,552

100.00%

Émile Hermès SAS

49,792

0.05%

83,0280.05%

49,792

0.05%

83,0280.05%

Axel Dumas

11,6680.01%

22,0860.01%

11,6380.01%

22,056

0.01%

226

0.00%

429

0.00%

511

0.00%

714

0.00%

SHARE CAPITALAS AT 31/12/2023
Executive Chairmen

Members of the Supervisory Board
Éric de Seynes
Prescience Assoh

13

0.00%

13

0.00%

13

0.00%

13

0.00%

Dorothée Altmayer

200

0.00%

400

0.00%

200

0.00%

400

0.00%

Charles-Éric Bauer

75,7480.07%

151,4960.08%

75,7480.07%

151,4960.08%

Estelle Brachlianoff

100

0.00%

100

0.00%

100

0.00%

100

0.00%

Monique Cohen

250

0.00%

500

0.00%

250

0.00%

500

0.00%

Matthieu Dumas

1,463

0.00%

1,676

0.00%

1,433

0.00%

1,646

0.00%

Blaise Guerrand

200

0.00%

400

0.00%

200

0.00%

400

0.00%

Julie Guerrand

6,825

0.01%

12,650

0.01%

6,825

0.01%

12,650

0.01%

Olympia Guerrand

600

0.00%

1,200

0.00%

600

0.00%

1,200

0.00%

Renaud Momméja

113,9030.11%

178,822

0.10%

3,959

0.00%

7,918

0.00%

32

0.00%

32

0.00%

32

0.00%

32

0.00%

Anne‑Lise Muhlmeyer
Dominique Senequier

200

0.00%

400

0.00%

200

0.00%

400

0.00%

Alexandre Viros

100

0.00%

100

0.00%

100

0.00%

100

0.00%

Executive Committee (excluding Executive Chairmen and members of the Supervisory Board)
Florian Craen

7,362

0.01%

10,422

0.01%

7,362

0.01%

10,4220.01%

Charlotte David

6,262

0.01%

6,262

0.00%

6,262

0.01%

6,262

0.00%

Pierre‑Alexis Dumas

99,4490.09%

120,796

0.07%

95,326

0.09%

112,550

0.07%

Olivier Fournier

6,362

0.01%

6,517

0.00%

6,362

0.01%

6,517

0.00%

Catherine Fulconis

2,124

0.00%

2,144

0.00%

2,124

0.00%

2,144

0.00%

Wilfried Guerrand

10,1470.01%

16,2920.01%

10,1470.01%

16,2920.01%

Éric du Halgouët

4,762

0.00%

5,802

0.00%

4,762

0.00%

5,802

0.00%

Sharon MacBeath

1,175

0.00%

1,375

0.00%

1,175

0.00%

1,375

0.00%

Guillaume de Seynes

7,617

0.01%

11,932

0.01%

7,902

0.01%

12,2170.01%

Agnès de Villers

2,377

0.00%

2,377

0.00%

2,377

0.00%

2,377

0.00%

(1) Voting rights that can be exercised in the General Meeting. In accordance with Article 12 of the Articles of Association of the Company, the voting right is exercised by the bareowner for all decisions taken by all General Meetings, except for decisions concerning the allocation of net income, for which the voting right is exercised by the usufructuary. The
procedures for publication and allocation of voting rights are detailed in chapter 7 “Information on the Company and its share capital”, § 7.2.1.2.

3802023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCORPORATE GOVERNANCEOTHER INFORMATION FROM THE EXECUTIVE MANAGEMENT REPORT

3.10.2

DECLARATIONS CONCERNING CORPORATE OFFICERS AND THE EXECUTIVE COMMITTEE

3.10.2.1

NATURE OF ANY FAMILY TIES BETWEEN
THE ACTIVE PARTNER, THE MEMBERS
OF THE SUPERVISORY BOARD, THE EXECUTIVECHAIRMEN AND THE MEMBERS
OF THE EXECUTIVE COMMITTEE

Pursuant to Commission Delegated Regulation (EU) 2019/980 of
14 March 2019 (Annex I, point 12.1), information on family ties
existing between the members of the Supervisory Board, theExecutive Chairmen and members of the Executive Committee ispresented below.
Ms Dorothée Altmayer, Mr Axel Dumas, Mr Matthieu Dumas, Mr
Pierre‑Alexis Dumas, Mr Henri‑Louis Bauer, Mr Charles-Éric Bauer, Ms
Julie Guerrand, Mr Blaise Guerrand, Ms Olympia Guerrand, Mr
Renaud Momméja, Mr Guillaume de Seynes and Mr Éric de Seynes
are all direct descendants of Mr Émile‑Maurice Hermès, which gives
them the status of siblings or ﬁrst‑cousins, as the case may be.

a listed company or from participating in the management or
conducting the business of a listed company in the last five years;s no Corporate Officer has been accused or punished in a court oflaw by a statutory or regulatory authority (including designatedprofessional bodies).

3.10.2.3

RESTRICTIONS ON THE DISPOSAL OF SHARESBY CORPORATE OFFICERS

Pursuant to Commission Delegated Regulation (EU) 2019/980 of
14 March 2019 (Annex I, point 12.2), you are advised of therestrictions on the disposal within a certain period of time of HermèsInternational shares by the members of the Supervisory Board, theExecutive Chairmen and the members of the Executive Committee:s the obligation for members of the Supervisory Board to hold 100
shares;To the best of the Company’s knowledge, there are no other familyties between the members of the Supervisory Board, the Executive
Chairmen and members of the Executive Committee.

s the obligation to abstain (blackout periods) for members of theSupervisory Board, Executive Chairmen and members of the
Executive Committee as part of the prevention of market abuse;

3.10.2.2s the priority right of acquisition on Hermès International shares,
granted by the members of the Hermès family group anddescendants of these members for the benefit of the company
H51 (see chapter 7 “Information on the Company and its sharecapital”, § 7.2.5.2).

ABSENCE OF CONVICTION OF CORPORATEOFFICERS AND MEMBERS OF THE EXECUTIVECOMMITTEE

Pursuant to Commission Delegated Regulation (EU) 2019/980 of
14 March 2019 (Annex I, point 12.1), you are informed that,
according to the sworn statements made to the Company by the
Corporate Ofﬁcers and members of the Executive Committee:
s no Corporate Officer has been convicted of fraud in the last five
years;
s no Corporate Officer has been involved in a bankruptcy,
receivership, liquidation or placement of companies under judicial
administration as a member of an administrative, management or
supervisory body or as a Managing Director in the past five years;s no Corporate Officer has been barred by a court from acting as amember of an administrative, management or supervisory body of3s the obligation for Executive Chairmen to hold 1,000 shares;

To the best of the Company’s knowledge, there are no otherrestrictions on the sale of shares by Corporate Ofﬁcers.

3.10.2.4

SERVICE CONTRACTS PROVIDING FOR THE
GRANTING OF BENEFITS

Pursuant to Commission Delegated Regulation (EU) 2019/980 of
14 March 2019 (Annex I, point 12.2), you are advised that no service
contracts bind the members of the Supervisory Board to the Company
or to any of its subsidiaries whatsoever and provide for the granting of
beneﬁts under the terms of such a contract.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

381

4

RISK FACTORS AND MANAGEMENT AFR

4.1

RISK FACTORS

384

4.1.1

4.1.5

Risks related to strategy and operations
Industrial risks
Legal and regulatory risks
Risks related to social, societal and environmental responsibility
Financial risks

386
392
396
397
401

4.2

INSURANCE POLICY AND RISK HEDGING

404

4.3

RISK MANAGEMENT, INTERNAL CONTROLAND INTERNAL AUDIT

405

4.3.1

A demanding control environment
Committed parties responsible for risk management and control
A controlled risk management system
A mature internal control system
An agile internal audit system

405
405
408
409
412

4.1.2
4.1.3
4.1.4

4.3.2
4.3.3
4.3.4
4.3.5

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

383

4

RISK FACTORS AND MANAGEMENTRISK FACTORS

4.1

RISK FACTORSIn accordance with European regulation no. 2017/1129 of 14 June2017 (Prospectus), supplemented by European Delegated Regulation
no. 2019/980 of 14 March 2019, and the ESMA guidelines, the risk
factors presented in this chapter are, as at the date of this universal
registration document, those that the Hermès Group believes could
have a material adverse effect on its activity, results, ﬁnancial
position or prospects. These are the risks speciﬁc to the HermèsGroup identiﬁed in the Group risk mapping, updated in 2023.
Generally, the Group has set up a system enabling it to anticipate andcontrol the risks identiﬁed. It is periodically updated to take into
account regulatory, legislative, economic, societal, geopolitical andcompetitive developments. A detailed description of the managementof these risks is presented in this chapter.

Risk factors are presented in ﬁve main categories according to theirnature, the most material risks being presented ﬁrst. The mapping
below classiﬁes these risk factors according to their potential impact
and probability of occurrence and therefore reﬂects the Group’s
exposure, after taking into account the control measures
implemented. It includes emerging risks and their changes. The
impact of the risks identiﬁed is assessed using a multi‑criteria griddeﬁned at Group level and shared with the subsidiaries. The analysis
criteria include, as an inseparable whole, ﬁnancial, reputational andlegal criteria, as well as criteria relating to social, societal andenvironmental responsibility. This methodology makes it possible toaddress a concept of double materiality by taking into account the
impacts on the Group itself and on its stakeholders.

Likelihood of occurrence
Possible
Very possible

Almost certain

The Audit and Risk Committee was involved in drawing up this matrix.

- Compliance withapplicable laws andregulations in all areas- Changes in major
global climate andbiodiversity issues- Intellectual property
and combating
counterfeiting- Commercial appeal- Availability and properuse of natural resources- Major external crisis- Management of talentand savoir-faire- Changes in, complexity
and interpretation oftax regulations- Fraud- Managementof supplies- Information systems
and cyberattacks- Health & security- Image and reputation- Business disruption- Respect for human rights,
fundamental freedoms
and ethics- Exchange rates- Safety

Not possible- Bank counterparties

LimitedSignificant

Critical

Major

Impact- Strategy & operations

384- Industry- CSR- Regulatory compliance2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL- Finance

Expected change in the medium to long term

RISK FACTORS AND MANAGEMENTRISK FACTORSRISK RANKING BY CATEGORY (FROM MOST TO LEAST SIGNIFICANT)

4.1.1.1 Information systems and cyberattacks
4.1.1.2 Image and reputation- 4.1.1 Risks related to strategy
and operations

4.1.1.3 Commercial appeal
4.1.1.4 Major external crisis
4.1.1.5 Management of talent and savoir‑faire
4.1.2.1 Supply management- 4.1.2 Industrial risks

4.1.2.2 Security
4.1.2.3 Health and safety
4.1.2.4 Business disruption- 4.1.3 Legal and regulatory risks

4.1.3.1 Compliance with applicable laws and regulations in all areas
4.1.3.2 Intellectual property and the ﬁght against counterfeiting
4.1.4.1 Changes in major global climate and biodiversity issues- 4.1.4 Risks related to social, societal andenvironmental responsibility

4.1.4.2 Respect for human rights, fundamental freedoms and ethics
4.1.4.3 Availability and proper use of natural resources
4.1.5.1 Exchange rates- 4.1.5 Financial risks

4

4.1.5.2 Bank counterparties
4.1.5.3 Changes in, complexity and interpretation of tax regulations
4.1.5.4 Fraud

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

385

RISK FACTORS AND MANAGEMENTRISK FACTORS

4.1.1

RISKS RELATED TO STRATEGY AND OPERATIONS

4.1.1.1

INFORMATION SYSTEMS AND CYBERATTACKS -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

Information systems are of paramount importance in the smooth running of theGroup’s day‑to‑day operations. They concern customers, suppliers or employees,
and relate in particular to the processing and storage of their data.

PROBABILITY

4

IMPACT

Personal data protection is a priority for the Group.

Partial or total unavailability of certain
information system elements could
disrupt or paralyse key production or
distribution processes.

A breach of information systems, caused by acyberattack, for example, could result in a data breachleading to the unauthorized disclosure of personal
data or the leakage of conﬁdential information.
s RISK MANAGEMENT

A global information system governance model clearly deﬁnes the roles and responsibilities of the Group’s headquarters and subsidiaries.
Common architecture and urbanisation rules favour a centralised model when technical or regulatory constraints allow. The sovereignfunctions of the information systems remain managed by the headquarters. The Group Cybersecurity Director manages all activities at boththe headquarters and subsidiaries. He leads a set of committees, allowing projects and the evolution of cyber risks to be monitored in orderto report to the Executive Committee as well as to the Audit and Risk Committee through the IT Safety and Group Safety Committees.
A cybersecurity community is led by the Group team, which relies on dedicated experts and local managers. Collaboration between thesedifferent actors is facilitated by the organisation of monthly updates (sharing on current positions and the evolution of threats, monitoring of
the roadmap, reminders of best practices), monthly themed webcasts and the organisation of ad hoc events.
Hermès’ IT spending (investment and operating budget) is reassessed each year to ensure that investments are aligned with the Group’s
strategic challenges. Its objective is to align the technical infrastructures and systems with the growing needs of users, while ensuring good
operational performance. They also aim to keep IT risks under control and to develop information systems, in particular for new digital andcloud uses, whilst being socially and environmentally responsible.
The information systems department adheres to an information technology charter and a set of procedures applicable to all Group
companies. In particular, an information systems security policy (ISSP) is updated annually to adapt to threats. Audits of IT security andcompliance with procedures are carried out periodically in all subsidiaries, in collaboration with the audit and risk management department
and with the help of external service providers. They ensure that the internal control systems remain effective and adapted to the maincurrent and emerging threats and are aligned with the laws and regulations applicable wherever the House operates.
In the ﬁeld of IT risk prevention, IT risk mapping is regularly updated and presented to the Audit and Risk Committee. This exercise issupplemented by the regular assessment of cyber maturity, including the main regions around the world.
A Zero‑Trust approach has been initiated, enabling modernisation of the security of infrastructures, directories, management of the identity
life cycle, access security (employees, partners and privileged accounts), prevention of data leaks, protection of cloud applications and thephysical security of data centres. Special attention was paid to industrial facilities (in particular at the time new structures were acquired) andthe security of connected objects. Improved backup and fault tolerance arrangements for critical systems were also included to ensure
continuity of operation in the event of an incident.

Strategy and operations

386

Industry2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

CSR

Regulatory compliance

FinanceRISK FACTORS AND MANAGEMENTRISK FACTORSThe cybersecurity department has reinforced its capacity to detect and deal with incidents. All computers and servers are equipped with
software to detect anomalies (endpoint detection response – EDR), enable security patches to be installed and conduct investigations.
Security incidents are dealt with by a dedicated team comprising the components of the incident response, SOC (Security Operation Centre)
and CERT (Computer Emergency Response Team). CERT Hermès is a member of InterCERT France, which brings together the mature incident
response units of major French organisations.
Exercises are carried out regularly by the internal teams to continuously test and adjust the response system (red/blue/purple teaminitiatives). A second team dedicated to the qualiﬁcation and treatment of vulnerabilities manages the Group’s attack surface.
New initiatives to raise employee awareness of security issues have taken various forms within the framework of a global programme(conferences, ﬁlms, e‑learning, escape games, dedicated website in eight languages). Each year, Cybersecurity Month gives special emphasisto these topics. Employees are encouraged to use an internal whistleblowing system to report safety incidents of which they are aware so thatthese can be addressed immediately.
Intrusion tests on internal, Wi‑Fi and external networks were carried out, as well as IT disaster simulations, and corresponding action plans
were formalised. The continuity of IT operations is also tested regularly. Crisis simulation exercises are carried out annually and are followed
by feedback and action plans. In addition to the information systems department, they involve various Group departments (internal
communication department, ﬁnancial communication and investor relations department, insurance and prevention department, audit andrisk management department, legal compliance department and the Data Protection Ofﬁcer, etc.) as well as a member of the Executive
Committee.
Furthermore, the Group ensures that it complies with the various standards and regulations applicable to the protection of personal data (inparticular GDPR, the Group's standard in terms of personal data) and payment card data (PCI‑DSS). Compliance with the GDPR standard isensured by a global governance made up of relays (Group and local) and assessed regularly through internal controls and external audits. In
2022, the Group’s personal data protection standard was audited by an external ﬁrm on various topics, in particular related to data
governance and the processing of customer, employee and third‑party data. The information systems department accordingly works withother departments to reduce the risks of damage to information systems and its impacts in the event such risks were to materialise.

Strategy and operations

Industry

CSR

Regulatory compliance

4

Finance2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

387

4

RISK FACTORS AND MANAGEMENTRISK FACTORSIMAGE AND REPUTATION -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The Hermès Group’s reputation is based on the quality of its products and services
offered to customers, the savoir‑faire of its craftspeople and its uniquecommunication.

PROBABILITY

4.1.1.2

An unfavourable media campaign could
negatively affect the image of theGroup.
IMPACT

In a globalised world and surrounded by the growing inﬂuence of social networks,
unfavourable media coverage or individual behaviour contrary to the House’s valuesof ethics and integrity could affect the Group’s image and reputation.
s RISK MANAGEMENT

Maison Hermès, through its production and distribution entities, has built a robust internal control system for all key processes to protect its
tangible and intangible assets, including its image and reputation.
The Group has rolled out an ethics charter, a code of business conduct and an anti‑corruption code of conduct to all employees.
These three documents are sent to all new employees as soon as they join the House and are also made available to them on the HermèSphère
intranet in the “Our Ethics” section and on the external website https://ﬁnance.hermes.com/en/ethics‑human‑rights‑and‑diversities/.
In addition, a continuous training system on the prevention and on the ﬁght against corruption is rolled out to operational staff.
In order to act in accordance with the House’s ethics principles and values, the Group also ensures the proper conduct of the various third
parties with which it has a business relationship (suppliers, partners). Systems have been set up for managing ethics and CSR risks and aredetailed in chapter 2 “Corporate social responsibility and non‑ﬁnancial performance”. Through the structure of its family shareholding, theHouse remains independent in the way it implements its strategy and conducts its activities, which are carried out in line with its values.
The Group has also put in place a permanent monitoring system on the web under the responsibility of the communication department.
Furthermore, Hermès has set up a crisis management system with the aim of managing and limiting the impacts of undesirable events on theGroup. This system includes an annual simulation exercise and a crisis management manual.

Strategy and operations

388

Industry2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

CSR

Regulatory compliance

FinanceRISK FACTORS AND MANAGEMENTRISK FACTORSCOMMERCIAL APPEAL -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The commercial attractiveness and desirability of the products are based on theGroup’s unique model. The latter is characterised by its radical style, ancestralsavoir‑faire mainly “Made in France”, high quality products and services, its
openness to local cultures and its unique communication.

PROBABILITY

4.1.1.3

The loss of commercial appeal could
lead to a gradual loss of interest from
customers.
IMPACT

In a constantly changing world, any failure of the Group to take into accountcustomer expectations, CSR challenges or quality issues could negatively impact
the House’s appeal.
The attractiveness of products could also be affected by the parallel market andnetworks of resellers undermining the customer experience.
s RISK MANAGEMENT

The creative offering is the responsibility of the artistic department and its many talented employees, who ensure the creative synergies of
the collections while preserving the House’s identity and style. Their mission is to create, innovate, put forward new concepts and collections
whose forms, materials and colours will astound customers and be enhanced by craftspeople. The freedom of creation, reinforced by the
freedom of the stores to purchase, is exercised while preserving the harmony and coherence of the collections, expressed through an annual
theme.

4

Absolute product quality has always been a priority. Tests carried out on all products before they are sold ensures their compliance anddurability. The Group has also implemented a support system for its craftspeople and suppliers with a view to developing their savoir‑faire.
The Hermès Group has introduced a number of tools, both in‑store and online, to enrich the customer experience by raising the level ofservice to match the quality of its products. The stores are also regularly renovated, the omnichannel offer is being expanded and customer
services, such as after‑sales service, are developing. Lastly, the Group continues to structure itself by allocating human and IT resources toﬁght against corruption in stores, while paying particular attention to the prevention of all forms of discrimination.

Strategy and operations

Industry

CSR

Regulatory compliance

Finance2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

389

4

RISK FACTORS AND MANAGEMENTRISK FACTORSMAJOR EXTERNAL CRISES -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The Group is exposed to economic, political, social and health and climate
developments in the many countries in which it operates.

PROBABILITY

4.1.1.4

IMPACT

Geopolitical, economic or social tensions aswell as a pandemic situation or natural
disaster could cause sales to decline. The
consequences would be even more
unfavourable in areas where the Group has asigniﬁcant presence, particularly in Asia.

The breakdown of the Group’s revenue by geographical area
is presented in chapter 1 “Presentation of the Group and its
results”, § 1.7.
s RISK MANAGEMENT

Hermès holds a unique position in the luxury market. Its broad portfolio of products reduces the risk of dependence on any particular range,
while its distribution is well balanced geographically.
The Group operates 294 exclusive stores under the Hermès banner, including 225 branches that generate over 91% of revenue. In addition,
the Group is continuing to develop its online sales activity with the successive deployment of e‑commerce platforms in its distribution
subsidiaries.
Some Hermès products are also distributed via a network of multi‑brand points of sale carefully selected on the basis of qualitative and/or
quantitative criteria. This distribution method concerns in particular perfumes, watches and certain products from the Home universe. Lastly,
the Group also owns other brands that distribute their products directly or through their own selective network. Details of these brands aredescribed in § 1.4.1.
In addition, there is little exposure of sales to seasonality.
The policy of opening new points of sale is prudent and aims to spread the risks over several geographical areas. In this respect, theacceleration of the development of the Americas region aims in particular to reduce the weight of Asia in the Group’s sales.
In addition, a crisis management system is in place. This was implemented in particular in 2022 during the suspension of activities in Russia(§ 4.3.4 on crisis management).

390

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALRISK FACTORS AND MANAGEMENTRISK FACTORSMANAGEMENT OF TALENT AND SAVOIR‑FAIRE -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The savoir‑faire of craftspeople, and more broadly the development of the potentialof employees, is one of Hermès’ key assets. They are based on preserving,enriching and passing on this often exclusive savoir‑faire in a context of growth forour métiers and our workforce.

PROBABILITY

4.1.1.5

IMPACT

A loss of savoir‑faire or the disappearanceof exclusive craftsmanship métiers would
have an impact on the Group’s operations
and reputation, thus negatively affecting
its ﬁnancial results.

s RISK MANAGEMENTThe Group human resources department is in charge of identifying and developing talent at all levels of the organisation. It uses speciﬁc
individualised pathways and implements a policy of integration and training for new employees and employees throughout their careers.
Training, along with internal mobility, is one of the major levers to support employees throughout their careers in the House.
The continuous improvement of craftspeople’s skills and savoir‑faire is achieved through training and professional qualiﬁcation programmes
carried out in Hermès internal training schools (Écoles Hermès des Savoir‑Faire, des Tanneurs or du Textile, among others), as well as
through collaborations with external training structures. The promotion of crafts métiers and craftsmanship among younger generations andpeople undertaking retraining is carried out with the support of partners: schools, training and apprenticeship centres, in order to ensure theknowledge and sustainability of savoir‑faire. In addition, the École des Artisans de la Vente, a structure dedicated to the continuous training ofsales associates, was inaugurated in 2022.

4

The responsible employer policy implemented in the Group consists of establishing conditions that provide equal opportunity in terms ofrecruitment and employment and ﬁghting all forms of discrimination.
True to its family tradition and wishing to involve all employees in its growth, Hermès has set up various measures for sharing economic
beneﬁts: incentive schemes, proﬁt‑sharing, employee shareholding plans, etc.
All initiatives undertaken by the Group relating to the management of talent and the preservation of savoir‑faire are presented in chapter 2“Corporate social responsibility and non‑ﬁnancial performance”.

Strategy and operations

Industry

CSR

Regulatory compliance

Finance2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

391

RISK FACTORS AND MANAGEMENTRISK FACTORS

4.1.2

INDUSTRIAL RISKS

4.1.2.1

SUPPLY MANAGEMENT -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

Most of Hermès’ production is integrated, in line with its strategy of preserving
unique savoir‑faire and securing supplies.

PROBABILITY

4

However, the ability of the Hermès Group to grow is also linked to the developmentof its suppliers, whose exceptional savoir‑faire and future successes will contributeto those of the Group.

IMPACT

A supply shortage, in terms of volume or
quality, of certain exceptional materials
for the Group could lead to disruptionsin production and eventually a loss ofbusiness.

s RISK MANAGEMENTThe Hermès Group makes most of its products in‑house, primarily in France. Hermès has long been committed to a responsible partnershipapproach with its suppliers. It enters into special partnerships with its suppliers and producers, based on ethics and trust, by fostering
long‑term relationships with them. This stable relationship allows for close collaboration on many subjects over time.
The Group’s approach is based on in‑depth knowledge of all its supply chains. A total of 90 supply chains have been analysed since thebeginning of 2020, resulting in the creation of a supply chain brief for each of them, which formalises the Group’s short and medium‑term
ambitions to ensure ethical and responsible supply chains.
The Group Director of Direct Purchasing handles supplier risk transversally. His role is in particular to manage the community of buyers bysupporting them on a daily basis in managing supplier risk, as described in chapter 2 “Corporate social responsibility and non‑ﬁnancial
performance”, § 2.6.
Hermès has developed long‑term relationships with its partners and suppliers, thereby better protecting its supplies and critical savoir‑faire.
Drawing up supplier risk mapping enables action plans to be determined, assessed and prepared in response to the risks identiﬁed, wherevernecessary, in particular in relation to the duty of care (human rights, environment, health and security). Signiﬁcant work has also been carriedout to optimise and secure the supply chain.
Committed to providing long‑term support for all its partners and maintaining balanced relationships characterised by goodwill and highstandards, Hermès ensures that its partners respect its social, environmental and ethics ambitions. Moreover, a CSR brief was formalised in
January 2021 to set out the House’s expectations on this subject. In particular, it includes targets for reducing the Group’s carbon footprint,
with which suppliers are invited to collaborate. Supplier audits, conducted using internal resources as well as independent external ﬁrms,
serve notably to check that their operations meet the Group’s expectations.
The Group is strengthening supply protection, implementing a policy of diversiﬁcation and limitation of supplier dependence, and building up
security inventories. In line with the strong growth in volumes and, since 2022, the context of global market tensions on supplies, theseactions were strengthened in particular. Notably, capacity plans were drawn up with suppliers in order to anticipate production needs.
One of the challenges of the “know your supplier” system is ensuring that the latter have identiﬁed the risk areas related to their activity that
could lead to a total or partial stoppage of their production (critical raw materials, equipment, processes, sources of energy or key people,etc.). The formalisation of backup solutions and their regular testing are recommended. Where appropriate, equity investments may help tosecure these relationships. In a constant spirit of partnership, the Group continued to closely monitor its suppliers in order to best support
them in the event of any difﬁculties arising from the health crisis.

Strategy and operations

392

Industry2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

CSR

Regulatory compliance

FinanceRISK FACTORS AND MANAGEMENTRISK FACTORSSAFETY -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The safety of property means all measures and means for combating threats andmalicious acts. The main threats identiﬁed are: physical damage to property, people
and infrastructure, and damage to savoir‑faire and intangible property.

PROBABILITY

4.1.2.2

IMPACT

Such breaches could cause damage toproperty and people working at theGroup’s sites (production, distribution,
logistics or ofﬁces) or at events on
external sites.

Moreover, they could expose craftspeople and sales
associates to risks, causing moral and psychologicaldamage to all Group employees.
In addition to direct ﬁnancial losses, they could harm
the Group’s image.
s RISK MANAGEMENT

The following actions have been taken:s safety governance is set out in a safety policy covering all the Group’s activities and sites;s since 2018, procedures for transportation safety have been regularly updated based on the analysis of incidents and on the decisions
taken by the Transportation Safety Committee;

4

s in the case of a serious event, a crisis management process is implemented. It provides for the activation of the crisis unit and dedicatedresources. Crisis management exercises are regularly conducted.

Hermès is organised to take account of these risks on a daily basis: a central monitoring station, permanently operational, is connected to the
91 production and distribution sites in France and Switzerland. The Group took the decision to employ 72 agents in its internal safety division,to which external service providers are added. A service offering has also been developed to support the métiers and divisions that do nothave an internal safety department. This concerns, for example, the development of safety systems for real estate projects and events.
In addition, experts within the Group safety department update a body of procedures and technical documentation. They regularly travel tothe various sites and events in France and abroad to ensure compliance with Group safety procedures. A questionnaire on safety is also
completed during site visits or audits. Furthermore, the Group safety department has an advisory role to the métiers and subsidiaries.
In March 2021, a computerised safety tool was rolled out at certain sites in the Paris region (production units, tertiary and logistics sites andParis stores), to standardise the operational procedures of the Group safety department teams and manage their actions in real time. It alsooffers crisis management support capabilities. In 2023, its rollout began to all stores in France. At the same time, the tool has been
conﬁgured so that it can contact any employee if necessary. Trials are underway for rollout to other production sites. It will gradually be rolled
out internationally over the coming years, depending on the level of risk identiﬁed at each site.
This system is also backed by partnerships set up through agreements signed with the police force and the Ministry for Europe and Foreign
Affairs.
To contribute to the safety of employees working elsewhere, an ad hoc platform is gradually being rolled out to all subsidiaries. This tool
makes it possible to inform employees, before and during their trip, of possible events and, in the event of an emergency, to put them incontact with an operational centre and the Group safety department. Training and information sessions speciﬁc to certain destinations werealso offered.
Safety incidents are reported in a speciﬁc database and are regularly reported to the Group Safety Committee and the Audit and Risk
Committee. They are analysed in detail, contributing to the continuous improvement of the system.
A monitoring unit was created in November 2022. It aims to provide the crisis unit with advance warning scenarios and, on a daily basis, toprovide the Group safety department with geopolitical, economic and social analyses.
Since the end of 2022, e‑learning modules on safety and security have been offered to employees.

Strategy and operations

Industry

CSR

Regulatory compliance

Finance2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

393

4

RISK FACTORS AND MANAGEMENTRISK FACTORSHEALTH AND SAFETY -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The Group ensures respect for human rights, fundamental freedoms, health andsecurity of people, whether they are customers, employees, suppliers or
subcontractors.

PROBABILITY

4.1.2.3

The Hermès Group is committed to respecting local regulations in the countries inwhich it operates. The quality of the products sold and their compliance with thestrictest regulations on personal security, are priorities for the Group.

Damage to the health and security of
employees, customers or third‑parties
working at Hermès sites, and nonIMPACT
compliance with the quality and security
standards of the products sold, could
give rise to litigation and undermine theGroup’s reputation.

s RISK MANAGEMENTThe Group’s policy is to integrate health, security and well‑being issues in its operational strategy as a priority, in particular for its
manufacturing activities. In accordance with law no. 2017‑399 of 27 March 2017 on the duty of care of parent companies and contractors,
the Hermès Group has drawn up a vigilance plan. It aims to identify the risks and prevent violations of human rights and fundamental
freedoms, the health and security of people and the environment, resulting from its activities, as well as those of its subcontractors or
suppliers (see chapter 2 “Corporate social responsibility and non‑ﬁnancial performance”, § 2.8).
Moreover, the Group's industrial department leads an environment, health and security (EHS) network comprising around 20 EHS managers
from the House’s different métiers. In addition to the traditional coordination of the network with two face‑to‑face meetings per year, three
webinars were organised in 2023 to share results, learn from best practices from each of the business lines and deﬁne objectives.
The main initiatives of the House’s various métiers are described in chapter 2. In most cases, they go beyond simple regulatory compliance toachieve true well‑being at work. Each métier has its speciﬁc needs as regards working conditions, so it is logical for each one to develop its
own arrangements.
Employee workstation risk assessments are carried out by EHS managers for each of the Group’s sites (stores and production sites). They are
updated annually.
The House of Hermès is committed to a “Zero Accident” trajectory. In 2023, a Group Health and Safety policy formalised the strategic
framework aimed at preventing risks, preserving the health of employees, partners and customers, advancing the Group’s safety culture andmanaging associated performance.
Hermès products are regularly tested throughout the supply and production chains. Tests on ﬁnished products are also carried out by
independent laboratories in Europe, Asia and the United States, to verify their compliance with the most stringent regulations in force, as wellas their security. Monitoring is carried out to analyse constantly changing regulations, with the results being formalised in a restricted
substances list (RSL) shared with all métiers and transcribed in the multi‑material product speciﬁcations. The Group’s industrial department
coordinates a network of regulatory correspondents from the métiers and distribution subsidiaries, which meets several times a year to
discuss regulatory changes in the various countries where the Group operates. The mitigation and prevention mechanisms for these risks are
addressed speciﬁcally in chapter 2.

Strategy and operations

394

Industry2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

CSR

Regulatory compliance

FinanceRISK FACTORS AND MANAGEMENTRISK FACTORSBUSINESS DISRUPTION -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

Hermès relies on a highly integrated French production method. The vast majority of
our objects (74%) are made in France in exclusive in‑house workshops (over 55%).

PROBABILITY

4.1.2.4

The Group’s ability to deal with a major industrial accident at one of its production,
distribution or logistics sites (ﬁre, ﬂood), a natural disaster (tsunami, earthquake) or
a major health crisis, is a key issue for Hermès.

IMPACT

The occurrence of such events on the
production chain would impact the
conduct of activities and would haveconsequencesontheGroup’scommercial and ﬁnancial performance.

s RISK MANAGEMENT

The management of industrial risks is carried out by the Group’s industrial department. It is based on EHS networks in both the Group andinternally within the métiers, as described in chapter 2 “Corporate social responsibility and non‑ﬁnancial performance”.
The production sites are spread across the country and comply with French regulations, some of the most demanding in the world, thus
reducing the risk of a complete shutdown. Regulatory changes are monitored in the countries where the sites are located.
Hermès implements initiatives designed to protect its manufacturing assets, employees and the environment on all of the House’s production
sites. The Group’s industrial department relies on the métiers’ industrial departments and Site Managers to carry out internal diagnostics.
Audits conducted by external specialists enable operational improvement plans to be drawn up. The recommendations resulting from theseanalyses in the areas of organisation, procedures, training or investment are subject to careful follow‑up. Safety‑related expenditures andinvestments are considered to be a priority when making budget choices.

4

Two studies were carried out in collaboration with the Group’s insurer in order to quantify the ﬁnancial exposures related to production andstorage sites as well as strategic suppliers for the Leather and Silk métiers. These analyses identiﬁed the sites, subcontractors and criticalsuppliers on which the Group should target its actions in order to ensure activity continuity. The Leather study was updated in 2020 and the
Silk update was ﬁnalised in 2022. In 2023, a study was also conducted on the supply chain to identify the physical and transition risks
related to climate change, thus enabling the construction of resilience plans.
During its audits, the audit and risk management department ensures that activity continuity plans are formalised and tested on the Group’s
various sites and, where appropriate, issues recommendations. The process of coordinating plans for the entire Group continued in 2023.
In addition, the Group safety department, in collaboration with internal experts, coordinates regular site visits. Dedicated action plans are
implemented and monitored operationally by the sites concerned.

Strategy and operations

Industry

CSR

Regulatory compliance

Finance2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

395

RISK FACTORS AND MANAGEMENTRISK FACTORS

4.1.3

LEGAL AND REGULATORY RISKS

4.1.3.1

COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS IN ALL AREAS -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The Hermès Group is committed to complying with the laws and regulations to which
it is subject in France and internationally. These laws and regulations are
increasingly numerous and complex.

PROBABILITY

4

IMPACT

Regulatory non‑compliance could havea negative impact on the Group’s
operations, tarnish its reputation andgive rise to ﬁnancial penalties.

s RISK MANAGEMENTThe Group keeps abreast of developments in regulations and case law as well as technology in all relevant areas to ensure that it maintaincompliance both in France and internationally. This monitoring is carried out in‑house and by external ﬁrms:
s internally, given the increasing complexity of each legal matter, the legal department is organised into specialised divisions, withdepartments or divisions specialising in one area of law (corporate and securities law, real estate law, mergers and acquisitions law,anti‑counterfeiting). Business divisions with generalist teams in charge of the various métiers and regional divisions with legal teams in
China, Japan, Singapore, South Korea and the United States, complete this organisation. The compliance department, which includes theexperts in personal data protection law also reports to it. Employment and tax matters are respectively handled by the Group’s humanresources and finance departments, which work in conjunction with the legal department. The legal department also works closely with theGroup’s industrial department to ensure the regulatory compliance of Hermès products (safety, marking and physical properties) in all of
the Group’s areas of activity;s externally, in each of the regions where the Group develops its activity, Hermès is advised by specialised local law firms. The Group
continues to be involved in ongoing litigation, but there are no pending settlements that are expected to have an impact on its activity or on
its financial results. The Company is not aware of any other pending or potential governmental, legal or arbitration proceedings that may
have, or that over the last 12 months have had, a significant impact on the Group’s financial position or profitability.

Strategy and operations

396

Industry2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

CSR

Regulatory compliance

FinanceRISK FACTORS AND MANAGEMENTRISK FACTORSINTELLECTUAL PROPERTY AND COMBATING COUNTERFEITING -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The Group is very committed to the protection and defence of its intellectual
property rights. It is very active in the ﬁght against counterfeiting in both the realand virtual worlds.

PROBABILITY

4.1.3.2

IMPACT

Infringements of the Group’s intellectual
property rights could have a negative
impact on its revenue and damage its
brand image.

s RISK MANAGEMENTThe Group has a particularly comprehensive portfolio of brands, models, patents and domain names, which is regularly expanding.
Within each métier legal division, teams are speciﬁcally dedicated to these issues and ensure that the Group’s creations are protected
effectively.
Finally, the Group ensures that its rights are respected and pursues an active anti‑counterfeiting policy involving both preventive measures(guidance and training) and coercive measures (administrative, civil and criminal proceedings) around the world as well as on the Internet.
The anti‑counterfeiting department undertakes these actions with the support of external consultants (investigators, law enforcement agents,
industrial property consultants, lawyers) and in collaboration with the competent local authorities. They are carried out in both traditional
markets and on the Internet (metaverse, online sales platforms, social networks, retail websites, instant messaging, etc.).
These actions make it possible to protect the House's rights, seize and destroy (in compliance with CSR rules) several hundred thousand
potentially dangerous counterfeit products each year, to trace the source of the production chain and dismantle what are usually criminal
networks. Where applicable, the payment of damages compensates the prejudice suffered and such amounts are immediately reinvested in
new actions in the ﬁght against counterfeiting.

4.1.4

4

RISKS RELATED TO SOCIAL, SOCIETAL AND ENVIRONMENTAL RESPONSIBILITY

The Group’s social, societal and environmental responsibility issues are described in detail in chapter 2 “Corporate social responsibility andnon‑ﬁnancial performance”, and are articulated around the Hermès Group’s six strategic sustainable development pillars:s teams;s environment;s savoir‑faire;s suppliers and partners;s raw materials;s stakeholders.

Based on the analysis of its priority CSR issues updated in 2023, Hermès continued to roll out its strategy and the associated actions. This
materiality analysis was conducted by interviewing a panel made up of internal stakeholders who are experts in the subject (in France andabroad), and external stakeholders identiﬁed for their knowledge of the sector, the House and its functioning. Details of the method followed andthe materiality matrix thus constructed are presented in chapter 2. This study conﬁrmed and detailed the analysis conducted more widely atGroup level in 2019 on three main themes:s risks related to changes in major global issues regarding climate and biodiversity;s risks related to availability and judicious use of natural resources (water, energy, raw materials, waste management and recycling);s risks related to human rights and fundamental freedoms, in particular, as regards the ethics aspect and the well‑being of our employees.

More details by type of risk, and the mitigation and prevention mechanisms for these risks are addressed speciﬁcally in chapter 2. CSR topics
are also part of the impact assessment criteria for each of the risk factors.

Strategy and operations

Industry

CSR

Regulatory compliance

Finance2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

397

4

RISK FACTORS AND MANAGEMENTRISK FACTORSCHANGES IN MAJOR GLOBAL CLIMATE AND BIODIVERSITY ISSUES -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

Climate change causes disruption (heat, rising water levels, extreme events) and
impacts on biodiversity and ecosystems.

PROBABILITY

4.1.4.1

It also involves operational, regulatory and political transition issues (taxation,
restriction of operations).

IMPACT

Rapid changes could impact supply
chains, manufacturing operations,logistics or distribution, as well as
customer behaviour.

The loss of biodiversity and the degradation of ecosystems threaten thesustainability of the natural resources from which the House’s materials are
sourced, weaken the planet and disrupt the living conditions of populations.
s RISK MANAGEMENT

To anticipate risks and ensure the resilience of its business model, Hermès has implemented a climate strategy described in chapter 2“Corporate social responsibility and non‑ﬁnancial performance”, § 2.5. Climate issues are managed by the Executive Committee, which has
deﬁned the Group’s main objectives. A Group Decarbonisation Committee ensures the consistency of the various actions according to theactivities concerned (purchasing, production, transportation, real estate). All the entities concerned have included a decarbonisation target intheir CSR roadmap.
The analyses carried out by the Group cover both physical risks and transition risks (see chapter 2 “Corporate social responsibility andnon‑ﬁnancial performance”, § 2.5.7.1).
With a strategy aligned with the Paris Agreements and validated by the SBTi (Science Based Targets initiative), Hermès is committed toreducing its scopes 1, 2 and 3 emissions, in a trajectory aimed at limiting global warming to 1.5 degrees Celsius. At the same time,
adaptation measures are taken into account by activity and by country.
Hermès has set up a decarbonisation programme for its own activities (scopes 1 and 2) and is committed to reducing scope 3 emissions. In
particular, actions are carried out on major sources of emissions such as purchases, transportation, real estate and employee travel, as wellas with its suppliers.
The Group publishes its greenhouse gas emissions calculations annually, which are audited by a third party.
Since 2018, the Group has implemented a formal biodiversity strategy which, through better understanding of the relationships between
nature and its activities, enables Hermès to control its dependence on them (chapter 2 “Corporate social responsibility and non‑ﬁnancial
performance”, § 2.4.3). This strategy beneﬁts from the eyes of stakeholders thanks to the mechanism set up by the Act4Nature International
initiative.
Biodiversity risks mainly concern Hermès’ supply chains for natural raw materials and, to a lesser extent, its production sites.
Since 2020, Hermès has methodologically mapped 90 sectors in order to identify risks, including on the environment (water, deforestation,
biodiversity, carbon). The great diversity of types (more than 35 different leathers) and geographical origin of Hermès' natural materials
makes it possible to reduce its exposure to the occasional or chronic deterioration of certain ecosystems.
The rollout of the biodiversity strategy is overseen by the Executive Committee and the Sustainable Development Board. It monitors fourareas:
s biodiversity training for all employees by 2025;s collaboration with recognised external stakeholders via partnerships (WWF France) and sectoral (ICFA, SAOBC) or cross‑functional (Science
Based Targets Network Corporation Engagement Program, Lab Capital Natural, Club B4B+) initiatives;s the measurement of the Group’s biodiversity footprint via the Global Biodiversity Score and SBTN targets;s sector analyses and the activation of action plans commensurate with the issues.

These action plans give rise to matrix monitoring at least once a year, horizontally by the entities or working groups in charge of the issues inthe House, and vertically by the Sustainable Development Board and the central functions.

Strategy and operations

398

Industry2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

CSR

Regulatory compliance

FinanceRISK FACTORS AND MANAGEMENTRISK FACTORSRESPECT FOR HUMAN RIGHTS, FUNDAMENTAL FREEDOMS AND ETHICS -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The risks of infringement of human rights, fundamental freedoms, ethics values andthe health and safety of people, mainly concern the Group's external activities. Over62% of the workforce is in France and is therefore subject to strict regulations. The
multiple nature of the métiers and supply chains, combined with the desire to use
exceptional raw materials, means that the Group works in partnership with
suppliers from all over the world. These partnerships require constant vigilance toensure respect of these rights and ethics throughout the value chain.

PROBABILITY

4.1.4.2

IMPACTA
violationofhumanrights,fundamental freedoms, health andsafety or a breach of the Group’s ethics
rules could damage its reputation andimage.

s RISK MANAGEMENTThe Group promotes a demanding ethics culture and does not tolerate any breaches of probity. The approach is structured around a speciﬁcgovernance, supported at the highest level of the organisation. Documents formalising commitments and tools for identifying, assessing,raising awareness, preventing and detecting these risks complete the control systems (see chapter 2 “Corporate social responsibility andnon‑ﬁnancial performance”, § 2.8).
1) The Group has written its ethics values and its commitment to respect human rights and fundamental freedoms into the following
documents:• an ethics charter that defines the Hermès Group’s fundamental principles;4• a code of business conduct that gives them a practical framework in terms of ethics;• an anti‑corruption code of conduct that sets out the rules to be followed in terms of integrity and probity;• commitment handbooks, signed by suppliers and commercial partners, that explicitly address these subjects.
These documents, which are regularly updated, are in line with fundamental principles such as the Universal Declaration of Human Rights,
ILO rules, the OECD guidelines and the United Nations Global Compact as regards sustainable development.
2) In accordance with law no. 2017‑399 of 27 March 2017 on the duty of care of parent companies and contractors, the Hermès Group has
drawn up a vigilance plan. It aims to identify the risks and prevent violations of human rights and fundamental freedoms, the health andsafety of people and the environment, resulting from its activities, as well as those of its subcontractors or suppliers. Systems for
identifying, mitigating and preventing these risks have been put in place for employees, suppliers and subcontractors.
3) Risk analyses and procedures for the regular assessment of the situation of suppliers and subcontractors as well as audits make itpossible to verify in situ the reality of the commitments made by suppliers. These relate to human rights and fundamental freedoms, healthand safety and compliance with environmental regulations (see chapter 2 “Corporate social responsibility and non‑financial performance”,§ 2.6.1).
4) A single whistleblowing system (available internally and externally) enables any breaches or situations contrary to ethics, social andenvironmental principles to be reported (see chapter 2 “Corporate social responsibility and non‑financial performance”, § 2.8.1.3.2).

The content of these action plans, and the vigilance plan in particular, is detailed in chapter 2.

Strategy and operations

Industry

CSR

Regulatory compliance

Finance2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

399

4

RISK FACTORS AND MANAGEMENTRISK FACTORSAVAILABILITY AND PROPER USE OF NATURAL RESOURCES -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The Group seeks to secure quality supplies of natural and renewable materials,
obtained while fully respecting biodiversity.

PROBABILITY

4.1.4.3

The risk relates to access and availability of materials, as well as the conditions
under which they are obtained: social and environmental impact and their societal
acceptability (animal welfare).

IMPACT

Decrease in the quality and volumes of
exceptional natural raw materials,
increase in costs. Loss of somecustomers who choose not to purchaseleather.

s RISK MANAGEMENTThe Group works in each of its métiers, under the coordination and control of the direct purchasing department, to gain a better
understanding of the supply chains and develop operational practices in order to jointly build the resilience of these channels. This entire
system is described in chapter 2 “Corporate social responsibility and non‑ﬁnancial performance”, § 2.4.2. The approach undertaken aims to:1) Control the entire value chain with operational traceability and long‑term partnerships with suppliers, partners and NGOs;
2) Contribute to the development of the most demanding standards for responsible and sustainable management of supply chains:• environmental footprint: biodiversity, water, energy, carbon,• social: working conditions, ethics, corruption,• societal: link with communities.
Audits supplement this system and are carried out regularly with specialised service providers, or for certain sectors with the WWF, in order
to best identify risks;
3) Support regenerative agriculture that is more respectful of nature;4) Set the highest standards in terms of animal welfare and ethics in the relationship with living organisms: a dedicated committee has beenin place since 2019 and a policy was formalised in 2021. An e‑learning module on animal welfare was made available to all employees inMarch 2022 to raise their awareness of the issues and share the Group’s strategy and objectives;
5) Creating circularity: the industrial transition & quality department, created in 2022, provides cross‑functional support for the Women’s andMen’s Ready‑to‑wear, Shoes, Fashion Accessories, Silk and Textile, Home and Jewellery métiers on eco‑design and the circular economy.
This approach is also underway in the Leather Goods, Watches and Perfume and Beauty métiers.

With a view to continuous improvement, these processes are reviewed on a regular basis and action plans are implemented.
The content of these action plans is detailed in chapter 2 “Corporate social responsibility and non‑ﬁnancial performance”.

Strategy and operations

400

Industry2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

CSR

Regulatory compliance

FinanceRISK FACTORS AND MANAGEMENTRISK FACTORS

4.1.5

FINANCIAL RISKSThe Group has put in place an organisational structure which allows ﬁnancial risks related to its business to be managed centrally. As the Group
has a positive cash position, it is not exposed to liquidity risk and applies a conservative policy in managing counterparty risks.

EXCHANGE RATES -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The Group is naturally exposed to foreign exchange risk because the bulk of its
production is located in the eurozone, but the majority of its sales revenue isreceived in currencies other than the euro (American dollars, Japanese yen andother Asian currencies, etc.).

PROBABILITY

4.1.5.1

Financial losses.

IMPACTAs at 31 December 2023, 79% of the Group’s sales were made in a currency otherthan the euro.
s RISK MANAGEMENT

This exposure is hedged in order to minimise and anticipate the impact of currency ﬂuctuations on the Group’s proﬁts.
The Group’s foreign exchange risk exposure management policy is based on the following principles:s distribution subsidiaries are invoiced in their currency by production subsidiaries. The latter apply an annual exchange rate to the scales
established in euros. So, the distribution subsidiaries concentrate most of the foreign exchange risk;4s the Group’s foreign exchange risk is systematically hedged by Hermès International on an annual basis. This basis is calculated using
future internal cash flows from operations between Group companies;s no speculative transactions in the economic meaning of the term are authorised;s these hedges are provided through firm foreign exchange transactions and/or optional transactions eligible for hedge accounting;s other non‑operating transactions are hedged against foreign exchange risk as soon as their commitment is firm and final. They include
financial risks arising from intragroup loans and dividends in foreign currencies.

The Executive Committee approved these management rules, which were then endorsed by the Supervisory Board.
The Middle & Back‑Ofﬁce department ensures administrative management and operational control, notably via the use of integrated cash
ﬂow software. In addition, Hermès International’s audit and risk management department ascertains compliance with management
procedures and the control of risks.
Group Finance Management validates management decisions within these rules.
The Group’s foreign exchange risk is hedged annually by Hermès International in accordance with the policy described above. It is based onhighly probable future cash ﬂows derived from budget forecasts. In practical terms, as at 31 December, the hedging of internal transactions incurrencies for the following year is close to 100%.
As such, the Group uses purchases and sales of put and call options as well as currency swaps and forward currency agreements.
Quantitative information on foreign exchange risk impacts is provided in chapter 5 "Consolidated ﬁnancial statements”, Note 10.2 to theconsolidated ﬁnancial statements.
The treasury department constantly monitors changes in legal regulations with regard to derivative transactions to ensure that the Groupremains compliant. Furthermore, the ﬁnance department adjusts its procedures and tools on an ongoing basis to accommodate changes in
its environment. Thanks to the exchange rate hedging policy, the impacts are pre‑empted. The price increases determined by region offset allor part of any losses.

Strategy and operations

Industry

CSR

Regulatory compliance

Finance2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

401

4

RISK FACTORS AND MANAGEMENTRISK FACTORSBANK COUNTERPARTIES -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

As the Group has a positive cash position and because of its other banking
transactions (exchange rate hedging), the Group is exposed to counterparty riskthat is mainly banking‑related and is appropriately monitored.

PROBABILITY

4.1.5.2

Financial losses.

IMPACTs RISK MANAGEMENTThe Group only deals with leading banks and ﬁnancial institutions that have signed FBF and ISDA agreements relating to transactions on
forward ﬁnancial instruments. In addition, Hermès International’s treasury department continuously monitors counterparty risks on ﬁnancialtransactions. Finally, the Group breaks down investment transactions, foreign exchange risk hedging transactions and deposits transactionsin the selected banks within deﬁned limits of amount and maturity.
Moreover, the impact of the credit risk as recommended by IFRS 13 in the fair value of derivatives is close to zero for the Group, given that allof the derivatives have a maturity of less than 12 months.
Where applicable, the Group may be required to carry out repurchase agreements in order to beneﬁt from the guarantee represented by the
securities sold under repurchase agreements.
The Group follows a cautious investment policy, which aims to avoid any risk of capital loss and prioritise liquidity, thus enabling independentand responsive strategic developments.
Available cash is mainly invested in term deposits and in deposit certiﬁcates issued by top‑rated banks, as well as in money‑market mutual
funds offered by leading ﬁnancial institutions, with low sensitivity and short terms.
Quantitative information on interest rate risk impacts is provided in chapter 5 "Consolidated ﬁnancial statements”, Note 10.3 to theconsolidated ﬁnancial statements.
The treasury department constantly monitors changes in legal regulations with regard to investment transactions to ensure that the Groupremains compliant. Furthermore, the ﬁnance department adjusts its procedures and tools on an ongoing basis to adapt to changes in its
environment.

CHANGES IN, COMPLEXITY AND INTERPRETATION OF TAX REGULATIONS -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The Group is exposed to ﬁnancial risks related to changes in tax regulations or theirinterpretation in the countries where it operates.

PROBABILITY

4.1.5.3

IMPACT

Any change in tax regulations involving
and increasing taxes and duties, mainly
income taxes, custom duties, withholding
taxes, particularly concerning goods
and ﬁnancial ﬂows (interest, dividends),
could penalise the Group’s results.

s RISK MANAGEMENTThe Group provides regulatory oversight and deﬁnes its tax policy by relying on a team of tax experts, assisted by external advisers if
necessary. The Group is committed to respecting all applicable laws and regulations in each of the countries where it operates. Since thebeginning of 2023, to ensure tax compliance, it has used an IT tool for monitoring reporting obligations, tax payments and the application oftax ethics rules. This tool, which is rolled out in all Group subsidiaries, is managed centrally by the tax department. The Group has atransparent and simple organisation. The Group’s tax policy is not based on any tax optimisation or evasion scheme and complies with theprinciples laid down by the OECD. In the case of a dispute or differences in interpretation, the Group may have to challenge reassessmentswith the tax authorities and to seek redress using the means available to it for its defence.

Strategy and operations

402

Industry2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

CSR

Regulatory compliance

FinanceRISK FACTORS AND MANAGEMENTRISK FACTORSFRAUD -s DESCRIPTION OF THE RISKs POTENTIAL IMPACTS ON THE GROUP

The Group’s exposure to the risk of fraud is due in particular to its growing visibility
in many countries and its increasing digital presence.

PROBABILITY

4.1.5.4

The inventiveness and adaptability of external fraud attempts on defence systems
seen on the market also represent threats.

Any case of fraud could cause ﬁnancial
losses to the Group and tarnish its
reputation.
IMPACTs RISK MANAGEMENT

The management of payment transactions is centralised by the Group’s treasury department and governed by precise validation and control
rules. The Middle & Back‑Ofﬁce department ensures administrative management and operational control, notably via the use of integrated
cash ﬂow software.
The Treasury Security Committee regularly checks that these procedures have been applied and that any risks identiﬁed have beenaddressed.
The audit and risk management department oversees proper compliance with risk monitoring and management procedures. As part of thecoordination of internal control, it regularly creates awareness among the network of internal control ofﬁcers about the risk of fraud andrestates the speciﬁc fraud prevention procedures, in particular as regards the purchase and payment process. At the same time, external
audits are regularly carried out to identify and correct any vulnerabilities. Audits in subsidiaries to verify the proper application of procedures
complement this system. At exclusive store level, a speciﬁc fraud prevention tool, developed on a data mining platform, was rolled out in
2021. It is regularly updated and enhanced.

4

The Group’s risk mapping, as well as the risk mapping applied to the métiers and the main subsidiaries, address this risk and thecorresponding action plans.
Accordingly, awareness‑raising campaigns in the functions most at risk of fraud are conducted on a regular basis. Awareness‑raising,identiﬁed as an effective fraud prevention tool, is rolled out and adapted to the types of fraud (risk of system intrusion, “CEO fraud”, etc.). In
addition, an ad hoc security system has been put in place and is monitored by the Group safety department. Furthermore, a corruption risk
map was drawn up with the assistance of a specialist external consultant and in collaboration with the Director of Legal Compliance (seechapter 2 “Corporate social responsibility and non‑ﬁnancial performance”, § 2.8.2.2.1). This was updated in 2020.
The system put in place by the Group to protect itself against IT intrusion is the subject of a dedicated risk mapping (§ 4.1.1.1).

Strategy and operations

Industry

CSR

Regulatory compliance

Finance2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

403

4

RISK FACTORS AND MANAGEMENTINSURANCE POLICY AND RISK HEDGING

4.2

INSURANCE POLICY AND RISK HEDGING

In line with the Group risk analysis, the Hermès Group’s policy
regarding insurance is to transfer any exposure that is liable toproduce a material impact on proﬁts to the insurance market. The
Group insurance programmes represent most of the insurance

coverage for the subsidiaries. They are placed via the intermediary of
brokers who are amongst the 10 largest French brokers and withﬁrst‑rate insurance companies. The main international insurance
programmes cover:Type of insurance

Guarantees and limits of the main policies taken out

Property damage and businessinterruptions FM Global “All risks except” policys Coverage of all Group sites: production, logistics, distribution, various premises and goods in all locations
s Policy renewed for 2023 with the same coverage limit of €500 million and the same insurer

General civil liability(operations and products)

s Policies subscribed for a period of one year from 1 January 2023 with Zurich, QBE, Liberty Mutual and BHSI,in the amount of €125 millions Covers civil liability for damages to persons, property and intangibles caused to third parties in the conduct ofbusiness operations or by products

Transportations Policy taken out with Chubb and renewed for 2023 with coverage of €6 million per event, all cover combined

Liability for environmental damages This policy was taken out with AIG Europe on 1 January 2022 for a period of 36 monthss Coverage limit of €15 million per claim and €25 million for the period

404

Other contracts have been subscribed to fulﬁl speciﬁc requirements,
particularly in the context of building operations (new work or
renovation) carried out as project managers.

policies cover data recovery, business interruption related to asecurity incident, civil liability and costs, including in particulardefence and notiﬁcation costs.

The Corporate Ofﬁcer liability and cyber risk policies were taken out
for a period of one year from 1 January 2023, with AIG and Zurich
respectively, as well as other well‑known insurers. These cyber risk

In 2023, the Group did not suffer any signiﬁcant losses.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

In addition, 54 prevention visits by the property and casualty insurer
were carried out in 2023.

RISK FACTORS AND MANAGEMENTRISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT

4.3

RISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT

4.3.1

A DEMANDING CONTROL ENVIRONMENT

While Hermès has attained the stature of an international group, it
remains a company with family values, dedicated to a culture andspirit of craftsmanship and seeks to cultivate strong values among its
employees.
At the forefront of these values is the demand for quality, the very
essence of Hermès’ activity. The Group’s commitment to quality
applies not only to its products and services, but also to its
management methods. Hermès attaches great importance to its
Senior Executives’ managerial skills. Induction programmes for new
managers and speciﬁc training sessions forge the Hermès culture.
Everyone can thus understand their place in the organisation andintegrate the House’s rules of conduct and integrity. The demanding
quality‑oriented values and commitment shared by employees also
serve as a solid foundation to underpin behaviours and observanceof stringent internal control policies and procedures. The culture ofrisk management, the management of teams and the ethics of theCompany ensure the demonstration and balance of these values.
In this respect, an ethics charter has been in place and has been
distributed to employees since 2009. The code of business conduct,
which speciﬁes the behaviour expected of the Group’s employees,
has been supplementing it since 2012. These two documents,
translated into 12 languages, have been updated several times since
their creation. They are the foundation of Hermès Group integrity andethics:4.3.2

s the ethics charter promotes respect for the broad fundamental
principles. It is intended as an instrument of progress anddialogue, and encourages employees to discuss with their line
managers in cases where the principles are difficult to apply or areopen to misunderstanding;s the purpose of the code of business conduct is to raise employees’
awareness about ethics risks and to instil behavioural and alert
reflexes.

In addition, an anti‑corruption code of conduct, including concrete
illustrations, is distributed to all employees. It is translated into 18
languages (see chapter 2 “Corporate social responsibility andnon‑ﬁnancial performance”, § 2.8.2.2.2 on the corruption prevention
system). This anti‑corruption code of conduct has been accompanied
since 2021 by an anti‑corruption e‑learning module translated into 12
languages.
These documents are available on the Company intranet under “Our
Ethics” and on the website (https://ﬁnance.hermes.com/en/ethicshuman‑rights-and‑diversities/), and are subject to formal
acknowledgement of receipt when given to employees. Additional
training on the Group's anti‑corruption system and human rights isorganised for operational staff, thus strengthening the Group’s ethics
culture. Actions relating to ethics and compliance are presented inchapter 2, “Corporate social responsibility and non‑ﬁnancial
performance”, § 2.8.

4

COMMITTED PARTIES RESPONSIBLE FOR RISK MANAGEMENT AND CONTROLThe risk management and internal control systems are applicable to the parent company and to the controlled subsidiaries. They are presented
in the notes to the consolidated ﬁnancial statements.

SPECIALISED COMMITTEESGROUPMANAGEMENTSUPERVISORY
BOARD

AUDIT AND RISKMANAGEMENT DEPARTMENT

AUDIT AND RISKCOMMITTEETHE GROUP’SOPERATIONAL STAFF

THE NETWORK OF INTERNALCONTROL OFFICERS

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

405

4

RISK FACTORS AND MANAGEMENTRISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDITGroup Management

The Group Management designs risk management and internal
control procedures commensurate with the Company’s size, business
operations, geographical footprint and organisation. In addition toestablishing procedures for delegating authority established at
different hierarchical levels, Group Management has responsibility for
guaranteeing the quality and effectiveness of the risk management
and internal control systems. It thus ensures their adequacy formeeting the Group’s strategy objectives.
To this end, Group Management is provided with audit reports andthe risk mapping of subsidiaries, métiers and support functions, andregularly meets with the audit and risk management department. It
therefore oversees the system as a whole to safeguard its integrity
and, where applicable, initiate any corrective measures needed.
Audit and Risk Committee

The Audit and Risk Committee was established in 2005 within the
Supervisory Board pursuant to Article L. 823‑19 of the French
Commercial Code (Code de commerce), and without prejudice to thepowers of this Board, which it does not supersede.
The roles and duties of the Audit and Risk Committee were formally
documented in rules of procedure drawn up by the Supervisory Board
in 2010 and regularly updated. The latest version, updated on 26
November 2021, is available via the link https://https://ﬁnance.hermes.com/en/
governing‑bodies‑rules‑procedure‑articles‑association/.
Each meeting of the Audit and Risk Committee gives rise to written
minutes that are approved. At each meeting of the Supervisory Board,
the Chairwoman of the Audit and Risk Committee gives the Board areport of the work of the Audit and Risk Committee.
In accordance with Article 11.3 of the Afep‑Medef Code, the work andoperation of the Audit and Risk Committee were subject to:s a formal assessment in 2022, as part of the Supervisory Board’s
three‑year self‑assessment (see chapter 3 “Corporate
governance”, § 3.7.3);
s a debate during a meeting in 2023, at the end of which themembers of the Committee unanimously considered that thefunctioning of the Committee remained very satisfactory (seechapter 3 “Corporate governance”, § 3.7.3).

As part of its oversight of the risk management and internal control
system, the Audit and Risk Committee has access to information
relating to internal audit, internal control and risk management. The
risk mapping of Group entities and the corresponding action plans
are regularly presented to it. A list of the work carried by the Audit andRisk Committee is provided in chapter 3 "Corporate governance",§ 3.6.3.4.
Audit and risk management department

The audit and risk management department reports to the Group’s
Executive Vice‑President Corporate Development and Social Affairs,
which guarantees its independence, and has unlimited authority toreview any matter at their discretion.
The audit and risk management department consists of a core teamof experienced auditors, and runs a decentralised network of internal
control ofﬁcers. It performs a threefold mission for the Group:406

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

s it identifies and analyses risks and ensures the implementation ofaction plans;s it conducts internal audits and monitors the implementation of therecommendations;s it ensures the deployment of internal controls adapted to Group’s
issues.

The insurance and prevention department is an integral part of theaudit and risk management department, enabling synergies in termsof risk identiﬁcation and management. Risk mapping now includes aninsurance section in order to look at risks alongside thecorresponding insurance coverage.
Since 2022, the audit and risk management department has
included a data, innovation and method optimisation team in its
workforce.
The duties of the audit and risk management department also consistof:s carrying out a continuous improvement initiative as regards theinternal control and risk management systems;s working alongside the Group’s various departments in order topromote the upstream handling of the main risks, as well as
emerging risks, and running the risk mapping approach of the mainmétiers, distribution subsidiaries, support functions andcross‑cutting subjects. The risk mapping methodology is regularly
reviewed: in 2017 and 2020, specialised external firms supported
this continuous improvement process. The audit and risk
management department thus ensures that it has a relevant,effective and motivating methodology for its contacts. The actionplans resulting from the risk mapping are monitored each year by
the network of internal control officers;s coordinating a network of around 80 internal control officers, inFrance and abroad, working within the métiers, distribution
subsidiaries and support functions. Internal control has beenstrengthened, notably thanks to targeted and differentiatedcommunication methods in order to better address the issues
faced by the Group. A three‑day seminar dedicated to the internal
control issues of the distribution subsidiaries was organised in
2023, bringing together 40 internal control officers from all thesubsidiaries concerned. In addition, regular thematic webinars forinternal control officers and financial directors have been set up.
Furthermore, annual meetings are organised with the Chief
Financial Officers of the main regional distribution subsidiaries on
the one hand, and the métiers on the other hand, to discuss theirmain internal control issues.

An audit charter has formalised the duties and responsibilities of theinternal auditors and their professional conduct. It sets out the way inwhich their audit engagements are conducted. A risk charter, settingout the principles and rules for risk management, and an internal
control charter, formalising the roles and responsibilities of its
players, complete the system.
Lastly, the Director of Audit and Risk Management attends Audit andRisk Committee meetings. She meets with this committee six times a
year, including once without the presence of third parties. This
meeting is dedicated to the presentation of the audit and risk
management department’s activity report, and to discussions on its
work and the resources at its disposal.

RISK FACTORS AND MANAGEMENTRISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDITInternal control officers

Internal control ofﬁcers oversee the implementation of the internal
control system within their scope, métiers, distribution subsidiaries orsupport functions. They report locally to the Chief Financial Ofﬁcer of
their entity, and functionally to the audit and risk management
department.
They work according to an annual plan, shared with their department
and the audit and risk management department, taking into accountthe Group’s internal control priorities and the risks speciﬁc to theirscope. Their main duties are as follows:s identify major risks and adapt the organisation of internal control
accordingly;s verify the implementation of Group procedures in accordance withthe activity and local regulations;s participate in self‑assessment of internal control work;s spread the culture of internal control to all employees;s monitor the risk mapping action plans;s follow up on the audit recommendations of the audit and risk
management department;s in general, contribute in all their actions to improving risk
management.

They are the contacts responsible for the rollout of systems to prevent
corruption and cybersecurity risk.
Specialised committees

Transportation
SafetyCommittee

Treasury Safety
Committee

Group
SafetyCommittee

IT Safety
Committee

Compliance andVigilance
Committee

The Hermès Group has deployed speciﬁc processes to monitor
certain risks through specialised committees or working groups.
These committees meet on a regular basis.
For example, committees focusing on safety, IT risks, treasury risks
and compliance risks analyse the issues, and study the appropriate
corrective measures so that they can be implemented in the entities.
They also check that existing control systems comply with Group
procedures. The main operational contacts involved participate inthese committees with the audit and risk management department.
Its role is to facilitate the identiﬁcation of risks and the associatedaction plans.
The IT Safety Committee brought together IT safety stakeholders fourtimes in 2023: the Group Cybersecurity Director, the information
systems department, the audit and risk management department,
the Group safety department, the digital projects and e‑commerce
department, and the Managing Director of the métiers, information
systems and data (member of the Executive Committee). Its purpose
is to monitor the progress of the roadmap, the IT audit plan andmitigation actions, share signiﬁcant incidents and make thenecessary trade‑offs to adjust safety policies or positioning withregard to IT risks.
A Hermès Product Transportation Safety Committee, made up of theGroup safety department, the transportation department, theinsurance and prevention department, and the departments of therelevant métiers, meets as needed to deﬁne the necessary actions.
Its objective is to improve transportation safety, in a practical way
according to the risks speciﬁc to the products transported and any
difﬁculties encountered.
The Compliance and Vigilance Committee is made up ofrepresentatives from the legal department, including compliance, thesustainable development department, the direct purchasing
department, the indirect purchasing department, the audit and risk
management department, the commercial department, the ﬁnancedepartment and the labour law department. It participates in,monitors and oversees the implementation, effectiveness and control
of compliance programmes. Its duties are detailed in chapter 2“Corporate social responsibility and non‑ﬁnancial performance”,§ 2.8.1.1.3 of this document.

4

The Group Safety Committee makes decisions on cross‑functionalsafety issues identiﬁed during the specialised committee meetings. It
also reviews the main safety incidents in order to adapt the overallsystem. This committee is composed of the Executive Vice‑President
Corporate Development and Social Affairs, the Director of Human
Resources, the General Counsel, the Director of Group Safety, theDirector of Group Cybersecurity, the Managing Director of HermèsGroup Services and the Director of Audit and Risk Management. If
necessary, it can call on experts on speciﬁc issues.
The Group’s operational staff

The Senior Executives, the major functional and operating
departments, and members of the Management Committees of theGroup’s various entities are responsible for internal control and risk
management; as the main beneﬁciaries and also key contributors to
its proper application.
The control activities carried out at the level of each entity are thejoint responsibility of the Managing Director and the Chief Financial
Ofﬁcer. A letter of conﬁrmation relating to Hermès’ internal control
objectives and the quality of the controls in place within the entity issigned annually. This letter includes the results of an annual
self‑assessment questionnaire on the implementation of internal
control.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

407

4

RISK FACTORS AND MANAGEMENTRISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT

4.3.3

A CONTROLLED RISK MANAGEMENTSYSTEM

Major risk
identification

The consolidated Group risk mapping is prepared every three years
and was updated in 2023. The risk mappings of subsidiaries, métiersand cross‑functional areas, as well as individual assessments by
Executive Committee members, feed into it. This mapping is the
subject of a speciﬁc Executive Committee workshop. It is also sharedwith the Audit and Risk Committee. The Group risk mapping is also
used as a starting point for the audit and risk management
department’s audit plan.
In the areas of fraud and corruption:

Risk reassessment

Managementof main risks

Risk
rankingRiskmanagement
system at
HermèsInternational

Definition ofa risk control
strategy

The Group’s risk management process is based upon the preparationof risk mappings as well as a range of complementary tools thatfacilitate identiﬁcation of risks and deﬁnition of actions to better
control them.
Set up in 2004, the mapping initiative has been rolled out to the main
entities, and also to cross‑functional areas, under the supervision of
the audit and risk management department. The methodology
applied is regularly updated and enables a precise assessment of therisks speciﬁc to the Group.
These mappings serve to identify, evaluate and systematically rank
the main risks. An insurance section compares the risks with thecorresponding insurance coverage. They are an operationalawareness‑raising and management tool and are a lever for improving
performance. They contribute to effective management by providing asummary and shared vision of risks and deﬁning operational actionplans and the responsibilities of each person.
The entities periodically update their risk mapping, under thesupervision of the audit and risk management department. Each year,
between 5 and 10 risk mappings are carried out at the level of the
distribution subsidiaries, métiers or cross‑functional areas in theGroup.
The internal control ofﬁcers within the entities are the local relays forthe mapping initiative. They participate in the initial risk analysis,
while updating and monitoring the action plans.

408

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

s awareness‑raising campaigns for the functions most exposed to
the risk of fraud are conducted on a regular basis.
Awareness‑raising, identified as an effective fraud prevention tool,
is rolled out and adapted to the types of fraud (risk of system
intrusion, “CEO fraud”, etc.). Information on safety is regularly
reported to the Group Safety Committee, as well as to the Audit
and Risk Committee. An ad hoc security system has also been
introduced and is monitored by the Group safety department;s the corruption risk mapping was updated in 2020 with the help ofa specialist external firm and with the collaboration of the legal
compliance department, which is responsible for its management,
as described in chapter 2 “Corporate social responsibility andnon‑financial performance”, § 2.8.2.2.1.

The audit and risk management department can modify its audit
programme and carry out ad hoc assignments in order to deal withnew risks, particularly in the event of an alert issued by a Groupdivision. Cross‑functional audits can thus be carried out.
In order to better anticipate changes in issues relating to companies,
technologies, the environment, the economy and governance, theaudit and risk management department actively monitors emerging
risks externally and has initiated prospective studies since 2019. As
in 2022, a forward‑looking day was organised in 2023. It brought
together 120 of the House’s employees around presentations andcollective workshops. Enhanced by a forward‑looking operational
project conducted for a métier, the objective of the approach is tocultivate a mindset that is resolutely oriented towards the future andto raise awareness among participants of the multiplicity of trends
already at work and the issues that could arise in the short, medium
and long term.
Finally, an IT platform for the sharing of incidents enables
assessment of changes in certain risks and early detection of any
signs of potential weakness. This prevention tool contributes to thecontinuous improvement of the control system, as closely as possible
to reality. Several times a year, the audit and risk management
department conducts an analysis of the incidents reported by thesubsidiaries and métiers. It is communicated to the Group’s internal
control ofﬁcers and internal control departments, including incident
statistics for the period and a reminder of the Group’s procedures
and related best practices.

RISK FACTORS AND MANAGEMENTRISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT

4.3.4

A MATURE INTERNAL CONTROL SYSTEM

4.3.4.1

GENERAL ORGANISATIONs the reliability of financial information and, in general, control over
its activities, efficiency of its operations and optimisation of theuse of its resources.

Internal control objectives

Internal control systems rely on ongoing, recurring actions that are
integrated into the Company’s operating processes. They apply to allfunctions and processes, including those associated with the
preparation of ﬁnancial and accounting information.
The Hermès internal control objectives include:
s compliance with laws and regulations;s proper observance of instructions and strategy directions given by
the Group Management;s operating efficiency of the Company’s internal procedures,
particularly those that help to protect its assets, as well as thesafety and security of property and persons;Organisation

The Company’s management, organised into an Executive Committee
and several specialised committees, ensures the strategic alignmentand distribution of information. Detailed organisational charts andmemoranda outlining strategic directions give staff members athorough understanding of their role in the organisation and a way toperiodically evaluate their performance by comparing it with targets.
The Group’s organisation is based on an approach designed to fostera high level of accountability among local managers, whose duties
and responsibilities are clearly deﬁned.
Regarding human resources processes, Hermès has establishedhiring, training and skills development programmes, enabling eachindividual to perform their current and future duties effectively. Within
Hermès International, the ﬁnance department has primary
responsibility for the preparation and control of ﬁnancial information.

4

Internal control system monitoring

PERIODIC INSPECTION

The monitoring system includes three levels of control:

LEVEL 3Carried out by
the audit and risk
management department

PERMANENT CONTROLLEVEL 2Carried out byinternal controllers or
cross-functional departments
Regular verification through sampling

LEVEL 1

Carried out by
operational staff
Daily checks of activities

Regular reviews are carried out by internal control ofﬁcers at a local
level and are supplemented by the audit and risk management
department depending on the issues at stake in each entity. The
network of internal control ofﬁcers is responsible for ensuring thatsuitable controls cover the principal risks related to distribution andproduction operations, as well as to support functions, notably
regarding the security and traceability of assets.

its role of coordinating the network of internal control ofﬁcers, theaudit and risk management department is involved in their
appointment, reviews the subsidiaries’ annual internal control plansand disseminates best practices. It relies in particular on a social andcollaborative information‑sharing platform, identiﬁes internal control
priorities and promotes the sharing of experience between all
members of the network. It also publishes a quarterly newsletter.

This network, made up of around 80 internal control ofﬁcers, enables
the presence of local contacts in the Group’s main entities. As part of

Audit assignments represent the third level of control. They are
explained in § 4.3.5 “An agile internal audit system” below.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

409

4

RISK FACTORS AND MANAGEMENTRISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT

Self‑assessment of internal control

The self‑assessment of internal control, which began in 2005, is now
a mature process within the Group. It is based on questionnaires
completed by all controlled subsidiaries. This system contributes tothe dissemination of the internal control culture within the Group. It
also provides support for assessing the level of internal control andassessing the extent to which operational and functional risks areproperly addressed. If the control processes are found to beineffective, the subsidiaries are required to draw up an action plan toremedy the situation.
The subsidiaries self‑assess each year using ﬁve questionnaires
available on the intranet in the dedicated “CHIC” IT tool (Check yourHermès Internal Control). They are administered by the audit and risk
management department. The self‑assessment is based on a generalinternal control questionnaire (CHIC Practices), the guidelines forwhich are drawn up in line with the AMF “Reference Framework”. A

questionnaire speciﬁc to cash management (CHIC Trésorerie), a
questionnaire on operating procedures in the retail network (CHIC
Boutique) and a questionnaire on operational procedures governing
online sales (CHIC E‑commerce) are also part of the system. Lastly, aquestionnaire dedicated to the leather goods workshops (CHIC
Maroquinerie) was launched in 2023.
These questionnaires are updated on an annual basis, in order toinclude any new risks and controls identiﬁed as key at Group level.
The results are reported in a dedicated IT tool where they are
centralised and analysed by the audit and risk management
department, in order to identify areas for improvement and internal
control priorities for the following year. They are shared with thedepartments concerned in order to deﬁne action plans for all theGroup’s subsidiaries.

CHIC Questionnaires

Number of themes *Examples of themes addressed

Practices12

Finance, Human resources, Control environment, Information systems, Communication,
Ethics and Compliance, Sustainable development, etc.

Leather goods

11

Inventories, Production, Finance, Investments and Real Estate, Ethics and Compliance,
Information Systems, etc.

E‑commerce

9

Sales, Shipping and Deliveries, Returns and Refunds, Storage, Customer Data, etc.

Boutique

7

Customer relationship management, Checkout closing, Stock‑taking, Safety/Security, etc.

Trésorerie

7

Management of bank accounts, Processes and Payment means, Regulatory compliance,
E‑payments, etc.

* The themes are then sub‑divided into several questions addressing all related procedures in an exhaustive manner.

The internal control ofﬁcers are involved in the self‑assessment, andare in charge of monitoring the action plans. The audit and risk
management department checks and compares the responses given
by subsidiaries to the questionnaires with its own assessment when
performing audits. It ensures that the controls have been correctly
undertaken, and that corrective action plans have been implemented.
Internal control proceduress an exchange rate policy approved by the Group’s Supervisory
Board (this policy presents all the authorised financial instruments,
the horizon and the hedging ratios);

The internal control processes are described in the Group
procedures. They are deﬁned at Group level, then rolled out andadapted by each division to the speciﬁc contexts and local
regulations. All Group employees have access to them via a secure
intranet website.

s intra‑group agreements signed by each subsidiary concerned,
which structure the relationship between the Hermès Group and its
subsidiaries and specify the management policy and rules
applicable to all financial flows (cash flows, foreign currencytransactions, etc.) that may generate liquidity or market risk;

Group procedures cover the Company’s main cycles (purchases,
sales including digital, treasury, inventory management, ﬁxed assets,human resources, information systems, safety and security, closing ofﬁnancial statements, compliance, etc.). The audit and risk
management department updates them regularly, in collaboration
with the experts in their respective ﬁelds and the internal control
ofﬁcers.

s a Group cash management policy, approved by the HermèsInternational Supervisory Board, which sets out the authorised
investment vehicles and all the criteria for managing liquidity andcounterparty risk.

More speciﬁcally, extremely stringent cash management procedures
have been put in place. The treasury security rules manual details thefollowing procedures:s a treasury management procedure that defines the roles andresponsibilities between Group treasury and the subsidiaries;

410s rules for opening and operating bank accounts, called “prudential
rules”, for each of the Group’s companies, which are constantly
updated and include among others the monitoring of authorised
signatories;

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Information systems

The use of tools adapted to Hermès’ needs facilitates the preparationand control of information. The consistency of information systemurbanisation and architecture is managed at Group level. The projects
follow a methodology that includes mandatory milestones, inparticular that of the Architecture Committee, which ensures thecoherence and compliance of projects, including with regard tosecurity (compliance with the Group process of integration of security
in projects – ISP).

RISK FACTORS AND MANAGEMENTRISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT

Integrated applications are used to facilitate centralisation of datareported to Hermès International by the subsidiaries, consolidation of
accounts and cash management. Managers have access to data
generated by the management systems on a weekly and monthly
basis, giving them the information they need to manage business
operations effectively, to monitor performance consistently, and to
identify any irregularities.
The information systems are designed to ensure that, in particular,
the accounting and ﬁnancial information produced complies withsecurity, reliability, availability and relevance criteria. Speciﬁc rules on
the organisation and operation of all IT systems have been deﬁned,
applying to access, validation of processing and closing procedures,
data archiving and record veriﬁcation.

4.3.4.2

PREPARATION AND PROCESSING OFACCOUNTING AND FINANCIAL INFORMATION

Definition, objectives and scope

The processes relating to the preparation and processing ofaccounting and ﬁnancial information are at the heart of the Group’s
internal control system. They ensure stringent ﬁnancial oversight ofthe production and reporting of accounting and ﬁnancial information
for the parent company and the companies integrated into theconsolidated ﬁnancial statements. The processes are designed tomeet the following objectives:s compliance with accounting regulations and the proper application of
the principles used for the preparation of the financial statements;

Furthermore, procedures and controls have been set up to ensure thequality and security of operations, maintenance and upgrading ofaccounting and management systems as well as all systems that
send data to them.

s the prevention and identification of any accounting or financial
fraud or inconsistencies, as far as possible;

In addition to the detailed reviews carried out by the information
systems department in the main subsidiaries, the audit and risk
management department organises a review of second‑level IT
controls through a self‑assessment questionnaire completed by thesubsidiaries, and of third‑level controls via audits on:s the reliability of the published accounts and of other information
reported to investors.

s the reliability of the information circulated and used in‑house byGroup Management for steering purposes;s IT projects;Hermès has set up an organised and documented system that
ensures the quality of consolidated and reported accounting andﬁnancial data. It is based on a Group Management manual, strict
segregation of duties, and strong control by Hermès International overthe information produced by the subsidiaries.

s the cybersecurity system.

Actors in the accounting and financial internal control process

For third‑level controls, the audit plan has been considerablyenhanced since 2021, and is conducted with the assistance ofspecialists in each of the subjects audited.

The internal control process for accounting and ﬁnancial information
involves the following stakeholders:s general IT controls in subsidiaries and centrally;

Crisis management

Since 28 February 2020, in response to the health crisis linked to
Covid‑19, a monitoring unit has been set up to coordinate thenecessary actions within the Group and the exchange of information.
Through committees by type of activity and geographical area, theunit makes it possible to address operational issues in terms of
employee protection, business continuity and adaptation of theinternal control system.
The crisis unit comprises members of the audit and risk management
department, the Group safety department and the Group humanresources department, including in particular the directors of internal
communication and labour relations. This crisis unit reports to the
Executive Committee, via the Executive Vice‑President Corporate
Development and Social Affairs, on matters requiring a collective
decision.
A crisis management exercise, designed with the support of an
external ﬁrm, was conducted in December 2021. This exercise madeit possible to test the reaction and communication of the various
stakeholders of the crisis unit around various scenarios such as acyberattack, a ﬁre or a pollution incident. Following this exercise, theGroup updated its crisis management system and is conducting
discussions to strengthen its coordination with the subsidiaries andmétiers. In addition, a cybersecurity crisis management exercise wasconducted in December 2022 with the aim of improving the Group’s
resilience to the potential loss of digital services.

4s Group Management, which is carried out by the Executive
Committee, led by the Executive Management. As part of theclosing of the annual and consolidated financial statements, theExecutive Management obtains all the information it deems useful.
It analyses the subsidiaries’ accounts on a regular basis andmeets with their Senior Executives from time to time, particularly
during the budget preparation and account closing periods;s the Supervisory Board, which exercises ongoing control over theCompany’s management. By consulting Group Management, theBoard can verify that oversight and control systems are sufficient
to ensure that the financial information published by the Company
is reliable;s the Audit and Risk Committee, whose roles and missions aredescribed in § 4.3.2;s the Executive Vice‑President Corporate Development and Social
Affairs, member of the Executive Committee, who ensures theimplementation of appropriate methods (organisation, skilled
resources, tools) and oversees the audit and risk management
department responsible for the risk management system andinternal control coordination;s the Executive Vice‑President Finance, member of the Executive
Committee. He relies on dedicated teams of specialists in the
consolidation, tax and management control department, thefinancial management department, the treasury department andthe financial communication department to support:• the consolidation of financial information in accordance withIFRS accounting standards, as adopted by the European Union,

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

411

4

RISK FACTORS AND MANAGEMENTRISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT• monitoring and coordination of activity during regular reviews(year‑end and half‑year accounts closure, forecast updates andbudgets),• accounting and financial internal control within the operational
entities,• strict compliance with tax regulations,• hedging foreign exchange risk;s external communication of financial information in accordance withregulations;

The accounts closing process is governed by precise instructions andis based on a detailed timetable, which is circulated to all
subsidiaries in order to ensure respect of the deadlines andconsistency in the preparation of ﬁnancial statements. Throughout
the year, the consolidation department validates the main accounting
estimates used by the subsidiaries and central functions and, whereapplicable, simulates complex transactions in the consolidation
software. In addition to quarterly closings, closings in May andNovember make it possible to better anticipate half‑yearly and annual
closings.

s the Managing Directors and Chief Financial Officers of thesubsidiaries, who have primary responsibility for the quality of thefinancial information preparation processes and internal control
applied by the entities they oversee. They are also responsible forcirculating procedures drawn up and issued by HermèsInternational and for ensuring that these are properly applied.

For the preparation of the consolidated ﬁnancial statements, control
procedures apply at each stage of the ﬁnancial information reportingand processing process and are intended to ensure:Group standardss analysis of the financial statements of consolidated subsidiaries;

The Group has adopted a body of accounting rules and policies, inaccordance with IFRS as adopted by the European Union, theframework for consolidated ﬁnancial statements. The application ofthese standards is mandatory for all consolidated subsidiaries inorder to provide consistent and reliable ﬁnancial information. The
chart of accounts applies to all subsidiaries and the income
statement is common to management and accounting.

s the proper elimination of internal transactions;

These rules and policies are presented in Group reporting manuals,
which are regularly updated by the consolidation department to take
into account changes in regulations and accounting standards.

Lastly, in the context of these audits, the audit and risk management
department coordinates its work on internal control with the Statutory
Auditors.

s checking of consolidation packages prior to integration(compliance with Group accounting standards and practices andverification of consistency, etc.);s the proper application of IFRS;s verification of consolidation transactions;s analysis and validation of all items in the consolidated financial
statements;s the reliability of the financial information.

Financial and accounting information production systems

The management of accounting and ﬁnancial information ﬂows is
mainly carried out through the SAP integrated management software
used in almost all the Group’s subsidiaries.
The production of the annual and half‑yearly consolidated ﬁnancial
statements, as well as the reporting of all the ﬁnancial information
used to manage and control the activity of the operational units, iscarried out through a uniﬁed and centrally managed consolidation
software package (SAP Financial Consolidation).
These systems allow the accounting entries to be traced and a strict
separation of duties.
Procedures for preparing published accounting and financial
information

The Group’s organisation, which is based on reporting issued by eachsubsidiary and sent directly to the parent company, without any
intermediate consolidation thresholds, ensures that HermèsInternational exercises strong control over the ﬁnancial information
produced by the subsidiaries.
The Managing Director and Chief Financial Ofﬁcer of each subsidiary
jointly undertake to ensure the quality, reliability andcomprehensiveness of the accounting and ﬁnancial information thatthey have prepared and sent to the Group Finance Management, bymeans of a letter of conﬁrmation they sign jointly at the closing of thehalf‑yearly and annual ﬁnancial statements.

412

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

4.3.5

AN AGILE INTERNAL AUDIT SYSTEM

Duties

The role of the audit and risk management department is to provide
the Hermès Group’s Management with reasonable assurance
regarding the level of control over operations in the various entities. It
fulﬁls this role in particular by carrying out audit missions, thepurpose of which is to assess:s the compliance of activities and operations with the Group’s
internal control rules and procedures, as well as the regulatory
provisions in force;s the relevance of the risk control processes implemented byoperational staff;s the implementation of the Group’s strategic orientations throughthe consistency of the operational actions of the entities and theuse of resources in relation to the actions undertaken;s more generally, the likelihood, severity and level of control of risks
that could have a significant impact on the Group’s strategy.

There are several types of audits including:s audit of distribution subsidiaries including the audit of stores;s audit of production sites and métiers;
s audit of support departments for upstream or downstream flows;

RISK FACTORS AND MANAGEMENTRISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDITs special audits conducted with the help of external firms, inparticular on information systems;s support for affiliates in the setting up of the internal control
system.

Upon completion of the audits, reports are prepared detailing theaudit ﬁndings and risks identiﬁed, and recommending solutions toremedy them. Proper implementation of the recommendations is
veriﬁed during follow‑up audits. The audit reports are sent to the
managers of the audited subsidiaries or departments and to GroupManagement.
Since 2020, the audit and risk management department uses ananalysis tool for accounting entries in its audits. This tool improves
the relevance of certain tests undertaken, by facilitating theidentiﬁcation of atypical transactions. Moreover, since 2021, theGroup has had a tool for analysing in‑store transactions based on 39
indicators that can continuously highlight any non‑compliance withGroup procedures. Initially developed for internal control ofﬁcers, thistool is also used by the audit and risk management department toperform in‑store tests on the most sensitive sales transactions andstock movements. More broadly, this tool is also a means of ﬁghting
corruption and money laundering in stores. Collective and individual
training sessions against fraud, for Chief Financial Ofﬁcers andinternal control ofﬁcers, were organised by the data, innovation andmethod optimisation team in the audit and risk management
department.

Audit plan

The auditors work on the basis of an annual audit plan, validated by
the Executive Management and the Audit and Risk Committee, whichis adapted every six months, if necessary. An overall analysis of risks,in particular ﬁnancial, operational and compliance risks, feeds into
the audit plan. The Executive Committee’s proposals and audit
follow‑ups complete it. It must allow a regular review of all Group
entities and processes, with a frequency appropriate to themagnitude of the risks and the relative weight of each entity.
The audit and risk management department also carries out support
assignments for the internal control roll‑out within newly acquired
entities. For specialised audits, it may use external service providers
and data analysis tools, particularly in the context of fraud prevention.
In addition, it regularly performs integrated audits with the Group’s
experts: IT security, safety, compliance, insurance, etc.
The 2023 audit plan was adapted to the context of recent years toinclude in‑person audits of entities located in countries where healthrestrictions have been the most prolonged. The strengthening of IT
safety audits continued in 2023. In the ﬁeld of cybersecurity, andmore broadly the IT control environment, most audits are entrusted toexternal expert ﬁrms. In addition, the audit and risk management
department has been carrying out dedicated audits ofcommunications expenditure with the support of external ﬁrms.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

4

413

5

CONSOLIDATED FINANCIAL
STATEMENTS AFR
5.1

CONSOLIDATED INCOME STATEMENT

416

5.2

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

416

5.3

CONSOLIDATED BALANCE SHEET

417

5.4

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

418

5.5

CONSOLIDATED STATEMENT OF CASH FLOWS

419

5.6

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

420

5.7

STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATEDFINANCIAL STATEMENTS

460

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

415

5

CONSOLIDATED FINANCIAL STATEMENTS AFRCONSOLIDATED INCOME STATEMENT

Comments on the consolidated ﬁnancial statements are set out in chapter 1 "Presentation of the Group and its results", § 1.8.

5.1

CONSOLIDATED INCOME STATEMENT
Notes

2023

2022

3 and 4

13,427

11,602

4(3,720)(3,389)

9,708

8,213

Sales and administrative expenses

4.2(3,169)(2,680)

Other income and expenses

4.3

(889)

(836)

Recurring operating income

3

5,650

4,697

-

-

Operating income

3

5,650

4,697

Net ﬁnancial income

9.1

190

(62)

5,840

4,635

In millions of euros

Revenue
Cost of sales
Gross margin

Other non‑recurring income and expenses

Net income before tax
Income tax

6(1,623)(1,305)

Net income from associates

8

105

50

4,322

3,380

(12)

(13)

CONSOLIDATED NET INCOME
Non‑controlling interests
NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT

4,311

3,367

Basic earnings per share in euros

11.6

41.19

32.20

Diluted earnings per share in euros

11.6

41.12

32.09

5.2

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In millions of euros

Notes

Consolidated net income

2022

4,322

3,380

Changes in foreign currency adjustments 1

11.5

(114)

126

Hedges of future cash ﬂows in foreign currencies 1 2

11.5

7

129

69

23

s change in fair values recycling through profit or loss

(63)

106

Assets at fair value 2

11.5

-

333

Employee beneﬁt obligations: change in value linked to actuarial gains and losses 2

11.5

10

41

Net comprehensive income

4,225

4,009

s attributable to owners of the parent

4,213

3,996

13

14

s attributable to non‑controlling interests(1) Transferable through profit or loss
(2) Net of tax

416

2023

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRCONSOLIDATED BALANCE SHEET

5.3

CONSOLIDATED BALANCE SHEETASSETS
Notes

31/12/2023

Goodwill

7.1

72

-

Intangible assets

7.2

225

213

Right‑of‑use assets

7.3

1,716

1,582

Property, plant and equipment

7.2

2,340

2,007

In millions of euros

Investment property
Financial assets
Investments in associates

31/12/2022

7

8

9.2

1,141

1,109

8

200

54

Loans and deposits
Deferred tax assets

6.3

Other non‑current assets

4.4

Non‑current assets

70

65

631

555

37

39

6,438

5,630

Inventories and work‑in‑progress

4.4

2,414

1,779

Trade and other receivables

4.4

431

383

Current tax receivables

4.4

51

19

Other current assets

4.4

300

263

Financial derivatives

10

188

160

Cash and cash equivalents

9.3

10,625

9,225

Current assets

14,008

11,828TOTAL ASSETS

20,447

17,459Notes

31/12/2023

31/12/2022

11

54

54

50

50

LIABILITIESIn millions of euros
Share capital
Share premium
Treasury shares

11

Reserves

(698)

(674)

10,7448,795
303

Foreign currency adjustments

11.5

189

Revaluation adjustments

11.5

553

546

Net income attributable to owners of the parent

4,311

3,367

Equity attributable to owners of the parent

15,201

12,440Non‑controlling interests

EquityBorrowings and ﬁnancial liabilities due in more than one year
Lease liabilities due in more than one year2

16

15,203

12,457

9

50

35

7.3

1,720

1,629

Non‑current provisions

12

31

30

Post‑employment and other employee beneﬁt obligations due in more than one year

5.3

151

181

Deferred tax liabilities

6.3

2

20

Other non‑current liabilities

4.4

106

103

2,060

1,998

Non‑current liabilities
Borrowings and ﬁnancial liabilities due in less than one year

9

1

2

7.3

289

268

Current provisions

12

134

133

Post‑employment and other employee beneﬁt obligations due in less than one year

5.3

16

15

Trade and other payables

4.4

880

777

Lease liabilities due in less than one year

Financial derivatives

10

45

74

Current tax liabilities

4.4

586

496

Other current liabilities

4.4

1,233

1,239

Current liabilities

3,183

3,004

TOTAL EQUITY AND LIABILITIES

20,447

17,4592023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

5

417

5

CONSOLIDATED FINANCIAL STATEMENTS AFRCONSOLIDATED STATEMENT OF CHANGES IN EQUITY

5.4

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

In millions of euros
Notes

Number Share
Shareof shares capital premium

Consolidated
reserves andnet income
attributable Actuarial
Treasury to owners of gains andshares the parent
losses11

11

105,569,412

54

50

(551)

Net income

-

-

-

Other comprehensive
income--Comprehensive income--

As at 1 January 2022

11

Revaluation adjustments
Foreigncurrency
adjustments

EquityHedges of
attribufuture cash
table to
NonFinancial
ﬂows ininvestforeign owners of controllingments currencies the parent interests

Equity

11.5

11.5

11.5

11.5

9,712

(125)

178

188

(105)

11

3,367

-

-

-

-

-

41

125

333

129

628

1

630

-

3,367

41

125

333

129

3,996

14

4,009

(121)

9,400

12

9,412

3,367

13

3,380

Change in share capitaland share premiums
Purchase or sale oftreasury shares

-

-

(123)

2

-

-

-

-

(121)

-

Share‑based payments

-

-

-

55

-

-

-

-

55

-

55

Dividends paid

-

-

-

(845)

-

-

-

-

(845)

(8)

(852)

Other

-

-

(44)

-

-

-

-

(44)

(2)

(46)

As at 31 December
2022

54

50

(674)

12,247

(85)

303

521

25

12,44016

12,457

Net income

-

-

-

4,311

-

-

-

-

4,311

12

4,322

Other comprehensive
income

-

-

-

-

10

(115)

-

7

(98)

1

(97)

Comprehensive income

-

-

-

4,311

10

(115)

-

7

4,213

13

4,225

(129)

105,569,412

Change in share capitaland share premiums
Purchase or sale oftreasury shares

-

-

(24)

(105)

-

-

-

-

(129)

-

Share‑based payments

-

-

-

104

-

-

-

-

104

-

104

Dividends paid

-

-

-

(1,376)

-

-

-

-

(1,376)(10)(1,386)

Other

-

-

-

(51)

-

-

-

-

(51)

(17)

(68)

54

50

(698)

15,130

(75)

189

521

32

15,201

2

15,203AS AT 31 DECEMBER
2023

418

105,569,412

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRCONSOLIDATED STATEMENT OF CASH FLOWS

5.5

CONSOLIDATED STATEMENT OF CASH FLOWS
2023

2022

4,311

3,367

772

730

Foreign exchange gains/(losses) on fair value adjustments

56

12

Change in provisions

15

12

In millions of euros

Notes

Net income attributable to owners of the parent
Depreciation and amortisation of ﬁxed assets, right‑of‑use assets and impairment
losses

7.2 to 7.4

(105)

(50)

Net income attributable to non‑controlling interests

Net income from associates

12

13

Capital gains or losses on disposals and impact of changes in scope of consolidation

(14)

(1)

Deferred income tax expense

(14)

(16)

Accrued expenses and income related to share‑based payments

104

55

Dividend income

(12)

(11)

1

(0)

5,123

4,111

Other
Operating cash ﬂows
Change in working capital requirements

4.4

CASH FLOWS RELATED TO OPERATING ACTIVITIES (A)Operating investments

7.2

Acquisitions of consolidated shares

(794)

73

4,328

4,184

(859)

(518)

(288)

(1)

Acquisitions of other ﬁnancial assets

9.2

(52)

(165)

Disposals of operating assets

7.2

0

1

-

-

-

5

Disposals of consolidated shares and impact of losses of control
Disposals of other ﬁnancial assets

9.2

Change in payables and receivables related to investing activities

4.4

93

32

Dividends received

112

67

CASH FLOWS RELATED TO INVESTING ACTIVITIES (B)

(995)

(579)

(1,386)(852)

Dividends paid
Repayment of lease liabilities

7.3

(277)

(261)

(130)

(123)

Borrowing subscriptions--

Repayment of borrowings

(1)

(0)

(1,794)(1,237)

(138)

159

Treasury share buybacks net of disposals

CASH FLOWS RELATED TO FINANCING ACTIVITIES (C)Foreign currency translation adjustment (D)CHANGE IN NET CASH POSITION (A) + (B) + (C) + (D)

9.3

1,402

2,528

Net cash position at the beginning of the period

9.3

9,223

6,695

Net cash position at the end of the period

9.3

10,6259,2232023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

5

419

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5.6

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DETAILED CONTENTSNOTE 1NOTE 2NOTE 3
NOTE 4NOTE 5NOTE 6
NOTE 7
NOTE 8NOTE 9NOTE 10NOTE 11
NOTE 12NOTE 13
NOTE 14
NOTE 15
NOTE 16420

ACCOUNTING PRINCIPLES AND POLICIESALTERNATIVE PERFORMANCE MEASURESSEGMENT INFORMATIONITEMS RELATING TO OPERATING ACTIVITIESHEADCOUNT, PERSONNEL COSTS AND EMPLOYEE BENEFITSINCOME TAXGOODWILL, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS, AND LEASESINVESTMENTS IN ASSOCIATESFINANCIAL ASSETS AND LIABILITIES – NET CASH POSITION
MANAGEMENT OF MARKET RISKS AND DERIVATIVESEQUITY – EARNINGS PER SHAREPROVISIONS FOR RISKS AND EXPENSES AND OFF‑BALANCE SHEET COMMITMENTS
RELATED‑PARTY TRANSACTIONSEVENTS AFTER THE REPORTING PERIODSTATUTORY AUDITORS' FEESSCOPE OF CONSOLIDATION

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

421
423
424
426
430
434
436
443
443
447
453
455
456
457
457
458

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Name or other means of identiﬁcation of the reporting entity

Hermès International

Domicile of the entity

24, rue du Faubourg Saint‑Honoré, 75008 Paris (France)

Legal form of the entity

Société en commandite par actions (partnership limited by shares)

Country of incorporation

FranceAddress of the entity’s registered ofﬁce

24, rue du Faubourg Saint‑Honoré, 75008 Paris (France)

Principal place of business

24, rue du Faubourg Saint‑Honoré, 75008 Paris (France)

Description of the nature of the entity’s operations and its principal
activities

Hermès is an independent, family‑owned craftsmanship House that
manufactures and distributes its objects through a dynamic network of
stores around the world.

Name of parent company

Hermès International

Name of ultimate parent of the Group

Hermès International

NOTE 1

ACCOUNTING PRINCIPLES AND POLICIES

1.1 Basis of preparation
The consolidated ﬁnancial statements of Hermès International and its
subsidiaries (the “Group”), published for ﬁnancial year 2023, areprepared in accordance with IFRS, the International Financial
Reporting Standards, as adopted in the European Union as at
31 December 2023.
The Group’s consolidated ﬁnancial statements were approved by the
Executive Management on 8 February 2024 and will be submitted forapproval to the General Meeting on 30 April 2024. The Audit and Risk
Committee, which met on 7 February 2024, also examined theconsolidated ﬁnancial statements.
The consolidated ﬁnancial statements and notes to the consolidated
ﬁnancial statements are presented in euros. Unless otherwise stated,the values shown in the tables are expressed in millions of euros androunded to the nearest million. As a result, in certain cases, theeffects of rounding up/down can lead to a non‑signiﬁcant differencein the totals or changes. In addition, the ratios and differences arecalculated on the basis of the underlying amounts and not on thebasis of rounded amounts.

1.2 New accounting principles and regulations
applicable to the Hermès Group
1.2.1

AMENDMENT TO IAS 12 - REFORM
OF INTERNATIONAL TAXATION - RULESOF THE PILLAR II MODELIn December 2021, the Organisation for Economic Co‑operation andDevelopment (OECD) published a draft reform of international tax
rules proposing in particular the introduction of a minimum tax of
15% on the proﬁts made by multinational groups (“Global Anti‑Base
Erosion Rules” or Pillar II “GloBE Rules”). In December 2022, theEuropean Union adopted the “Pillar II” Directive, which aims totranspose the GloBE Rules. France transposed the directive on
31 December 2023 through the 2024 ﬁnance act. This newlegislation will therefore apply to Hermès from the 2024 ﬁnancial
year. The Group closely monitors the progress of the legislative
process in each jurisdiction where it operates, in order to be in aposition to implement the system there once adopted.
In this context, the IASB published an amendment to IAS 12“International Tax Reform - Pillar II Model Rules” applicable forﬁnancial years beginning on or after 1 January 2023, which
introduces a mandatory temporary exemption to the recognition ofdeferred tax assets or liabilities related to this minimum taxation.
On the basis of the GloBE Model Rules to date and the tax rates
currently in force in the countries where it operates, the Pillar II
legislation would not have had a signiﬁcant impact on the Group’s
consolidated effective tax rate if the legislation had been in force forthe 2023 ﬁnancial year. Hermès has applied the exemption to therecognition of deferred taxes provided for by the amendment to
IAS 12.

1.2.2

5

PENSION REFORMIn France, law 2023‑270 of 14 April 2023 on the amended ﬁnancingof Social Security for 2023 includes a pension reform, around two
main axes. The legal retirement age will be gradually raised from
1 September 2023 to reach 64 in 2030 for employees under thegeneral scheme. The contribution period required to receive a full‑rate
pension will increase from 42 years to 43 years from 2027.
This reform has no signiﬁcant impact on the value of the obligation for
Hermès.

1.3 Use of estimates
The preparation of the consolidated ﬁnancial statements under IFRS
sometimes requires the Group to make estimates in valuing assets
and liabilities and income and expenses recognised during theﬁnancial year. The Group bases these estimates on historicalexperience and on a variety of assumptions, which it deems to be themost reasonable and probable in the current economic environment.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

421

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The main judgments and estimates are presented in the following notes:

Notes
Depreciation period for property, plant and equipment and intangible assets

7.2

Leases7.3

Impairment of inventories

4.4

Financial instruments

10

Provisions

12

Post‑employment and other employee beneﬁt obligations

5.3

Share‑based payments

5.4

Income tax

6

1.4 Climate issues
Hermès’ French craftsmanship model and its locations in France limit
the Group’s current exposure to climate issues. Consequently, at thisstage, the impacts of climate change on its consolidated ﬁnancial
statements are not signiﬁcant.
The House is on a trajectory of net zero emissions by 2050, alignedwith the 1.5°C scenarios of the Paris Agreement. In this context,
Hermès has set itself targets, validated by the SBTi initiative, ofreducing scopes 1 and 2 emissions by 50.4% in absolute value andscope 3 emissions by 58.1% in intensity (per € million of grossmargin) over the 2018‑2030 period. To achieve them, Hermès iscommitted to reducing by 50% the carbon footprint/m² of real estateareas built or renovated by 2030 and to implementing 100%
renewable electricity in direct operations by 2025. These efforts are
reﬂected in the consolidated ﬁnancial statements through operating
investments and operating expenses.

The ﬁnancial statements of controlled companies are fully
consolidated. This method is used, following elimination of internaltransactions and results, in order to fully integrate assets, liabilities,
income and expenses. Equity and net income attributable tonon‑controlling interests are identiﬁed separately as non‑controllinginterests in the consolidated balance sheet and the consolidated
income statement.
The ﬁnancial statements of other companies, known as associates,
over which the Group exercises signiﬁcant inﬂuence, are accounted
for using the equity method (see note 8).
Financial statements expressed in foreign currencies are converted inaccordance with the following principles:

The long‑term effects of climate change are not quantiﬁable at thisstage.

s items in the balance sheet are converted at the year‑end exchange
rate for each currency;

1.5 Scope and methods of consolidations items in the income statement are converted at the averageannual exchange rate for each currency.

The consolidated ﬁnancial statements include the ﬁnancial
statements of Hermès International and subsidiaries and associates
over which the parent company directly or indirectly exerts control orsigniﬁcant inﬂuence.
They are prepared on the basis of annual ﬁnancial statements for theperiod ended 31 December, and are expressed in euros.

422

The list of the main companies included in the scope of consolidation
as at 31 December 2023 is presented in note 16.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

This results in a translation difference (attributable to owners of theparent), which is shown separately in consolidated equity. The
principle is the same for non‑controlling interests.

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTE 2

ALTERNATIVE PERFORMANCE MEASURESThis note aims to present the main alternative performance measures (“APM”) followed by the Group Management, and their reconciliation,
where appropriate, with the aggregates of the IFRS consolidated ﬁnancial statements.

2.1 Revenue growth at constant exchange ratess Revenue growth at constant exchange rates: calculated by applying, for each currency, the average exchange rates of the previous period tothe revenue for the period.

2023 atcurrent rates

2023 atconstant rates

13,427

13,996

Revenue (in millions of euros)
Change (in %)2022

Changeat current
exchange rates

Changeat constantexchange rates

Currency
eﬀect

11,602

1,825

2,394

(569)

16%

21%

(5)%

2.2 Recurring operating incomes Recurring operating income: operating income exclusive of non‑recurring items with a significant impact that may affect understanding of theGroup’s economic performance.

2.3 Net cash position and restated net cash positions Net cash position: includes cash and cash equivalents presented
under balance sheet assets, less bank overdrafts which appear
under short‑term borrowings and financial liabilities on theliabilities side. Lease liabilities recognised in accordance withIFRS 16 are excluded from net cash position.

s Restated net cash position: corresponds to net cash position plus
cash investments that do not meet the IFRS criteria for cash
equivalents due in particular to their original maturity of more than
three months, less borrowings and financial liabilities.

5

Borrowings and ﬁnancial liabilities on the balance sheet break down as follows:
In millions of euros

31/12/2023

31/12/2022

Bank overdrafts

1

2

Other ﬁnancial liabilities

2

1

Put options granted to holders of non‑controlling interests

48

34

BORROWINGS AND FINANCIAL LIABILITIES ON THE BALANCE SHEET

51

38

The reconciliation of the net cash position and restated net cash position indicators with the consolidated balance sheet is presented below:

31/12/2023

31/12/2022

10,625

9,225

(1)

(2)

10,625

9,223

Cash investments with maturity over three months from the date of acquisition

541

521

Financial liabilities

(2)

(1)

11,164

9,742

In millions of euros

Cash and cash equivalents
Bank overdrafts
NET CASH POSITIONRESTATED NET CASH POSITION

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

423

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2.4 Adjusted free cash flows
For management purposes, the Hermès Group sees all lease
payments as items affecting operating activities. IFRS 16 considers
ﬁxed lease payments as the sum of the repayment of the principal
portion of the lease liability and the payment of ﬁnancial interests.
Consequently, the Group follows the following APM:s adjusted free cash flows: correspond to the cash flows related tooperating activities, less operating investments and the repaymentof lease liabilities recognised in accordance with IFRS 16(aggregates in the consolidated statement of cash flows).

The reconciliation of this indicator with the Group’s statement of consolidated cash ﬂows presented in section 5.5 is as follows:

2023

2022

5,123

4,111

In millions of euros

Operating cash ﬂows
+ Change in working capital requirements

(794)

73

- Operating investments

(859)

(518)

- Repayment of lease liabilities

(277)

(261)

ADJUSTED FREE CASH FLOWS

3,192

3,404

NOTE 3

SEGMENT INFORMATION

Accounting principles
Given the Group’s current structure, organised into geographicalareas placed under the responsibility of operational Senior
Executives in charge of applying the strategy deﬁned by the
Executive Committee (the principal operational decision‑maker), theGroup has determined that the geographical areas constitute the
Revenue by destination geographical area breaks down as follows:

4242023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

operating segments with reference to the fundamental principle of
IFRS 8.
Segment information
restatements.

ispresented

after

eliminations

andCONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2023
In millions of euros

FranceEurope(excludingFrance)Japan

Asia‑Paciﬁc(excluding
Japan)

Americas

Other

Revenue

1,274

1,818

1,260

6,273

2,502

299

Recurring operating income

512

584

505

3,059

895

89

Recurring operating proﬁtability

40%

32%

40%

49%

36%

30%

Other non‑recurring income andexpenses

-

-

-

-

-

-

Operating income

512

584

505

3,059

895

Operating investments

323

58

24

108

72

Non‑current assets

1,247

510

208

962

Non‑current liabilities

264

273

85

541

“Unallocated” operating income includes expenses related to freeshare allocation plans, unallocated central costs and internal billings.
All non‑current assets and liabilities included in the consolidatedbalance sheet are presented in the segment information, with the
exception of deferred tax assets and liabilities. Non‑current assets

UnallocatedTotal
13,427

6

5,650
42%

-

-

89

6

5,650

-

274

859

871

35

1,975

5,807

604

-

291

2,058

mainly comprise property, plant and equipment and intangible
assets, right‑of‑use assets and ﬁnancial assets. “Unallocated”
non‑current assets mainly include ﬁnancial investments (see note
9.2). Non‑current liabilities include lease liabilities.

2022
In millions of euros

FranceEurope(excludingFrance)Japan

Asia‑Paciﬁc(excluding
Japan)

Americas

Other

Revenue

1,064

1,536

1,101

5,556

2,138

207

Recurring operating income

411

437

435

2,626

737

58

Recurring operating proﬁtability

39%

28%

40%

47%

34%

28%

Other non‑recurring income andexpenses

-

-

-

-

-

-

-

-

UnallocatedTotal
11,602

(6)

4,697

5

40%

Operating income

411

437

435

2,626

737

58

(6)

4,697

Operating investments

254

40

20

83

85

-

36

518

Non‑current assets

906

430

219

931

925

35

1,629

5,075

Non‑current liabilities

219

319

92

488

663

-

198

1,978

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

425

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTE 4ITEMS RELATING TO OPERATING ACTIVITIES

Accounting principles
Revenue

Other sales and administrative expenses

Revenue consists essentially of sales of goods and services
produced by the Group’s main operating activities.

Other sales and administrative expenses include costs usually
borne by the Company in the course of its operations and which are
not related to production. These mainly include expenses for sales
staff and support functions, variable rent expenses and otheradministrative expenses (fees, insurance, travel, etc.).

s Revenues mainly include retail sales in the Group’s stores, which
are recognised at the time of purchase by customers;s Wholesale distribution to store concessionaires, distributors in
the Perfume and Beauty activity and sales to producers (textile
printing, tanning, metal parts, etc.) are recorded when control of
the goods is transferred, which generally occurs at the time ofshipping. Distributors and concessionaires therefore take control
of products until sale to the final customer and thus act as theprincipal under the provisions of IFRS 15.

Any contractual or implicit inventory returns are recorded as adeduction from revenue.

Cost of sales
The cost of sales mainly comprises purchases of raw materials, thecost of production labour, indirect production costs, variable selling
expenses, as well as impairment of inventories.

Other income and expenses mainly include:s depreciation and amortisation of fixed assets and right‑of‑use
assets, with the exception of charges relating to items allocated to
production, which are classified as “Cost of sales” (see note 7);s the cost of pension plans and other long‑term benefits (see note
5.3);
s expenses related to free share allocation plans (see note 5.4);
s changes in provisions (see note 12);s impairment losses (see note 7.4);
s donations and sponsorship expenses.

Sales and administrative expenses

Other non‑recurring income and expenses

Communication

This item enables the separate presentation of major non‑recurring
events that occurred during the ﬁnancial year, whose ﬁnancial
impact was material and whose presentation under recurring
operating income could affect the understanding of the Group’s
economic performance.

Communication expenses include expenses designed to promote
brands and products to customers. These expenses are recognised
as expenses in the ﬁnancial year in which they are incurred.

4.1 Revenue by métier

426

Other income and expenses

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Change at current Change at constantexchange rates
exchange rates

2023

2022

Leather Goods & Saddlery

5,547

4,963

12%

17%

Ready‑to‑wear and Accessories

3,879

3,152

23%

28%

932

842

11%

16%

Other Hermès sectors

1,653

1,371

21%

26%

Perfume and Beauty

492

448

10%

12%

Watches

611

519

18%

23%

Other products

313

306

2%

5%

13,427

11,602

16%

21%

In millions of euros

Silk and Textiles

REVENUE

4.2 Sales and administrative expenses
2023

In millions of euros

Communication

2022

(607)

(525)

Other sales and administrative expenses(2,561)(2,155)

TOTAL(3,169)(2,680)4.3 Other income and expenses
2023

2022

Depreciation and amortisation of ﬁxed assets

(319)

(288)

Amortisation of right‑of‑use assets

(285)

(263)

Sub‑total depreciation and amortisation

(604)

(552)

(106)

(123)

(151)

(65)

(38)

(40)

In millions of euros

Note

Impairment losses
Expenses related to free share allocation plans and similar expenses

5.4

Net change in provisions 1
Other income and expenses
TOTAL

9

(56)

(889)

(836)

5

(1) Of which cost of pension plans and other long‑term beneﬁts for €17 million in 2023 (€16 million in 2022), see Note 5.3.

Total depreciation and amortisation of ﬁxed assets included inoperating expenses (“Other income and expenses” and “Cost of
sales”) amounted to €378 million in 2023, compared with €341
million in 2022.

Total amortisation of rights‑of‑use included in operating expenses(“Other income and expenses” and “Cost of sales”) amounted to€288 million in 2023, compared with €266 million in 2022.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

427

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4.4 Working capital requirements
Accounting principles
Inventories and work‑in‑progress

Trade receivables

Inventories and work‑in‑progress held by Group companies arevalued at the lower of cost (including indirect production costs) or
net realisable value:

Trade receivables are recognised on the balance sheet at their parvalue, which corresponds to their fair value.

s cost is generally calculated at weighted average cost or standard
cost adjusted for variances, according to each category of
inventory. The cost of inventories includes all costs of purchase,processing and all other costs incurred in bringing the inventories
to their present location and condition, as specified by IAS 2
Inventories;s net realisable value is the estimated selling price in the ordinary
course of business less the estimated costs of completion andthe estimated costs necessary to make the sale.

Impairment is booked to reduce inventories to net realisable value if
this is lower than the carrying amount. Impairment is established foreach category of inventory (raw materials, work‑in‑progress,
intermediate products, ﬁnished products and merchandise), if the
products concerned are damaged or obsolete (season andcollection ended, for example) or based on expected turnover. These
impairments are included in the cost of sales.

4.4.1

Credit risk arises from the potential inability of customers to meettheir payment obligations. Expected losses linked to credit risk on
trade receivables are assessed as soon as they arise and reviewed
at each closing (see note 9). They are recognised in “Other income
and expenses”.

Transactions in foreign currencies
Transactions in foreign currencies are recorded on initial recognition,using the applicable exchange rate at the date of the transaction(historical rate). Monetary assets and liabilities denominated inforeign currencies are converted using the closing rate. Foreign
currency adjustments are recognised in income or expenses.

INVENTORIES AND WORK‑IN‑PROGRESS
31/12/2023

31/12/2022

Retail, intermediate and ﬁnished goods

1,972

1,614

Raw materials and work‑in‑progress

1,299

960

Gross values

3,271

2,574

In millions of euros

Impairment

(856)

(795)

TOTAL

2,414

1,779

Net impairment gain/(loss) on retail, intermediate and ﬁnished goods inventories

(60)

0

Net impairment gain/(loss) on impairment of raw material and work‑in‑progress(9)

6

No inventories were pledged as collateral to secure ﬁnancial liabilities.

4.4.2

TRADE RECEIVABLES AND OTHER CURRENT ASSETS
31/12/2023

31/12/2022

In millions of euros

Gross

Impairment

Net

Net

Trade and other receivables

434

3

431

383

s not yet due

282

0

282

267

s past due

152

3

149

116

Current tax receivables

51

-

51

19

Other current assets

301

-

300

263

Other non‑current assets

37

0

37

39

TOTAL

822

4

818

704

Of which:428

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The amount of trade and other receivables due breaks down as follows:

31/12/2023

31/12/2022

In millions of euros

Gross

Impairment

Net

Net

Under 3 months

146

0

146

114

3

1

2

1

Between 3 and 6 months
Over 6 months
TOTAL

With the exception of other non‑current assets, all receivables are
due within one year. There were no signiﬁcant payment deferrals thatwould justify the discounting of receivables.
The Group’s policy is to recommend that insurance be taken out
covering accounts receivable inasmuch as local conditions permit.

4.4.3

3

2

1

1

152

3

149

116

Consequently, the expected risk of non‑recovery is low, as evidenced
by the level of impairment of trade receivables, which amounted to
1% of the gross value at the end of 2023 (1% at the end of 2022).
There is no signiﬁcant concentration of credit risk.

TRADE PAYABLES AND OTHER LIABILITIES
31/12/2023

31/12/2022

Trade payables

685

659

Amounts payable to ﬁxed asset suppliers

195

118

Trade and other payables

880

777

Current tax liabilities

586

496

Other current liabilities

1,233

1,239

In millions of euros

Other non‑current liabilities

106

103

2,804

2,615

31/12/2023

31/12/2022

Inventories and work‑in‑progress

(662)

(324)

TRADE PAYABLES AND OTHER LIABILITIES

5Other current liabilities mainly include employee and tax liabilities excluding current tax liabilities.

4.4.4

CHANGE IN WORKING CAPITAL REQUIREMENTS

In millions of euros

Trade and other receivables

(122)

(54)

Trade and other payables

42

203

Other receivables and payables

(53)

248

TOTAL

(794)

73

The “Other receivables and payables” item of the change in working capital requirement mainly includes tax and employee receivables andpayables.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

429

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTE 5HEADCOUNT, PERSONNEL COSTS AND EMPLOYEE BENEFITS

5.1 Headcount by geographical area and sector

Total

Production

Sales

Support31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
France13,72312,360

9,355

8,561

1,748

1,554

2,620

2,245

Europe (excluding France)

2,327

2,092

878

760

1,144

1,060

305

272

965

900

2

-

880

821

83

79

Asia‑Paciﬁc (excluding Japan)

3,498

2,954

101

77

2,832

2,552

565

325

Americas

1,524

1,380

59

71

1,152

1,028

313

281

TOTAL

22,037

19,686

10,395

9,469

7,756

7,015

3,886

3,202

Japan

Headcount corresponds to employees on permanent employment contracts and those on ﬁxed‑term contracts of more than nine months.

5.2 Personnel costs
Employee expenses recognised in 2023 totalled €2,067 million, compared with €1,765 million in 2022.

5.3 Post‑employment and other employee benefit obligations
General and accounting principles
Post‑employment beneﬁt planss supplemental pension plans in France or abroad.

Deﬁned‑contribution plans

The Group’s obligations are calculated annually by an independentactuary using the projected unit credit method. This method isbased on actuarial assumptions and takes into account theemployee’s probable future length of service, future salary and life
expectancy as well as staff turnover and the inﬂation rate. Actuarial
assumptions are reviewed annually.

Under these plans, regular payments are made to outsideorganisations, which are responsible for their administrative andﬁnancial management. The Group is not committed beyond thecontributions paid and these are therefore recognised as expenses
by destination in the various lines of the consolidated income
statement.
Deﬁned‑beneﬁt plans

The Hermès Group’s deﬁned‑beneﬁt plans include:s benefits in the event of departure or end of career, mainly inFrance and Japan. These obligations are partially or entirely
externalised depending on the country;

430

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

The present value of the obligation is calculated by applying anappropriate discount rate for each country where the obligations arelocated. The discount rates applied are obtained by reference to theyield on investment grade (AA) corporate bonds with the same
maturity as that of the obligation.

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

When beneﬁts are funded in advance through external funds, theassets held are measured at fair value, and taken into account in
the assessment of the net provision. In accordance with IAS 19
revised, rates of return on assets are determined by reference todiscount rates on the obligations.
In the consolidated income statement, the expense is presented
under “Other income and expenses”.

Other long‑term beneﬁts
The Hermès Group’s other long‑term beneﬁts include:s jubilees in France: these awards provide compensation forlong‑standing services;s long‑term awards, mainly in Japan.

Changes in actuarial assumptions and experience effects give riseto actuarial gains and losses, the total of which is recorded under“Other comprehensive income” over the period during which they
were recognised.

5.3.1

INFORMATION BY TYPE OF PLAN AND GEOGRAPHICAL AREA

The provision shown in the balance sheet includes post‑employment deﬁned‑beneﬁt plans and other long‑term beneﬁts:
In millions of euros

31/12/2023

31/12/2022

Deﬁned‑beneﬁt plans

151

182

Other long‑term beneﬁts

16

15

PROVISIONS AT END OF PERIOD

167

196

The present value of the obligations and the fair value of the plan assets broken down by geographical area are as follows:

31/12/2023
In millions of euros

Value

FranceJapan

31/12/2022
Breakdown

Value

Breakdown

141

50%

157

54%

45

16%

50

17%

Other

94

34%

84

29%

Present value of obligations

280

100%

292

100%

France

44

39%

33

35%

Other

68

61%

62

65%

Fair value of plan assets

112

100%

95

100%

France

97

58%

124

63%

Japan

45

27%

50

26%

Other

26

15%

22

11%

PROVISIONS FOR RETIREMENT AND SIMILAR BENEFIT OBLIGATIONS

167

100%

196

100%

5.3.2

5

ACTUARIAL ASSUMPTIONS

For ﬁnancial year 2023, the following actuarial assumptions were used for the countries to which the Hermès Group’s main commitments apply:

Discount rate
Increase in salaries

FranceJapan

3.50% - 4.29%1

1.6%

3.5% - 4.2%

2.5%(1) Rates according to the duration of the plans.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

431

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Reminder of the assumptions in 2022:

Discount rate
Increase in salaries

FranceJapan

3.35% - 3.48%1

1.0%

3.5% - 4.0%

2.5%(1) Rates according to the duration of the plans.

A 0.50 point increase or decrease in the discount rate would lead to a €12 million decrease or a €14 million increase respectively in the HermèsGroup's provision for retirement, with the balancing entry recognised in equity.

5.3.3

RECONCILIATION OF RETIREMENT AND OTHER EMPLOYEE BENEFIT OBLIGATIONS
2023

2022

Value ofobligations

Plan assets

Provisioned
obligations

Value ofobligations

Plan assets

Provisioned
obligations

Provisions as at 1 January

292

(95)

196

331

(71)

260

Expense for the ﬁnancial year

20

(2)

17

20

(3)

16

Beneﬁts paid

In millions of euros

(14)

9

(4)

(5)

1

(4)

Employer contributions

-

(22)

(22)

-

(22)

(22)

Employee contributions

3

(3)

-

2

(2)

-

(16)

1

(15)

(53)

2

(51)

0

-

0

0

(0)

-

Actuarial gains and losses recognised inother comprehensive income
Change in scope
Foreign currency adjustments

(1)

(4)

(5)

(0)

(3)

(3)

Other movements

(4)

4

-

(4)

4

-

PROVISIONS AS AT 31 DECEMBER

279

(112)

167

292

(95)

196

The expense relating to employer contributions under deﬁned‑contribution plans for the 2023 ﬁnancial year amounted to €101 million (€90
million in 2022).

5.4 Share‑based payments
Accounting principles
Free share allocation plans are recognised as expenses at fair value
in the “Other income and expenses” section, with a corresponding
increase in equity. This fair value is spread over the vesting period.
The estimate of the fair value is calculated on the basis of the shareprice on the date that the corresponding decision is made by
Executive Management, subject to the deduction of the amount of

432

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

the advance dividends over the vesting period, taking into accountthe assumption of a turnover rate for beneﬁciaries.
In some countries, these share‑based payments are subject tosocial security charges due upon delivery to employees. These
expenses are then spread over the vesting period and recognised
under “Other income and expenses”.

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the authorisations granted by the Combined
General Meeting of 20 April 2023, in its 28th resolution, theExecutive Management decided on 15 June 2023 to allocate freeshares as follows. The share price on the grant date was €1,939.00.
1. General plan for a total allocation of 210,168 conditional rights toreceive free shares for the benefit of 17,514 Group employees.

The transfer of ownership of all shares is subject to the condition thatthe beneﬁciaries remain in the Group’s workforce at the end of thevesting period. In addition, for 50% of the rights granted, performance
criteria (based on the Group’s results in 2023 and 2024) must be
met. For the purposes of determining the expense recognised, theperformance conditions were considered to be met for the 2023 and2024 ﬁnancial years.

The vesting period for the rights granted under this plan is four years.
The transfer of ownership of all shares is subject to the condition thatthe beneﬁciaries remain in the Group’s workforce at the end of thevesting period.

The calculation of the IFRS expense relating to these allocations isbased on a fair value per share of €1,878.20 over a four‑year period,
after taking into account a dividend yield.

2. Selective plan for a total allocation of 92,400 conditional rights toreceive free shares for the benefit of certain Group executives.

The IFRS expense recognised in 2023 in respect of all free shareallocation plans totalled €151 million, including employer's
contributions, compared with €65 million at end‑2022.

The vesting period for the rights granted under this plan is four years.
The shares outstanding changed as follows during the ﬁnancial year:
In shares

Outstanding as at 1 January

2023

2022

404,760

422,187

Issued302,568-

Exercised(267,417)(264)

Forfeited or cancelled(11,535)(17,163)

OUTSTANDING AS AT 31 DECEMBER

428,376404,760

Information on the free share allocation plans is provided in chapter 3 “Corporate governance”, § 3.8.3.2.

5.5 Senior Executive compensation

5

The breakdown of total compensation paid to members of the Executive Committee and the Supervisory Board, in respect of their functions
within the Group, is as follows:
In millions of euros

2023

2022

Short‑term beneﬁts

35

29

Post‑employment beneﬁts

44

Other long‑term beneﬁts

00

Share‑based payments

3

3

TOTAL

42

36

Short‑term beneﬁts include compensation and bonuses paid to
Executive Committee members during the ﬁnancial year, as well as
directors’ fees paid to members of the Supervisory Board.

Share‑based payments correspond to the amounts expensed in theﬁnancial year.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

433

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTE 6

INCOME TAX

Accounting principles
Income tax

Deferred tax

The income tax expense includes the current tax due for the
ﬁnancial year by fully consolidated companies and deferred tax.

Deferred taxes are calculated on all timing differences existing at
ﬁnancial year‑end at the tax rate in force on that date, or at theenacted tax rate (or nearly enacted rate) for the subsequentﬁnancial year. Previous deferred taxes are revalued using the same
method (liability method). The restatement of assets and liabilities
related to leases also gives rise to the recognition of deferred tax.

The Group’s companies are regularly audited by the tax authoritiesof the countries in which they operate. Appropriate liabilities arerecorded in respect of any uncertain tax positions, the amounts ofwhich are reviewed in accordance with the criteria of IAS 12 andIFRIC 23.

Tax consolidation regimes
The French tax consolidation regime allows certain French
companies in the Group to offset their taxable income for the
purpose of determining the overall income tax expense, for which
only the parent company, Hermès International, remains liable.

Deferred tax assets are recorded to the extent that their future use
is probable given the expected taxable proﬁts. If a non‑recovery riskarises on some or all of a deferred tax asset, an impairment isrecorded.

Furthermore, there is another tax consolidation regime outside
France.

6.1 Breakdown of income tax
In millions of euros

Current tax
Deferred taxes
TOTAL

2023

2022

(1,745)(1,364)122

59(1,623)(1,305)

6.2 Rationalisation of the income tax expense
The difference between the theoretical income tax expense and the net actual income tax expense is explained as follows:
In millions of euros

Net income attributable to owners of the parent

2023

2022

4,311

3,367

Net income from associates

105

50

Net income attributable to non‑controlling interests

(12)

(13)

(1,623)(1,305)

Income tax expense
Net income before tax

5,840

4,635

Effective tax rate

27.8%

28.2%

Current tax rate in France

25.8%

25.8%

Theoretical income tax expense(1,509)(1,197)

Reconciliation items:s differences relating to foreign taxation (primarily the tax rate)
s permanent differences and other
TOTAL

17

(8)

(131)

(100)

(1,623)(1,305)The tax rate applicable in France in 2023 is the basic rate of 25.00% increased by the social contribution of 3.3%, i.e. a total of 25.83%.
“Permanent differences and other” include income and expenses that will never be deductible or taxable, the impact of tax loss carry forwards
that have not been activated, tax adjustments for prior years and any risks and uncertain tax positions.

434

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6.3 Deferred tax
The net change in deferred tax assets and liabilities breaks down as follows:
In millions of euros

2023

2022

Deferred tax assets as at 1 January

555

546

Deferred tax liabilities as at 1 January

20

15

Net deferred tax assets at 1 January

535

531

Income statement impact

122

59

-

-

Scope impact
Exchange rate impact

(23)

(2)

Equity impact

(5)

(53)

Net deferred tax assets at 31 December

629

535

Deferred tax assets as at 31 December

631

555

Deferred tax liabilities as at 31 December

2

20

The impact on equity mainly concerns the change in deferred taxes related to:s revaluations recognised in equity (investments and financial investments and hedging of future cash flows);
s actuarial gains and losses on employee benefit obligations.

These movements had no impact on net income for the year (see note 11.5).
Deferred taxes mainly relate to the following adjustments:

31/12/2023

31/12/2022

Internal margins on inventories and provisions for inventories

464

354

Non‑deductible depreciation and amortisation or impairment on ﬁxed assets

72

57

IFRS 16 Leases

53

56

In millions of euros

Retirement and other employee beneﬁt obligations

40

48

Derivatives

(45)

(27)

Regulated provisions

(53)

(28)

Other

99

74

TOTAL

629

535

5

Deferred tax assets linked to tax loss carry‑forwards were not material as at 31 December 2023 and 2022.
As at 31 December 2023, tax loss carry‑forwards that did not lead to the recognition of deferred tax assets represented potential tax savings of€29 million (compared with €36 million in 2022).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

435

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTE 7GOODWILL, PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS, AND LEASES

7.1 Goodwill
Accounting principles
Business combinations, carried out in the event that the Groupgains control over one or several other activities, are accounted forusing the acquisition method:s the consideration transferred (acquisition cost) is measured at
the fair value of the assets delivered and liabilities incurred at
the date of the exchange;s the identifiable assets and liabilities of the Company acquired
are measured at fair value on the acquisition date;s the costs that can be directly attributed to the acquisition arerecorded as an expense.

This valuation is carried out within no more than a year following thedate of acquisition and in the currency of the acquired entity. The
resulting valuation adjustments are recognised under the related
assets and liabilities, including the share attributable toIn 2023, the Group continued its vertical integration strategy. It madetargeted acquisitions, which are not signiﬁcant, either in total orindividually.

non‑controlling interests. The residual difference, which is thedifference between the transferred counterparty and the share of
net assets and liabilities measured at fair value, is recognised
under goodwill.
Any goodwill and any fair value adjustments arising on theacquisition of a foreign entity are considered to be assets andliabilities of that foreign entity. Therefore, they are expressed in theentity’s functional currency and converted at closing rates.
The difference between the carrying amount of non‑controllinginterests acquired after the date of control and the price paid fortheir acquisition is posted through equity.
Goodwill is not amortised. It is subject to an impairment test, theprinciples of which are presented in note 7.4. Any resulting
impairment is recognised in “Other income and expenses” inoperating income. It is irreversible.

The amount of goodwill shown in Hermès’ consolidated balance sheet
amounted to €72 million as at 31 December 2023.

7.2 Intangible assets and property, plant and equipment
Accounting principles
Intangible assets
Intangible assets mainly comprise acquired software (including theirimplementation costs), as well as the Group’s e‑commerce website
development costs. They are amortised on a straight‑line basis overtheir probable useful life, generally between three and ﬁve years.

s industrial machinery, plant and equipment: 10 to 20 years;

It is speciﬁed that internally generated brands and items that are
similar in substance are not recognised under intangible assets, inaccordance with IAS 38.

s other: 3 to 10 years maximum.

Property, plant and equipment

Gains or losses on disposals of property, plant and equipment
represent the difference between the sale proceeds and the net
carrying amount of the divested asset, and are included in “Other
income and expenses”.

Property, plant and equipment are recorded at historical acquisition
cost, less accumulated depreciation and recognised impairment
losses. They are depreciated, generally using the straight‑line
method, over the following average estimated useful lives:
s buildings: 20 to 50 years;

436

s fixtures and furnishings: between 10 and 20 years depending on
the expected useful life of the asset in question, and within thelimit of the lease term, in the case of fixtures installed at the timeof leasing in stores for which the Group is a tenant;2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Where property, plant and equipment is made up of components
with different useful lives, these are recorded as separate items.

Accounting principles relating to the impairment losses on property,
plant and equipment and intangible assets are presented innote 7.4.

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

In millions of euros

859

3,600

(473)
1

(1)
3,000

2,565

2,220

2,400

(42)
1,800

1,200

600

--- Increase--- Decrease--- Total0

Net values as
at 31/12/2022

7.2.1

Purchase

Amortisationand impairment

Decreases

Exchange
rate impact

Other

Net values as
at 31/12/2023

INTANGIBLE ASSETS

In ﬁnancial year 2023, changes in intangible assets were as follows:

31/12/2022

Increases

Decreases

Exchange
rate impact

Other

31/12/2023

Software, licences, e‑commerce website and patents

578

86

(3)

(1)

13

674

Other intangible assets

141

5

(3)

(3)

1

140

Fixed assets under construction

19

24

0

(0)

(18)

26

(4)

839

In millions of euros

TOTAL GROSS VALUES

738

115

(6)

(4)

Amortisation of software, licences, e‑commerce website
and patents

393

89

(3)

(0)

1

480

Amortisation of other intangible assets

114

6

(3)

(3)

(1)

113

Impairment losses

18

3

(0)

0

(0)

21

TOTAL AMORTISATION AND IMPAIRMENT

525

98

(6)

(3)

(0)

614

TOTAL NET VALUES

213

17

(0)

(1)

(4)

225

31/12/2021

Increases

Decreases

Exchange
rate impact

Other

31/12/2022

Software, licences, e‑commerce website and patents

560

81

(2)

(0)

(61)

578

5

Over ﬁnancial year 2022, changes in intangible assets were as follows:
In millions of euros

Other intangible assets

143

9

(6)

1

(6)

141

Fixed assets under construction

38

14

-

0

(33)

19

TOTAL GROSS VALUES

741

104

(8)

1

(101)

738

Amortisation of software, licences, e‑commerce website
and patents

354

75

(2)

(0)

(34)

393

Amortisation of other intangible assets

116

8

(6)

1

(4)

114

Impairment losses

14

4

(0)

0

0

18

TOTAL AMORTISATION AND IMPAIRMENT

483

87

(8)

1

(38)

525

TOTAL NET VALUES

258

17

-

(0)

(63)

213

The “Other” column included -€49 million in 2022 related to the application of the IFRIC decision on software in SaaS mode.
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

437

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7.2.2

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment changed as follows during the last ﬁnancial year:
In millions of euros

Land
Buildings
Industrial machinery, plant and equipment
Store ﬁxtures and furnishings
Other property, plant and equipment
Fixed assets under construction

31/12/2022

Increases

Decreases

Exchange
rate impact

Other

31/12/2023

191

166

-

(9)

-

348

1,275

32

(1)

(17)

28

1,318

457

51

(5)

0

23

526

1,433

114

(31)

(41)

76

1,551

561

68

(7)

(4)

14

631

209

313

(0)

(5)

(133)

385

TOTAL GROSS VALUES

4,127

744

(45)

(76)

9

4,759

Depreciation of buildings

507

47

(1)

(10)

5

549

Depreciation of machinery, plant, and equipment

281

33

(5)

0

5

315

Depreciation of store ﬁxtures and furnishings

787

152

(31)

(22)

1

888

Depreciation of other property, plant and equipment

344

49

(7)

(4)

(5)

378

Impairment losses

201

93

(0)

(0)

(3)

290

TOTAL DEPRECIATION AND IMPAIRMENT

2,119

375

(44)

(35)

4

2,419

TOTAL NET VALUES

2,007

369

(1)

(41)

5

2,340

Over ﬁnancial year 2022, changes in property, plant and equipment were as follows:
In millions of euros

Land
Buildings
Industrial machinery, plant and equipment

31/12/2021

Increases

Decreases

Exchange
rate impact

Other

31/12/2022

199

-

-

(8)

-

191

1,130

56

(9)

(3)

101

1,275

471

36

(14)

0

(36)

457

1,225

108

(47)

19

128

1,433

Other property, plant and equipment

502

43

(16)

1

31

561

Fixed assets under construction

248

172

(6)

5

(210)

209

Store ﬁxtures and furnishings

TOTAL GROSS VALUES

3,775

414

(91)

14

14

4,127

Depreciation of buildings

467

45

(6)

(4)

4

507

Depreciation of machinery, plant, and equipment

289

29

(13)

0

(25)

281

Depreciation of store ﬁxtures and furnishings

664

139

(46)

10

20

787

Depreciation of other property, plant and equipment

309

45

(16)

0

6

344

Impairment losses

165

38

(1)

2

(2)

201

TOTAL DEPRECIATION AND IMPAIRMENT

1,894

296

(82)

9

3

2,119

TOTAL NET VALUES

1,881

118

(8)

5

11

2,007

Investments made in the 2023 and 2022 ﬁnancial years concern
mainly the opening and renovation of stores and the development of
the production tool, as well as the purchase of an ofﬁce complex in
Paris in 2023.

438

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Impairment losses relate to production lines and stores deemed not
to be sufﬁciently proﬁtable. It is noted that the cash‑generating units
on which impairment losses have been recognised are not individuallymaterial when compared with the Group’s overall business.

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7.3 Leases
Accounting principles
Balance sheet
The Hermès Group owns almost all of its manufacturing facilities
and is tenant of most of the stores and ofﬁces in the cities where it
operates. Real estate leases with ﬁxed rents are recognised in
assets through a right‑of‑use and in liabilities through a leaseliability corresponding to the present value of future payments.
Right‑of‑use assets are equal to the amount of lease liabilities,
adjusted for:s prepaid rents;s incentives received from lessors;s initial direct costs incurred in securing the lease;s and where applicable, restoration costs, at the lease start date.

Rights‑of‑use are amortised on a straight‑line basis over the term of
the lease.
At the end of each period, the lease liability is increased by theamount of interest expenses determined by applying the discountrate and reduced by the amount of payments made.
Furthermore, the liability may be re‑assessed in the event of areview of the lease term, or the rates and indices on which rents are
based.

Income statement
Amortisation of right‑of‑use assets is presented in “Other income
and expenses”, except for allocations relative to right‑of‑use assets
used for production, which are included in “Cost of sales”.
Interest expense is recognised in net ﬁnancial income (see note
9.1).
The gain or loss resulting from the early termination of a contract isdetermined by the difference between the net carrying amount of
the right‑of‑use and the value of the lease liability and is included in“Other income and expenses”.

Statement of cash ﬂows
In the statement of cash ﬂows, repayment of principal and payment

of interest on lease liabilities are presented under the sameheading “Repayment of lease liabilities” in cash ﬂows related toﬁnancing activities.

Lease term
The lease term is determined contract by contract.
The Group takes into account the renewal options on the effective
date of the contract, provided that the total duration of the contract
thus calculated is consistent with the duration of the investment
plan.
In France, in the case of 3‑6‑9‑type commercial leases, the leaseterm used is nine years, except in special cases.
In the event that only Hermès has an option to terminate a lease,
the Group assesses, at the date the contract comes into effect, all
the facts and circumstances providing economic incentives not toexercise this option, taking into account criteria such as the actual
nature of the asset, all costs related to termination, and theduration of the investment plan.

Discount rate
The standard provides that the discount rate for each contract isdetermined by reference to the incremental borrowing rate of thecontracting subsidiary. In practice, given the Group’s ﬁnancing
structure, this rate is determined on the basis of the local currency
swap interest rate, with a maturity in line with the average durationof the contracts in the country. It is adjusted for credit risk by taking
into account the Group’s credit default swap. The rates thus
determined apply on the start date of each contract.

5

Non‑capitalised rents
Leases corresponding to assets with a low unit value or to leases
with a term of less than 12 months are recognised directly as
expenses.
The variable portion of rents is recognised as an expense over theperiod in which the conditions triggering payment are achieved. At
Hermès, this variable portion mainly concerns rents indexed torevenue.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

439

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7.3.1

RIGHT‑OF‑USE ASSETS

The breakdown of rights‑of‑use by nature of the underlying asset is as follows:

31/12/2023

31/12/2022

In millions of euros

Gross

Amortisation andimpairment

Net

Net

Stores

2,304

1,038

1,266

1,272

654

204

450

310

2,958

1,242

1,716

1,582

Ofﬁces and other
TOTAL

The change in right‑of‑use assets during the ﬁnancial year is as follows:
In millions of euros
468
2,100

1,900

1
3

1,700

1,582

1,716

(293)
(45)

1,500

---Increase---Decrease---Total

1,300

Net values as
at 31/12/2022

New
contracts

Amortisationand impairment

Expiryof contract

Exchange
rate impact

Other

Net values as
at 31/12/2023

31/12/2023

440

31/12/2022

In millions of euros

StoresOﬃces and other

Total

Total

Gross amount as at 1 January

2,222

534

2,756

2,489

Implementation of new leases and revisions

249

218

468

330

Expiry and early termination of leases

(100)

(90)

(189)

(123)

Exchange rate impact

(68)

(11)

(79)

51

Other movements and reclassiﬁcations

-

2

3

8

GROSS VALUE AS AT 31 DECEMBER

2,304

654

2,958

2,756

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

31/12/2023

31/12/2022

In millions of euros

StoresOﬃces and other

Total

Total

Amortisation and impairment as at 1 January

950

224

1,174

972

Amortisation and impairment losses

221

71

293

305

Expiry and early termination of leases

(103)

(88)

(191)

(120)

Exchange rate impact

(31)

(3)

(34)

17

-

-

-

-

1,038

204

1,242

1,174

Other movements and reclassiﬁcations
AMORTISATION AND IMPAIRMENT AS AT 31 DECEMBER

7.3.2

LEASE LIABILITIESThe maturities of the lease liabilities are as follows:< 1 year> 5 years

1 to 5 years

TOTAL 31/12/2023

€289M

€995M

€725M

€2,009M(31/12/2022: €1,897M)

In millions of euros< 1 year

1 to 5 years> 5 years

31/12/2023

31/12/2022

289

995

725

2,009

1,897

31/12/2023

31/12/2022

1,897

1,777

479

350

TOTAL LEASE LIABILITIESThe breakdown of changes in liabilities over the ﬁnancial year is as follows:
In millions of euros

Lease liabilities as at 1 January
Implementation of new leases and revisions
Expiry and early termination of leases

(24)

(10)

Repayments

(277)

(261)

Exchange rate impact

(60)

43

Other movements and reclassiﬁcations

(4)

(2)

2,009

1,897

LEASE LIABILITIES AS AT 31 DECEMBER

7.3.3

5

NON‑CAPITALISED RENTS

At the end of December 2023, the rents resulting fromnon‑capitalised leases corresponded to:s store rents, for which variable payments amounted to €555 million
for the financial year (compared with €472 million for financial year2022);

s exempted rents (leases corresponding to assets with a low unit
value or a term of less than 12 months) in the amount of€10 million (compared with €7 million in 2022).

Financial expenses relating to lease liabilities are presented innote 9.1.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

441

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7.4 Monitoring the value of fixed assets
Accounting principles
In accordance with IAS 36, impairment tests on assets with anindeﬁnite useful life are carried out annually during the budget
period or more regularly if events or changes in the market
environment show signs of impairment. For assets with a ﬁnite
useful life, tests are carried out if there is an indication of
impairment. These impairment tests consist of comparing the net
carrying amount with the recoverable amount of all property, plantand equipment and/or intangible assets of each cash‑generating
unit (CGU).
The Hermès Group has deﬁned the following CGUs or groups of
CGUs:
s Hermès sales units (retail branches), which are treatedindependently from one another;s production units by métier;s other Group brands;s investment property;s associates.

The recoverable amount of each CGU is determined using the
Discounted Cash Flow (DCF) method, applying the following
principles:s after‑tax cash flow figures are derived from a medium‑termbusiness plan developed by the relevant entity;s the after‑tax discount rate is determined on the basis of theGroup’s weighted average cost of capital (9.68% in 2023,
compared with 8.38% in 2022), adjusted by a risk premium, if
necessary, according to the geographical area and activity of theentity concerned;s the recoverable amount is calculated as the sum of cash flows
generated each year during the budget period and the terminal
value, which is determined based on normative cash flows by
applying a growth rate to infinity. The assumptions used in termsof business growth and terminal values are reasonable andconsistent with available market data.

If the recoverable amount is lower than the net carrying amount, an
impairment loss equal to the difference between these two amounts
is recognised.

The amount of any impairment losses relating to the various ﬁxed assets is shown in notes 7.1, 7.2 and 7.3.

442

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTE 8INVESTMENTS IN ASSOCIATES

Accounting principles
On the balance sheet, on the acquisition of securities of
equity‑accounted companies, goodwill and, where applicable,earn‑outs recorded, are included in the carrying amount of
securities recognised in “Investments in associates”. Any
impairment relating to this goodwill is reversible (see note 7.4).
The item “Net income from associates” shown in the income
statement includes the following:s any provisions for risk. If the Group's share in the losses of an
associate exceeds the carrying amount of its holding in the
Company, then the Group will no longer recognise its share in
subsequent losses. When the share reaches zero, additional
losses are only the subject of a provision when the Group has alegal or implicit obligation in this respect, or has made paymentson behalf of the associate.

s share of the Group’s income in these companies;
In millions of euros

2023

2022

Investments in associates as at 1 January

54

51

Impact of consolidation scope changes

144-

Net income from associates

105

50

Dividends paid

(99)

(56)

Exchange rate impact

(2)

2

Other

(2)

7

INVESTMENTS IN ASSOCIATES AS AT 31 DECEMBER

200

54

The “Other” line includes, where appropriate, the reclassiﬁcation to “Provisions” of the Group share in the losses of associates, when thisexceeds the carrying amount of the investments concerned.

NOTE 95

FINANCIAL ASSETS AND LIABILITIES – NET CASH POSITION

Accounting principles
Financial assets and liabilities
Financial assets include ﬁnancial ﬁxed assets (ﬁnancial
investments, liquidity contract, non‑consolidated and otherinvestment securities), loans and ﬁnancial receivables, and thepositive fair value of ﬁnancial derivatives.
Financial liabilities include borrowings and debt, bank lines of credit
and the negative fair value of ﬁnancial derivatives. They do notinclude the liability associated with employee proﬁt‑sharing, which isincluded in “Other liabilities”.
Financial assets and liabilities are presented in the balance sheet
under current or non‑current assets or liabilities, depending onwhether they fall due within one year or more, with the exception of
trading derivatives, which are recorded under current assets or
liabilities.
Operating payables and receivables and cash and cash equivalents
fall within the scope of IFRS 9 Financial Instruments and arepresented separately in the balance sheet.

Classiﬁcation of ﬁnancial assets and liabilities and valuation
methods
In accordance with IFRS 9, Hermès Group ﬁnancial assets andliabilities are classiﬁed and valued upon their recognition in thebalance sheet according to following categories determined on thebasis of the management model and the characteristics of thecontractual cash ﬂows:
s financial assets and liabilities at fair value through profit or loss;s financial assets recorded at amortised cost;s financial assets at fair value through non‑recyclable equity.
Financial assets and liabilities at fair value through proﬁt or loss

These assets are initially recognised at acquisition cost excluding
incidental acquisition expenses. At each closing date, they aremeasured at fair value. Changes in fair value are recorded in theincome statement under “Other ﬁnancial income and expenses”.
Dividends and interest received on these assets are also
recognised in the income statement under “Other ﬁnancial income
and expenses”.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

443

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Financial assets at amortised cost

Financial assets representing interest or capital repayments atdetermined dates, which are managed with the intention ofcollecting cash ﬂows, are classiﬁed in this category.

Cash and cash equivalents consist of highly liquid investments andshort term investments readily convertible to a known amount ofcash, with maturity of three months or less from the date ofacquisition and subject to an insigniﬁcant risk of changes in value.

These are ﬁxed‑term ﬁnancial assets that the Group acquired with
the intention and the capacity to hold until their maturity as well as
loans and ﬁnancial receivables.

Shares in funds held for the short term and classiﬁed as “Cashequivalents” are recognised at fair value, with changes in fair value
recorded in the income statement.

These instruments are recognised at amortised cost less any
impairment. Interest is calculated at the effective interest rate andrecorded in the income statement under “Other ﬁnancial income
and expenses”.

The following are excluded from cash and cash equivalents:

Financial assets at fair value through non‑recyclable equity

Financial assets at fair value through non‑recyclable equity include
investment securities in non‑consolidated companies that are notheld for trading. This classiﬁcation is determined irreversibly at
origin for each security in question.
They are recognised at the closing date at their fair value andunrealised gains or losses on these ﬁnancial assets are recorded inother comprehensive income under “Revaluation adjustments”. Only
any dividends received are recognised in the income statement.
Financial liabilities

Financial liabilities are initially recorded at fair value (excluding any
transaction cost), then according to the amortised cost method withseparation of any embedded derivatives.
Interest is calculated at the effective interest rate and recorded in
the income statement under “Gross borrowing cost” over theduration of the ﬁnancial liability.
Bank overdrafts, which are treated as ﬁnancing, are presented
under “Current borrowings and ﬁnancial liabilities”.
Financial derivatives

See note 10.
Cash and cash equivalents

The items recognised by the Group as “Cash and cash equivalents”
meet the qualiﬁcation criteria deﬁned by IAS 7 Statement of cash
ﬂows and the AMF recommendations applicable at the closing date.

444

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

s investments in listed equities;s investments at more than three months without the possibility ofearly exit;s bank accounts subject to restrictions (blocked accounts) otherthan those related to regulations specific to certain countries or
sectors of activity (e.g. foreign exchange controls).

Impairment of ﬁnancial assets
Financial assets at fair value through non‑recyclable equity are notsubject to impairment, in accordance with IFRS 9.
Financial assets measured at amortised cost as well as tradereceivables are impaired according to an impairment model basedon expected losses. The Group applies the provisions of IFRS 9
relating to the simpliﬁed model of the original provision over thematurity of the instrument.
Credit risk is assessed upon recognition in the balance sheet at
each closing date taking into account reasonable and justiﬁable
information available as well as the insurance policy coverage put inplace by the Group for the “Wholesale” activity.
Due to the nature of the ﬁnancial assets concerned, the Group
determines that the historical rate of loss on the receivables is areasonable approximation of the rate of expected loss.
Changes in impairment losses are recognised according to thecategory of the asset. For ﬁnancial assets recognised at amortisedcost, any impairment loss is included in the income statement
under “Other ﬁnancial income and expenses”. If the impairment loss
decreases in a subsequent period, it is reversed and recorded asincome.

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

9.1 Net financial income
In millions of euros

2023

2022

Income from cash and cash equivalents

331

67

3

(2)

Gross borrowing costs of which net income/(loss) on interest and exchange rate hedging instruments

4

1

Net borrowing cost

335

65

Interest expense on lease liabilities

(56)

(43)

Other ﬁnancial income and expenses

(88)

(84)

s of which cost of cash flow hedges

(117)

(84)

s of which ineffective portion of cash flow hedges

19

6

TOTAL

190

(62)

9.2 Financial assets
In millions of euros

Financial investments and accrued interest

31/12/2022

Increases

Decreases

Exchange
rate impact

Other

31/12/2023

1,068

21

(1)

-

-

1,088

Liquidity contract

14

4

-

-

-

18

Other ﬁnancial assets

94

28

(0)

0

(0)

122

1,175

53

(1)

0

(0)

1,229

67

21

(0)

0

-

88

1,109

33

(0)

(0)

(0)

1,141

TOTAL GROSS VALUES
Impairment
TOTAL NET VALUES

The increase in ﬁnancial investments corresponds to cash
investments that do not meet the criteria for cash equivalents,
notably on account of their original maturity of more than threemonths.

5

Where applicable, changes in the value of ﬁnancial assets measured
at fair value through equity, which are recorded under “Revaluation
adjustments” in equity, are shown in the “Other” column.
Classiﬁcation and fair value measurement of these ﬁnancial assets ispresented in note 10.5.

9.3 Net cash position
The Hermès Group’s policy is to maintain a positive treasury position
and to have cash available in order to be able to ﬁnance its growthstrategy independently.
Hermès International’s treasury department directly manages theGroup’s cash surpluses and needs. It follows a prudent policy aimed
at avoiding any risk of capital loss and maintaining a satisfactory
liquidity position.

Cash surpluses are invested mainly in money‑market mutual funds,
repos and cash equivalents (term accounts, term deposits) with asensitivity of less than 0.5% and a recommended investment periodof less than three months.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

445

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The breakdown of restated net cash position by maturity and rate type is as follows:

As at 31/12/2023
In millions of euros< 1 year

1 to 5 years> 5 years

Total

Floating rate

Fixed rate

Financial assets

10,876290-

11,167

6,268

4,899

Liquidities

1,386

-

-

1,386

1,343

43

Marketable securities

9,240

-

-

9,240

4,539

4,700

Cash investments with maturity over three months from thedate of acquisition

251

290

-

541

386

156

Financial liabilities 1

1

2

-

2

1

2

Medium and long‑term ﬁnancial liabilities

0

2

-

2

-

2

Bank overdrafts

1

-

-

1

1

(0)

10,876289-

11,164

6,267

4,897

RESTATED NET CASH POSITION(1) Excluding commitments to buy out non‑controlling interests (see note 9.4).

The gains and losses generated through disposal of marketable securities during the ﬁnancial year and recorded through proﬁt or loss amounted
to €25 million. Unrealised gains or losses as at 31 December 2023 stood at €30 million.

As at 31/12/2022
In millions of euros< 1 year

1 to 5 years> 5 years

Total

Floating rate

Fixed rate

Financial assets

9,486

260

-

9,746

3,741

6,005

Liquidities

2,028

-

-

2,028

1,827

201

Marketable securities

7,197

-

-

7,197

1,544

5,654

261

260

-

521

371

150

Cash investments with maturity over three months from thedate of acquisition
Financial liabilities 1

2

1

-

3

2

1

Medium and long‑term ﬁnancial liabilities

-

1

-

1

-

1

Bank overdrafts

2

-

-

2

2

(0)

9,484

258

-

9,742

3,739

6,004

RESTATED NET CASH POSITION(1) Excluding commitments to buy out non‑controlling interests (see note 9.4).

The gains and losses generated through disposal of marketable securities during the ﬁnancial year and recorded through proﬁt or loss amounted
to -€3.7 million. Unrealised gains or losses as at 31 December 2022 stood at +€4.5 million.

9.4 Put options granted to holders of non‑controlling interests
Accounting principles
In compliance with IAS 32 Financial instruments: presentation, whenholders of non‑controlling interests have put options to sell theirinterests to the Group, a ﬁnancial liability is recognised
corresponding to the exercise price of the option. This debt isposted through equity:s as a deduction from “Non‑controlling interests”, in the amount of
the carrying amount of the securities subject to the put option;s for the balance, as a deduction against the “Equity attributable toowners of the parent”.

This entry is adjusted at the end of each period in accordance withchange in the exercise price of the options and the carrying amountof the non‑controlling interests. Changes in fair value are recognised
directly in equity.

Put options granted to holders of non‑controlling interests amounted to €48 million as at 31 December 2023, compared with €34 million as at
31 December 2022.

446

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTE 10MANAGEMENT OF MARKET RISKS AND DERIVATIVES

Accounting principles
Scope
The Group deﬁnes the scope of ﬁnancial derivatives in accordancewith the provisions and principles introduced by IFRS 9 Financial
Instruments. In this respect, the Group analyses all its contracts,
focusing on both ﬁnancial and non‑ﬁnancial liabilities, to identify theexistence of any “embedded” derivatives. Any component of acontract that affects the cash ﬂows of a given contract in the same
way as a stand‑alone derivative corresponds to the deﬁnition of anembedded derivative.
If they meet the conditions set out by IFRS 9, embedded derivatives
are accounted for separately from the “host” contract at the
inception date.
According to Group rules, consolidated subsidiaries may not takeany speculative ﬁnancial positions.

Recognition and measurement
Financial derivatives are initially recorded at fair value.
Changes in the fair value of these derivatives are recorded in theincome statement, unless they are classiﬁed as cash ﬂow hedges,
as described below. In this latter case, the effective portion of thechanges in fair value of derivative instruments is recognised directlyin other comprehensive income in the item “Revaluation
adjustments”. These changes in fair value include the portion linked
to forward points of forward currency agreements as well as thetime value (premium) of currency options qualiﬁed as cash ﬂow
hedges. The ineffective portion of the changes in the fair value

10.1 Counterparty risk
The Group does not incur any signiﬁcant counterparty risk.
In accordance with its internal control procedures, the Group only
deals with leading banks and ﬁnancial institutions that have signed
FBF and ISDA agreements related to transactions on forward ﬁnancial
instruments. Counterparty risks on ﬁnancial transactions aremonitored on an ongoing basis by Hermès International’s treasury
department.
The Group breaks down its investment transactions, foreign exchange
risk hedging transactions and deposit transactions with the selectedbanks within deﬁned limits of amount and maturity.
The impact of the credit risk as recommended by IFRS 13 in the fairvalue of derivatives is close to 0, given that all of the derivatives havea maturity of less than 12 months.

10.2 Foreign exchange risk
10.2.1 FOREIGN EXCHANGE POLICYThe Group is naturally exposed to foreign exchange risk because thebulk of its production is located in the Eurozone, while the majority ofits sales revenue is received in currencies other than the euro(American dollar, Japanese yen and other Asian currencies, etc.). This
exposure is hedged in order to minimise and anticipate the impact of
currency ﬂuctuations on the Group’s proﬁts.

corresponds to the excess of changes in fair value of the hedging
instrument compared with the changes in fair value of the hedged
item.
When the hedged cash ﬂows materialise, the amounts previously
recorded in equity are reclassiﬁed to the income statement
symmetrically with the ﬂows of the related hedged item. The reversalof the effective portion of the hedge is recognised in the operating
income statement. The forward points and the time value of theoptions that make up the cost of hedging are recognised under“Other ﬁnancial income and expenses” with, where applicable, theineffective portion of hedges.

Financial derivatives classiﬁed as hedges
The Group uses derivatives to hedge its foreign exchange risks.
Hedge accounting is applicable when the following conditions aremet:
s the hedging transaction must be supported by appropriate
documentation of the hedging relationship from the time of its
implementation;s an economic relationship exists between the hedged item andthe hedging instrument;s the constraints of effectiveness of the hedging relationship are
met: the hedge ratio does not show any imbalance between thehedged element and the hedging instrument generating a hedge
ineffectiveness.

5

The Group’s foreign exchange risk exposure management policy isbased on the following principles:s the production subsidiaries apply an annual exchange rate to thegrid established in euros and invoice the distribution subsidiaries
in their currency. So, the distribution subsidiaries concentrate mostof the foreign exchange risk;s the Group’s foreign exchange risk is systematically hedged by
Hermès International on an annual basis, based on budget
forecasts of future internal cash flows related to operating
activities between the companies in the Group. In practical terms,
as at 31 December, the hedging of internal transactions incurrencies for the following year is close to 100%;s no speculative transactions in the economic meaning of the term
are authorised;s Hermès International’s treasury department carries out thesehedges with firm foreign exchange transactions (currency swaps
and forward currency contracts) and/or purchases and sales of
options eligible for hedge accounting (call and put options);s other non‑operating transactions are hedged against foreignexchange risk as soon as their commitment is firm and final. They
include financial risks arising from intragroup loans and dividends
in foreign currencies.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

447

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Executive Committee has validated these management rules andthe Supervisory Board has endorsed them. The Executive Committee
validates management decisions within this set of rules, via aTreasury Safety Committee that meets on a regular basis.

The administrative management is carried out using integrated
treasury software. The Hermès International middle & back‑ofﬁce
departments and internal control department conduct controls onthese transactions. In addition, the audit and risk management
department ensures compliance with the risk control andmanagement procedures.

10.2.2 NET CURRENCY POSITION
As at 31/12/2023
Monetary assets/(liabilities) 1

Future cash ﬂows

Net position
before hedging

Derivatives 2

Net position
after hedging

Chinese yuan

Hedging ratio

191

1,406

1,597

(1,626)

(29)

102%

US dollar

30

1,026

1,056

(1,061)(5)100%

Singapore dollar

62

709

771

(747)

24

97%

Japanese yen

33

640

673

(679)

(6)

101%

In millions of euros

Hong Kong dollar

36

590

626

(643)

(16)

103%

Pound sterling

2

214

216

(230)

(14)

106%

Euro 3

38

145

183

(179)

4

98%

Australian dollar

18

145

163

(157)

5

97%

Thai baht

9

116

125

(125)

1

99%

Canadian dollar

6

118

124

(125)

(1)

101%

Swiss franc

14

68

82

(77)

4

95%

Brazilian real

28

19

46

(38)

9

81%

Other currencies

(0)

168

168

(167)

1

100%

SUMMARY

468

5,363

5,831

(5,854)

(23)

100%

(1) Monetary assets are comprised of receivables and loans as well as bank balances, investments and cash equivalents whose date of maturity is less than three months from thedate of acquisition. Monetary liabilities are composed of financial liabilities as well as operating liabilities and miscellaneous liabilities.
(2) Purchase/(Sale).
(3) Euro foreign exchange rate risk for subsidiaries that have a different functional currency. Exceptionally, this may also include internal transactions in euros, excluding sales ofgoods, with subsidiaries that have a different functional currency.

As at 31/12/2022
Monetary assets/((liabilities) 1

Future cash ﬂows

Net position
before hedging

Derivatives 2

Net position
after hedging

Hedging ratio

Chinese yuan

285

1,147

1,432

(1,437)(5)100%

In millions of euros

US dollar

(12)

994

982

(972)

10

99%

Singapore dollar

60

584

644

(643)

1

100%

Japanese yen

37

534

571

(568)

3

99%

Hong Kong dollar

32

487

519

(548)

(29)

106%

Pound sterling

(16)

165

149

(141)

8

95%

Australian dollar

19

123

142

(139)

3

98%

Euro 3

18

95

113

(113)

(0)

100%

Thai baht

11

96

108

(101)

6

94%

Canadian dollar

8

86

94

(91)

3

97%

Swiss franc

34

39

74

(71)

3

96%

Brazilian real

17

15

32

(27)

6

82%

Other currencies

7

120

127

(124)

3

98%

501

4,486

4,987

(4,976)

11100%

SUMMARY(1) Monetary assets are comprised of receivables and loans as well as bank balances, investments and cash equivalents whose date of maturity is less than three months
from the date of acquisition. Monetary liabilities are composed of financial liabilities as well as operating liabilities and miscellaneous liabilities.
(2) Purchase/(Sale).
(3) Euro foreign exchange rate risk for subsidiaries that have a different functional currency. Exceptionally, this may also include internal transactions in euros, excluding
sales of goods, with subsidiaries that have a different functional currency.

448

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10.2.3 BREAKDOWN OF FOREIGN EXCHANGE CONTRACTS

Nominal amountsof derivatives

Nominal amountsof derivatives used
to hedge foreignexchange risk

Cash ﬂow hedge

Fair value hedge

Unallocated

Total

Chinese yuan puts

126

126

5

-

-

5

Chinese yuan collars

407

407

15

-

-

15

US dollar puts

95

95

4

-

-

4

In millions of euros

Market value of contracts as at 31 December 2023 1

Options purchased

US dollar collars

284

284

10

-

-

10

Singapore dollar puts

96

96

2

-

-

2

Singapore dollar collars

288

288

4

-

-

4

Japanese yen puts

197

197

6

-

-

6

Japanese yen collars

240

240

12

-

-

12

Hong Kong dollar puts

69

69

2

-

-

2

Hong Kong dollar collars

206

206

6

-

-

6

2,008

2,008

65

-

-

65

US dollar

640

660

6

0

(0)

6

Euro 3

145

145

(1)

-

(0)

(1)

Chinese yuan

870

870

35

-

(0)

35

Forward foreign exchange contracts 2

Singapore dollar

325

325

7

-

-

7

Hong Kong dollar

316

316

10

-

-

10

Pound sterling

214

214

(3)

-

-

(3)

Japanese yen

202

202

23

-

-

23

Swiss franc

68

68

(2)

-

-

(2)

Canadian dollar

118

118

(0)

-

-

(0)

Australian dollar

145

145

-

-

-

-

Thai baht

116

116

3

-

-

3

Other currencies

206

206

(3)

-

-

(3)

3,364

3,384

74

0

(0)

74

US dollar

42

(1)

0

-

1

1

5

Currency swaps 2

Chinese yuan

222

175

2

-

1

3

Singapore dollar

38

38

-

-

-

-

Hong Kong dollar

53

46

1

-

-

1

Swiss franc

9

9

(0)

-

-

(0)

Pound sterling

16

1

-

-

-

-

Japanese yen

39

33

-

-

-

-

Other currencies

62

51

0

-

-

-

482

353

3

-

2

4

5,854

5,745

141

-

1

143

TOTAL

(1) Gain/(Loss).
(2) Sale/(Purchase).
(3) Euro foreign exchange rate risk for subsidiaries that have a different functional currency. Exceptionally, this may also include internal transactions in euros, excluding
sales of goods, with subsidiaries that have a different functional currency.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

449

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Nominal amountsof derivatives

Nominal amountsof derivatives used
to hedge foreignexchange risk

Cash ﬂow hedge

Fair value hedge

Unallocated

Total

Chinese yuan puts

105

105

7

-

-

7

In millions of euros

Market value of contracts as at 31 December 2022 1

Options purchased

Chinese yuan collars

316

316

18

-

-

18

US dollar puts

94

94

4

-

-

4

US dollar collars

283

283

9

-

-

9

Singapore dollar puts

81

81

2

-

-

2

Singapore dollar collars

244

244

2

-

-

2

Japanese yen puts

51

51

3

-

-

3

Japanese yen collars

203

203

7

-

-

7

Hong Kong dollar puts

59

59

2

-

-

2

Hong Kong dollar collars

176

176

5

-

-

5

1,612

1,612

58

-

-

58

625

625

(1)

0

(0)

(1)

Forward foreign exchange contracts 2
US dollar
Euro 3

95

95

3

-

-

3

Chinese yuan

724

724

18

-

-

18

Singapore dollar

258

258

(12)

-

-

(12)

Hong Kong dollar

252

252

7

-

(0)

7

Pound sterling

165

165

5

-

-

5

Japanese yen

280

280

6

-

-

6

Swiss franc

39

39

(2)

-

-

(2)

Canadian dollar

86

86

3

-

-

3

Australian dollar

123

123

7

-

-

7

Thai baht

96

96

1

-

-

1

Other currencies

146

146

(2)

-

(2)

(4)

2,890

2,890

32

0

(2)

30

US dollar

(30)

(30)

0

-

(0)

-

Chinese yuan

293

223

(1)

-

(0)

(1)

Singapore dollar

59

59

(1)

-

-

(1)

Hong Kong dollar

61

41

0

-

-

-

Swiss franc

31

31

(0)

-

-

(0)

Currency swaps 2

Pound sterling

(24)

(24)

(0)

-

-

(0)

Japanese yen

34

34

(1)

-

(0)

(1)

Other currencies

48

48

0

-

(0)

-

473

382

(2)

-

(0)

(2)

4,976

4,884

88

0

(3)

86

TOTAL

(1) Gain/(Loss).
(2) Sale/(Purchase).
(3) Euro foreign exchange rate risk for subsidiaries that have a different functional currency. Exceptionally, this may also include internal transactions in euros, excluding
sales of goods, with subsidiaries that have a different functional currency.

4502023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10.2.4 SENSITIVITY TO EXCHANGE RATE FLUCTUATIONSThe sensitivity of equity to foreign exchange risk is analysed for the
cash ﬂow hedge reserve. The impact on equity (before tax)
corresponds to the change in the market value of derivatives

designated as cash ﬂow hedges generated by the current variance inexchange rates at the end of the period, ceteris paribus.

In millions of euros

2023

2022

Impacts before tax

EquityNet income

EquityNet income

10% appreciation of the Group’s exposure currencies

(414)

(3)

(397)

1

10% depreciation of the Group’s exposure currencies

376

2

346

(1)

10.3 Interest rate and liquidity risk

The control of risk and management procedures is identical to theone applied to foreign exchange transactions.

10.3.1 INTEREST RATE AND LIQUIDITY POLICY

The following interest rate risks involve only items in the net cash
position. Moreover, the interest rate risks are not material asconcerns the ﬁnancial assets and liabilities not included in the net
cash position.

The Group may use ﬁnancial instruments such as interest rate
derivatives and swaps to hedge part of its payables and receivables
against interest rate ﬂuctuations.

As at 31 December 2023
In millions of euros< 1 year

1 to 5 years

ears> 5 years

Total

Floating rate

Fixed rate

Financial assets

10,876290-

11,167

6,268

4,899

Euro

7,388

290

-

7,679

5,059

2,620

762

-

-

762

54

709

1,424

-

-

1,424

423

1,001

Singapore dollar

409

-

-

409

159

250

Hong Kong dollar

253

-

-

253

59

194

Other currencies

Chinese yuan
US dollar

639

-

-

639

514

126

Financial liabilities 1

1

2

-

2

1

2

Euro

0

2

-

2

0

2

Other currencies
RESTATED NET CASH POSITION

0

-

-

0

0

-

10,876289-

11,164

6,267

4,897

5

(1) Excluding commitments to buy out non‑controlling interests (€48 million as at 31 December 2023).

As at 31 December 2022
In millions of euros< 1 year

1 to 5 years> 5 years

Total

Floating rate

Fixed rate

Financial assets

9,486

260

-

9,746

3,741

6,005

Euro

6,185

260

-

6,444

2,456

3,988

798

-

-

798

39

759

1,096

-

-

1,096

534

562

Chinese yuan
US dollar
Singapore dollar

272

-

-

272

160

112

Hong Kong dollar

490

-

-

490

39

451

Other currencies

645

-

-

645

513

133

2

1

-

3

2

1

Euro

2

1

-

3

2

1

Other currencies

0

-

-

0

0

-

9,484

258

-

9,742

3,739

6,004

Financial liabilities 1

RESTATED NET CASH POSITION(1) Excluding commitments to buy out non‑controlling interests (€34 million as at 31 December 2022).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

451

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10.3.2 SENSITIVITY TO INTEREST RATE FLUCTUATIONS
In millions of euros

2023

2022

63

37

Impact on income before tax
Uniform 1‑point increase in interest rates

10.4 Equity risks level 2: internal model with parameters observable using internalvaluation techniques. These techniques involve usualmathematical calculation methods that include observable market
data (future prices, yield curve, etc.). The calculation of mostfinancial derivatives traded on markets is performed on the basisof models that are commonly used by participants in order toevaluate these financial instruments;

Investments in equities are not material at Group level. As such, theGroup does not have any signiﬁcant exposure to equity risk.

10.5 Fair value and hierarchy by level of fair valueof financial assets and liabilities
The assets and liabilities recorded at fair value are classiﬁed
according to the following three fair value levels:s level 3: internal model with non‑observable parameters.

s level 1: prices listed on an active market. If listed prices in an
active market are available, they are used as a priority in order todetermine market value;

For ﬁnancial years 2023 and 2022, there were no transfers between
levels 1 and 2 for ﬁnancial assets and liabilities recognised at fairvalue.
2023

In millions of euros

Assetsat fair value
through proﬁt
Noteor loss 1

Financial
Financial assets at fairassets at value throughamortised non‑recyclable
cost
equityLiabilities
at amortised
cost

Net
carrying
amountFair value

Evaluation
level

Financial investments

30

5112

547

-

-

1,088

1,088

2

Liquidity contract

18

-

-

-

-

18

18

1
2

Other ﬁnancial assets

Financial assets

9.2

Loans and deposits

34

-

-

-

-

34

34

83

511

547

-

-

1,141

1,141

-

70

-

-

-

70

70
818

2

Trade receivables and other current
assets

4.4.2

-

818

-

-

-

818

Foreign currency derivative assets

10.2

188

-

-

-

-

188

188

2

Cash and cash equivalents

9.3

3,120

7,505

-

-

-

10,625

10,625

1

Bank overdrafts

9.3

-

-

-

-

1

1

1

Other borrowings

9.3

-

-

-

-

2

2

2

-

-

-

-

2

2

2

Financial liabilities 3
Trade payables and other liabilities

4.4.3

-

-

-

-

(2,804)(2,804)(2,804)Foreign currency derivative liabilities

10.2

-

-

-

(45)

-

(45)

(45)

(1) Before hedge accounting.
(2) Comprised of EMTNs and term deposits not meeting the criteria of cash and cash equivalents.
(3) Excluding commitments to buy out non‑controlling interests (€48 million as at 31 December 2023).

452

Liabilities
at fair
value 12023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

2

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2022
Financialassets at fair
Assets at fair
Financial value throughvalue throughassets at non‑recyclable
1
Note proﬁt or loss amortised costequityIn millions of euros

Liabilities at Liabilities atfair value 1 amortised cost

Net carrying
amountFair value

Evaluation
level

Financial investments

30

4912

547

-

-

1,068

1,068

2

Liquidity contract

14

-

-

-

-

14

14

1
2

Other ﬁnancial assets
Financial assets

9.2

Loans and deposits

27

-

-

-

-

27

27

71

491

547

-

-

1,109

1,109

-

65

-

-

-

65

65

-

704

-

-

-

704

704

2

Trade receivables and other current assets

4.4.2

Foreign currency derivative assets

10.2

160

-

-

-

-

160

160

2

Cash and cash equivalents

9.3

2,066

7,159

-

-

-

9,225

9,225

1

Bank overdrafts

9.3

-

-

-

-

2

2

2

Other borrowings

9.3

-

-

-

-

1

1

1

-

-

-

-

3

3

3

Financial liabilities 3
Trade payables and other liabilities

4.4.3

-

-

-

-

(2,615)(2,615)(2,615)

Foreign currency derivative liabilities

10.2

-

-

-

(74)

-

(74)

(74)

2

(1) Before hedge accounting.
(2) Comprised of EMTNs and term deposits not meeting the criteria of cash and cash equivalents.
(3) Excluding commitments to buy out non‑controlling interests (€34 million as at 31 December 2022).

NOTE 11

EQUITY – EARNINGS PER SHARE

11.1 Share capital

11.2 Capital management

As at 31 December 2023, Hermès International’s share capitalconsisted of 105,569,412 fully paid‑up shares with a par value of€0.51 each, of which 839,115 treasury shares.

The Group’s objectives, policies and procedures in the area of capitalmanagement are in keeping with sound management principles
designed to ensure that operations are well‑balanced ﬁnancially andto minimise the use of debt. As its surplus cash position gives it some
ﬂexibility, the Group does not use prudential ratios such as “return on
equity” in its capital management. During the current year, the Groupmade no change in its capital management policy and objectives.

5

11.3 Treasury shares
Accounting principles
Treasury shares are recorded at acquisition cost and deducted from equity. Gains or losses on the disposal of these shares are recognised
directly in equity, with no impact on proﬁt or loss.

In ﬁnancial year 2023, the following treasury share movements
occurred:s delivery of 267,417 free shares reserved for Hermès Group
employees under employee shareholding plans.

s buyback of 74,954 shares for €132 million, excluding movements
under the liquidity contract;

It is speciﬁed that no shares are reserved for issuance under options
or agreements to sell shares.

s sale of 2,047 shares as part of the liquidity contract;2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

453

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

11.4 Dividends
The General Meeting called to approve the ﬁnancial statements forthe ﬁnancial year ended 31 December 2022 approved, on 20 April
2023, the payment of an ordinary dividend of €13.00 per share forthe ﬁnancial year.

Taking into account the interim cash dividend of €3.50 per share paid
on 22 February 2023, a balance of €9.50 was paid in cash on
27 April 2023.
The total amount of the ordinary dividend paid in 2023 was €1,359
million.

11.5 Income and expenses recognised in comprehensive income
Income and expenses recognised directly in other comprehensive income in 2023 were as follows:
In millions of euros

Note

Gross impact

Tax impact

Net impact

Actuarial gains and losses

5.3.3

15

(6)

10

(114)

-

(114)

8

(1)

7

Foreign currency adjustments
Revaluation adjustments
TOTAL

(97)

And for 2022:
In millions of euros

Note

Gross impact

Tax impact

Net impact

Actuarial gains and losses

5.3.3

51

(11)

41

Foreign currency adjustments

126

-

126

Revaluation adjustments

518

(55)

463

TOTAL

629

2023 movements in derivatives (cash ﬂow hedges in foreign currencies) and ﬁnancial investments break down as follows (after tax):
In millions of euros

2023

2022

Revaluation adjustments as at 1 January

546

83

Amount transferred to equity in the year in respect of derivatives

(23)

87

Revaluation of derivatives

68

23

-

333

Other deferred foreign exchange gains/(losses) recognised in comprehensive income

(38)

19

REVALUATION ADJUSTMENTS AS AT 31 DECEMBER

553

546

Revaluation of ﬁnancial investments

11.6 Earnings per share
Accounting principles
Basic earnings per share are calculated by dividing the net income
attributable to owners of the parent by the weighted average
number of ordinary shares outstanding during the ﬁnancial year,
less the average number of shares held by Hermès International(treasury shares).

454

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Diluted earnings per share corresponds to the ratio between the net
income attributable to owners of the parent and the weighted
average number of shares outstanding during the ﬁnancial year,
excluding the shares held by Hermès International (treasury
shares), adjusted for the dilutive effect generated by the allocationof free shares.

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The calculation and reconciliation of basic earnings per share and diluted earnings per share is as follows:

2023

2022

4,311

3,367

105,569,412

105,569,412(921,333)(1,004,683)

104,648,079

104,564,729

41.19

32.20

In millions of euros

Net income attributable to owners of the parent
Denominator in number of shares
Average number of shares outstanding during the ﬁnancial year
Average number of treasury shares during the ﬁnancial year
Average number of shares before dilution
Basic earnings per share in euros
Dilutive effect of free share allocation plans

194,405

371,566

104,842,483

104,936,295

Diluted earnings per share in euros

41.12

32.09

Average share price

1,847€

1,264€

Average number of shares after dilution

NOTE 12PROVISIONS FOR RISKS AND EXPENSES AND OFF‑BALANCE SHEET COMMITMENTS

Accounting principles
A provision is a liability of uncertain timing or amount. Its recognitionis due to the fact that:s on the other hand, it is probable that an outflow of resources will
be required to settle the obligation.

s on the one hand, the Group has an obligation (legal orconstructive) resulting from a past event; andIn addition, a reliable estimate of the amount of the obligation ismade based on the information available to the Group when the
consolidated ﬁnancial statements are prepared.

5
12.1 Provisions
Exchange
Other andrate impact reclassiﬁcations

In millions of euros

31/12/2022

Allocations

Reversals

Current provisions

133

47

(44)

(1)

(1)

134

Non‑current provisions

30

1

(3)

(2)

6

31

TOTAL

163

48

(47)

(3)

5

166

Current provisions concern provisions for risks, disputes and litigation,
as well as provisions to cover the share of the negative net position of
associates (see note 8).
Non‑current provisions mainly include provisions for restoration.

31/12/2023

Other movements correspond essentially to provisions for restoration
costs, established or revised during the ﬁnancial year in return for theright‑of‑use asset, which is amortised over the term of the leases (seenote 7.3).

Reversals consumed amounted to €23 million.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

455

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

12.2 Off‑balance sheet commitments
12.2.1 FINANCIAL COMMITMENTS
Financial commitments were discounted using a rate of 9.68% in 2023 (8.38% in 2022).

< 1 year

1 to 5 years> 5 years

31/12/2023

31/12/2022

Bank guarantees given

5

7

2

14

18

Bank guarantees received

17

1

0

18

14

-

-

20

20

19

Commitments to purchase raw materials

143

54

-

198

115

Other

14

6

0

21

9

In millions of euros

Commitments to purchase ﬁnancial assets

12.2.2 OTHER OFF‑BALANCE SHEET COMMITMENTS
The Group has no knowledge of any commitments other than those mentioned herein and that are not reﬂected in the ﬁnancial statements forthe year ended 31 December 2023. To date, there is no exceptional event or dispute that would be liable to have a likely and material impact on
the Group’s ﬁnancial position.
Furthermore, in the normal course of its business operations, the Group is involved in legal actions and is subject to controls. A provision isrecorded when a risk is identiﬁed and when its cost can be estimated.

NOTE 13

RELATED‑PARTY TRANSACTIONS

13.1 Transactions with associates
Transactions with associates were not signiﬁcant during the ﬁnancialyear.

13.2 Transactions with other related parties
Relationships with other related parties, within the meaning of IAS 24
Related Party Disclosures can be summarised as follows:
s RDAI studio: the RDAI architecture studio was appointed to carryout exclusive design work on the internal layout of all HermèsGroup stores. The fees paid by the Group amounted to €14 million
excluding tax in 2023. RDAI is considered to be a related party to
the extent that a member of the Executive Management Board ofÉmile Hermès SAS has personal interests in this company andexercises significant influence;s Émile Hermès SAS, Active Partner (see chapter 3 “Corporate
governance”, § 3.3.1): each year, Hermès International pays theActive Partner an amount equal to 0.67% of its distributable profits, inaccordance with the Hermès International Articles of Association

456

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL(Article 26). In addition, Hermès International charges Émile Hermès
SAS for certain services provided and expenses incurred. The
corresponding amounts charged back totalled €0.5 million in 2023;
s Studio des Fleurs: Studio des Fleurs offers photography andretouching services for packshots of e‑commerce products. The
amounts paid in 2023 came to €3.6 million. Studio des Fleurs is
considered a related party to the extent that a member of the
Executive Management Board of Émile Hermès SAS has personal
interests therein and exercises significant influence upon it;s Ardian Holding: as part of the diversification of its investments,
Hermès International has an 11.91% equity interest in thecompany Ardian Holding, in which a member of the Supervisory
Board has responsibilities. This commitment had been assumed
prior to this person’s appointment.

Certain of the above transactions constitute related‑party agreements
according to the deﬁnition contained in the French Commercial Code
(Code de commerce). For more details, refer to chapter 3 “Corporate
governance”, § 3.9.1.

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

13.3 Lease agreements with related parties
Address

LessorLesseeLease type

Contractual term

Start

End

Security
deposit

Share of the building 28/30/32,
rue du Faubourg Saint‑Honoré

SAS SIFAH

Hermès International

Commercial
lease

9 years

01/01/2017

31/12/2025

3 months

Share of the building 28/30/32,
rue du Faubourg Saint‑Honoré

SAS SIFAH

Hermès Sellier

Commercial
lease

9 years

01/01/2017

31/12/2025

3 months

Share of the building 26, rue du Faubourg
Saint‑Honoré

SAS SIFAH

Hermès International

Commercial
lease

9 years

01/01/2023

31/12/2031

3 months

Share of the building 26, rue du Faubourg
Saint‑Honoré

SAS SIFAH

Hermès International

Commercial
lease

9 years

01/01/2017

31/12/2025

3 months

Building 23, rue Boissy d’Anglas

SAS SIFAH

Hermès Sellier

Commercial
lease

9 years

01/01/2018

31/12/2026

3 months

Building 74, rue du Faubourg
Saint‑Antoine

SC Auguste
HollandHermès Sellier

Commercial
lease

9 years

01/07/2017

30/06/2026

3 months

4, rue du Pont‑Vert
27400 Le Vaudreuil

Briand Villiers I Comptoir Nouveau
de la Parfumerie

Commercial
lease

9 years ﬁrm

01/07/2023

30/06/2032

3 months

4, rue du Pont‑Vert
27400 Le Vaudreuil

Briand Villiers I Comptoir Nouveau
de la Parfumerie

Construction
lease

30 years ﬁrm

03/10/2022

02/10/2052

Total net value of right‑of‑use assets for the above‑mentioned leases,
calculated in accordance with IFRS 16, stood at €48 million in 2023(versus €41 million in 2022), given the assumptions made relating tolease terms and discount rates.

NOTE 14

All of the transactions described were carried out on an arm’s length
basis, i.e. on terms that would apply if the transactions had occurred
between unrelated parties.

EVENTS AFTER THE REPORTING PERIOD

No signiﬁcant event has occurred since the closing date as at
31 December 2023.
In line with its distribution network vertical integration strategy, thehouse has reinforced its relationship with its historical partner in the
Middle East. Thus, Hermès became in early 2024 a majority

NOTE 15

Amortisation of these right‑of‑use assets amounted to €10 million in
2023 (compared with €11 million in 2022).

shareholder alongside its partner in the retail activities located in the
United Arab Emirates. The latter remains the majority shareholder inthe other countries of the region (Qatar, Kuwait, Bahrain). The impactof the change in consolidation method resulting from this acquisitionof a majority stake and the amount paid will not be signiﬁcant on the2024 consolidated ﬁnancial statements.

5

STATUTORY AUDITORS' FEES

The fees paid to the Statutory Auditors and members of their networks in respect of the 2023 ﬁnancial year were as follows:

PricewaterhouseCoopers
In millions of euros

2023

Breakdown

2022

Breakdown

Certiﬁcation of ﬁnancial statements 1

2.3

79%

2.2

81%

0.6

21%

0.5

19%

2.9

100%

2.7

100%

Services other than certiﬁcation of ﬁnancial statements
TOTAL

2

(1) Of which €1 million invoiced by PricewaterhouseCoopers Audit, Statutory Auditor of the Company and its French subsidiaries.
(2) Of which €0.1 million invoiced by PricewaterhouseCoopers Audit, Statutory Auditors of the Company and its French subsidiaries, for work carried out by the
independent third party on social, societal and environmental information, as well as various attestations. Other services mainly concern i) expertise and compliancework relating to non‑financial data, control processes for certain third parties and to taxation ii) as well as agreed procedures and attestations for subsidiaries abroad.

Grant Thornton Audit
In millions of euros

2023

Breakdown

2022

Breakdown

Certiﬁcation of ﬁnancial statements 1

1.3

100%

1.2

100%

Services other than certiﬁcation of ﬁnancial statements

0.0

0%

0.0

0%

TOTAL

1.3

100%

1.2

100%

(1) Including €0.8 million invoiced by Grant Thornton Audit, Statutory Auditor of the Company and its French subsidiaries.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

457

5

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTE 16SCOPE OF CONSOLIDATION

List of the main consolidated companies as at 31 December 2023 (distribution subsidiaries and holding companies of the divisions, for the mostpart):
Percentage 2023

Company

Headquarters

Interest

Method*ParentParentParent572 076 396

100

100

FC

351 649 504

Hermès International

24, rue du Faubourg Saint‑Honoré, 75008 Paris

Boissy Les Mûriers

23, rue Boissy d’Anglas, 75008 Paris

Boissy Retail PTE LTD

1 Marina Boulevard, #28‑00, Singapore 018989 (Singapore)

100

100

FC

Castille Investissements

24, rue du Faubourg Saint‑Honoré, 75008 Paris

100

100

FC

CHP2

23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

789 925 534

CHP323, rue Boissy d’Anglas, 75008 Paris

100

100

FC

480 011 535

Compagnie des Cristalleries deSaint‑LouisSaint‑Louis‑lès‑Bitche, 57620 Lemberg

100

100

FC

353 438 708

352 565 451

Compagnie Hermès de Participations

23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

413 818 147

Comptoir Nouveau de la Parfumerie

23, rue Boissy d’Anglas, 75008 Paris

99.67

99.67

FC

542 053 285

Faubourg Guam

331 Tumon Sands Plaza
1082 Pale San Vitores Rd
Tumon Guam 96913 (United States)

100

100

FC

Financière St‑Honoré SA

1, rue Robert Céard, 1204 Geneva (Switzerland)

100

100

FC

Grafton Immobilier

23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

440 256 444

HAB

23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

834 031 817

Hermès Argentina S.R.L.

Avenida Alvear 1901 Planta Baja, Unidad 1,
1129 Buenos Aires (Argentina)

100

100

FC

Hermès Asia Paciﬁc LTD

25/F Chinachem Leighton Plaza,
29 Leighton Road, Causeway Bay (Hong Kong)

100

100

FC

Hermès Australia PTY Limited

Level 11, 70 Castlereagh Street
Sydney NSW 2000 (Australia)

100

100

FC

Hermès Austria GmbH

Gonzagasse 17 - 1010 Vienna (Austria)

100

100

FC

Hermès Benelux Nordics

10, rue de Brederode Brussels 1000 (Belgium)

100

100

FC

Hermès Canada INC.

130 Bloor Street West,
Toronto, Ontario M5S 1R1 (Canada)

100

100

FC

Hermès (China) Co., Ltd

Unit 130, Plaza 66, No.1266 West Nanjing Road,
Jingan District, Shanghai (China)

100

100

FC

Hermès (China) Trading Co., Ltd

Building No. 12, Nos. 211, 213, 215 and 227,
Middle Huahai Road, 200021 Shanghai (China)

100

100

FC

Hermès Cuirs Précieux

3, avenue Hoche, 75008 Paris

100

100

FC

Hermès Denmark ApS

Højbro Plads 4, 1112 Copenhagen K (Denmark)

100

100

FC

Hermès de Paris (Mexico) S.A. de C.V.

Calle Montes Urales 715, Oﬁcina 502
Col. Lomas de Chapultepec
11000 CDMX Mexico D.F. (Mexico)

100

100

FC

Hermès Do Brasil Industria E Comercio
Ltda

Avenida Magalhaes de Castro, n° 12.000, Loja 32, Piso Terreo,
Jardim Panarama, Sao Paolo CEP 05502‑01 (Brazil)

100

100

FC

Hermès E‑MESA PTE Ltd

1 Marina Boulevard, #28‑00, Singapore 018989 (Singapore)

100

100

FC

Hermès (G.B.) Limited

8 Hinde Street, London, W1U 3BQ (United Kingdom)

100

100

FC

Hermès Germany GmbH

Maximilianstrasse 8, 80539 Munich (Germany)

100

100

FC

Hermès Grèce A.E.

Rue Stadiou 4 and rue Voukourestiou 1, City Link,
10564 Syntagma Athens (Greece)

100

100

FC

Hermès Holding GB Limited

8 Hinde Street, London, W1U 3BQ (United Kingdom)

100

100

FC

Hermès Iberica, S.A.

Paseo de la Castellana no. 28, 28046 Madrid (Spain)

100

100

FC

Hermès Immobilier Genève SA

1, rue Robert Céard, 1204 Geneva (Switzerland)

100

100

FC

Hermès India Retail and Distributors

C/o IFCCI, DLTA Complex, RK Khanna Stadium, 1st Floor (Gate 3),
1, Africa Avenue, New Delhi - 110 029 (India)

51.01

51.01

FC

Hermès Internacional Portugal Ltda

Largo do Chiado 9, 1200‑108 Lisbon (Portugal)

Hermès Istanbul Çantacilik, Tekstil ve Ipek Ünalan Mahallesi, Libadiye Caddesi, Dış Kapı No:82F İç Kapı
Ürünleri Ticaret Limited Sirketi
No: 9 Üsküdar/Istanbul (Türkiye)

458

Registered no. (French
SIREN)

Control

100

100

FC

100

100

FC

Hermès Italie SA

Via Pisoni 2, 20121 Milan (Italy)

100

100

FC

Hermès Japon Co., Ltd

4‑1, Ginza 5‑Chome, Chuo‑Ku,
Tokyo 104‑0061 (Japan)

100

100

FC

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

398 142 695

CONSOLIDATED FINANCIAL STATEMENTS AFRNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Percentage 2023

Company
Hermès Korea

Headquarters
630‑26 Shinsa‑Dong Gangnam‑gu,
Seoul 135‑895 (South Korea)

Hermès Middle East South Asia Pte Ltd 1 1 Marina Boulevard, #28‑00,
Singapore 018989 (Singapore)ControlInterest

Method*

100

100

FC

100

100

FC

99.98

99.98

FC

Hermès Monte‑Carlo

11‑13‑15, avenue de Monte‑Carlo, 98000 Monaco(Principality of Monaco)

Hermès Norway AS

Nedre Slottsgate 15, 0157 Oslo (Norway)

100

100

FC

Hermès of Paris Inc

55 East, 59th Street, 10022 New York (United States)

100

100

FC

Hermès Pologne SP. ZO.O

Krakowskie Przedmieście 13, 00‑071 Warszawa (Poland)

100

100

FC

Hermès Prague, a.s.

Parizska 12/120, 11000 Prague (Czech Republic)

100

100

FC

Hermès Retail (Malaysia) Sdn. Bhd

Level 6, Menara 1 Dutamas, Solaris Dutmas, n° 1 Jalan Dutamas
1, 50480 Kuala Lumpur (Malaysia)

100

100

FC

Hermès Rus AO

4, Nizhny Kiselny Sidestreet,
Floor 5, Premises 1, Room 15, 107031 Moscow (Russia)

100

100

FC

99.77

99.77

FC

100

100

FC

Hermès Sellier

24, rue du Faubourg Saint‑Honoré, 75008 Paris

Hermès Singapore (Retail) Pte Ltd

1 Marina Boulevard, #28‑00, Singapore 018989 (Singapore)

Registered no. (French
SIREN)

696 520 410

Hermès Suisse SA

1, rue Robert Céard, 1204 Geneva (Switzerland)

100

100

FC

Hermès Sweden AB

NK 243, 111 77 Stockholm (Sweden)

100

100

FC

Hermès Travel Retail Asia Pte Ltd

1 Marina Boulevard, #28‑00, Singapore 018989 (Singapore)

100

100

FC

Hermès Travel Retail (Shanghai) Co., Ltd. Room 1903, 19th Floor, No.993 West Nanjing Road, Jing’anDistrict, Shanghai (China)

100

100

FC

96.71

96.71

FC

592 028 542

100

100

FC

393 178 025

Holding Textile Hermès

16, chemin des Mûriers, 69310 Pierre‑Bénite

Honossy

23, rue Boissy d’Anglas, 75008 Paris

Immauger23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

377 672 159

Immobilière de la Maroquinerie deGuyenne1, avenue de l’Étang - administrative building
33440 Saint‑Vincent‑de‑Paul

100

100

FC

789 928 611

Immobilière de Montereau

23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

812 935 005

Immobilière du 11/15 rue d’Anjou

23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

812 934 990

Immobilière Hermès France

23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

834 021 586
435 233 812

J3L 238, rue Roger‑Salengro, 94120 Fontenay‑sous‑Bois

100

100

FC

J.L. & Company Limited

Westminster Works, 1 Oliver Street,
Northampton NN2 7JL (United Kingdom)

100

100

FC

John Lobb

23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

582 094 371

La Maroquinerie du Sud‑Ouest

256, route de Saint‑Martin‑Le‑Pin, administrative building,
24300 Nontron

100

100

FC

403 230 436

La Montre Hermès SA

Erlenstrasse 31 A, 2555 Brügg (Switzerland)

100

100

FC

Les Manufactures d’Auvergne

Route de Volvic, Bâtiment administratif, 63530 Sayat

100

100

FC

Les Manufactures de Franche‑Comté18, rue de la Côte, Bâtiment administratif, 25230 Seloncourt

100

100

FC

407 836 329

Les Maroquineries des Alpes

1165 rue Victor Hugo, administrative building
38490 Les Abrêts‑en‑Dauphiné

100

100

FC

480 011 451

Maroquinerie de Guyenne

1, avenue de l’Étang, 33440 Saint‑Vincent‑de‑Paul

100

100

FC

812 935 013

Maroquinerie de Montereau

9, rue de la Grande‑Haie, 77130 Montereau‑Fault‑Yonne

100

100

FC

812 935 021

Maroquinerie de Normandie

2, rue Sainte Marguerite 27100 Val‑de‑Reuil

100

100

FC

789 926 334

Maroquinerie de Saint‑Antoine

74, rue du Faubourg Saint‑Antoine and 59, rue de Charenton,
75012 Paris

100

100

FC

409 209 202

Maroquinerie des Ardennes

Avenue des Marguerites, 08120 Bogny‑sur‑Meuse

100

100

FC

428 113 518

Maroquinerie Thierry

ZI Les Bracots, 74890 Bons‑en‑Chablais

100

100

FC

312 108 368

Motsch George V

23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

440 252 476

Saint‑Honoré (Bangkok)

Unit 1201 12th Floor Park Venture Ecoplex 57 Wireless Road,
Lumpini Pathumwan, Bangkok 10330 (Thailand)

90

90

FC

SCI Auger Hoche

12‑22, rue Auger, 93500 Pantin

100

100

FC

335 161 071

SCI Edouard VII

23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

393 882 170

SCI Les Capucines

23, rue Boissy d’Anglas, 75008 Paris

100

100

FC

408 602 050

5

411 795 859* Consolidation method: FC: fully consolidated.
(1) Change of company name in 2024, to Hermès South Asia.
(2) Change of company name in January 2024, to HMM.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

459

5

CONSOLIDATED FINANCIAL STATEMENTS AFRSTATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

5.7

STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL
STATEMENTS(For the year ended 31 December 2023)
This is a free translation into English of the Statutory Auditors’ report issued in French and is provided solely for the convenience of English
speaking readers. This report includes information speciﬁcally required by European regulations or French law, such as information about theappointment of Statutory Auditors. This report should be read in conjunction with, and construed in accordance with, French law and professional
auditing standards applicable in France.

To the Shareholders,

OPINION
In compliance with the engagement entrusted to us by your General Meeting, we have audited the accompanying consolidated ﬁnancial
statements of Hermès International for the year ended 31 December 2023.
In our opinion, the consolidated ﬁnancial statements give a true and fair view of the assets and liabilities and of the ﬁnancial position of theGroup at 31 December 2023, and of the results of its operations for the year then ended in accordance with International Financial ReportingStandards as adopted by the European Union.
The audit opinion expressed above is consistent with our report to the Audit and Risk Committee.

BASIS FOR OPINION
Audit framework
We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is
sufﬁcient and appropriate to provide a basis for our opinion.
Our responsibilities under these standards are further described in the “Responsibilities of the Statutory Auditors relating to the audit of theconsolidated ﬁnancial statements” section of our report.

Independence
We conducted our audit engagement in compliance with the independence rules provided for in the French Commercial Code (Code decommerce) and the French Code of Ethics (Code de déontologie) for Statutory Auditors for the period from 1 January 2023 to the date of ourreport, and, in particular, we did not provide any non‑audit services prohibited by article 5(1) of Regulation (EU) No. 537/2014.

JUSTIFICATION OF ASSESSMENTS – KEY AUDIT MATTERS
In accordance with the requirements of articles L.821‑53 and R.821‑180 of the French Commercial Code relating to the justiﬁcation of ourassessments, we inform you of the key audit matters relating to the risks of material misstatement that, in our professional judgement, were themost signiﬁcant in our audit of the consolidated ﬁnancial statements, as well as how we addressed those risks.
These matters were addressed as part of our audit of the consolidated ﬁnancial statements as a whole, and therefore contributed to the opinion
we formed as expressed above. We do not provide a separate opinion on speciﬁc items of the consolidated ﬁnancial statements.

460

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRSTATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

Measurement of inventories and work‑in‑progress – Note 4.4 to the consolidated financial statements

Description of risk
At 31 December 2023, the Group’s inventories and work‑in‑progress were recognised in the balance sheet at a gross value of €3,271 million
and a net value of €2,414 million.
It is the responsibility of Hermès International’s management to determine the amount of any impairment required to reduce inventories to net
realisable value if the latter is lower than their carrying amount. Impairment is calculated for each category of inventory according to:s the condition of the inventories and their obsolescence (for example, past seasons or collections);s the estimated projected turnover of the inventories on the various markets.

We deemed the measurement of inventories and work‑in‑progress to be a key audit matter given the materiality of inventories and because theaforementioned criteria and the resulting impairment are dependent on assumptions and estimates made by management.
In addition, as a large number of subsidiaries hold inventories, the elimination of internal margins in the consolidated ﬁnancial statements isparticularly important since it has an impact on the gross value of the Group’s inventories and the resulting impairment.

How our audit addressed this risk
Our work consisted in:s examining the inventory measurement and impairment methods and ensuring that those methods were applied consistently;s performing a critical review of management’s methodology and key criteria for recognising inventory impairment based on our knowledge of theGroup’s business segments and projected inventory turnover;s assessing the consistency of the level of impairment with regard to the age of the inventories and historical inventory turnover.

Our work also consisted in verifying, on a sample basis, the consistency between the internal margins eliminated in the consolidated ﬁnancial
statements with margin levels generated by production entities with the different distribution subsidiaries.

Recognition of currency hedges – Note 10 to the consolidated financial statements

Description of risk

5Hermès International is naturally exposed to currency risks because almost all of its production is located in the euro zone, while the majority ofits sales are denominated in foreign currencies (US dollars, Japanese yen, Chinese yuan and other currencies).
The distribution subsidiaries are invoiced in their local currency by the production subsidiaries, who apply an annual exchange rate to scales
established in euros.
To hedge the risk and minimise the impact of currency ﬂuctuations on its earnings, Hermès International uses ﬁxed and optional currency
hedges, with the objective of hedging its net internal exposure on an annual basis. The portfolio of foreign exchange derivatives is adjusted totake into account the most recent budgets. At 31 December, close to 100% of internal currency transactions for the following year were hedged.
We deemed the recognition of currency hedges to be a key audit matter given the impact of currency ﬂuctuations on the Group’s operating
margin, which is an indicator used by the Group in its ﬁnancial communication.

How our audit addressed this risk
As part of our work, with the assistance of our experts, we:s verified the existence, completeness and accuracy of the Group’s portfolio of financial instruments by making confirmation requests to banking
institutions;s recalculated the fair value of a representative sample of instruments to assess the accuracy of their measurement;s verified the relationship between hedges and the related commercial transactions on a selection of hedging operations and performed a
critical review of the documentation for the associated effectiveness tests to assess their eligibility for hedge accounting under IFRS 9;s examined the appropriateness of the disclosures relating to the hedging operations provided in the notes to the consolidated financial
statements.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

461

5

CONSOLIDATED FINANCIAL STATEMENTS AFRSTATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

SPECIFIC VERIFICATIONSAs required by legal and regulatory provisions and in accordance with professional standards applicable in France, we have also performed thespeciﬁc veriﬁcations on the information pertaining to the Group presented in the management report prepared by Executive Management.
We have no matters to report as to its fair presentation and its consistency with the consolidated ﬁnancial statements.
We attest that the information pertaining to the Group presented in the management report includes the consolidated non‑ﬁnancial performancestatement required under article L.225‑102‑1 of the French Commercial Code. However, in accordance with article L.823‑10 of the French
Commercial Code, we have not veriﬁed the fair presentation and consistency with the consolidated ﬁnancial statements of the information givenin that statement, which will be the subject of a report by an independent third party.

OTHER VERIFICATIONS AND INFORMATION PURSUANT TO LEGAL AND REGULATORY REQUIREMENTS
Presentation of the consolidated financial statements to be included in the annual financial report
In accordance with professional standards applicable to the Statutory Auditors’ procedures for annual and consolidated ﬁnancial statements
presented according to the European single electronic reporting format, we have veriﬁed that the presentation of the consolidated ﬁnancial
statements to be included in the annual ﬁnancial report referred to in paragraph I of article L.451‑1‑2 of the French Monetary and Financial
Code (Code monétaire et ﬁnancier) and prepared under Executive Management’s responsibility, complies with this format, as deﬁned by
European Delegated Regulation No. 2019/815 of 17 December 2018. As it relates to the consolidated ﬁnancial statements, our work included
verifying that the markups in the ﬁnancial statements comply with the format deﬁned by the aforementioned Regulation.
On the basis of our work, we conclude that the presentation of the consolidated ﬁnancial statements to be included in the annual ﬁnancial reportcomplies, in all material respects, with the European single electronic reporting format.
Due to the technical limitations inherent to block tagging the consolidated ﬁnancial statements in the European single electronic reporting
format, the content of some of the tags in the notes may not be rendered identically to the accompanying consolidated ﬁnancial statements.
In addition, it is not our responsibility to ensure that the consolidated ﬁnancial statements to be included by the Company in the annual ﬁnancial
report ﬁled with the AMF correspond to those on which we carried out our work.

Appointment of the Statutory Auditors
We were appointed Statutory Auditors of Hermès International by the General Meetings held on 30 May 2011 for PricewaterhouseCoopers Audit
and on 31 May 1999 for Didier Kling & Associés, now Grant Thornton Audit.
At 31 December 2023, PricewaterhouseCoopers Audit and Grant Thornton Audit were in the thirteenth and the twenty‑ﬁfth consecutive year of
their engagement, respectively.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE CONSOLIDATEDFINANCIAL STATEMENTSManagement is responsible for preparing consolidated ﬁnancial statements giving a true and fair view in accordance with International Financial
Reporting Standards as adopted by the European Union, and for implementing the internal control procedures it deems necessary for the
preparation of consolidated ﬁnancial statements that are free of material misstatement, whether due to fraud or error.
In preparing the consolidated ﬁnancial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting, unless it expects toliquidate the Company or to cease operations.
The Audit and Risk Committee is responsible for monitoring the ﬁnancial reporting process and the effectiveness of internal control and risk
management systems, as well as, where applicable, any internal audit systems, relating to accounting and ﬁnancial reporting procedures.
The consolidated ﬁnancial statements were approved by Executive Management.

462

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFRSTATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTSRESPONSIBILITIES OF THE STATUTORY AUDITORS RELATING TO THE AUDIT OF THE CONSOLIDATEDFINANCIAL STATEMENTS
Objective and audit approach
Our role is to issue a report on the consolidated ﬁnancial statements. Our objective is to obtain reasonable assurance about whether the
consolidated ﬁnancial statements as a whole are free of material misstatement. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected toinﬂuence the economic decisions taken by users on the basis of these consolidated ﬁnancial statements.
As speciﬁed in article L.821‑55 of the French Commercial Code, our audit does not include assurance on the viability or quality of the Company’s
management.
As part of an audit conducted in accordance with professional standards applicable in France, the Statutory Auditors exercise professional
judgement throughout the audit.
They also:s identify and assess the risks of material misstatement in the consolidated financial statements, whether due to fraud or error, design andperform audit procedures in response to those risks, and obtain audit evidence considered to be sufficient and appropriate to provide a basis
for their opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;s obtain an understanding of the internal control procedures relevant to the audit in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control;s evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management and therelated disclosures in the notes to the consolidated financial statements;s assess the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as agoing concern. This assessment is based on the audit evidence obtained up to the date of the audit report. However, future events orconditions may cause the Company to cease to continue as a going concern. If the Statutory Auditors conclude that a material uncertainty
exists, they are required to draw attention in the audit report to the related disclosures in the consolidated financial statements or, if suchdisclosures are not provided or are inadequate, to issue a qualified opinion or a disclaimer of opinion;

5s evaluate the overall presentation of the consolidated financial statements and assess whether these statements represent the underlying
transactions and events in a manner that achieves fair presentation;s obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express
an opinion on the consolidated financial statements. The Statutory Auditors are responsible for the management, supervision and performanceof the audit of the consolidated financial statements and for the opinion expressed thereon.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

463

5

CONSOLIDATED FINANCIAL STATEMENTS AFRSTATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

Report to the Audit and Risk Committee
We submit a report to the Audit and Risk Committee which includes, in particular, a description of the scope of the audit and the audit
programme implemented, as well as the results of our audit. We also report any, signiﬁcant deﬁciencies in internal control that we have identiﬁedregarding the accounting and ﬁnancial reporting procedures.
Our report to the Audit and Risk Committee includes the risks of material misstatement that, in our professional judgement, were the mostsigniﬁcant for the audit of the consolidated ﬁnancial statements and which constitute the key audit matters that we are required to describe inthis report.
We also provide the Audit and Risk Committee with the declaration provided for in article 6 of Regulation (EU) No. 537/2014, conﬁrming our
independence within the meaning of the rules applicable in France, as deﬁned in particular in articles L.821‑27 to L.821‑34 of the French
Commercial Code and in the French Code of Ethics for Statutory Auditors. Where appropriate, we discuss any risks to our independence and therelated safeguard measures with the Audit and Risk Committee.

Neuilly‑sur‑Seine, 27 February 2024

The Statutory Auditors

464

PricewaterhouseCoopers Audit

Grant Thornton Audit

Amélie Wattel

Vincent Frambourt

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCONSOLIDATED FINANCIAL STATEMENTS AFR

52023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

465

6

PARENT COMPANY FINANCIAL
STATEMENTS AFR
6.1

INCOME STATEMENT

468

6.2

BALANCE SHEET

469

6.3

CHANGES IN EQUITY

470

6.4

STATEMENT OF CASH FLOWS

470

6.5

NOTES TO THE FINANCIAL STATEMENTS

471

6.6

TABLE OF RESULTS OVER THE LAST FIVE YEARS

486

6.7

INFORMATION ON PAYMENT TERMS

487

6.8

OTHER INFORMATION ON THE PARENT COMPANY FINANCIAL
STATEMENTS

488

6.9

STATUTORY AUDITORS’ REPORT ON THE FINANCIAL
STATEMENTS

489

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

467

6

PARENT COMPANY FINANCIAL STATEMENTS AFR
INCOME STATEMENT

6.1

INCOME STATEMENT

In millions of euros

Note

2023

2022

Operating income

2.1

695

577

614

479

1

1

Revenue
Other products
Reversals of provisions and expenses reclassiﬁed

80

97

(515)

(421)

Other purchases and external expenses

(215)

(188)

Tax and duties

(25)

(12)

Operating expenses

2.2

Compensation and other personnel costs

3.2

(172)

(139)

Depreciation, amortisation and provisions

6/10.1(98)(79)

Other expenses

(5)

(3)

Operating income

180

156

3,336

2,444

(134)

(84)

179

79

Income from subsidiaries and afﬁliates

7.3

Net additions/(reversals) of provisions
Other elements

7.1

Net ﬁnancial income

3,380

2,439

Recurring income

3,560

2,596

20

(10)

3,580

2,586

Extraordinary income

4

Net income before tax and employee proﬁt‑sharing
Employee proﬁt‑sharing
Income tax
NET INCOME

468

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

5

(9)

(7)

(112)

(50)

3,459

2,529

PARENT COMPANY FINANCIAL STATEMENTS AFRBALANCE SHEET

6.2

BALANCE SHEETASSETS
In millions of euros

Note

Non‑current assets
Intangible assets
Property, plant and equipment
Financial assets

6

31/12/2023

31/12/2022

1,549

1,281

53

49

6

33

31

7.2

1,463

1,201

10,068

8,192

169

152

Current assets
Operating receivables

2.3

Other receivables

2.3

975

638

Marketable securities

7.4

8,600

6,386

73

77

251

939

Derivatives
Cash at bank and in hand

7.5

Prepayments and accruals

2.3

TOTAL ASSETS

9

7

11,6269,480

31/12/2023

31/12/2022

9,927

7,844

LIABILITIESIn millions of euros

Note

EquityShare capital

9

54

54

50

50

Other reserves

3,000

2,703

Legal reserve

6

6

Share, merger or contribution premiums

Retained earnings

3,359

2,503

Net income for the ﬁnancial year

3,459

2,529

0

0

164

267

1,527

1,360

35

29

27

18

Regulated provisions
Provisions for risks and expenses

10.1

Liabilities
Financial liabilities

7.6

Derivatives
Operating liabilities

2.4

82

91

Other payables

2.4

1,382

1,221

9

9

11,626

9,480

Prepayments and accruals
TOTAL EQUITY AND LIABILITIES

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

6

469

6

PARENT COMPANY FINANCIAL STATEMENTS AFRCHANGES IN EQUITY

6.3

CHANGES IN EQUITY
Share, merger
or contribution
premiums

Legal reserve, otherreserves, andretained earnings

Net income
for theﬁnancial year

Regulated
provisions

Equity

54

50

4,891

1,165

0

6,160

-

-

-

1,165

(1,165)

-

-

-

-

-

(845)

-

-

(845)

Number of shares
outstanding

Sharecapital99105,569,412

Allocation of net income 2021
Dividends paid in respect of the ﬁnancial year

In millions of euros

Note
As at 31 December 2021
before allocation of net income

Net income for ﬁnancial year 2022

-

-

-

-

2,529

-

2,529

Other changes

-

-

-

-

-

(0)

(0)

105,569,412

54

50

5,212

2,529

0

7,844

Allocation of net income 2022

-

-

-

2,529

(2,529)--Dividends paid in respect of the ﬁnancial year

-

-

-

(1,376)--(1,376)

Net income for ﬁnancial year 2023

-

-

-

-

3,459

-

3,459

Other changes

-

-

-

-

-

(0)

(0)

105,569,412

54

50

6,364

3,459

0

9,927

As at 31 December 2022
before allocation of net income

Balance as at 31 December 2023
before allocation of net income

6.4

STATEMENT OF CASH FLOWSIn millions of euros

Note

2023

2022

3,459

2,529

29

25

Change in provisions and impairment

66

80

Capital gains/(losses) on disposals

105

1

Operating cash ﬂows

3,659

2,635

Change in trade and other receivables

(366)

(31)

Change in trade and other payables

151

187

Change in working capital requirements

(216)

156

Net income
Depreciation and amortisation

Net cash ﬂows from operating activities

3,444

2,791

6

(35)

(29)

Acquisitions of investment securities

7.2

(378)

(28)

Acquisitions of other ﬁnancial assets

7.2

(41)

(145)

-

-

-

1

Acquisitions of property, plant and equipment and intangible assets

Disposals of property, plant and equipment and intangible assets
Proceeds from disposal of investment securities
Proceeds from disposal of other ﬁnancial assets

7.2

Change in receivables and payables related to ﬁxed assets

5

16

(1)

(437)

(197)

(1,376)(845)

Treasury share buybacks net of disposals

(130)

(120)

Net cash ﬂows from ﬁnancing activities(1,506)(965)

CHANGE IN NET CASH POSITION

1,501

1,630

Net cash ﬂows from investing activities
Dividends paid

470

1

Net cash at the beginning of the period

7.5

6,680

5,050

Net cash at the end of the period

7.5

8,181

6,680

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTS

6.5

NOTES TO THE FINANCIAL STATEMENTS

The 12‑month ﬁnancial year covers the period from 1 January through 31 December 2023.
The following notes are an integral part of the annual ﬁnancial statements.
The annual ﬁnancial statements and notes to the ﬁnancial statements are presented in euros. Unless otherwise stated, the values shown in thetables are expressed in millions of euros and rounded to the nearest million. As a result, in certain cases, the effects of rounding up/down canlead to a non‑signiﬁcant difference in the totals or changes. In addition, the ratios and differences are calculated on the basis of the underlying
amounts and not on the basis of rounded amounts.
The Company’s annual ﬁnancial statements are prepared in accordance with the French general accounting plan (PCG) as described by ANC
regulation no. 2014‑03 and updated in accordance with all regulations that have subsequently modiﬁed it.
The accounting conventions for the preparation and presentation of the parent company ﬁnancial statements have been applied in compliancewith the principle of prudence, in accordance with the following basic assumptions:s going concern;s consistency of accounting policies from one financial year to the next;s independence of financial years.

The basic method used to value the items recorded in the accounts is the historical cost method. Only signiﬁcant information is mentioned.

DETAILED CONTENTSNOTE 1NOTE 2NOTE 3
NOTE 4NOTE 5NOTE 6
NOTE 7
NOTE 8NOTE 9NOTE 10NOTE 11
NOTE 12CHANGE IN METHODOPERATING ITEMSHEADCOUNT, PERSONNEL COSTS AND EMPLOYEE BENEFITSEXTRAORDINARY INCOME
INCOME TAXINTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENTFINANCIAL ASSETS AND LIABILITIES – NET CASH POSITION
MANAGEMENT OF MARKET RISKS AND DERIVATIVESSHARE CAPITALPROVISIONS FOR RISKS AND EXPENSES – OFF‑BALANCE SHEET COMMITMENTS
RELATED‑PARTY TRANSACTIONSEVENTS AFTER THE REPORTING PERIOD

472
472
474
475
476
477
478
481
484
484
485
485

6

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

471

6

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTSNOTE 1

CHANGE IN METHOD

Hermès International did not apply any change in method during the 2023 ﬁnancial year.

NOTE 2OPERATING ITEMS

2.1 Operating income
Accounting principles
Revenue consists of royalties from brands and the provision ofservices. Royalties are calculated based on the production
subsidiaries’ revenue. Services are primarily amounts charged backto subsidiaries for advertising and public relations costs, rent, staff
provided on secondment, insurance and professional fees.

Expense transfers correspond mainly to the costs of free shareplans allocated to Group employees and re‑invoiced to subsidiaries
in respect of their personnel (see note 3.4).

In millions of euros

2023

2022

Revenue614

479

Other products

11

Reversals of provisions

31

57

Expense transfers

49

40

OPERATING INCOME

695

577

2.2 Operating expenses
2023

2022

Other purchases and external expenses

(215)

(188)

Tax and duties

(25)

(12)

In millions of euros

Compensation and other personnel costs

3.2

(172)

(139)

Depreciation, amortisation and provisions

6/10.1

(98)

(79)

(5)

(3)

(515)

(421)

Other expenses
OPERATING EXPENSES

472

Note

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTS

2.3 Operating receivables
Accounting principles
Receivables are recorded at par value. A provision for impairment is recognised where there is a risk of non‑recovery.

Operating receivables break down according to the following maturities:

31/12/2023

31/12/2022

In millions of euros< 1 year

Between 1 and 5 years

Gross amount

Impairment

Net amount

Net amountCurrent assets

1,253

22

1,275

(132)

1,143

790

Trade and other receivables

81

6

87

-

87

69

Other operating receivables

66

16

82

-

82

83

1,107

-

1,107

(132)

975

638

9

-

9

-

9

7

Other receivables
Prepayments and accruals
Leases

7

-

7

-

7

4

Other

3

-

3

-

3

2

TOTAL

1,263

22

1,285

(132)

1,153

797

Current assets include a gross amount of €1,194 million in receivables due from related companies.
Other receivables mainly correspond to the ﬁnancial current accounts of subsidiaries in the amount of €1,096 million.
Impairment movements for the ﬁnancial year can be analysed as follows:

Reversals
In millions of euros

31/12/2022

Allocations

Provisions used

Unused provisions

31/12/2023

Other receivables

118

75

(61)

-

132

2.4 Liabilities from operations

6

Liabilities from operations break down according to the following maturities:
In millions of euros

31/12/2023

31/12/2022< 1 year

Between 1 and 5
years

Net amount

Net amountOperating liabilities

80

2

82

91

Trade and other payables

18

-

18

14

Tax and social‑security liabilities

62

2

64

77

1,346

37

1,382

1,221

Other payables

2

-

2

1

Other

Amounts payable to ﬁxed asset suppliers

1,344

37

1,380

1,220

TOTAL

1,426

39

1,464

1,312

Other payables correspond mainly to ﬁnancial current accounts of the subsidiaries amounting to €1,304 million.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

473

6

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTSNOTE 3HEADCOUNT, PERSONNEL COSTS AND EMPLOYEE BENEFITS

3.1 Average number of employees
31/12/2023

31/12/2022

Executives and managers

576

496

Non‑management staff

55

53

TOTAL

631

549

2023

2022

(107)

(84)

3.2 Compensation and other personnel costs
Note

In millions of euros

Compensation
2019 free share plans

3.4

(2)

(4)

2023 free share plans

3.4

(3)

-

Social security charges on compensation and free share plans

(60)

(51)

COMPENSATION AND OTHER PERSONNEL COSTS

(172)

(139)

3.3 Post‑employment obligations and other employee benefits
Accounting principles
For basic pension and other deﬁned‑contribution plans, HermèsInternational recognises contributions to be paid as expenses when
they come due and no provision is accrued in this respect, as theCompany has no obligation other than the contributions paid.
Hermès International’s obligations in relation to retirement beneﬁts
and long‑service awards are calculated annually by an independentactuary using the projected unit credit method. This method isbased on actuarial assumptions and takes into account theemployee’s probable future length of service, future salary and life
expectancy as well as staff turnover. The present value of theobligation is calculated by applying an appropriate discount rate. It
is recognised on a basis pro‑rated to the employee’s years ofservice.

As at 31 December 2023, the commitment in terms of retirement
beneﬁts and long‑service awards amounted to €89 million
pre‑ﬁnanced in the amount of €33 million with an insurance company.

Beneﬁts are partly funded in advance by external funds (insurancecompanies). Assets held in this way are measured at fair value.
The expense recognised in the income statement is the sum of:s the service cost, which reflects the increase in obligations arisingfrom the vesting of one additional year of benefits;s the interest expense, which reflects the increase in the present
value of the obligations during the period;s actuarial gains and losses for the period.

Actuarial gains and losses are recognised immediately through proﬁt
or loss.

The net amount of the commitment of €56 million is recognised inprovisions for risks and expenses in the liabilities of HermèsInternational.

For the 2022 and 2023 ﬁnancial years, the following actuarial assumptions were used:s Retirement age

474

2023

2022

Full rate at 65 years

62 to 65 yearss Increase in salaries

3.5% to 4.2%

3.5% to 4%

s Discount rate

3.5% to 4.3%

3.3% to 3.5%

s Expected rate of return/asset

3.3% to 4.3%

3.3% to 3.5%2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTS

3.4 Free share plans
Expenses recognised in operating income in respect of free shareplans only concern employees of Hermès International (see note 3.2).

Income from re‑invoicing to subsidiaries is presented as extraordinary
income (see note 4).

Costs relating to other employee beneﬁciaries of Group subsidiaries
are presented in extraordinary income or loss (see note 4) and aretransferred via an expense transfer account (see note 2.1).

After taking income and expenses relating to the French and foreignsubsidiaries into account, the net impact of the free share plansincluding social security charges on net income before tax was anincome of €5 million in 2023, compared with an expense of €20
million in 2022.

When the shares are delivered to employees, the loss corresponding
to the net carrying amount of the treasury shares is recognised as
extraordinary expenses in Hermès International’s ﬁnancial
statements.

The information relating to the free share plans is provided in chapter
3 “Corporate governance”.

3.5 Compensation of Corporate Officers
Gross aggregate compensation paid to Corporate Ofﬁcers in respect of ﬁnancial year 2023 amounted to €9 million, including €1 million related
to the compensation of members of the Supervisory Board.

NOTE 4EXTRAORDINARY INCOME

In millions of euros

Note

Extraordinary income
Free share plans

3.4

2023

2022

169

25

168

23

Reversals of provisions for tax depreciation

00

Disposals of property, plant and equipment and ﬁnancial assets

2

2

Other extraordinary income

-

-

(149)

(35)

(149)

(35)

Provisions for tax depreciation

(0)

(0)

Net value of ﬁxed assets sold

(0)

(0)

Other extraordinary expenses

(0)

(0)

EXTRAORDINARY INCOME

20

(10)

Extraordinary expenses
Free share plans

3.4

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

6

475

6

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTSNOTE 5

INCOME TAX

Accounting principles
The Company has opted for the French tax regime for company
groups.
Under the terms of an agreement between the parent company andthe subsidiaries included in the tax consolidation group, the French
subsidiaries included in the tax consolidation scope recognise, in
their ﬁnancial statements, an income tax expense on the basis of
their own tax results. Hermès International, the head of the tax

consolidation group, recognises the difference between the sum of
the taxes of subsidiaries and the tax due on the overall income as atax credit due to tax consolidation.
The savings in corporate income tax and additional contributions
resulting from the application of the group tax regime are inprinciple deﬁnitively acquired by Hermès International.
The tax consolidation scope includes 61 companies.

5.1 Breakdown of income tax
2023

2022

3,580

2,586

Employee proﬁt‑sharing

(9)

(7)

Net income before tax

3,572

2,579

Income tax

(112)

(50)

Tax (parent company only)

(136)

(80)

(0)

(0)

(136)

(80)

24

30

3,459

2,529

In millions of euros

Net income before tax and employee proﬁt‑sharings o/w tax on extraordinary income
s o/w tax on other items
Tax arising from tax consolidation
NET INCOME

Hermès International recognised an income tax expense of €112
million in 2023, compared with an income tax expense of €50 million
in 2022. In addition, Hermès International is liable for payment of the
tax of the ﬁscally consolidated group, which amounted to €645 million
in 2023 compared with €453 million in 2022.

Hermès International’s income tax expense only includes applicable
exemptions under the terms of the parent‑subsidiary regime forincome from investments in subsidiaries and afﬁliates. The tax credit
resulting from the tax consolidation takes into account in particular
the effect of the consolidation regime related to the loss‑making
results of certain subsidiaries.

5.2 Increases or decreases in future tax liability
As at 31 December 2023, the future tax receivable was equal to €42 million, versus €36 million as at 31 December 2022. This mainly consistsof temporarily non‑deductible expenses, in particular retirement provisions.

476

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTSNOTE 6INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

Accounting principles
s building fixtures and fittings: straight‑line method over 10 to 40
years;

Intangible assets include software and the cost of websites, which
are amortised on a straight‑line basis over a period of between one
and four years.
Property, plant and equipment are valued at their acquisition cost.

s office furniture and equipment: straight‑line method over 4 to 10
years;

Depreciation is calculated using the straight‑line method:s IT equipment: straight‑line method over 1 to 5 years;s buildings: straight‑line method over 30 years;s vehicles: straight‑line method over 4 years.

In millions of euros

31/12/2022

Increases

Decreases

Other

31/12/2023

Intangible assets

125

28

-

(0)

153

Software

93

25

-

1

119

Other intangible assets

32

3

-

(1)

34

Property, plant and equipment

74

7

(0)

0

81

Land

0

-

-

-

0

Buildings

0

-

-

-

0

Fittings

46

2

(0)

1

48

Other property, plant and equipment

27

6

(0)

(1)

32

Total gross values

199

35

(0)

-

234

Amortisation of intangible assets

(76)

(24)

0

0

(100)

Software

(52)

(20)

-

-

(72)

Other intangible assets

(24)

(4)

-

-

(28)

Depreciation of property, plant and equipment

(43)

(5)

0

0

(47)

Buildings

(0)

-

-

-

(0)

Fittings

(27)

(3)

-

-

(29)

Other property, plant and equipment

(16)

(2)

0

-

(18)

Total depreciation and amortisation

(118)

(29)

0

0

(147)

-

-

-

-

-

Impairment
Total impairment

-

-

-

-

-

TOTAL NET VALUES

80

6

(0)

-

86

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

6

477

6

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTSNOTE 7

FINANCIAL ASSETS AND LIABILITIES – NET CASH POSITION

7.1 Other elements of net financial income
In millions of euros

2023

2022

Interest and similar income

247

43

Foreign exchange gains and losses

(21)

61

Interest and similar expenses

(73)

(21)

Net income from disposals of marketable securities

26

(4)

OTHER ELEMENTS OF NET FINANCIAL INCOME

179

79

Foreign exchange gains and losses are detailed in a speciﬁc note (see note 8) on market risk management and derivatives.

7.2 Financial assets
Accounting principles
Investment securities are shown in the balance sheet at acquisitioncost. The Company has opted for the recognition of ancillary costsat the time of acquisition.

If the subsidiary’s net position is negative, an impairment forreceivables due and a provision for risks and expenses may also berecognised (see note 10.1).

Where the balance sheet value at the closing date is lower than the
carrying amount, a provision for impairment is recorded for thedifference.

Other ﬁnancial assets include ﬁnancial investments valued at theirnominal value adjusted for any accrued interest not yet due atclosing.

This value is estimated at the proportionate share of net assets,
which may be corrected, if need be, based on the proﬁtability
outlook for the concerned subsidiary.

In millions of euros

Note

31/12/2022

Increases

Decreases

31/12/2023

Afﬁliates

7.3

1,602

378

-

1,980

Other ﬁnancial assets

594

41

(3)

633

Financial investments

558

41

(1)

598

Treasury shares (including liquidity contract)

29

-

(2)

27

Deposits and guarantees

7

1

(0)

7

Other long‑term investments

0

0

(0)

0

Total gross values

2,196

420

(3)

2,613

Impairment

(995)

(167)

12

(1,150)TOTAL NET VALUES

1,201

253

10

1,463

The increase in shareholdings over the ﬁnancial year mainly concerns
the recapitalisation of certain subsidiaries.

of their acquisition price. The average price of treasury shares held as
at 31 December 2023 was €332.54.

As at 31 December 2023, Hermès International held 80,793 treasury
shares (liquidity contract and unallocated shares intended forexternal growth operations). These shares were valued on the basis

Changes in impairment comprise the allocation to/reversal of
impairment on investment securities, mainly relating to changes inthe equity of certain subsidiaries.

The breakdown of other ﬁnancial assets by maturity is as follows:

31/12/2023
In millions of euros

Between 1 and 5< 1 year
years

Other ﬁnancial assets

478

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

258

374

31/12/2022

Gross amount

Impairment

Net amount

Net amount

633

(39)

594

570

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTS

7.3 Table of subsidiaries and affiliates
7.3.1

DETAILED INFORMATION ON SUBSIDIARIES WHOSE GROSS VALUE OF SHARES HELD EXCEEDS 5% OF THE SHARECAPITAL OF HERMÈS INTERNATIONAL

In millions of euros

Share of capital held
Number of shares(in %)

Gross value of
securities held

Net value of
securities held

Dividends received
over the ﬁnancial year

SUBSIDIARIES (at least 50% owned by the Company)
Castille Investissements

9,650,000

100%

402

9

CHP3

50,050,000

100%

50

17

Compagnie Hermès de Participations

4,200,000

100%

42

20

Comptoir Nouveau de la Parfumerie

756,000

99.7%

27

27

5,174,500

100%

83

83

HAB

50,000,000

100%

50

50

Herlee65,000,000

77%

20

20

Hermès Argentine

1,367,096

100%

7

0

Hermès Asia Paciﬁc

315,000,000

100%

43

43

884

Hermès Australia

6,500,000

100%

4

4

43

1

100%

7

7

Grafton Immobilier

Hermès Austria
Hermès Benelux Nordics

15

563

57,975100%

33Hermès Brésil

43,404,647

100%

13

2

Hermès Cuirs Précieux

6,400,000

100%

382

0

1

100%

7

7

7,359,655

100%

11

11

Hermès Iberica

69,312100%

55Hermès Immobilier Genève

70,000

100%

44

44

4

Hermès Istanbul

260,000

100%

3

3

8

Hermès Italie

458,000

100%

25

25

37

Hermès Japan

4,400

100%

14

14

222

Hermès Mexico

11,521,806

100%

55

55

3

Hermès Of Paris

114,180

100%

11

11

Hermès GmbH
Hermès Holding GB

311,000

100%

5

5

46,686,464

97%

91

90

10,000100%

90125,010,000

100%

125

125

Hermès Sellier
Holding Textile Hermès
Immobilière de la Maroquinerie de Guyenne
Immobilière du 11‑15 rue d'Anjou
John Lobb

12

27
11

1070

3,773,590

100%

48

1

Manufactures d’Auvergne

500,000

100%

21

0

Manufactures de Franche‑Comté

500,000

100%

32

15

Maroquinerie de Montereau

500,000

100%

10

0

Maroquinerie de Normandie

500,000

100%

19

0

Maroquinerie de Saint‑Antoine

500,000

100%

15

0

Maroquinerie des Alpes

500,000

100%

48

5

Maroquinerie des Ardennes

284,063

100%

11

0

Maroquinerie du Sud‑Ouest

500,000

100%

67

0

126,946,400

100%

131

131

210,100

100%

3

3

1

Subsidiaries subtotal

1,945

836

2,905

TOTAL FOR ALL SUBSIDIARIES AND AFFILIATES

1,978

867

3,335

SCI Auger‑Hoche
SCI Honossy

7.3.2

6
6

TOTAL EQUITY AND NET INCOME OF SUBSIDIARIESIn millions of euros
Total equity of foreign subsidiaries (net income excluded)
Total net income of foreign subsidiaries
Total equity of French subsidiaries (net income excluded)
Total net income of French subsidiaries

872
2,826
646
1,302

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

479

6

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTS

7.4 Marketable securities
Accounting principles
The gross value of marketable securities is their acquisition costless incidental expenses. Securities are valued at the lower ofacquisition cost or market value, calculated separately for eachcategory of securities.
In the event that part of a line of securities is sold, proceeds on
disposals are calculated using the First‑In, First‑Out method (FIFO).
Treasury shares that are speciﬁcally allocated to covering employee
share plans or stock options are recorded under marketablesecurities.

An impairment is accrued in an amount representing the difference
between the purchase price of the shares and the option exercise
price, if the purchase price is more than the exercise price.
In the event of a decrease in the stock market price, a provision for
impairment is recognised for treasury shares that are notspeciﬁcally allocated. It is calculated as the difference between the
net carrying amount of the shares and the average stock market
price for the month immediately preceding the closing date,weighted by the exchanged volumes.
In addition, ﬁnancial instruments are used in connection with the
management of the Company’s treasury investments. Gains andlosses on interest rate differentials and any corresponding
premiums are recognised on an accrual basis.

In millions of euros

31/12/2023

31/12/2022

Open‑ended investment companies (Sicavs) and mutual funds

1,747

573

Negotiable debt securities and repurchase agreements

6,183

5,168

Treasury shares

671

645

Total gross values

8,600

6,386

-

-

8,600

6,386

Impairment
TOTAL NET VALUESTreasury shares correspond to 758,322 Hermès International shares
held under free share allocation plans for employees (compared with
950,785 shares as at 31 December 2022).

These shares were valued on the basis of their acquisition price. The
average price of treasury shares as at 31 December 2023 was€884.71. During 2023, Hermès International acquired 74,954
shares outside the liquidity contract for an amount of €132 million
and granted 267,417 free shares to employees for an amount of€107 million.

7.5 Net cash position
In millions of euros

Marketable securities (excluding treasury shares)
Cash at bank and in handBank overdrafts
NET CASH POSITION

2023

2022

7,930

5,741

251

939

0

0

8,181

6,680

Treasury shares are excluded from the marketable securities presented in net cash position.

7.6 Financial liabilities
The breakdown of ﬁnancial liabilities by maturity is as follows:
31/12/2023
In millions of euros

31/12/2022< 1 year Between 1 and 5 years

Net amountBank borrowings

0

0

0

0

Miscellaneous borrowings and ﬁnancial liabilities

5

30

35

29

FINANCIAL LIABILITIES

5

30

35

29

Borrowings and ﬁnancial liabilities correspond to funds held in trust for employees under the statutory employee proﬁt‑sharing plan.

480

Net amount2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTSNOTE 8MANAGEMENT OF MARKET RISKS AND DERIVATIVES

Most of the Company’s foreign exchange risk exposure comes from the sales of its production subsidiaries denominated in foreign currencies.
This risk is generally fully hedged, based on highly probable future cash ﬂows, using forward currency sales or options that are eligible for hedge
accounting.

8.1 Treasury and foreign exchange transactions
Accounting principles
Income and expense items expressed in foreign currencies are converted into euros at the hedged exchange rate. Payables, receivables, andcash expressed in currencies outside of the euro zone are shown on the balance sheet at the hedged exchange rate or at the closing rate if
they are not hedged. In this case, differences arising from the reconversion of payables and receivables at the closing rate are recorded in thebalance sheet. A provision for contingencies is established for the entire value of unrealised foreign exchange losses. Premiums on foreign
currency options are recorded through proﬁt or loss on the maturity date.

8.2 Net currency position
Monetary assets/(Monetary liabilities)

Futurecash ﬂows

Net position
before hedging

Derivatives1

Net position
after hedging

Hedging
ratio

Sensitivityof 10%

2

40

42

(44)

(2)

105%

(0)

Chinese yuan

30

10

39

(41)

(1)

103%

(0)

US dollar

(44)

8

(35)

32

(4)

90%

(0)

Singapore dollar

2

8

10

(10)

0

97%

0

Japanese yen

4

5

8

(8)

1

92%

0

Hong Kong dollar

1

5

6

(6)

0

97%

0

Australian dollar

3

1

4

(4)

(0)

108%

0

Pound sterling

(4)

2

(2)

1

(0)

74%

(0)

Other

11

1

13

(13)

0

99%

0

SUMMARY

5

81

86

(92)

(6)

107%

(1)

US dollar

(99)

29

(69)

66

(4)

95%

(0)

Swiss franc

24

31

55

(54)

1

98%

0

In millions of euros

As at 31/12/2023
Swiss franc

6

As at 31/12/2022

Australian dollar

9

3

12

(12)

(0)

101%

(0)

Chinese yuan

22

23

46

(45)

1

98%

0

Pound sterling

(30)

3

(27)

27

0

101%

0

Singapore dollar

3

12

15

(13)

2

84%

0

Japanese yen

1

12

13

(12)

1

90%

0

Hong Kong dollar

1

8

8

(7)

1

90%

0

Other

9

4

13

(14)

(1)

107%

(0)

(60)

125

65

(63)

2

97%

0

SUMMARY(1) Purchase/(Sale).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

481

6

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTS

8.3 Breakdown of foreign exchange contracts
Hedging operations are performed over‑the‑counter, exclusively with leading banks. The Company therefore does not incur any signiﬁcantcounterparty risk.

In millions of euros

Nominal amountsof derivatives

Nominal amountsof derivatives used to hedge
foreign exchange risk

Market value of contracts
as at 31/12/20231

Options purchased
Chinese yuan puts

126

126

5

Chinese yuan collars

407

407

15

Japanese yen puts

197

197

6

Japanese yen collars

240

240

12

Singapore dollar puts

96

96

2

Singapore dollar collars

288

288

4

US dollar puts

95

95

4

US dollar collars

284

284

10

Hong Kong dollar puts

69

69

2

Hong Kong dollar collars

206

206

6

2,008

2,008

65

Forward foreign exchange contracts 2
Chinese yuan

(524)

(524)

(18)

Japanese yen

(433)

(433)

(23)

Singapore dollar

(375)

(375)

(0)

US dollar

(371)

(371)

(3)

Hong Kong dollar

(269)

(269)

(3)

64

64

(2)

(1,908)(1,908)

(49)

Other

Currency swaps 2
US dollar

(40)

(40)

(0)

Chinese yuan

31

31

0

Pound sterling

(4)

(4)

(0)

Swiss franc

4

4

(0)

Japanese yen

3

3

0

Singapore dollar

2

2

0

Hong Kong dollar

1

1

0

Other

(5)

(5)

0

(8)

(8)

0

92

92

16

TOTAL
(1) Gain/(Loss).
(2) (Purchase)/Sale.

482

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTS

Nominal amountsof derivatives

Nominal amountsof derivatives used to hedge
foreign exchange risk

Market value of contracts
as at 31/12/2022 1

Chinese yuan puts

105

105

7

Chinese yuan collars

316

316

18

US dollar puts

94

94

4

In millions of euros

Options purchased

US dollar collars

283

283

9

Singapore dollar puts

81

81

2

Singapore dollar collars

244

244

2

Japanese yen puts

51

51

3

Japanese yen collars

203

203

7

Hong Kong dollar puts

59

59

2

Hong Kong dollar collars

176

176

5

1,612

1,612

58

Chinese yuan

(397)

(397)

(8)

US dollar

(349)

(349)

2

Singapore dollar

(313)

(313)

9

Japanese yen

(242)

(242)

(5)

Hong Kong dollar

(227)

(227)

2

52

52

(3)

(1,477)(1,477)(2)

US dollar

(94)

(94)

(0)

Pound sterling

(30)

(30)

(0)

Swiss franc

23

23

(0)

Forward foreign exchange contracts 2

Other

Currency swaps 2

Chinese yuan

22

22

(0)

Hong Kong dollar

(0)

(0)

(0)

Singapore dollar

0

0

(0)

Japanese yen

(0)

(0)

0

Other

TOTAL

7

7

0

(72)

(72)

(0)

63

63

55

6

(1) Gain/(Loss).
(2) (Purchase)/Sale.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

483

6

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTSNOTE 9SHARE CAPITAL

As at 31 December 2023, Hermès International’s share capital amounted to €53,840,400.12, made up of 105,569,412 shares with a parvalue of €0.51 each, unchanged from 31 December 2022.

NOTE 10PROVISIONS FOR RISKS AND EXPENSES – OFF‑BALANCE SHEET COMMITMENTS

Accounting principles
Provisions for risks and charges mainly include the cost of pensions
and retirement beneﬁts as well as the annual provision for freeshare plans for all Group employees. This provision is transferred topersonnel costs for the share of Hermès International employees
and transferred to extraordinary income for the other beneﬁciary
employees of subsidiaries.

10.1 Provisions for risks and expenses
Reversals
In millions of euros

Note

31/12/2022

Allocations

Provisions
used

Unusedprovisions

31/12/2023

Free share plans

3.4

140

47

(107)

-

79

Provisions for pensions, retirement beneﬁts and medals

3.3

78

5

(20)

(7)

56

37

2

(36)

-

2

Net negative position of subsidiaries
Other provisions for risks and expenses

12

17

(3)

(0)

26

PROVISIONS FOR RISKS AND EXPENSES

267

71

(167)

(7)

164

10.2 Off‑balance sheet commitments
In millions of euros

31/12/2023

31/12/2022

Bank guarantees given

2

12

Irrevocable commitments to purchase ﬁnancial assets

19

13

Other commitments

436

275

TOTAL

457

300

The bank guarantees subscribed on behalf of the subsidiaries are the subject of commissions that are re‑invoiced to them.
The other commitments mainly concern real estate leases signed or guaranteed by Hermès International.

484

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

PARENT COMPANY FINANCIAL STATEMENTS AFRNOTES TO THE FINANCIAL STATEMENTSNOTE 11

RELATED‑PARTY TRANSACTIONS

Related‑party transactions were not material during ﬁnancial year
2023 in comparison with the overall results of Hermès International.
The companies mentioned below are considered related parties
insofar as certain members of management of the Company orcertain members of the Supervisory Board or Executive Management
Board of Émile Hermès SAS have personal interests therein andexercise signiﬁcant inﬂuence.

In addition, Hermès International charges Émile Hermès SAS for
certain services provided and expenses incurred. HermèsInternational charged back €0.5 million in 2023;
s Studio des Fleurs: Studio des Fleurs offers photography andretouching services for packshots of e‑commerce products. The
amounts paid in 2023 came to €3.6 million.

The most signiﬁcant relationships with related parties are
summarised as follows:s Émile Hermès SAS, Active Partner (see chapter 3 “Corporate
governance”, § 3.3.1): each year, Hermès International pays
0.67% of its distributable profits for the financial year to the ActivePartner.

NOTE 12EVENTS AFTER THE REPORTING PERIOD

None.

6

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

485

6

PARENT COMPANY FINANCIAL STATEMENTS AFRTABLE OF RESULTS OVER THE LAST FIVE YEARS

6.6

TABLE OF RESULTS OVER THE LAST FIVE YEARS
2023

2022

2021

2020

2019

54

54

54

54

54

105,569,412

105,569,412

105,569,412

105,569,412

105,569,412

Share capital at the end of the ﬁnancial year
Share capital in millions of euros
Number of shares outstanding
Comprehensive income from operations in millions of
euros
614

479

396

318

315

Net income before tax, employee proﬁt‑sharing,
depreciation, amortisation, provisions and impairment

Revenue excluding taxes

3,733

2,651

1,350

1,417

1,755

Income tax

(112)

(50)

(13)

22

(7)

(9)

(7)

(6)

(4)

(5)

Net income after tax, employee proﬁt‑sharing,
depreciation, amortisation, provisions and impairment

3,459

2,529

1,165

1,343

1,653

Distributed income (including treasury shares)

2,6621

1,389

852

489

491

Net income after tax and employee proﬁt‑sharing but
before depreciation, amortisation, provisions andimpairment

34.22

24.57

12.61

13.60

16.51

Net income after tax, employee proﬁt‑sharing,
depreciation, amortisation, provisions and impairment

32.77

23.95

11.04

12.72

15.66

Net dividend paid per share

25.001

13.00

8.00

4.55

4.55

Number of employees (average workforce)

631

549

524

497

448

Payroll in millions of euros

(107)

(84)

(78)

(71)

(63)

Employee beneﬁts paid in the year in millions of euros 2

(65)

(55)

(35)

(37)

(38)

Employee proﬁt‑sharing

Earnings per share in euros

Employees(1) Subject to the decisions of the Ordinary General Meeting of 30 April 2024. An ordinary dividend of €15.00 will be proposed, including an interim payment of €3.50
paid in February 2024. An exceptional dividend of €10.00 per share will also be proposed to the General Meeting.
(2) The expenses included in this figure, relating to free share plans, are limited to Company employees (see Note 3.2).

4862023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

PARENT COMPANY FINANCIAL STATEMENTS AFRINFORMATION ON PAYMENT TERMS

6.7

INFORMATION ON PAYMENT TERMS
Invoices received, due but not paid at year‑end closing date (table provided
for under I of Article D. 441‑6 of the French Commercial Code (Code de commerce))
Article D. 441‑6, I‑1° of the French Commercial Code (Code de Commerce):
Invoices received, due but not paid at year‑end closing date
0 days(indicative)

1 to 30 days

31 to 90 days

91 days and overTotal
(1 day and over)(A) Late payment tranches
Number of invoices involved

28

Total amount of invoices concerned excluding tax
Percentage of the total amount of purchases
excluding tax for the ﬁnancial year

0

0

0

0

0%

0%

0%

0%

Percentage of revenue excluding tax for the ﬁnancial
year(B) Invoices excluded from (A) in connection with payables and receivables that are disputed or not recognised
Number of invoices excluded
Total amount of excluded invoices(C) Reference payment deadlines used (contractual or statutory deadline – Article L. 441‑6 or Article L. 443‑1 of the French Commercial Code
(Code de commerce))
Reference payment deadlines used
for calculating late payments

Legal deadline

Invoices issued, due but not paid at year‑end closing date (table provided
for under I of Article D. 441‑6 of the French Commercial Code (Code de Commerce))
Article D. 441‑6, I‑2° of the French Commercial Code (Code de Commerce):
Invoices issued, due but not paid at year‑end closing date
0 days(indicative)

1 to 30 days

31 to 90 days

91 days and overTotal
(1 day and over)(A) Late payment tranches
Number of invoices involved
Total amount of invoices concerned excluding tax

426
4

13

19

35

1%

2%

3%

5%

6

Percentage of the total amount of purchases
excluding tax for the ﬁnancial year
Percentage of revenue excluding tax for the ﬁnancial
year(B) Invoices excluded from (A) in connection with payables and receivables that are disputed or not recognised
Number of invoices excluded
Total amount of excluded invoices(C) Reference payment deadlines used (contractual or statutory deadline – Article L. 441‑6 or Article L. 443‑1 of the French Commercial Code
(Code de commerce))
Reference payment deadlines used
for calculating late payments

Legal deadline

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

487

6

PARENT COMPANY FINANCIAL STATEMENTS AFROTHER INFORMATION ON THE PARENT COMPANY FINANCIAL STATEMENTS

6.8

OTHER INFORMATION ON THE PARENT COMPANY FINANCIAL
STATEMENTS

6.8.1

INFORMATION ON BRANCHES

In application of Article L. 232‑1 of the French Commercial Code (Code de commerce), the following list details branches (secondary
establishments) of the Company as at 31 December 2023:

SIRET

Address
Paris
13‑15, rue de la Ville‑l’Évêque 75008 Paris572 076 396 00173

10‑12, rue d’Anjou 75008 Paris572 076 396 00215

51, rue François Ier 75008 Paris572 076 396 00132

20, rue de la Ville‑l’Évêque 75008 Paris572 076 396 00090

27, rue de la Ville‑l’Évêque 75008 Paris572 076 396 00181

8, rue de Penthièvre 75008 Paris572 076 396 00231

Pantin48, rue Auger 93500 Pantin

572 076 396 00223

110 B, avenue du Général‑Leclerc 93500 Pantin

572 076 396 00207

6.8.2

INFORMATION ON THE AMOUNT OF INTER‐COMPANY LOANS

Hermès International did not grant any inter‑company loans (loans of less than two years granted to micro‑companies or small and medium‑sizedcompanies with which Hermès International has economic links) in 2023.

6.8.3

EQUITY INVESTMENTS IN COMPANIES WITH THEIR REGISTERED OFFICE IN FRANCE(ARTICLE L.233‑6 OF THE FRENCH COMMERCIAL CODE (CODE DE COMMERCE))

No signiﬁcant equity investments in companies with their registered ofﬁce in France took place in the ﬁnancial year.

4882023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

PARENT COMPANY FINANCIAL STATEMENTS AFRSTATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS

6.9

STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS(For the year ended 31 December 2023)
This is a free translation into English of the Statutory Auditors’ report issued in French and is provided solely for the convenience of English
speaking readers. This report includes information speciﬁcally required by European regulations or French law, such as information about theappointment of Statutory Auditors. This report should be read in conjunction with, and construed in accordance with, French law and professional
auditing standards applicable in France.

To the Shareholders,

OPINION
In compliance with the engagement entrusted to us by your General Meeting, we have audited the accompanying ﬁnancial statements of HermèsInternational for the year ended 31 December 2023.
In our opinion, the ﬁnancial statements give a true and fair view of the assets and liabilities and of the ﬁnancial position of the Company at 31
December 2023 and of the results of its operations for the year then ended in accordance with French accounting principles.
The audit opinion expressed above is consistent with our report to the Audit and Risk Committee.

BASIS FOR OPINION
Audit framework
We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is
sufﬁcient and appropriate to provide a basis for our opinion.
Our responsibilities under these standards are further described in the “Responsibilities of the Statutory Auditors relating to the audit of the
ﬁnancial statements” section of our report.

Independence
We conducted our audit engagement in compliance with the independence rules provided for in the French Commercial Code (Code decommerce) and the French Code of Ethics (Code de déontologie) for Statutory Auditors for the period from 1 January 2023 to the date of ourreport, and, in particular, we did not provide any non‑audit services prohibited by article 5(1) of Regulation (EU) No. 537/2014.

6

JUSTIFICATION OF ASSESSMENTS – KEY AUDIT MATTERS
In accordance with the requirements of articles L.821‑53 and R.821‑180 of the French Commercial Code relating to the justiﬁcation of ourassessments, we inform you of the key audit matters relating to the risks of material misstatement that, in our professional judgement, were themost signiﬁcant in our audit of the ﬁnancial statements, as well as how we addressed those risks.
These matters were addressed as part of our audit of the ﬁnancial statements as a whole, and therefore contributed to the opinion we formed as
expressed above. We do not provide a separate opinion on speciﬁc items of the ﬁnancial statements.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

489

6

PARENT COMPANY FINANCIAL STATEMENTS AFRSTATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS

Measurement of equity investments – Note 7.2 to the financial statements

Description of risk
At 31 December 2023, equity investments were recognised in the balance sheet at a gross value of €1,980 million and a net value of € 830
million. They are carried at acquisition cost, excluding incidental expenses.
As indicated in Note 7.2 “Financial assets” to the ﬁnancial statements, the balance sheet value is estimated based on the proportionate share of
net assets, which may be corrected, if need be, based on the proﬁtability outlook for the concerned subsidiary. If the subsidiary’s net position isnegative, an impairment for receivables due and a provision for risks and expenses may also be recognised.
Given the value of equity investments and related provisions in the balance sheet, as well as the signiﬁcant judgement exercised by management
to estimate the balance sheet value, where necessary, we deemed the measurement of the balance sheet value of equity investments to be a
key audit matter.

How our audit addressed this risk
Based on the information provided to us, our work consisted primarily in:s assessing the consistency of the method used to determine the balance sheet value of equity investments;s verifying that the share of net assets used is consistent with the accounts of the entities concerned;s verifying that any restatements of net assets made by management are appropriate, and that the resulting inventory values are correct.

In addition to assessing the balance sheet value of equity investments, our work also consisted in verifying, where applicable, the recognition of
impairment for receivables due, and a provision for risks in cases where the Company is liable for the losses of a subsidiary with negative equity.

SPECIFIC VERIFICATIONSIn accordance with professional standards applicable in France, we have also performed the speciﬁc veriﬁcations required by French legal andregulatory provisions.

Information given in the management report and in the other documents provided to the shareholders with respect to the Company’s
financial position and the financial statements
We have no matters to report as to the fair presentation and the consistency with the ﬁnancial statements of the information given in the
management report prepared by Executive Management and in the other documents provided to the shareholders with respect to the Company’s
ﬁnancial position and the ﬁnancial statements.
We attest to the fair presentation and the consistency with the ﬁnancial statements of the information about payment terms referred to in article
D.441‑6 of the French Commercial Code.

Report on corporate governance
We attest that Executive Management’s report on corporate governance sets out the information required by articles L.225‑37‑4, L.22‑10‑10
and L.22‑10‑9 of the French Commercial Code.
Concerning the information given in accordance with the requirements of article L.22‑10‑9 of the French Commercial Code relating toremuneration and beneﬁts paid or awarded to corporate ofﬁcers and any other commitments made in their favour, we have veriﬁed its
consistency with the ﬁnancial statements or with the underlying information used to prepare these ﬁnancial statements, and, where applicable,with the information obtained by the Company from controlled companies within its scope of consolidation. Based on this work, we attest to theaccuracy and fair presentation of this information.
Concerning the information given in accordance with the requirements of article L.22‑10‑11 of the French Commercial Code relating to those
items the Company has deemed liable to have an impact in the event of a takeover bid or exchange offer, we have veriﬁed its consistency withthe underlying documents that were disclosed to us. Based on this work, we have no matters to report with regard to this information.

Other information
In accordance with French law, we have veriﬁed that the required information concerning the purchase of investments and controlling interests
and the identity of the shareholders and holders of the voting rights has been properly disclosed in the management report.

490

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

PARENT COMPANY FINANCIAL STATEMENTS AFRSTATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS

OTHER VERIFICATIONS AND INFORMATION PURSUANT TO LEGAL AND REGULATORY REQUIREMENTS
Presentation of the financial statements to be included in the annual financial report
In accordance with professional standards applicable to the Statutory Auditors’ procedures for annual and consolidated ﬁnancial statements
presented according to the European single electronic reporting format, we have veriﬁed that the presentation of the ﬁnancial statements to be
included in the annual ﬁnancial report referred to in paragraph I of article L.451‑1‑2 of the French Monetary and Financial Code (Code monétaire
et ﬁnancier) and prepared under Executive Management’s responsibility, complies with this format, as deﬁned by European Delegated Regulation
No. 2019/815 of 17 December 2018.
On the basis of our work, we conclude that the presentation of the ﬁnancial statements to be included in the annual ﬁnancial report complies, inall material respects, with the European single electronic reporting format.
It is not our responsibility to ensure that the ﬁnancial statements to be included by the Company in the annual ﬁnancial report ﬁled with the AMF
correspond to those on which we carried out our work.

Appointment of the Statutory Auditors
We were appointed Statutory Auditors of Hermès International by the General Meetings held on 30 May 2011 for PricewaterhouseCoopers Audit
and on 31 May 1999 for Didier Kling & Associés, now Grant Thornton Audit.
At 31 December 2023, PricewaterhouseCoopers Audit and Grant Thornton Audit were in the thirteenth and the twenty‑ﬁfth consecutive year of
their engagement, respectively.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIAL
STATEMENTSManagement is responsible for preparing ﬁnancial statements giving a true and fair view in accordance with French accounting principles, andfor implementing the internal control procedures it deems necessary for the preparation of ﬁnancial statements that are free of material
misstatement, whether due to fraud or error.
In preparing the ﬁnancial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing,as applicable, matters related to going concern, and using the going concern basis of accounting, unless it expects to liquidate the Company or
to cease operations.
The Audit and Risk Committee is responsible for monitoring the ﬁnancial reporting process and the effectiveness of internal control and risk
management systems, as well as, where applicable, any internal audit systems, relating to accounting and ﬁnancial reporting procedures.
The ﬁnancial statements were approved by Executive Management.

6

RESPONSIBILITIES OF THE STATUTORY AUDITORS RELATING TO THE AUDIT OF THE FINANCIAL
STATEMENTS
Objective and audit approach
Our role is to issue a report on the ﬁnancial statements. Our objective is to obtain reasonable assurance about whether the ﬁnancial statements
as a whole are free of material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conductedin accordance with professional standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to inﬂuence the economic decisions taken byusers on the basis of these ﬁnancial statements.
As speciﬁed in article L.821‑55 of the French Commercial Code, our audit does not include assurance on the viability or quality of the Company’s
management.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

491

6

PARENT COMPANY FINANCIAL STATEMENTS AFRSTATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS

As part of an audit conducted in accordance with professional standards applicable in France, the Statutory Auditors exercise professional
judgement throughout the audit. They also:s identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error, design and perform audit
procedures in response to those risks, and obtain audit evidence considered to be sufficient and appropriate to provide a basis for theiropinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;s obtain an understanding of the internal control procedures relevant to the audit in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control;s evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management and therelated disclosures in the notes to the financial statements;s assess the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as agoing concern. This assessment is based on the audit evidence obtained up to the date of the audit report. However, future events orconditions may cause the Company to cease to continue as a going concern. If the Statutory Auditors conclude that a material uncertainty
exists, they are required to draw attention in the audit report to the related disclosures in the financial statements or, if such disclosures are
not provided or are inadequate, to issue a qualified opinion or a disclaimer of opinion;s evaluate the overall presentation of the financial statements and assess whether these statements represent the underlying transactions andevents in a manner that achieves fair presentation.

Report to the Audit and Risk Committee
We submit a report to the Audit and Risk Committee which includes, in particular, a description of the scope of the audit and the audit
programme implemented, as well as the results of our audit. We also report any, signiﬁcant deﬁciencies in internal control that we have identiﬁedregarding the accounting and ﬁnancial reporting procedures.
Our report to the Audit and Risk Committee includes the risks of material misstatement that, in our professional judgement, were the mostsigniﬁcant for the audit of the ﬁnancial statements and which constitute the key audit matters that we are required to describe in this report.
We also provide the Audit and Risk Committee with the declaration provided for in article 6 of Regulation (EU) No. 537/2014, conﬁrming our
independence within the meaning of the rules applicable in France, as deﬁned in particular in articles L.821‑27 to L.821‑34 of the French
Commercial Code and in the French Code of Ethics for Statutory Auditors. Where appropriate, we discuss any risks to our independence and therelated safeguard measures with the Audit and Risk Committee.

Neuilly‑sur‑Seine, 27 February 2024
The Statutory Auditors

492

PricewaterhouseCoopers Audit

Grant Thornton Audit

Amélie WATTEL

Vincent FRAMBOURT

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

PARENT COMPANY FINANCIAL STATEMENTS AFR

62023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

493

7

INFORMATION ON THE COMPANY
AND ITS SHARE CAPITAL

7.1

PRESENTATION OF HERMÈS INTERNATIONAL

496

7.1.1

7.1.7

General information about Hermès International
Role of Hermès International
Commented Articles of Association of Hermès International
Simplified organisation chart and main subsidiaries
Principal flows between Hermès International and the main subsidiaries
Hermès Group tax policy
Investments

496
496
497
504
504
504
504

7.2

INFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

505

7.2.1

505
506

7.2.5

Information on share capital
Information on shareholders
Transactions performed by Corporate Officers and those close to themon the shares of the Company
Stock Market Ethics CodeMaterial contracts, shareholder pacts and agreements

7.3

DIVIDEND POLICY

517

7.3.1
7.3.2

Principles
Proposal submitted to the 2024 General Meeting

517
517

7.4

STOCK MARKET INFORMATION

518

7.4.1

7.4.4

Summary of stock market information
History of monthly transactions
Hermès International share price history
Elements liable to have an impact in the event of a public offering

518
518
519
521

7.5

SHAREHOLDER INFORMATION

522

7.5.1

Relations with shareholders
Securities Service
Documents available to the public
Becoming a Hermès International shareholder
Dialogue with shareholders and the financial community in 2023
Financial calendar for 2024
Regulated information
Obligations relating to the declaration of threshold crossings andnominative registration

522
522
522
522
523
524
524

7.1.2
7.1.3
7.1.4
7.1.5
7.1.6

7.2.2
7.2.3
7.2.4

7.4.2
7.4.3

7.5.2
7.5.3
7.5.4
7.5.5
7.5.6
7.5.7
7.5.8

512
514
515

524

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

495

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALPRESENTATION OF HERMÈS INTERNATIONAL

7.1

PRESENTATION OF HERMÈS INTERNATIONAL

7.1.1

GENERAL INFORMATION ABOUT HERMÈS
INTERNATIONAL

Applicable legislation

French legislation.
Date of incorporation and expiry

The Company was incorporated on 1 June 1938 and its duration is
set to expire as at 31 December 2090.
Trade and Companies Register – LEI

The company Hermès International is registered with the Paris Tradeand Companies Register under number 572 076 396, APE code
7010Z.

The company Hermès International was converted into a société encommandite par actions (partnership limited by shares) by adecision of the Extraordinary General Meeting held on
27 December 1990, in order to preserve its identity and culture
and thus ensure its sustainability over the long term, in theinterests of the Group and all shareholders.

A presentation of this legal form and its governance can be found inchapter 3 “Corporate governance”, § 3.2.

7.1.2

ROLE OF HERMÈS INTERNATIONALThe LEI number of the Company is 969500Y4IJGHJE2MTJ13.

Hermès International is the Group’s parent company. Its purpose is:

Financial years to define the Group’s strategy and its focuses for development anddiversification;

The ﬁnancial year begins on 1 January and ends on 31 December ofthe same year.

s to oversee the operations of its subsidiaries and to provide
corporate, financial, legal and commercial assistance;

Registered ofﬁce – Principal, administrative headquarters

s to manage the Group’s real estate assets;

The registered ofﬁce of Hermès International is located at 24, rue duFaubourg Saint‑Honoré, 75008 Paris, France.

s to protect and defend its trademarks, designs, models, andpatents;

The Company’s principal administrative headquarters and its legal
department are located at 13‑15, rue de la Ville‑l’Évêque, 75008
Paris, France.

s to maintain a documentation centre and make it available to thesubsidiaries;

WebsiteThe Company’s website can be accessed at the following address:
https://ﬁnance.hermes.com/en/.
The information on this site does not form part of this universal
registration document unless it is incorporated by reference (seechapter 9 “Additional Information”, § 9.4).
Date of initial public offering

The company Hermès International was taken public on the Second
Marché of the Paris Stock Market on 3 June 1993. It has been listedon the Eurolist by Euronext (Compartment A) since 2005.

496

Legal forms to ascertain that the style and image of each brand name isconsistent throughout the world and, for this purpose, to designand orchestrate advertising campaigns, actions and publications
to support the various business activities;s to provide guidance in design activities and to ensure that the
Hermès spirit is consistently applied in each métier. It derives its
funds from:• dividends received from subsidiaries,• royalties from trademarks, licensed exclusively to Groupsubsidiaries, namely, Hermès Sellier, Le Comptoir Nouveau dela Parfumerie and La Montre Hermès.

Hermès International was listed on the CAC 40 index on 18 June2018 and the EURO STOXX 50 index on 20 December 2021.

Hermès brands, which belong to Hermès International, are protectedby trademarks in many countries, for all categories of products ineach of the Group’s business sectors.

Hermès International has been included since 17 September 2021 in
the CAC 40 ESG index, which includes 40 companies on the basis of
their environmental, social and governance performance and isbased on the rating of V.E. Moody’s ESG.

Hermès International’s scope of consolidation encompasses 144
subsidiaries. A brief presentation of the Group can be found inchapter 1 “Summary description of the Group as at 31 December
2023”, § 1.4.1.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALINFORMATION ON THE COMPANY AND ITS SHARE CAPITALPRESENTATION OF HERMÈS INTERNATIONAL

7.1.3

COMMENTED ARTICLES OF ASSOCIATIONOF HERMÈS INTERNATIONAL

The texts of the rules of procedure of the Supervisory Board and its
committees, as well as the Articles of Association of the Company are
made available at each update, in English and French, and in full, at
https://ﬁnance.hermes.com/en/
governing‑bodies‑rules‑procedure‑articles‑association/.

s to participate in promoting the products and/or services
distributed by the Hermès Group;s to purchase, sell and manage all property and rights needed for
the Hermès Group’s business operations and/or for asset andcash management purposes; ands more generally, to engage in any business transaction of any kindwhatsoever in furtherance of the corporate purpose.

Additional information is provided in insets in italics.

3 – Company name

1. Form

The Company’s name is “Hermès International”.

The Company is a société en commandite par actions (partnership
limited by shares) between:

4 – Registered offices its Limited Partners; ands its Active Partner, Émile Hermès SAS with its registered officelocated at 23, rue Boissy d’Anglas in Paris (75008). The Company
is governed by the laws and regulations applicable to sociétés encommandite par actions (partnership limited by shares) and bythese Articles of Association.

The rules governing the operation of a société en commandite paractions (partnership limited by shares) are the following:

The Company’s registered ofﬁce is located at 24, rue du Faubourg
Saint‑Honoré, 75008 Paris, France.
It may be transferred:s to any other location in the same department, by a decision of the
Executive Management, subject to ratification of such decision at
the next Ordinary General Meeting; ands to any other location, by a decision of the Extraordinary General
Meeting.

5 – Durations the Active Partners are jointly and severally liable for all the
Company’s debts, for an indefinite period of time;

The Company will be dissolved automatically on 31 December 2090,
unless it is dissolved previously or unless its duration is extended.

s the Limited Partners (or shareholders), who contribute capital,
are liable in this capacity as shareholders only up to the amountof their contribution;

6 – Share capital – Contributionss the same party may be both an Active Partner and a Limited
Partner;

It is made up of 105,569,412 shares, all of them fully paid up, which
are apportioned among the shareholders in proportion to their rights
in the Company.

s one or more Executive Chairmen, selected from among the
Active Partners or from outside the Company, are chosen to
manage the Company;s the Supervisory Board is appointed by the Shareholders’
Ordinary General Meeting (the Active Partners, even Limited
Partners, cannot participate in their appointment): it assumes
permanent control of the management of the Company and has
the same powers for this purpose as the Statutory Auditors.

6.1 – The share capital is €53,840,400.12.

6.2 – The Active Partner, Émile Hermès SAS, has transferred its
business know‑how to the Company, in consideration for its share of
the proﬁts.
The par value of one share is €0.51, after two three‑for‑one splits
since the initial public oﬀering, on 6 June 1997 and 10 June 2006.

7 – Increase and reduction in share capital
2 – Purpose
The Company’s purpose, in France and in other countries, is:s to acquire, hold, manage, and potentially sell direct or indirect
equity interests in any legal entity engaged in the creation,
production and/or sale of quality products and/or services, and, inparticular, in companies belonging to the Hermès Group;s to provide guidance to the Group it controls, in particular byproviding technical assistance services in the legal, financial,corporate, and administrative areas;s to develop, manage and defend all rights it holds to trademarks,
patents, designs, models, and other intellectual or industrial
property, and in this respect, to acquire, sell or license such rights;

7.1 – The share capital may be increased either by the issuance ofordinary shares or preference shares, or by increasing the par valueof existing equity securities.

7

7.2 – The General Meeting, voting in accordance with the quorum andmajority requirements stipulated by law, has the authority to decide toincrease the share capital. It may delegate this authority to the
Executive Management. The General Meeting that decides to effect acapital increase may also delegate the power to determine the terms
and conditions of the issue to the Executive Management.
7.3 – In the event of a capital increase effected by capitalisation ofsums in the share premiums, reserves or retained earnings accounts,
the shares created to evidence the relevant capital increase shall be
distributed only among the existing shareholders, in proportion totheir rights to the share capital.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

497

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALPRESENTATION OF HERMÈS INTERNATIONAL

7.4 – In the event of a capital increase for cash, the existing sharecapital must ﬁrst be fully paid up. The shareholders have preemptive
subscription rights, which may be waived under the conditions
stipulated by law.
7.5 – Any contributions in kind or stipulation of special advantages
made at the time of a capital increase are subject to the approval andveriﬁcation procedures applicable to such contributions and instituted
by law.
7.6 – The Shareholders’ Extraordinary General Meeting, or the
Executive Management when granted special authority for thispurpose, and subject to protecting the rights of creditors, may alsodecide to reduce the share capital. In no event shall such a capital
reduction infringe upon the principle of equal treatment ofshareholders.
7.7 – The Executive Management has all powers to amend the
Articles of Association as a result of a capital increase or reduction
and to undertake all formalities in connection therewith.

8 – Payment for shares
8.1 – Payment in consideration for newly created shares may bemade in cash, including by set‑off against liquid claims due by theCompany; by contributions in kind; by capitalisation of reserves,
earnings or share premiums; or as the result of a merger or demerger.
8.2 – Within the framework of resolutions adopted by the General
Meeting, the Executive Chairman calls the funds required to pay forthe shares.
Any late payment of amounts due for the shares shall automaticallybear interest payable to the Company at the legal interest rate plus
three percentage points, and no legal action or formal notice shall be
required to collect such interest.

9 – Form of the shares
9.1 – All shares issued by the Company are in registered form until
they have been fully paid up. Fully‑paid up shares may be inregistered or bearer form, at the shareholder’s discretion. They are
registered on a securities account under the terms and conditions
provided by law.
The General Meeting of 29 May 2012 established the requirement
for holding shareholdings in registered form when they exceed the
0.5% threshold; non‑compliance with this obligation to be
sanctioned by the loss of voting rights.

9.2 – The Company may, at any time, in accordance with theapplicable laws and regulations, request communication from thecentral custodian or any securities clearing organisation or authorisedintermediary to enable it to identify the owners of securities giving
immediate or future rights to vote at General Meetings, as well as thenumber of securities held by each such owner and any restrictions
that may apply to the securities.
Clearing and settlement of the shares in France are carried out by
Euroclear.
Hermès International ordinarily exercises this option once a year, as
at 31 December.

498

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

10 – Transfer of shares
Shares are freely transferable. Transfers are effected under the terms
and conditions provided by law.

11 – Crossing of threshold disclosures
Any natural person or legal entity, acting alone and/or jointly, coming
into possession, in any manner whatsoever, within the meaning of
Articles L. 233‑7 et seq. of the French Commercial Code (Code decommerce), of a number of shares representing 0.5% of the sharecapital and/or of the voting rights in General Meetings (or any
multiple of this percentage), at any time, even after attaining one of
the thresholds provided for by Articles L. 233‑7 et seq. of the French
Commercial Code (Code de commerce), must, within ﬁve stock market
trading days from the date this threshold is exceeded, request theregistration of their shares in nominative form. This nominative
registration requirement applies to all shares already owned, as wellas any that come into ownership beyond this threshold. A copy of thenominative registration application, sent by registered post withacknowledgement of receipt to the registered ofﬁce within 10 stock
market trading days from the date on which the threshold is attained,
shall constitute a declaration of attaining the ownership threshold inquestion. The registration requirement for securities also applies toany natural person or legal entity, acting alone and/or jointly, coming
into possession, in any manner whatsoever according to the meaningof Articles L. 233‑7 et seq. of the French Commercial Code (Code decommerce), of a number of shares representing 0.5% of the sharecapital and/or of the voting rights in General Meetings. These
persons are given a period of 20 stock market trading days after the
General Meeting on 29 May 2012 to comply with this obligation.
In the event of failure to comply with the above requirements, theshares that exceed the threshold subject to disclosure or having been
subject to disclosure shall be disqualiﬁed from voting rights.
In the event of regularisation, the corresponding voting rights can only
be exercised once the period stipulated by law and current
regulations has expired. Unless one of the thresholds covered by the
aforementioned Article L. 233‑7 is exceeded, this sanction shall beapplied only at the request of one or several shareholders individuallyor collectively holding at least 0.5% of the Company’s share capital
and/or voting rights and duly recorded in the minutes of the General
Meeting.

12 – Rights and obligations attached to the shares
12.1 – The shares are indivisible with regard to the Company.
Co‑owners of undivided shares must be represented with regard to
the Company and at General Meetings by one of them only or by asingle representative. In the event of a disagreement, theirrepresentative shall be appointed by the Court at the request of theco‑owner who takes the initiative to refer this matter to the Court.
12.2 – Each share shall give the holder the right to cast one vote at
Shareholders’ General Meetings.
However, double voting rights are allocated to:s any fully‑paid up registered share which has been duly recorded on
the books in the name of the same shareholder for a period of atleast four years from the date of the first General Meeting following
the fourth anniversary of the date when the share was registeredon the books; andINFORMATION ON THE COMPANY AND ITS SHARE CAPITALPRESENTATION OF HERMÈS INTERNATIONAL

s any registered share allotted for no consideration to a shareholder,in the event of a capital increase effected by capitalisation of sumsin the share premiums, reserves or retained earnings accounts, in
proportion to any existing shares which carry double voting rights.

The double voting right automatically ceases to exist in the conditions
stipulated by law.
Double voting rights were instituted by the Extraordinary General
Meeting of 27 December 1990.

Voting rights attached to the shares are exercised by the bare owners
at all General Meetings (ordinary, extraordinary or special meetings),
save for decisions regarding the allocation of net income, in whichcase the usufructuary shall exercise the voting rights.
This allocation was approved by the Extraordinary General Meetingof 6 June 2006.

12.3 – Each share gives the holder a right of ownership in the
Company’s assets, its proﬁts, and any winding‑up surplus, in
proportion to the percentage of ownership it represents.
All shares are of equal par value and are identical in all respects,
except with respect to the date on which they are eligible for thedividend.
12.4 – Ownership of a share automatically entails compliance with
the Company’s Articles of Association and with resolutions duly
adopted by the Shareholders’ General Meeting.
12.5 – Whenever ownership of a certain number of shares is requiredin order to exercise any right whatsoever, owners of single shares, orwith an insufﬁcient number of shares, may only exercise such rights ifthey personally arrange to consolidate their shares, or arrange for thepurchase or sale of a sufﬁcient number of shares.

13 – Death. Prohibition. Personal bankruptcy. Insolvency.
Receivership or compulsory liquidation of a partner
The Company has two classes of partners:s shareholders, who are “Limited Partners”;
s Active Partners.

Since 1 April 2006, there has been only one Active Partner: Émile
Hermès SAS.

13.1 – Shareholders
The Company shall not be dissolved in the case of the death, legal
prohibition or personal bankruptcy of a shareholder, or due to theinitiation of insolvency, receivership or compulsory liquidation
proceedings against that shareholder.
13.2 – Active Partner
13.2.1 – In the event that an Active Partner should be prohibited bylaw from engaging in a business profession, or in the case of personalbankruptcy, or insolvency, receivership or compulsory liquidation
proceedings should be initiated against them, such Active Partner
shall automatically lose their status as Active Partner ipso jure; theCompany shall not be dissolved. Neither shall the Company bedissolved if an Active Partner who is a natural person and who was
appointed Executive Chairman ceases to hold this ofﬁce.
If, as a result of this loss of status, the Company no longer has any
Active Partners, a Shareholders’ Extraordinary General Meeting must
be called forthwith, either to appoint one or more new Active Partners,
or to change the legal form of the Company. Such change does notentail the creation of a new legal entity.
If an Active Partner loses their status as such, they shall have theright to receive their share of the Company’s proﬁts, pro‑rated until
the day such status is lost, in full settlement of all amounts due.
13.2.2 – The Company shall not be dissolved in the event of the death ofan Active Partner. If, as a result of this death, the Company no longer has
any Active Partners, a Shareholders’ Extraordinary General Meeting must
be called forthwith, either to appoint one or more new Active Partners, orto change the legal form of the Company. Such change does not entail
the creation of a new legal entity.
This also applies if the Company has only one Active Partner and if that
Active Partner loses their status as such for any reason whatsoever.
The beneﬁciaries, heirs, or the surviving spouse, if any, of thedeceased Active Partner shall have the right to receive the deceased
Active Partner’s share of the Company’s proﬁts, pro‑rated until the day
such status is lost, in full settlement of all amounts due.

14 – Responsibility and powers of the Active Partner
14.1 – The Active Partners are jointly and severally liable for all the
Company’s debts, for an indeﬁnite period of time.
14.2 – Each Active Partner has the power to appoint and revoke theappointment of any Executive Chairman, acting on the Supervisory
Board’s reasoned opinion under the conditions provided in the Article
entitled “Executive Management”.
Acting by unanimous consent, the Active Partners:s take the following decisions for the Group, on the Supervisory
Board’s recommendation:• strategic options,• consolidated operating and investment budgets, and• decide on any proposal submitted to the General Meeting
pertaining to the appropriation of share premiums, reserves orretained earnings;
s may formulate recommendations to the Executive Management on
all issues of general interest to the Group;7

s authorise any loans of Hermès International whenever the amountof such loans exceeds 10% of the amount of the consolidated net
worth of the Hermès Group, as determined based on the
consolidated financial statements drawn up from the latest
approved accounts (the “Net Worth”);
s authorise any sureties, endorsements or guarantees and any
pledges of collateral and encumbrances on the Company’s
property, whenever the claims guaranteed amount to more than
10% of the Net Worth;s authorise the creation of any company or the acquisition of aninterest in any commercial, industrial or financial operation,
movable or immovable property, or any other operation, in any form
whatsoever, whenever the amount of the investment in question
amounts to more than 10% of the Net Worth.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

499

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALPRESENTATION OF HERMÈS INTERNATIONAL

14.3 – In order to maintain its status of Active Partner, and failingwhich it will automatically lose such status ipso jure, Émile Hermès
SAS must maintain in its Articles of Association clauses that, in their
original wording or in any new wording as may be approved by theSupervisory Board of the present Company by a three‑quarters
majority of the votes of members present or represented, stipulating
the following:s the legal form of Émile Hermès SAS is that of a société par actions
simplifiée (simplified joint stock company) à capital variable (withvariable capital);s the exclusive purpose of Émile Hermès SAS is:• to serve as Active Partner and, if applicable, as Executive
Chairman of Hermès International,• potentially to own an equity interest in Hermès International; ands to carry out all transactions in view of pursuing and accomplishingthese activities and to ensure that any liquid assets it may hold areappropriately managed;s only the following may be partners in Émile Hermès SAS, or, moregenerally, hold securities allowing them to become partners in
Émile Hermès SAS:• the descendants of Mr Émile‑Maurice Hermès and his wife,born Julie Hollande, and• their spouses, but only as usufructuaries of the shares; ands each partner of Émile Hermès SAS must have deposited, or
arrange to have deposited, shares in the present company in thecorporate accounts of Émile Hermès SAS in order to be a partnerof this company.

14.4 – Any Active Partner who is a natural person and who has been
appointed to the ofﬁce of Executive Chairman shall automatically lose
their status as Active Partner immediately upon termination of theirofﬁce of Executive Chairman for any reason whatsoever.
14.5 – All decisions of the Active Partners are recorded in minutes,
which are entered in a special register.

15 – Executive Management
15.1 – The Company is administered by one or two Executive
Chairmen, who may be, but are not required to be, Active Partners in
the Company. If there are two Executive Chairmen, any provision ofthese Articles of Association mentioning “the Executive Chairman”
shall apply to each Executive Chairman. The Executive Chairmen may
act jointly or separately.
The Executive Chairman may be a natural person or a legal entity,
which may be but is not required to be an Active Partner.
At this time, the Company is administered by two Executive
Chairmen:s Mr Axel Dumas, appointed by decision of the Active Partner,
after receipt of the reasoned opinion of the Supervisory Board,on 4 June 2013 (effective 5 June 2013);
s Émile Hermès SAS, which was appointed by a resolution,
approved by the Active Partners, with the reasoned opinion of
the Supervisory Board, dated 14 February 2006 (appointment
effective as at 1 April 2006).

500

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

15.2 – The Executive Chairman’s term of ofﬁce is open‑ended. During
the Company’s lifetime, the power to appoint an Executive Chairman
is exclusively reserved for the Active Partners, acting on the
Supervisory Board’s recommendation. Each Active Partner may act
separately in this respect.
15.3 – The appointment of an Executive Chairman is terminated in thecase of death, disability, legal prohibition, or due to the initiation of
insolvency, receivership or compulsory liquidation proceedings againstthat Executive Chairman; if the appointment is revoked; if the Executive
Chairman resigns; or when the Executive Chairman reaches the ageof 75.
The Company shall not be dissolved in the event of the termination ofduties of an Executive Chairman for any reason whatsoever. An Executive
Chairman who wishes to resign must notify the Active Partners and theSupervisory Board thereof at least six months in advance, by registeredpost, unless each of the Active Partners, after soliciting the opinion of theSupervisory Board, has agreed to reduce this notice period.
An Executive Chairman’s appointment can be revoked only by an ActivePartner, acting on the Supervisory Board’s reasoned opinion. In the eventthat the Supervisory Board recommends against revocation, the ActivePartner in question must suspend its decision for a period of at least six
months. At the end of this period, if it persists in its wish to revoke theappointment of the Executive Chairman in question, that Active Partnermust again solicit the opinion of the Supervisory Board, and once it has
obtained a favourable recommendation from the Board, it may revoke theappointment of that Executive Chairman.

16 – Authority of the Executive Management
16.1 – Relationships with third parties

Each Executive Chairman is invested with the broadest of powers to
act on the Company’s behalf, in all circumstances. They shall exercise
these powers within the scope of the corporate purpose and subject
to those powers expressly granted by law to the Supervisory Boardand to Shareholders’ General Meetings.
16.2 – Relationships among the partners

In relationships among partners, the Executive Management holds
the broadest of powers to undertake all management acts, but only ifsuch acts are in the Company’s interests and subject to those powers
granted to the Active Partners and to the Supervisory Board by these
Articles of Association.
16.3 – Delegations

The Executive Chairmen may, under their responsibility, delegate all
powers as they see ﬁt and as required for the proper operation of theCompany and its Group.
They may issue a limited or unlimited blanket delegation of powers to
one or more Executives of the Company, who then take on the title ofManaging Director.

17 – Compensation of the Executive Management
The Executive Chairman (or, where there is more than one, each
Executive Chairman) shall have the right to receive compensation set
by the Articles of Association (“statutory compensation”) and,potentially, additional compensation, the maximum amount of whichshall be determined by the Ordinary General Meeting, with theapproval of the Active Partner or, if there are several Active Partners,
with their unanimous approval.

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALPRESENTATION OF HERMÈS INTERNATIONAL

The gross annual compensation set by the Articles of Association(“statutory compensation”) of the Executive Chairman (or, where
there is more than one, of each Executive Chairman) for the ﬁnancial
year shall not be more than 0.20% of the Company’s consolidated
income before tax for the previous ﬁnancial year.

If the legal entity revokes its representative’s appointment, it isrequired to notify the Company thereof forthwith by registered post,
and to state the identity of its new Permanent Representative. Thisrequirement also applies in the event the Permanent Representative
should die, resign, or become incapacitated for an extended period oftime.

However, if there are more than two Executive Chairmen, thecombined total gross annual compensation set by the Articles of
Association (“statutory compensation”) of all Executive Chairmen
shall not be more than 0.40% of the Company’s consolidated income
before tax for the previous ﬁnancial year.

18.2 – Supervisory Board members are appointed or their terms are
renewed by the Shareholders’ Ordinary General Meeting. The ActivePartners may, at any time, propose that one or more new Supervisory
Board member(s) be nominated.

Within the maximum amounts set forth herein, the Executive
Management Board of the Active Partner, Émile Hermès SAS, shalldetermine the effective amount of the annual compensation set by
the Articles of Association (“statutory compensation”) of the Executive
Chairman (or, where there is more than one, of each Executive
Chairman).

Supervisory Board members are appointed for a term of three years.
As an exception to this rule, in order to ensure that one‑third of theSupervisory Board members will stand for re‑election each year, theGeneral Meeting may decide to appoint one or more Board members
for one or two years, and who may be designated by drawing lots, asnecessary.

Details on the compensation policy for Executive Chairmen arepresented in the Supervisory Board report on corporate governance(see chapter 3 “Corporate governance”, § 3.8.1.1 and § 3.8.1.2).

The General Meeting of 2 June 2009 approved a provision callingfor one‑third of Supervisory Board members to stand for re‑election
each year.

18 – Supervisory Board

18.3 – No person over the age of 75 shall be appointed to theSupervisory Board if, as a result of such appointment, more than
one‑third of the Board members would be over that age.

The composition of the Supervisory Board is described in the
Supervisory Board’s report on corporate governance (see chapter 3“Corporate governance”, § 3.4.5). The provisions of Article L.
226‑4‑1 of the French Commercial Code (Code de commerce) (byreference to Article L. 22‑70‑74 of the same code), which requirethat the proportion of members of the Supervisory Board of eachgender must not be below 40% and that when the Board comprises
a maximum of eight members, the diﬀerence between the numberof members of each gender may not be higher than two, apply toand are followed by the Company.

18.1 – The Company is governed by a Supervisory Board consistingof three to 15 members (not including employee representative
members appointed pursuant to the conditions of Article 18.6 below),selected from amongst shareholders who are neither Active Partners,
nor legal representatives of an Active Partner, nor the Executive
Chairman. When appointments to the Supervisory Board come up for
renewal, the number of Supervisory Board members is ﬁxed by adecision adopted by the Active Partners by unanimous vote.
In a decision dated 23 September 2019, the Active Partner increased
the number of Supervisory Board members to 14 (including employee
representatives) with eﬀect from 12 November 2019.

Supervisory Board members may be natural persons or legal entities.
At the time of their appointment, legal entities must designate a
Permanent Representative who is subject to the same terms,
conditions and obligations and incurs the same liabilities as if they
were a Supervisory Board member in their own name, without
prejudice to the joint and several liability of the legal entity they
represent. The Permanent Representative serves for the same termof ofﬁce as the legal entity they represent.

18.4 – The appointments of Supervisory Board members can be
revoked by a resolution adopted by the Ordinary General Meeting only
for cause, on the joint recommendation of the Active Partners, acting
by unanimous consent, and the Supervisory Board.
18.5 – In the event of a vacancy or vacancies caused by the death orresignation of one or more Supervisory Board members, theSupervisory Board may appoint an interim replacement member
within three months as from the effective date of the vacancy.
However, if no more than two Supervisory Board members remain inofﬁce, the member or members in ofﬁce, or, in their absence, theExecutive Chairman, or in their absence, the Statutory Auditor or
Auditors, shall immediately call a Shareholders’ Ordinary General
Meeting for the purpose of ﬁlling the vacancies to bring the number ofBoard members up to the required minimum.
18.6 – Where the provisions of Article L. 225‑79‑2 of the French
Commercial Code (Code de commerce) are applicable to theCompany, one or more members, natural persons, representing theGroup’s employees must be appointed under the conditions set by
the above‑mentioned article. The number of Supervisory Board
members taken into account, when determining the number of
employee representatives to be appointed to the Supervisory Board,is assessed on the date of appointment of the employee
representatives. Neither the Supervisory Board members elected by
the employees under Article L. 225‑27 of the French Commercial
Code (Code de commerce), nor the employee shareholder
Supervisory Board members appointed in accordance with Article L.
225‑23 of the French Commercial Code (Code de commerce) are
therefore taken into account.

7

The term of ofﬁce for employee representative Supervisory Board
members is indicated in Article 18.2 of the present Articles of
Association.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

501

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALPRESENTATION OF HERMÈS INTERNATIONAL

A reduction in the number of Supervisory Board members, within theframework of the application of the provisions of Article L. 225‑79‑2 of
the French Commercial Code (Code de commerce), will have no effect on
the term of ofﬁce of all Supervisory Board members representing
employees, which will come to an end upon its normal expiry.
Employee representative Supervisory Board members are appointed
by the Company’s Group Works Council. Employee representative
Supervisory Board members must be in possession of an
employment contract, for at least the past two years, with theCompany or one of its direct or indirect subsidiaries having its
registered ofﬁce in France or abroad. Notwithstanding the rule
contained in Article 18.1 of the present Articles of Association,
employee representative Supervisory Board members are notrequired to be shareholders.
18.7 – All Supervisory Board members must comply with theSupervisory Board rules of procedure.
The Combined General Meetings of 3 June 2014 and 24 April 2020
amended Article 18 of the Articles of Association in order tointroduce procedures for appointing employee representative
members of the Supervisory Board, and to take into account thestrengthening of the employee representation on the Supervisory
Board provided for by law no. 2019‑486 of 22 May 2019 on thegrowth and transformation of companies (“Pacte” law).

19 – Deliberations of the Supervisory Board
The Supervisory Board’s operations are described in chapter 3“Corporate governance”, § 3.5.

19.1 – The Supervisory Board elects a Chairman, who is a natural
person, and two Vice‑Chairmen, from among its members.
It appoints a secretary who may be, but is not required to be, aSupervisory Board member.
If the Chairman is absent, the older of the two Vice‑Chairmen acts as
Chairman.
19.2 – The Supervisory Board meets when convened by its Chairman
or by the Executive Management, whenever required for theCompany’s best interest but no less than twice per year, at theCompany’s registered ofﬁce or at any other place speciﬁed in thenotice of meeting.
Notices are served by any means providing legally valid proof inbusiness matters, at least seven business days before the meeting.
This period of time may be shortened by unanimous approval of the
Chairman or a Vice‑Chairman of the Supervisory Board, the ActivePartners and the Executive Management.
Any member of the Supervisory Board may give a proxy to one of theircolleagues to represent them at a Board meeting, by any means
providing legally valid proof in business matters. Each member may
hold only one proxy during a given meeting. These provisions areapplicable to the Permanent Representative of a legal entity that is amember of the Supervisory Board.
The Supervisory Board is duly convened only if a quorum consisting ofat least half of its members is present or represented.

502

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Resolutions are adopted by a majority of the votes of memberspresent or represented. However, the Supervisory Board must
approve or reject any proposed new wording of certain clauses of the
Articles of Association of Émile Hermès SAS by a three‑quarters
majority of members present or represented, in accordance with thestipulations of the Article entitled “Responsibility and powers of the
Active Partners.”
Supervisory Board members who participate in the meeting byvideo‑conferencing or telecommunications means that enable them tobe identiﬁed and effectively to participate in the meeting through theuse of technology providing for continuous and simultaneoustransmission of discussions are deemed to be present for purposesof calculating the quorum and majority, except at Supervisory Board
meetings convened for the review and veriﬁcation of the annual reportand consolidated and parent company ﬁnancial statements. The
Supervisory Board deﬁnes the conditions and procedures for using
video‑conferencing or other telecommunications means whenapplicable. The Executive Management must be convened toSupervisory Board meetings and may attend such meetings, but it
does not have the right to participate in the discussion and to vote.
19.3 – The deliberations of the Supervisory Board are recorded inminutes, which are entered in a special initialled register and signedby the Chairman and the secretary.

20 – Authority of the Supervisory Board
20.1 – The Supervisory Board exercises ongoing control over theCompany’s management.
For this purpose, it has the same powers as the Statutory Auditors
and receives the same documents as they do, at the same time. In
addition, the Executive Management must submit a detailed report to
the Supervisory Board on the Company’s operations at least once ayear.
20.2 – The Supervisory Board submits to the Active Partners its
reasoned opinion:s on the nomination and dismissal of any Executive Chairman of theCompany; ands in the case of the Executive Chairman’s resignation, on reducing
the notice period.

20.3 – Each year, the Supervisory Board determines the proposed
allocation of proﬁts to be submitted to the General Meeting.
20.4 – The Supervisory Board approves or rejects any proposed new
wording of certain clauses of the Articles of Association of Émile
Hermès SAS in accordance with the stipulations of the Article entitled“Responsibility and powers of the Active Partners”.
20.5 – The Active Partners must consult the Supervisory Board prior
to taking any decisions concerning:s strategic options;s consolidated operating and investment budgets; ands proposals to the General Meeting pertaining to the appropriation ofshare premiums, reserves or retained earnings.

20.6 – Each year, the Supervisory Board presents a report to the
Shareholders’ Annual Ordinary General Meeting in which it commentson the Company’s management and draws attention to any
inconsistencies or inaccuracies identiﬁed in the ﬁnancial statements
for the year.

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALPRESENTATION OF HERMÈS INTERNATIONALThe Supervisory Board’s report for the ﬁnancial year ended on
31 December 2023 is presented in chapter 8 “Combined General
Meeting of 30 April 2024”, § 8.3.

23 – Statutory Auditors
The Company’s ﬁnancial statements are audited by one or more
Statutory Auditors, under the terms and conditions provided by law.

24 – Shareholders’ General Meetings
This report, together with the Company’s balance sheet and a list of
its assets and liabilities, is made available to the shareholders andmay be consulted at the Company’s registered ofﬁce as from the dateof the notice of the General Meeting.
The Supervisory Board may convene a Shareholders’ General
Meeting whenever it deems this appropriate.
The functions exercised by the Supervisory Board do not entail any
interference with the Executive Management, or any liability arisingfrom the management’s actions or from the results of such actions.

21 – Joint Council of the Supervisory Board and Executive
Management Board of the Active Partner
21.1 – The Executive Management of the Company or the Chairmanof the Company’s Supervisory Board shall convene a Joint Council
meeting of the Supervisory Board and of the Active Partners
whenever it is deemed necessary; for the purposes of this Council,
Émile Hermès SAS is represented by its Executive Management
Board. Notices are served by any means providing legally valid proof
in business matters, at least seven business days before themeeting. This period of time may be shortened by unanimous
approval of the Chairman or a Vice‑Chairman of the Supervisory
Board and the Executive Chairman.

24.1 – General Meetings are convened under the conditions set bylaw.
They are held at the registered ofﬁce or at any other place speciﬁed in
the notice of meeting.
24.2 – The right to participate in General Meetings is subordinated toregistered shares being entered in the Company’s register or bearer
shares being registered in a securities account opened with anauthorised ﬁnancial intermediary, no later than two business days
before the date of the meeting before midnight, Paris time.
Shareholders owning bearer shares must obtain a shareholding
certiﬁcate from the authorised ﬁnancial intermediary evidencing theregistration of their shares, which is attached to the postal vote orproxy form. All shareholders may cast their votes remotely or by proxy,
under the conditions set forth in the applicable regulations.

22 – Compensation of the Supervisory Board

On the Executive Management’s decision, shareholders may vote by any
telecommunication or remote transmission means, in accordance withthe regulations applicable at the time of the decision. This option shall be
indicated in the notice of meeting published in the Bulletin des Annonces
Légales Obligatoires (BALO). Votes cast by shareholders using theelectronic ballot form provided on the website created by the meeting
coordinator for this purpose are counted in the same way as votes castby shareholders present or represented. The electronic ballot may becompleted and signed directly on this site by any procedure approved by
Executive Management and that complies with the conditions deﬁned by
Article L. 1316‑4 of the French Civil Code (Code civil), since repealed
pursuant to the Order of 10 February 2016, becoming Article 1367 of
the French Civil Code, in the ﬁrst sentence of sub‑paragraph 2 (namely,
by using a reliable identiﬁcation procedure that guarantees that thesignature is linked to the form), which may consist, inter alia of a loginname and a password. Any proxies given or votes cast via this electronicmeans before the General Meeting, and the acknowledgements ofreceipt sent in response, will be deemed to be irrevocable instructions
that are enforceable in every way, it being speciﬁed that in the event thatshares are sold before the second business day preceding the General
Meeting, at midnight, Paris time, the Company will accordingly void oramend any proxy or voting instructions sent before that date. Persons
invited by the Executive Chairman or by the Chairman of the Supervisory
Board may also attend General Meetings. The Active Partners may
attend Shareholders’ General Meetings. Active Partners that are legal
entities are represented by a legal representative or by any person,shareholder or otherwise, designated thereby.

Supervisory Board members may receive annual compensation, theamount of which is determined by the Shareholders’ Ordinary General
Meeting and shall remain unchanged until such time as a new
resolution is adopted by that General Meeting.

The General Meeting of 7 June 2010 amended Article 24.2 of the
Articles of Association to allow the Executive Management to set up
an electronic balloting system applicable to all future General
Meetings.

The Board distributes this compensation among its members in the
proportions it deems appropriate.

The General Meeting of 2 June 2015 amended Article 24.2 of the
Articles of Association to bring it into compliance with Article R.
225‑85 of the French Commercial Code (Code de commerce)
resulting from Decree no. 2014‑1466 of 8 December 2014,changing the method for determining the “record date” forparticipation in General Meetings.

21.2 – The Joint Council meets at the place indicated in the notice ofmeeting. It is chaired by the Chairman of the Company’s Supervisory
Board, or, in the event of absence, by one of the Vice‑Chairmen of theCompany’s Supervisory Board, or, in their absence, by the oldest
Supervisory Board member present. The Executive Chairman or, if the
Executive Chairman is a legal entity, its legal representative or
representatives, is convened to meetings of the Joint Council.
21.3 – The Joint Council has knowledge of all matters that it
addresses or that are submitted thereto by the party who convened
the Joint Council meeting, but does not, in the decision‑making
process, have the right to act as a substitute for those bodies towhich such powers are ascribed by law or by the Articles of
Association of the Company and of the Active Partner that is a legal
entity.
At their discretion, the Supervisory Board and Active Partners may
make all decisions or issue all recommendations within theirjurisdiction in a Joint Council meeting.

Details of the compensation policy for members of the Supervisory
Board are presented in the Supervisory Board’s report on corporate
governance (see chapter 3 “Corporate governance”, § 3.8.1.1 and§ 3.8.1.3).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

7

503

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALPRESENTATION OF HERMÈS INTERNATIONAL

24.3 – Meetings are chaired by the Chairman of the Supervisory
Board or, failing that, by one of the Vice‑Chairmen of the Board, or in
their absence, by the Executive Chairman.

procedure and appoints one or several liquidators, whose powers aredeﬁned by the meeting and who carry out their responsibilities inaccordance with the applicable laws.

24.4 – The Ordinary and Extraordinary General Meetings, duly
convened in accordance with the conditions speciﬁed by law, carryout their responsibilities in accordance with the law.

Any liquidation proceeds (bon de liquidation) shall be distributed
amongst the shareholders.

24.5 – Except for resolutions pertaining to the nomination andrevocation of Supervisory Board members, the nomination andrevocation of the Statutory Auditors, the distribution of proﬁts for theyear and the approval of related‑party agreements that are subject toshareholders’ approval, no resolution adopted by the General Meetingshall be valid unless it is approved by the Active Partners no later
than at the end of the General Meeting that voted on the relevant
resolution. The Company’s Executive Management has all powers torecord such approval.

7.1.4

SIMPLIFIED ORGANISATION CHART AND
MAIN SUBSIDIARIES

7.1.4.1

SIMPLIFIED ORGANISATION CHART

25 – Financial statements
Each ﬁnancial year consists of 12 months, commencing on 1 January
and ending on 31 December.

26 – Allocation and distribution of profits
The General Meeting approves the ﬁnancial statements for the past year
and duly notes the amount of distributable proﬁts.
The Company pays 0.67% of the distributable proﬁts to the ActivePartners, at the time and place designated by the Executive
Management, within nine months at most after the end of the ﬁnancial
year.
The Active Partners distribute this amount amongst themselves as theysee ﬁt.
The remaining distributable proﬁts revert to the shareholders. Their
allocation is decided by the Ordinary General Meeting, on the
Supervisory Board’s recommendation. On the Supervisory Board’s
recommendation, the General Meeting may grant to each shareholder an
option to receive payment for all or part of the dividend or interim
dividend in cash or in shares, under the conditions set by law.
On the Supervisory Board’s recommendation, the General Meeting may
decide to draw from the balance of proﬁts reverting to the shareholders
the sums it deems appropriate to be allocated to shareholders’ retained
earnings or to be appropriated to one or more extraordinary, general or
special reserve funds, which do not bear interest, and to which the ActivePartners as such have no rights.
On the unanimous recommendation of the Active Partners, the reserve
fund or funds may, subject to approval by the Ordinary General Meeting,be distributed to the shareholders or allocated to the partial or total
depreciation of the shares. Fully depreciated shares shall be replaced byentitlement shares with the same rights as the existing shares, with the
exception of the right to reimbursement of capital.

504

A brief description of the Group as at 31 December 2023 ispresented in chapter 1, “Summary description of the Group as at
31 December 2023”, § 1.4.1.

7.1.4.2

MAIN SUBSIDIARIESThe main companies consolidated as at 31 December 2023 (mainly
distribution subsidiaries and divisional holding companies), are detailed
in chapter 5 “Consolidated ﬁnancial statements”, note 16.
Detailed information on subsidiaries in which the gross value of shares
held exceeds 5% of Hermès International’s share capital can be found inchapter 6 “Parent company ﬁnancial statements”, note 7, § 7.3.1.

7.1.5

PRINCIPAL FLOWS BETWEEN HERMÈS
INTERNATIONAL AND THE MAIN
SUBSIDIARIESAs stated in § 7.1.2, Hermès International is the Group’s parent
company. The main ﬂows between Hermès International and theGroup’s subsidiaries are presented in chapter 6 “Parent company
ﬁnancial statements”. They cover mainly the following areas:

7.1.5.1

SERVICES

Services are primarily amounts charged back to subsidiaries foradvertising and public relations services, rent, staff provided on
secondment, insurance and professional fees. These services aredetailed in chapter 6 “Parent company ﬁnancial statements”, note 2.1“Operating income”.

7.1.5.2

TRADEMARK ROYALTIES

Hermès International receives royalties from trademarks, licensed
exclusively to Group subsidiaries, namely, Hermès Sellier, Le Comptoir
Nouveau de la Parfumerie and La Montre Hermès. Royalties arecalculated based on the production subsidiaries’ revenue. These
royalties are detailed in chapter 6 “Parent company ﬁnancial
statements”, note 2.1 “Operating income”.

The reserve fund or funds may also be incorporated into the sharecapital.

7.1.6

Dividends are payable at the times and places determined by the
Executive Management within a maximum of nine months from the endof the ﬁnancial year, unless this time period is extended by a court of law.

The Hermès Group’s tax policy is described in chapter 2 “Corporatesocial responsibility”, § 2.7.2.1.1.

27 – Dissolution of the Company

7.1.7

At the end of the Company’s lifetime or in the event of early
dissolution, the General Meeting decides on the winding‑up

The main investments made during the ﬁnancial year are described inchapter 1 “Presentation of the Group and its results”, § 1.8.2.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALHERMÈS GROUP TAX POLICYINVESTMENTSINFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

7.2

INFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

7.2.1

INFORMATION ON SHARE CAPITAL

7.2.1.1

SHARE CAPITAL
AmountNumberPar value

As at 01/01/2023€53,840,400.12

105,569,412€0.51

As at 31/12/2023€53,840,400.12

105,569,412€0.51

On the day of the General Meeting€53,840,400.12

105,569,412€0.51

The shares are fully paid‑up.

7.2.1.2

VOTING RIGHTS

7.2.1.3

CHANGES IN SHARE CAPITAL OVER THE LAST
THREE FINANCIAL YEARS

By the 15th day of each month at the latest, the Company issues areport on the total number of voting rights and shares that makes up
the share capital on the last day of the previous month and publishes
it on https://ﬁnance.hermes.com/en/regulated‑information.

No change in share capital occurred over the last three ﬁnancial
years.

As at 29 February 2024, the total number of voting rights (including
shares deprived of voting rights) was 179,126,463. Each share gives
the holder the right to at least one vote in the Shareholders’ General
Meetings, except for treasury shares held by the Company, whichhave no voting rights.

Authorisations and delegations in terms of:Ownership of certain shares is split between a usufructuary and abare owner. In accordance with the Articles of Association, voting
rights attached to shares are exercised by the bare owners at all
General Meetings (ordinary, extraordinary or special meetings), savefor decisions regarding the allocation of net income, in which case theusufructuary exercises the voting rights.
Furthermore, double voting rights are allocated to:s any fully‑paid up registered share which has been duly recorded on
the books in the name of the same shareholder for a period of atleast four years, applicable from the date of the first General
Meeting following the fourth anniversary of the date when theshare was registered on the books; ands any registered share allotted for no consideration to a shareholder,in the event of a capital increase effected by capitalisation of sumsin the share premiums, reserves or retained earnings accounts, in
proportion to any existing shares that carry double voting rights.

Double voting rights cease automatically under the conditions
speciﬁed by the law and notably for any share that was the subject ofa conversion to bearer or a transfer, excluding any “registered toregistered” transfer following succession, liquidation of community ofproperty between spouses or family donation.

7.2.1.4

DELEGATIONS OF POWERS BY THE GENERALMEETINGs capital increase;s merger by absorption, spin‑off and partial contribution of assets
subject to the legal regime for spin‑offs; ands allocation of free existing ordinary shares and stock options,currently in force, granted by the General Meeting to the Executive
Management, are summarised in chapter 3 “Corporate governance”,§ 3.9.4. The authorisations and delegations in terms of capitalincrease, merger by absorption, spin‑off and partial contribution ofassets subject to the legal regime for spin‑offs, and the allocation ofstock options have not been used during the 2023 ﬁnancial year andhave not been used as of the ﬁling date of this universal registration
document.
The authorisation granted to the Executive Management in the 28th
resolution to grant free existing ordinary shares was used on 15 June
2023 (see chapter 3 “Corporate governance”, § 3.8.3 - Allocation offree shares and stock options).

7

The General Meeting of 30 April 2024 is asked to renew theauthorisation to allocate free existing ordinary shares (see chapter 8“Combined General Meeting of 20 April 2023”, § 8.2.2 - Explanatory
statement to the 19th resolution).

Failure to disclose attainment of certain ownership thresholds asprovided by law or by the Articles of Association may disqualify theshares for voting purposes (see Article 11 of the Articles of
Association, in chapter 7 “Information on the Company and its
share capital”, § 7.1.2).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

505

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

7.2.2

INFORMATION ON SHAREHOLDERS

7.2.2.1

NUMBER OF SHAREHOLDERSThe Company uses the so‑called “identiﬁcation on request” system
resulting from Directive (EU) 2017/828 of 17 May 2017 (known as“SRD II”) to identify its shareholders.
During the review as at 29 December 2023, there were approximately
185,000 shareholders, compared to approximately 156,000 as at
30 December 2022 and some 122,000 as at 31 December 2021.

7.2.2.2

PERCENTAGE OF INDIVIDUAL SHAREHOLDERS

Information on signiﬁcant movements in previous years is available in
the previous universal registration documents, accessible on thewebsite https://ﬁnance.hermes.com/en/publications.

7.2.2.3.2

Changes occurring after the closure of the financialyear

To the Company’s knowledge, there has been no signiﬁcant changewith regards to Hermès International shareholders between
31 December 2023 and the date on which this universal registration
document was ﬁled with the AMF.

7.2.2.3.3

Measures taken to prevent abusive control

Refer to chapter 3 “Corporate governance”, § 3.4.7.5.
The percentage of individual shareholders was 7.7% in December
2023, stable compared with 2022 (7.8%). This percentage includes
shares held by individual shareholders in registered form as at
29 December 2023 and bearer shares identiﬁed by identiﬁcation onrequest as at 29 December 2023, excluding holdings by familygroups.

7.2.2.3

PRINCIPAL SHAREHOLDERS AS AT
31 DECEMBER 2023 – CONTROL OF THE
COMPANY

Hermès International is controlled through the intermediary of Émile
Hermès SAS, its Active Partner, by the Hermès family group, which
also holds, notably via the intermediary of the company H51, amajority shareholding (in share capital and voting rights) within the
Company as a Limited Partner. This control is exclusive control within
the meaning of Article L. 233‑16 of the French Commercial Code
(Code de commerce).
The companies H51 and H2 are held exclusively by members of the
Hermès family group. To the Company’s knowledge, there are noshareholders directly or indirectly holding, alone or together, morethan 5% of the share capital or voting rights, other than those shownin the tables in § 7.2.2.5.

7.2.2.3.4

Measures taken to ensure a balance of powers

Refer to chapter 3 “Corporate governance”, § 3.4.7.5.

7.2.2.4

TREASURY SHARES

As at 31 December 2023, Hermès International held 839,115
treasury shares, representing 0.8% of its share capital, acquired aspart of the share buyback programme presented in § 7.2.2.10.
In practice, treasury shares are mainly allocated to cover free shareplans for employees (see chapter 3, “Corporate governance”,§ 3.8.3.2).

7.2.2.5

BREAKDOWN OF SHARE CAPITAL AND VOTINGRIGHTS AS AT 31 DECEMBER 2023

As at 31 December 2023 and to the Company’s knowledge, thedistribution of the share capital and voting rights of the Company was
as follows:

The ownership interests of Corporate Ofﬁcers and Senior Executives
are listed in chapter 3 “Corporate governance”, § 3.10.1.
To the Company’s knowledge, material changes in the ownership of
the share capital over the past three years are described in § 7.2.2.6.
Given the time that has elapsed since it was established, thedescription of the procedures for setting up H51 is no longer in theuniversal registration document. The deﬁnition and description of theorganisation of the Hermès family group are presented in chapter 9“Additional information”, § 9.6; and in chapter 3 “Corporate
governance”, § 3.2.1.

7.2.2.3.1

Significant movements occurring during the last
three years in the distribution of its share capitaland voting rights, and the reasons for these
movements

There has been no signiﬁcant change in the distribution of thecompany’s share capital or voting rights over the last three years.

506

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

These ﬁgures result, for registered shares, from the register kept by
the Uptevia Securities service, and for bearer shares, from thedeclarations, where applicable, of interested parties, as well asshareholding analyses carried out in accordance with the procedure
implemented (§ 7.2.2.1).

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

Changes occurring after closure of the ﬁnancial year are detailed in § 7.2.2.3.2.

PublicHERMÈS FAMILY GROUP

Total Hermès family group
66.7%
Partners of
Émile Hermès SAS

Émile Hermès SAS

H2

H51
54.3%

Direct equity interests
6.6%

5.7%

Active Partner

Limited Partners

HERMÈS INTERNATIONAL

7.2.2.6

32.5%

Spouse, children andgrandchildren of the partnersof Émile Hermès SAS and theirfamily holding companies

Treasury shares 0.8%(% of share capital)

CHANGE IN THE BREAKDOWN OF SHARE CAPITAL AND VOTING RIGHTS

In accordance with AMF position‑recommendation no. 2021‑02, thetable below shows the breakdown of the Company’s share capital andvoting rights over the last three ﬁnancial years, based on theinformation known to the company.

of the AMF General Regulation and serving as denominator for the
calculation by shareholders of their percentage ownership of theshare capital and voting rights for regulatory reporting purposes (inparticular threshold crossing declarations).

Theoretical voting rights take into account the voting rights attached
to shares deprived of voting rights, in accordance with Article 223‑11

Voting rights exercisable at General Meetings do not take into accountshares deprived of voting rights (in particular treasury shares).

Theoretical voting rights 1

Share capital

Allocation of net income
Shares%2

Number%Voting rights exercisable at GM 1

Other
2

Number

Allocation of net income%2

Number

Other
Number%2

64.2 114,592,848

64.2

%

2

AS AT 31 DECEMBER 2023
H51

57,359,794

54.3 114,592,848

H27,012,602

6.6

14,025,204

7.8

14,025,204

7.8

14,025,204

7.9

14,025,204

7.9

Other membersof the Hermès
family group

6,063,995

5.7

7,465,121

4.2

11,543,567

6.4

7,465,121

4.2

11,543,567

6.5

Sub‑total
Hermès familygroup 370,436,391

66.7 136,083,173

75.9 140,161,619

78.1 136,083,173

76.2 140,161,619

78.5

Free ﬂoat 4 5

34,293,906

32.5

42,395,379

23.6

38,316,933

21.4

42,395,379

23.8

38,316,933

21.5

839,1150.8

839,1150.5

839,115

0.5

-

0.0

-

0.0

100.0 178,478,552

100.0

Treasury share
TOTAL

105,569,412

100.0 179,317,667

63.9 114,592,848

100.0 179,317,667

63.9 114,592,848

100.0 178,478,552

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

7

507

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

Theoretical voting rights 1

Share capital

Allocation of net income
Shares%2

Number%Voting rights exercisable at GM 1

Other
2

Number

Allocation of net income%2

Number

Other
Number%2

64.2 114,586,434

64.2

%

2

AS AT 31 DECEMBER 2022
H51

57,359,794

54.3 114,586,434

H2

7,012,602

6.6

13,888,704

7.7

13,888,704

7.7

13,888,704

7.8

13,888,704

7.8

Other membersof the Hermès
family group

6,038,887

5.7

7,512,321

4.2

11,590,767

6.5

7,512,321

4.2

11,590,767

6.5

Sub‑total
Hermès familygroup 370,411,283

66.7 135,987,459

76.2 140,065,905

78.5

Free ﬂoat 4 5

34,124,504

32.3

Treasury share

1,033,625

1.0

TOTAL

105,569,412

63.8 114,586,434

63.8 114,586,434

75.8 140,065,905

78.0 135,987,459

42,452,107

23.7

38,373,661

21.4

42,452,107

23.8

38,373,661

21.5

1,033,625

0.6

1,033,625

0.6

-

0.0

-

0.0

100.0 179,473,191

100.0 179,473,191

100.0 178,439,566

100.0 178,439,566

100.0

63.6 113,689,009

63.6 113,689,009

63.9 113,689,009

63.9

AS AT 31 DECEMBER 2021
H51

57,279,794

54.3 113,689,009

H2

7,012,602

6.6

13,888,704

7.8

13,888,704

7.8

13,888,704

7.8

13,888,704

7.8

Other membersof the Hermès
family group6,001,893

5.7

7,428,860

4.2

11,508,860

6.4

7,428,860

4.2

11,508,860

6.5

Sub‑total
Hermès familygroup 370,294,289

66.6 135,006,573

75.6 139,086,573

77.8 135,006,573

75.9 139,086,573

78.2

Free ﬂoat 4 534,349,970

32.5

42,751,499

23.9

38,671,499

21.6

42,751,499

24.1

38,671,499

21.8

925,1530.9

925,153

0.5

925,153

0.5

-

0.0

-

0.0

100.0 177,758,072

100.0

Treasury share
TOTAL

105,569,412

100.0 178,683,225

100.0 178,683,225

100.0 177,758,072(1) In accordance with Article 12 of the Articles of Association of the Company, the voting right is exercised by the bare owner for all decisions taken by all General
Meetings, except for decisions concerning the allocation of net income, for which the voting right is exercised by the usufructuary. The procedures for publication andallocation of voting rights are detailed in § 7.2.1.2.
(2) Figures have been rounded to the nearest tenth. Accordingly, there may be a discrepancy in the totals between actual and rounded figures.
(3) The definition of the Hermès family group is in chapter 9 “Additional information”, § 9.6.
(4) These amounts correspond to all of the shares and voting rights in circulation, reduced by the number of shares and voting rights declared by the identified
shareholders as mentioned in this table.
(5) Including the Arnault family group. See the threshold crossing declaration of 11 July 2017 (AMF notice no. 217C1525 of 11 July 2017) described on page 392 of the2019 universal registration document).

These ﬁgures result, for registered shares, from the register kept by the Uptevia Securities service, and for bearer shares, from the declarations,where applicable, of interested parties, as well as shareholding analyses carried out in accordance with the procedure implemented (§ 7.2.2.1).
Changes occurring after closure of the ﬁnancial year are detailed in § 7.2.2.3.2.

5082023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALINFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

7.2.2.7

CROSSING OF THRESHOLDS

Crossing of thresholds in ﬁnancial year 2021

7.2.2.7.1

Crossing of thresholds occurring after the closureof the 2023 financial year

No crossing of a legal threshold was declared in 2021.

7.2.2.7.4

No crossing of a legal threshold was declared between the closure of
the 2023 ﬁnancial year and 29 February 2024.

7.2.2.7.2

Crossing of thresholds in financial year 2023

No crossing of a legal threshold was declared in 2023.

7.2.2.7.3

Reminder of crossing of thresholds in the previous
two financial years

Crossing of thresholds in ﬁnancial year 2022

No crossing of a legal threshold was declared in 2022.

Crossing of previous thresholds for shareholders
holding more than 5% of the share capital or voting
rightsAMF Notice no. 217C1755 of 28 July 2017 (the full text of which isavailable on the AMF website – www.amf‑france.org): the Hermès
family group declared that it had crossed upwards, on 21 July 2017,
the threshold of two‑thirds of Hermès International’s share capitaland held 70,385,066 shares representing 130,403,428 voting rights
at General Meetings in respect of decisions concerning the allocationof net income and 134,256,835 voting rights for other decisions, i.e.,
66.67% of the share capital and respectively 74.92% and 77.13% of
the voting rights of this company, broken down as follows:

Decisions concerning allocation of net income

Other decisions

Shares% share capital

Voting rights% voting rights

Voting rights% voting rights

H51

56,209,021

53.24

109,244,318

62.76

109,244,318

62.76

H2

6,876,102

6.51

13,072,204

7.51

13,072,204

7.51

Other members

6,292,154

5.96

8,086,906

4.65

11,940,313

6.86

Treasury share
TOTAL HERMÈS FAMILY GROUP

1,007,789

0.95

-

-

-

-

70,385,066

66.67

130,403,428

74.92

134,256,835

77.13

This crossing is the result of an acquisition of Hermès International shares on the market by the company H51.

7.2.2.8

EMPLOYEE OWNERSHIP OF THE SHARE CAPITAL

True to its family tradition, the House involves all its employees
around the world in the Group’s sustainable and responsible
growth over the medium and long term. Thus, Hermès once again
stood out in 2023 with a collective free share allocation plan. Thisis a unique system on the market, whether in France or abroad, due
to its scope and generosity, renewed several times since theGroup’s ﬁrst plan in 2007, in 2010, 2012, 2016, 2019 and 2023.

In accordance with the authorisation granted by the General Meetingof 20 April 2023 in the 28th resolution, on 15 June 2023, theExecutive Management set up two new free share allocation plans forall eligible employees of the Group. These employee shareholding
plans comply with the provisions of the French Commercial Code andrelate to the Group’s existing shares, bought back in compliance withthe regulatory framework for this purpose. The allocations are subject
to presence conditions and, where applicable, performance

conditions, with vesting periods of four years.
As at 31 December 2023, employee shareholding, based on plans
already allocated and/or vested, involved a signiﬁcant proportion of
the Group’s workforce, as seen in the 1,151,443 HermèsInternational shares held as a result of free share allocation plansand previously stock option plans, representing 1.09% of the Group's
share capital. 18,000 employees in more than 35 countries (i.e. 80%of the Group’s workforce) hold shares or rights in the process ofvesting under the latest plans.
No shares in the Company are held by the employees of the Company
and afﬁliated companies under the savings plan and the company
mutual fund of the Company.

7.2.2.9

7

PLEDGE OF SHARES

Duly registered shares are not encumbered by any material pledges.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

509

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

7.2.2.10

SHARE BUYBACK PROGRAMMES

7.2.2.10.1 Use in 2023 of authorisations to buy back shares
granted by the General Meeting
The Combined General Meetings of 20 April 2022 and 20 April 2023,
approved share buyback programmes authorising the Executive
Management, on the basis of Articles L. 22‑10‑62 et seq. of theFrench Commercial Code (Code de Commerce), to purchase, on themarket or off‑market, a number of shares representing up to 10% of
the Company’s share capital on the date of the repurchase, in order
to allocate them to the objectives authorised by European regulations
or to one or more market practices accepted by the French Financial
Markets Authority (AMF) to date or in the future, and more generally,
to allocate them to the completion of any transactions in accordancewith the regulations in force.

The Combined General Meetings of 20 April 2022 and 20 April 2023
authorised the Executive Management to reduce the share capital bycancellation of repurchased shares, within the limit of 10% of theshare capital per period of 24 months.
The characteristics of the delegations granted to the Executive
Management are detailed in chapter 3 “Corporate governance”,§ 3.9.4.
During the ﬁnancial year ended 31 December 2023, the Executive
Management carried out the transactions shown in the table below,
in the context of share buyback programmes authorising the
Executive Management to buy and sell its own shares under Article
L. 22‑10‑62 of the French Commercial Code (Code de commerce).

From 01/01/2023
to 20/04/2023

From 21/04/2023
to 31/12/2023

Total

1,029,158-

1,029,158-

74,95474,954

Employeeshareholding

Employeeshareholding

EXCLUDING THE LIQUIDITY CONTRACT
Number of shares booked in the name of the Company as at 31 December 2022
Number of shares purchased
Reason for acquisitions
Average price of purchases€1,765.14€1,765.14

Number of shares sold

222

267,195

267,417 1

Average price of sales€114.15€399.37€399.13 2

Amount of net expenses excluding taxes

-

-

-

Number of shares cancelled

-

-

-

Average price of cancelled shares

-

-

-

1,028,936(192,241)

836,695s Employee shareholding

950,563(192,241)758,322s External growth78,373-78,373

Number of shares booked in the name of the Company as at 31 December 2023
Allocation:

Net value assessed at cost

€667,472,329€25,594,104€693,066,433€1,974,322,397€(368,872,031)€1,605,450,366€524,757€(98,043)€426,714

0.97%- 0.18%

0.79%

4,467

-

4,467

€5,000,000€5,000,000€5,000,000

Number of shares purchased

53,290145,844

199,134

Average price of purchases

Net value assessed at the closing rate
Par value
Fraction of the share capital that they represent
IN THE CONTEXT OF THE LIQUIDITY CONTRACT
Number of shares booked in the name of the Company as at 31 December 2022
Resources implemented (liquidity account)€1,704.62€1,883.74€1,835.80

Number of shares sold57,582

143,599

201,181

Average price of sales€1,702.38€1,886.15€1,833,55

175

2,245

2,420

Net value assessed at cost

€299,086€4,395,623€4,694,709

Net value assessed at the closing rate€335,790€4,395,623€4,643,496€89€1,145€1,234

0,00%

0,00%

0,00%

Number of shares booked in the name of the Company as at 31 December 2023

Par value
Fraction of the share capital that they represent(1) Number of shares issued to employees under share and stock option allocation plans.
(2) Average purchase price of shares issued to employees.

5102023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALINFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

7.2.2.10.2 Description of the new share buyback programme proposed to the vote of the Combined General Meetingof 30 April 2024
Pursuant to Articles 241‑2 and 241‑3 of the AMF General Regulation,
the Company hereinafter presents the share buyback programme tobe submitted for the approval of the Combined General Meeting of
30 April 2024. This programme will supersede that authorised by the
Combined General Meeting of 20 April 2023.
Objectives of the share buyback
programme

As at 29 February 2024, the share capital of the Company consistedof 105,569,412 shares, of which 837,293 treasury shares (numberof shares as at the date of the operation) held by HermèsInternational, representing 0.79% of the share capital.

The shares may be repurchased in order to be allocated to the objectives permitted by Regulation (EU) no.
596/2014 of 16 April 2014 on market abuse (Market Abuse Regulation – “MAR”):s objectives provided for in Article 5 of the MAR: capital decrease, hedging of debt securities exchangeable forshares and coverage of employee shareholding plans;s objectives provided for in Article 13 of the MAR and under the market practice accepted by the French
Financial Markets Authority (AMF): the implementation of a liquidity contract by an investment service
provider acting independently and in accordance with the provisions of AMF decision no. 2021‑01 of 22 June2021;
s other objectives: acquisitions, hedging of equity securities exchangeable for shares and, more generally, toallocate them for the completion of any transactions in accordance with the regulations in force.

Maximum share of capital that may 10% of the share capital on the date of the General Meeting:
be bought backs i.e. on the basis of the share capital issued as at 31 December 2023: 10,556,941 shares;
s it being specified that treasury shares held on the day of the General Meeting are not taken into account inthis maximum amount.
Maximum purchase price andmaximum authorised amount offunds that may be committeds the maximum purchase price (excluding costs) would be set at €3,000 per share;s the maximum amount of funds to be committed would be set at €6.5 billion. It is specified that treasury
shares held on the day of the General Meeting are not taken into account in this maximum amount.

Terms & Conditions

The shares may be purchased by any means, including all or part of interventions on regulated markets,
multilateral trading systems, with systematic internalisers or OTC, including block purchases of securities(without limiting the portion of the buyback programme carried out by this means), by public tender or exchange
offering or the use of options or derivatives (in compliance with legal and regulatory requirements applicable atthe time), excluding the sale of put options, and at the time that the Executive Management deems appropriate,including during a public offering for the shares of the Company, in accordance with stock market regulations,either directly or indirectly via an investment services provider. The shares acquired pursuant to thisauthorisation may be retained, sold, or transferred by any means, including by block sales, and at any time,
including during public offerings.

Duration of the buyback
programme

This authorisation would be valid for 18 months from the date of the Combined General Meeting of 30 April
2024, i.e. until 30 October 2025.

72023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

511

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

7.2.3

TRANSACTIONS PERFORMED BY CORPORATE OFFICERS AND THOSE CLOSE TO THEM
ON THE SHARES OF THE COMPANY

In accordance with Article 223‑26 of the AMF General Regulation, a summary is presented below of the transactions mentioned in Article
L. 621‑18‑2 of the French Monetary and Financial Code carried out during the last ﬁnancial year, having been declared and of which theCompany is aware.
NAME AND FUNCTION

Date of the transaction

Nature of the transaction

Pierre‑Alexis Dumas, member of the Executive
Committee
2023DD886343

20 February 2023

Pledge€0€0Legal entity linked to Jean‑Baptiste Puech,
member of the Executive Management Boardof Émile Hermès SAS, Active Partner andExecutive Chairman of Hermès International 2023DD886066

21 February 2023

Purchase€1,707.60€597,660.00

Olympia Guerrand, member of theSupervisory Board

2023DD887249

1 March 2023

Purchase€1,710.00€58,140.00

Renaud Momméja, member of theSupervisory Board

2023DD888169

7 March 2023 Bare ownership donation€0€0

Legal entity linked to Jean‑Baptiste Puech,
member of the Executive Management Boardof Émile Hermès SAS, Active Partner andExecutive Chairman of Hermès International 2023DD896454

22 April 2023

Purchase€1,891.00€907,680.00

Olympia Guerrand, member of theSupervisory Board

2023DD897288

28 April 2023

Donation€0€0Legal entity related to Frédéric Dumas,
member of the Executive Management Boardof Émile Hermès SAS, Active Partner andExecutive Chairman of Hermès International 2023DD899588

8 May 2023

Purchase€1,914.17€4,019,757.00

Legal entity related to Pierre‑Alexis Dumas,
member of the Executive Committee

512

Unit price 1 Amount of the transaction 1

Declaration no.

2023DD917023

27 June 2023

Put option€128.48€5,190,527.36

Prescience Assoh, member of the Supervisory
Board
2023DD917800

3 July 2023

Vesting of free shares€0€0Florian Craen, member of the Executive
Committee

2023DD917585

3 July 2023

Vesting of free shares€0€0Charlotte David, member of the Executive
Committee

2023DD917557

3 July 2023

Vesting of free shares€0€0Pierre‑Alexis Dumas, member of the Executive
Committee
2023DD917560

3 July 2023

Vesting of free shares€0€0Olivier Fournier, member of the Executive
Committee

2023DD917549

3 July 2023

Vesting of free shares€0€0Catherine Fulconis, member of the Executive
Committee

2023DD917529

3 July 2023

Vesting of free shares€0€0

Wilfried Guerrand, member of the Executive
Committee

2023DD917525

3 July 2023

Vesting of free shares€0€0Éric du Halgouët, member of the Executive
Committee

2023DD917524

3 July 2023

Vesting of free shares€0€0

Sharon MacBeath, member of the Executive
Committee

2023DD917547

3 July 2023

Vesting of free shares€0€0Anne‑Lise Muhlmeyer, member of theSupervisory Board

2023DD917570

3 July 2023

Vesting of free shares€0€0Guillaume de Seynes, member of the
Executive Committee

2023DD917527

3 July 2023

Vesting of free shares€0€0Agnès de Villers, member of the Executive
Committee

2023DD917614

3 July 2023

Vesting of free shares€0€0Legal entity linked to Jean‑Baptiste Puech,
member of the Executive Management Boardof Émile Hermès SAS, Active Partner andExecutive Chairman of Hermès International 2023DD923449

5 August 2023

Purchase€1,927,00€121,401.00

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALINFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

Date of the transaction

Nature of the transaction

Unit price 1 Amount of the transaction 1

25 August 2023

Cancels and replaces
declaration
2023DD925229€1,898.73€299,998.80

Legal entity linked to Jean‑Baptiste Puech,
member of the Executive Management Boardof Émile Hermès SAS, Active Partner andExecutive Chairman of Hermès International 2023DD927384

9 September 2023

Purchase€1,846.10€716,286.80

Axel Dumas, Executive Chairman

2023DD928922

21 September 2023 Bare ownership donation€0€0Matthieu Dumas, member of the Supervisory
Board
2023DD928925

21 September 2023 Bare ownership donation€0€0

Jean‑Baptiste Puech, member of the
Executive Management Board of Émile
Hermès SAS, Active Partner and Executive
Chairman of Hermès International

2023DD930701

21 September 2023

Pledge€0€0Legal entity related to Frédéric Dumas,
member of the Executive Management Boardof Émile Hermès SAS, Active Partner andExecutive Chairman of Hermès International 2023DD935367

26 October 2023

NAME AND FUNCTION
Catherine Fulconis, member of the Executive
Committee

Declaration no.

2023DD925584

2023DD936888
Pierre‑Alexis Dumas, member of the Executive
2023DD936896
Committee
2023DD937282

6 November 2023

Purchase€1,748.63€1,311,472.50

Lifting of a pledge€0€0Pledge€0€0Pledge of a put option€0€0Pierre‑Alexis Dumas, member of the Executive
Committee
2023DD938673

15 November 2023

Pledge€0€0Legal entity linked to Jean‑Baptiste Puech,
member of the Executive Management Boardof Émile Hermès SAS, Active Partner andExecutive Chairman of Hermès International 2023DD939156

18 November 2023

Purchase€1,781.29€14,250,320.00

Jean‑Baptiste Puech, member of the
Executive Management Board of Émile
Hermès SAS, Active Partner and Executive
Chairman of Hermès International

2023DD939158

18 November 2023

Disposal€1,781.29€14,250,320.00

Olivier Fournier, member of the Executive
Committee

2023DD942324

12 December 2023

Disposal€2,006.59€190,626.00

Legal entity linked to Jean‑Baptiste Puech,
member of the Executive Management Boardof Émile Hermès SAS, Active Partner andExecutive Chairman of Hermès International. 2023DD943068

12 December 2023

Donation received€0€0Jean‑Baptiste Puech, member of the
Executive Management Board of Émile
Hermès SAS, Active Partner and Executive
Chairman of Hermès International

2023DD942479

12 December 2023

Donation€0€0Éric du Halgouët, member of the Executive
Committee

2023DD942362

13 December 2023

Disposal€2,038.50€1,100,790.00

Agnès de Villers, member of the Executive
Committee

2023DD943070

15 December 2023

Disposal€2,042.00€816,000.00

Pierre‑Alexis Dumas, member of the Executive 2023DD943842
Committee
2023DD943787

22 December 2023

Pledge€0€0

22 December 2023

Pledge€0€07(1) Amounts rounded to two decimal places.

No other Corporate Ofﬁcer (Executive Chairman or Supervisory Board
member) of Hermès International reported any trades in Company
shares in 2023.

No other Senior Executives (Executive Committee members) of
Hermès International reported any trades in Company shares in
2023.
Neither did the Company receive any other reports of such tradesfrom any of its immediate family members.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

513

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

7.2.4

STOCK MARKET ETHICS CODE

Pursuant to European Regulation (EU) no. 596/2014 of 16 April
2014 on market abuse (known as the “MAR”), a review was carriedout of internal procedures, practices and training on the prevention of
insider trading in the Hermès Group.

On 1 February 2017, the Hermès Group adopted a new Stock
Market Ethics Code (the “code”) formalising the steps taken andthe obligations incumbent on people, whether or not they are
Senior Executives, who have access to inside or sensitive
information.
A summary of this code is made available each time it is updated
on the website
https://ﬁnance.hermes.com/en/
governing‑bodies‑rules‑procedure‑articles‑association/.

The code was updated several times as follows:s inclusion of precautionary measures concerning the broadcastingof comments on social networks and media in connection with the
Hermès Group;s update of applicable regulations (CNIL deliberation no. 2017‑200of 6 July 2017, ESMA interpretations, GDPR adaptation, law no.
2019‑744 of 19 July 2019 on simplifying, clarifying and updatingcompany law, AMF recommendations no. 2016‑08, updated on
29 April 2021, “Guide to Permanent Information and Managementof inside Information”);
s addition of examples drawn from the guiding principles from caselaw of the AMF Sanctions Commission;s editorial details.

Version 11 of the code, dated 1 January 2024, is structured asfollows:
s review of definitions (inside information, insiders and similar,
insider lists, trading days, AMF);
s internal procedures within the Group.

7.2.4.1

ESTABLISHMENT OF ABSTENTION PERIODS OR“BLACKOUT WINDOWS” (OR CLOSED PERIODS)The code notes that Executive Chairmen, members of the Executive
Committee, members of the Supervisory Board and members of the
Executive Management Board of Émile Hermès SAS are qualiﬁed as“permanent insiders” (as deﬁned in the MAR, the “Permanent
Insiders”).
Internally, Hermès International qualiﬁes as “sensitive” persons any

514

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

non‑insiders among employees who are liable to hold sensitive or
conﬁdential information that is not classiﬁed as inside information(the “Sensitive Persons”). As a preventive measure and to facilitate
accountability, these people are subject to speciﬁc blackout periods.
A list of Sensitive Persons is established, and the relevant persons
concerned are informed of their status.
Permanent Insiders and Sensitive Persons are required to refrain fromtrading in the securities of the Company during blackout periods set
out in the schedules drawn up and published each year.
The requirement to respect blackout periods covers all transactions
on Hermès International shares. It applies:s for Permanent Insiders, as a precaution and even though theinformation in question is not considered Inside information by the
Inside Information Committee (IIC), from the reporting dates forquarterly sales, and those for annual and interim results (reportingof financial information that could provide an indication of the
figures, prior to the “financial” blackout periods below) up to andincluding the date on which revenue and annual or interim results
are reported, where appropriate;s for Permanent Insiders and Sensitive Persons during “financial”
blackout periods, plus the day of publication of the press release:• period of 30 calendar days preceding the publication of theannual or half‑yearly financial statements,• period of 15 calendar days before the quarterly publication ofrevenue;s for recipients of free shares (only for the sale of free shares), at theend of the retention period during “free share” blackout periods:• period of 30 days preceding the annual or interim financial
statements are made public and up to and including the dateon which the annual or interim results are reported, whereappropriate,• exceptionally, to a period beginning when the Group issues a
specific alert about a transaction prohibiting trading until thedate the transaction is made public.

7.2.4.2

PROCEDURE FOR QUALIFYING AND DEFERRINGDISCLOSURE OF INSIDE INFORMATION

Hermès International has established an Inside Information
Committee (IIC), whose role is to identify and qualify inside
information, to decide whether or not to defer its publication, and to
identify insiders for each item of inside information (other than
Permanent Insiders). The IIC is composed of the Executive
Vice‑President Finance, the Group General Counsel, the Director of
Corporate Law and Stock Exchange Regulations and ComplianceOfﬁcer, and the Group Director of Financial Communication and
Investor Relations.

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

7.2.4.3

APPOINTMENT OF A COMPLIANCE OFFICER

Hermès International has appointed the Director of Corporate Law
and Stock Exchange Regulation/Supervisory Board Secretary as
Stock Exchange Compliance Ofﬁcer. The Compliance Ofﬁcer is
responsible for:s the implementation of the procedure and tools for managing
insider lists;s the creation and updating of the lists of Permanent Insiders,occasional insiders and Sensitive Persons;s the drafting, distribution and updating of the Stock Market EthicsCode;s the organisation of Insider training;s the establishment and dissemination of blackout periods
applicable to Permanent Insiders and occasional insiders andSensitive Persons;s informing Insiders and obtaining their explicit recognition of their
obligations;s the issuance of oral advisory opinions prior to the completion of atransaction by Permanent or occasional Insiders.

7.2.4.4

E‑LEARNING

In order to comply with the recommendations of the AMF(position‑recommendation DOC‑2016‑08 “Guide to permanent
information and management of inside information”, amended on 29
April 2021, Article 2.1.2.3), Hermès International has developed ane‑learning training course on the prevention of market abuse. This
training, launched on 1 February 2022, is offered to all employees
and was compulsory for all Permanent Insiders and Sensitive
Persons.

7.2.5

MATERIAL CONTRACTS, SHAREHOLDER
PACTS AND AGREEMENTS

7.2.5.1

MATERIAL CONTRACTS

During the last two ﬁnancial years, the Company has not entered into
any signiﬁcant contracts, other than those entered into in the normal

course of business, conferring a signiﬁcant obligation or commitment
for the entire Group.
The information relating to the priority right to acquire HermèsInternational shares and to the Dutreil agreements in force ispresented below (respectively in § 7.2.5.2 and § 7.2.5.3).

7.2.5.2

PRIORITY ACQUISITION RIGHTS

A priority right to acquire Hermès International shares (AMF notice no.
211C2288) came into force on 13 December 2011.
This priority acquisition right is stipulated for the beneﬁt of H51, asociété par actions simpliﬁée à capital variable (simpliﬁed joint stockcompany with variable capital), and was initially granted by 102
natural persons and 33 legal entities (all members, held by members
or for whom one of the parents is a member of the Hermès familygroup), representing a total of about 12.3% of the share capital ofHermès International.
By amendment (AMF notice no. 213C0716) which came into force on
17 June 2013, the price at which H51 could acquire the HermèsInternational shares from the members of the Hermès family grouppursuant to this priority acquisition right would be equal to theaverage of the prices weighted by volumes (on the entire trading
platform) of the Hermès International share during the 30 stock
market trading days preceding the day of notiﬁcation of the transfer,
unless the said share is insufﬁciently liquid (as deﬁned in theamendment), in which case an expert appraisal procedure will be
implemented.
To the Company’s knowledge:s the priority acquisition right that H51 benefits from covered – atthe date of signature – most of the Hermès International sharesalso held by the members of the Hermès family group (as at
31 December 2023, approximately 12.4% of the share capital heldby H2 and other members of the Hermès family group, § 7.2.2.5);s the priority acquisition right was granted by members of the
Hermès family group and descendants of these members who do
not yet directly or indirectly hold shares in the Company.

The deﬁnition and description of the organisation of the Hermès
family group are presented in chapter 9 “Additional information”,§ 9.6; in § 7.2.2.3; and in chapter 3 “Corporate governance”, § 3.2.1.

72023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

515

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALINFORMATIONS ON SHARE CAPITAL AND SHAREHOLDERS AFR

7.2.5.3

DUTREIL AGREEMENTS

The following shareholder agreements, falling within the scope of the Dutreil law and still in force in 2023, were brought to the Company’s
attention:

Dutreil agreement
Transmission
03/2022.1

Dutreil agreement
Transmission
06/2022.1

Date of signature

16 March 2022

24 June 2022

Duration of the collective
commitment
Contractual duration of theagreement

Two years from the Two years from the Two years from the Two years from the Two years from the Two years from thedate ofdate ofdate ofdate ofdate ofdate ofregistration (in this registration (in this registration (in this registration (in this registration (in this registration (in thiscase, 16 March case, 24 Junecase, 27 Julycase, 10 October case, 18 Aprilcase, 28 June
2022)
2022)
2022)
2022)
2023)
2023)

RegimeDutreil agreement
Transmission
07/2022.1

Dutreil agreement
Transmission
04/2023.1

Dutreil agreement
Transmission
06/2023.1

Article 787 B of the French General Tax Code (CGI)
27 July 2022

Procedures for renewal

10 October 2022 18 April 2023

28 June 2023

Non‑renewable

Percentage of the share capital 54.29%
covered by the agreement on thedate of its signature

54.30%

54.40%

54.49%

54.38%

54.33%

Percentage of voting rights
64.34%
covered by the agreement on thedate of its signature

63.66%

64.78%

63.84%

64.27%

64.29%Name of signatories having thecapacity of Senior Executives(within the meaning of Article
L. 621‑18‑2‑a of the French
Monetary and Financial Code)On the date of signature of the agreement:
Émile Hermès SAS, Executive Chairman and Active Partner
Axel Dumas, Executive Chairman

Name of signatories having close
personal links with the Senior
Executives (according to themeaning of Articles L. 621‑18‑2‑cand R. 621‑43‑1 of the French
Monetary and Financial Code)All signatories

Names of signatories holding atleast 5% of the share capital and/or voting rights in the Company as
at 31 December 2023

516

Dutreil agreement
Transmission
10/2022.1

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

H51

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALDIVIDEND POLICY

7.3

DIVIDEND POLICY

7.3.1

PRINCIPLES

7.3.2

PROPOSAL SUBMITTED TO THE 2024
GENERAL MEETING

Subject to the investments needed for the Company’s development
and the corresponding ﬁnancing requirements, the Company’s current
intention is to continue the dividend policy it has conducted over the
past several years. The amounts of dividends paid in each of the
ﬁnancial years included in the historical ﬁnancial information are
shown in chapter 9 “Additional information”, § 9.4.

During the General Meeting of 30 April 2024, it will be proposed thatthe ordinary dividend be set at €15 per share. The Executive
Management decided to pay an interim dividend of €3.50 per
ordinary share, paid on 15 February 2024, which will be deductedfrom the dividend to be decided by the General Meeting.

You are reminded that, in order to distribute part of the large amountof cash available, an “exceptional” dividend of €5.00 was paid in
2012, 2015 and 2018, in addition to the “ordinary” dividend.

The General Meeting of 30 April 2024 is asked to decide on an
exceptional dividend of €10.00 per share, in order to distribute partof the available cash.
In future, the Executive Management will decide case by case, given
the situation of the Group and its prospects, whether it is appropriate
to pay interim dividends before the General Meeting. In accordancewith the law, the time limit after which entitlement to dividends ofHermès International shares ceases is ﬁve years from the dividend
payment date. After the ﬁve‑year time limit expires, the Company pays
over any unclaimed dividends to the tax centre to which it reports.

72023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

517

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALSTOCK MARKET INFORMATION

7.4

STOCK MARKET INFORMATION

7.4.1

SUMMARY OF STOCK MARKET INFORMATION
2023

2022

2021

Number of shares as at 31 December

105,569,412

105,569,412

105,569,412

Average number of shares (excluding treasury shares)

104,648,079

104,564,729

104,623,330

Market capitalisation as at 31 December€202.57 billion€152.55 billion€162.15 billion

Earnings per share (excluding treasury shares)€41.19€32.20€23.37

Dividend per share€25.00 1€13.00€8.00

57,33877,52755,257€2,063.50€1,585.50€1,678.00

Average daily volume (Euronext)
12‑month high share price
12‑month low share price€1,450.00€957.60€839.40

12‑month average share price€1,846.59€1264.22€1,190.97

Share price as at 31 December€1,918.80€1,445.00€1,536.00(1) Corresponds to an ordinary dividend of €15.00 and an exceptional dividend of €10.00. Subject to the decisions of the Ordinary General Meeting of 30 April 2024, aninterim amount of €3.50 was paid on 15 February 2024.

7.4.2

HISTORY OF MONTHLY TRANSACTIONSIn number of shares (1)(Source Bloomberg)
3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
2019

2020

(1) Euronext.

518

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

2021

2022

2023

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALSTOCK MARKET INFORMATION

7.4.3

HERMÈS INTERNATIONAL SHARE PRICE HISTORY

The company Hermès International was listed on the CAC 40 on 7 June 2018 and in the EURO STOXX 50 index on 20 December 2021. HermèsInternational has been included since 17 September 2021 in the CAC 40 ESG index, which includes 40 companies on the basis of theirenvironmental, social and governance performance and is based on the rating of V.E. Moody’s ESG.
In euros

2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2019

2020

2021

2022

2023

CHANGE IN SHARE PRICE OVER THE LAST FIVE FINANCIAL YEARS

2019
Share price in euros
High

Low

Average closing price

Monthly average of dailytransactions on Euronext

January524.40462.40494.1658,397

February

562.40519.20541.5749,241

March

598.40554.00578.3159,544

Month

April

627.20586.60604.9554,551May

625.20587.80609.1657,024June

638.40590.60618.3056,104July

652.00626.20640.4745,999August645.40597.80614.9556,340

September

656.60614.60633.02

56,847

October

654.80599.20630.5950,310November

683.80641.00657.2258,972

December

689.20644.20666.2450,7372023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

7

519

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALSTOCK MARKET INFORMATION

2020
Share price in euros
High

Low

Average closing price

Monthly average of dailytransactions on Euronext

January725.60662.80693.3563,670February

718.00615.00688.27

82,254March

671.60516.00610.17135,051

April

701.00592.00656.02

59,162

May751.60646.20687.0361,088June

788.20715.80750.86

69,066July

780.00686.20750.2856,949August729.60679.00700.7047,673September

765.40716.20737.1047,135Month

October

830.00738.40784.5357,265

November

865.00791.80833.9064,960December

890.20815.80849.0949,4332021
Share price in euros
High

Low

Average closing price

Monthly average of dailytransactions on Euronext

January898.20839.40874.5447,680February

1,018.00

847.60918.6247,871

March

984.80872.80939.3453,706April

1,065.50

945.801,013.45

47,394May

1,160.00

1,029.00

1,077.23

47,766June

1,237.50

1,141.50

1,198.11

49,160

Month

520

July

1,311.50

1,191.00

1,253.09

41,252

August1,354.50

1,202.50

1,293.64

47,270

September

1,325.50

1,190.50

1,266.00

50,444

October

1,370.50

1,166.50

1,277.69

52,304

November

1,676.50

1,375.00

1,529.41

75,093

December

1,678.00

1,462.00

1,570.37

98,8082023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALINFORMATION ON THE COMPANY AND ITS SHARE CAPITALSTOCK MARKET INFORMATION

2022
Share price in euros
MonthJanuaryHigh

Low

Average closing price

Monthly average of dailytransactions on Euronext

1,582.50

1,258.50

1,380.86

90,472February

1,364.00

1,150.00

1,251.98

100,766March

1,318.50

1,060.00

1,197.33

108,039April

1,318.50

1,160.00

1,246.05

65,918May

1,174.50

995.801,067.25

88,303June

1,140.50

957.601,049.98

79,639July

1,360.50

1,037.00

1,144.36

70,420August1,420.00

1,277.50

1,361.93

54,946

September

1,338.50

1,160.50

1,246.86

70,962October

1,374.00

1,196.00

1,297.86

74,615

November

1,559.00

1,305.00

1,432.50

82,299December

1,585.50

1,432.00

1,504.55

61,3582023
Share price in euros
High

Low

Average closing price

Monthly average of dailytransactions on Euronext

January

1,717.50

1,450.00

1,623.55

58,523February

1,778.00

1,648.50

1,717.45

66,117

Month

March

1,874.50

1,661.00

1,758.93

66,802April

2,020.00

1,845.00

1,945.18

54,361May

2,036.00

1,846.00

1,965.48

61,371June

2,012.50

1,854.80

1,937.87

58,926July

2,050.50

1,831.60

1,920.45

59,529August2,021.50

1,834.00

1,912.62

45,539September

1,923.60

1,684.00

1,819.20

59,467

October

1,786.80

1,641.00

1,724.40

57,113

November

1,981.40

1,743.40

1,890.61

50,193

December

2,063.50

1,902.00

1,969.40

49,625

7.4.4

ELEMENTS LIABLE TO HAVE AN IMPACT IN THE EVENT OF A PUBLIC OFFERING

7

To the best of the Company’s knowledge, no items other than those relating to the items referred to in chapter 3 “Corporate governance”, § 3.9.2
are likely to have an impact in the event of a public offering, or could have the effect of delaying or preventing a change of control.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

521

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALSHAREHOLDER INFORMATION

7.5

SHAREHOLDER INFORMATION

7.5.1

RELATIONS WITH SHAREHOLDERS

Shareholders and investors may obtain information on the HermèsGroup by contacting:
Ms Carole Dupont‑Pietri
Head of Investor Relations, Financial & CSR Communication
Hermès International
13‑15, rue de la Ville‑l’Évêque – 75008 Paris
Email: contact.ﬁnance@hermes.com

7.5.2

SECURITIES SERVICE

These shares are registered in a securities account held by:
UPTEVIA
Issuer Services
90 – 110 Esplanade du Général de Gaulle
92931 Paris la Défense Cedex
From France: 0 826 109 119
From abroad: +33 1 55 77 40 57

The guarantee of personalised information

Pure registered shareholders receive personalised information on:s the convening of General Meetings, with systematic sending of thenotice of meeting, the single postal and proxy voting form, arequest for an admission card and the legal information
documents;s the management of securities, the taxation of securities and theorganisation of the General Meeting.

In addition, an online service is available for consultation of equity
holdings and placing of stock market orders: https://www.uptevia.com/en/access‑my‑account/.
Easy access to the General Meeting

NOA – NextGen Online Assistant: virtual assistant on Planetshares(https://www.uptevia.com/en/access‑my‑account/).

Like any shareholder of the Company, registered shareholders areentitled to attend the General Meeting and enjoy the beneﬁt of nothaving to make a prior request for a shareholding certiﬁcate.

7.5.3

In addition to the usual voting methods, holders of pure registeredshares can vote before the Meeting or give their proxy via“Votaccess”, a voting platform.

DOCUMENTS AVAILABLE TO THE PUBLIC

Legal documents relating to the Company, and more broadly regulated
information within the meaning of Article 221‑1 of the AMF General
Regulation are available on the Company’s ﬁnancial information site(https://ﬁnance.hermes.com/en/regulated‑information/). They may
also be consulted upon appointment in print version during businesshours at the Company’s registered ofﬁce. On this website,shareholders and investors can access information on the GroupManagement, governing bodies and registration documents, universal
registration documents and ﬁnancial press releases, available inFrench and English, for the last ﬁve ﬁnancial years.
Information on the website is not part of the universal registration
document, unless it is incorporated by reference.

7.5.4

BECOMING A HERMÈS INTERNATIONALSHAREHOLDER

Registered shares
Hermès International offers its shareholders the opportunity toregister their shares in pure registered form, offering the following
advantages:
Free management

Pure registered shares are handled directly by UPTEVIA. Shareholders
must sign a service agreement to open a fully registered share account,setting out the terms and conditions for buying and selling shares via
UPTEVIA.

522

Pure registered shareholders are totally exempt from custody fees, aswell as costs inherent in the day‑to‑day management of their sharessuch as conversion to bearer shares, transfer of securities, changes
in legal situations (transfers, donations, inheritance, etc.), securities
transactions (capital increase, allocation of securities, etc.) and thepayment of dividends.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Registration procedures

To transfer your securities directly to pure registered shares or for
more information about pure registered shares, please contact:
UPTEVIA:
Hermès International Shareholder Relations
90 – 110 Esplanade du Général de Gaulle
92931 Paris la Défense Cedex
From France: 0 826 109 119
From abroad: +33 1 55 77 40 57
https://www.uptevia.com
Administered registered shares are handled by another ﬁnancial
institution, of the shareholder’s choice, that may charge custody fees.

Bearer shares
Bearer shares are handled by a ﬁnancial institution that may apply
custody fees. Shareholders who opt for this form of administration are
not known to the Company and must identify themselves if they wish
to obtain documents and attend General Meetings.
Thus, to participate in the General Meeting, bearer shareholders
must obtain a shareholding certiﬁcate certifying the registration orrecording in the books of their shares no later than midnight, Paristime, two working days prior to the General Meeting, from the ﬁnancial
intermediary managing their Hermès International securities.

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALSHAREHOLDER INFORMATION

7.5.5

DIALOGUE WITH SHAREHOLDERS AND
THE FINANCIAL COMMUNITY IN 2023

The ﬁnancial communication and investor relations department
engages in dialogue with the ﬁnancial community and all of theGroup’s shareholders throughout the year.

website and by the publication of several documents relating to theHouse’s policies., in particular:s The climate transition plan published in July 2023
s The Harmonie standard on responsible construction and realestate in July 2023
s The Forest policy, on reducing the impact of the House on natural
ecosystems, particularly forests, and on the populations that
depend on them, published in July 2023

In 2023:s Health and Safety policy published in December 2023

Number ofroadshows

Investor
meetings

Institutions
met

Store
events16 of which 4 ESG

75

168

4

The House’s sustainable and responsible model was presented atseveral events and in publications during 2023.
In July 2023, at the 14th edition of the Transparency Awards (formerly
the Grands Prix de la Transparence), Hermès International was thewinner of the “CAC Large 60” Transparency Award for the leading CAC
40 and Next 20 companies, after receiving the All Categories GrandPrix (for which the Group was no longer eligible) in 2022 (see chapter
3 “Corporate governance”, § 3.1.2). The Transparency Awards are
based on the criteria of accessibility, accuracy, comparability,
availability and clarity of information in each company’s key media(universal registration document, ﬁnance website, notice of general
meeting brochure). An independent Scientiﬁc Committee ensures theneutrality and fairness of the ranking. It is composed of 10 membersof organisations and associations representing users of information,
including Paris Europlace, Euronext, AMF, IFA, SFAF, AFG and F2ic.
In December 2023, the House won the Grand Prix Emploi for the thirdtime, awarded by Humpact, a non‑ﬁnancial rating agency (ESG)
dedicated to social issues. This award recognises companies for theirachievements in terms of job creation, gender parity and integrationof people with disabilities, young people and seniors.
Finally, in January 2024, Hermès won the FIR/A2 Consulting award
for the 2023 Vigilance Plan for best progress, with a rise of 23 places
in one year, moving from 31st to 8th place among CAC40 companies.
Since 2011, FIR - the Forum for Responsible Investment - hasawarded prizes to French and European companies. These awards
aim to stimulate and encourage ESG best practices and to highlightthe importance of these issues to the general public.
2023 was marked by the strengthening of shareholder dialogue on
non‑ﬁnancial topics, as well as by increased transparency on thesesubjects, with enhanced information provided on the Hermès Finance2023 also saw the acceleration of meetings with the ﬁnancial
community on ESG topics, and in particular through the organisationof dedicated roadshows and participation in ESG market conferences,
as well as enhanced dialogue with non‑ﬁnancial rating agencies.
The Shareholders’ General Meeting and the presentations of the
ﬁnancial results were broadcast live and recorded on the Company’s
website at https://ﬁnance.hermes.com/en/.

Hermès has a website dedicated to the ﬁnancial community, its
shareholders and, more generally, its stakeholders: https://ﬁnance.hermes.com/en/.
s In the “Investors” section, shareholders can in particular find:• half‑yearly and annual financial presentations, and press
releases, notably on CSR,

• the universal registration document and the half‑year financial
report,• Letters to shareholders, in the section “Shareholders’ Guide”;
s the House’s key figures and the House’s financial events;s a specific “General Meeting” section, which allows shareholders toread all the information relating to this event;s a section dedicated to the “Group” and the specific features of its
independent craftsmanship model, its creativity and savoir‑faire;s the enhanced section dedicated to “sustainable development”,
which contains the commitments and actions carried out by theHouse of Hermès. The House’s objectives, initiatives andnumerous projects are set out in this dedicated digital space,alongside publications, documents and non‑financial policies. The
Group thus confirms its commitment to social, societal andenvironmental performance, which is part of the Maison Hermès
DNA and its craftsmanship model.

7

In 2023, Hermès published two issues of its Letter to Shareholders,in French and English, a regular source of information on its news,
presenting the main facts and ﬁgures and providing information on
the Company’s relationship with its shareholders.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

523

7

INFORMATION ON THE COMPANY AND ITS SHARE CAPITALSHAREHOLDER INFORMATION

Shareholders can also consult the information published by theCompany on the following websites:s https://www.amf‑france.org/en, for press releases, registration
documents/universal registration documents, threshold crossings,
shareholder agreements and declarations sent to the AMF;
s https://www.journal‑officiel.gouv.fr/pages/balo/, for documents
published in the Bulletin des Annonces Légales Obligatoires(BALO);s https://www.infogreffe.com/ for filings made with the clerks of theCommercial Court of Paris (search by identification number:
572 076 396).

7.5.7

7.5.6

FINANCIAL CALENDAR FOR 2024

The dates of ﬁnancial publications (revenue, annual and half‑year
results) and of the General Meeting are available on the website
https://ﬁnance.hermes.com/en/calendar/.
Publication of the 2023 annual consolidated results

2024/02/09

Publication of consolidated revenue for the ﬁrst quarter of 2024

2024/04/25

Shareholders’ Combined General Meeting2024/04/30

Publication of consolidated results for the ﬁrst half of 2024 (after
stock market closing)2024/07/25

Publication of consolidated revenue for the third quarter of 2024

2024/10/28

REGULATED INFORMATION

All the documents constituting regulated information within the meaning of the French Financial Markets Authority (AMF) are available on thewebsite https://ﬁnance.hermes.com/en/, under the heading “Regulated information”.

7.5.8

OBLIGATIONS RELATING TO THE DECLARATION OF THRESHOLD CROSSINGS AND NOMINATIVEREGISTRATION
Crossing of threshold disclosures
Legal thresholds(Articles L. 233‑7 et seq. of the French
Commercial Code (Code de commerce)and Articles L. 433‑3 et seq. of theFrench Monetary and Financial CodeStatutory thresholds(Article 11 of the Articles of Association)

RecipientsThe Issuer
The Issuer
The AMF, which makes this information
publicShare capital and voting
rights thresholds upwards
and downwards 1

5%, 10%, 15%, 20%, 25%, 30%, 1/3, 0.5% (or any multiple of this percentage)
50%, 2/3, 90% and 95%
Owing to the existence of double voting
rights, in practice, 22 thresholds must
be monitored.

Obligation to hold shares in registered format(Article 11 of the Articles of Association)

From 0.5%

The thresholds may be attained after shares are acquired or sold, regardless of the means (purchase, transfer, merger, demerger,
scrip dividends or by any other means) or following a change in the apportionment of voting rights (gain or loss of double voting
rights, etc.).
The shares to be taken into account include not just newly acquired shares, but the shares that the shareholder has the right toacquire at their sole initiative pursuant to an agreement (contract of sale, option, etc.) and those that the shareholder can acquireat their sole initiative, immediately or in the future, as a result of holding a ﬁnancial instrument (bond redeemable for shares, equity
swap, warrant, etc.), that gives rise to a physical settlement (delivery of shares) or a settlement in cash, subject to the exemptions
provided for in Article L. 233‑7 IV of the French Commercial Code (Code de commerce).
By the 15th day of each month, the Company publishes a report on its website (https://ﬁnance.hermes.com/en/) disclosing thetotal number of shares, the total number of theoretical voting rights (including shares disqualiﬁed from voting) and the total numberof exercisable voting rights (excluding shares disqualiﬁed from voting) that make up the share capital on the last day of the previous
month.
Declaration time limit

Before the close of trading four
trading days after a legal threshold
was crossed.

Penalty for nonShares exceeding the fraction
compliance with ownership that should have been declared
threshold disclosure andare deprived of voting rights fornominative registration
any General Meeting held until
requirements
the expiry of a period of two
years following the date ofregularisation of the notiﬁcation.
(1) Based on the total number of theoretical voting rights.
524

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Before the close of trading ﬁve trading
days after a threshold under the Articles
of Association was crossed (even after
crossing any of the legal thresholds).

Before the close of trading ﬁve trading days
after a threshold under the Articles of
Association was crossed.
A copy of the nominative registration
application, sent by registered post withacknowledgement of receipt to theregistered ofﬁce within 10 stock market
trading days from the date on which thethreshold is attained, shall constitute a
declaration of attaining the ownershipthreshold in question.

The shares that exceed the thresholdsubject to disclosure or having been
subject to disclosure shall be disqualiﬁed
from voting rights.
In the event of regularisation, thecorresponding voting rights can only
be exercised once the period stipulated
by law and current regulations has expired.

The shares that exceed the thresholdsubject to disclosure or having been subject
to disclosure shall be disqualiﬁed from voting
rights.

INFORMATION ON THE COMPANY AND ITS SHARE CAPITAL

7

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

525

8

COMBINED GENERAL MEETING
OF 30 APRIL 2024
8.1

AGENDA

528

8.1.1
8.1.2

Ordinary business
Extraordinary business

528
529

8.2

EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

530

8.2.1

Ordinary business
Extraordinary business

530
547

8.3

SUPERVISORY BOARD REPORT TO THE COMBINED GENERALMEETING OF 30 APRIL 2024

551

8.4

STATUTORY AUDITORS’ REPORTS

553

8.4.1

Statutory Auditors’ report on the annual financial statements
Statutory Auditors’ report on the consolidated financial statements
Statutory Auditors’ special report on related‑party agreements
Report by one of the Statutory Auditors, designated as an independent
third party, on the consolidated social, environmental and societal
information contained in the management report
Statutory Auditors’ report on the share capital reduction (eighteenth
resolution)
Statutory Auditors’ report on the authorisation to allocate free existing
shares (nineteenth resolution)

553
553
554

8.2.2

8.4.2
8.4.3
8.4.4

8.4.5
8.4.6

556
557
558

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

527

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
AGENDA

8.1

AGENDA

8.1.1

ORDINARY BUSINESS

8.1.1.1

PRESENTATION OF REPORTS TO BE SUBMITTED
TO THE ORDINARY GENERAL MEETING

Executive Management reportss On the financial statements for the year ended 31 December 2023
and on the Company’s activity for said financial year.
s On the management of the Group and the consolidated financial
statements for the year ended 31 December 2023.
s On the resolutions relating to ordinary business.

Supervisory Board report on corporate governanceSupervisory Board report to the Combined General Meeting of
30 April 2024

Approval of total compensation and beneﬁts of all kinds paid during orawarded in respect of the ﬁnancial year ended 31 December 2023 toMr Axel Dumas, Executive Chairman (individual ex‑post vote).

Ninth resolution
Approval of total compensation and beneﬁts of all kinds paid during orawarded in respect of the ﬁnancial year ended 31 December 2023 tothe company Émile Hermès SAS, Executive Chairman (individual
ex‑post vote).

Tenth resolutions On the annual financial statements.

Approval of total compensation and beneﬁts of all kinds paid during orawarded in respect of the ﬁnancial year ended 31 December 2023 to
Mr Éric de Seynes, Chairman of the Supervisory Board (individual
ex‑post vote).

s On the consolidated financial statements.

Eleventh resolutions On related‑party agreements.

Approval of the compensation policy for the Executive Chairmen(ex‑ante vote).

Statutory Auditors’ reports

Report by one of the Statutory Auditors, designated as anindependent third party, on the consolidated social,environmental and societal information contained in the
management report

8.1.1.2

VOTING ON ORDINARY RESOLUTIONSTwelfth resolution
Approval of the compensation policy for the members of theSupervisory Board (ex‑ante vote).

Thirteenth resolution

First resolution

Reappointment of Supervisory Board member Mr Matthieu Dumas fora term of three years.

Approval of the parent company ﬁnancial statements.

Fourteenth resolution

Second resolution

Reappointment of Supervisory Board member Mr Blaise Guerrand fora term of three years.

Approval of the consolidated ﬁnancial statements.

Third resolution
Executive Management discharge.

Fourth resolution
Allocation of net income – Distribution of an ordinary dividend and an
exceptional dividend.

Fifth resolution
Approval of related‑party agreements.

Sixth resolution
Authorisation granted to the Executive Management to trade in the
Company’s shares.

Seventh resolution
Approval of the information referred to in I of Article L. 22‑10‑9 of theFrench Commercial Code (Code de commerce) with regard tocompensation for the ﬁnancial year ended 31 December 2023, for all
Corporate Ofﬁcers (global ex‑post vote).

528

Eighth resolution

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Fifteenth resolution
Reappointment of Supervisory Board member Ms Olympia Guerrand
for a term of three years.

Sixteenth resolution
Reappointment of Supervisory Board member Mr Alexandre Viros fora term of three years.

Seventeenth resolution
Appointment of PricewaterhouseCoopers Audit as Statutory Auditor
tasked with certifying sustainability information for a term of threeﬁnancial years.

COMBINED GENERAL MEETING OF 30 APRIL 2024
AGENDA

8.1.2

EXTRAORDINARY BUSINESS

8.1.2.1

PRESENTATION OF REPORTS TO BE SUBMITTED
TO THE EXTRAORDINARY GENERAL MEETING

Executive Management reports On the resolutions relating to extraordinary business.

Supervisory Board report to the Combined General Meeting of
30 April 2024

8.1.2.2

VOTE ON EXTRAORDINARY RESOLUTIONS

Eighteenth resolution
Authorisation to be granted to the Executive Management to reduce
the share capital by cancellation of all or part of the treasury shares
held by the Company (Article L. 22‑10‑62 of the French Commercial
Code (Code de commerce)) – General cancellation programme.

Statutory Auditors’ reports

Nineteenth resolutionths On the capital reduction (18 resolution).

Authorisation to be given to Executive Management to grant free
existing shares of the Company.

ths On the authorisation to grant free existing shares (19 resolution).

Twentieth resolution
Delegation of authority to carry out the formalities related to theGeneral Meeting.

82023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

529

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

8.2

EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSResolutions submitted for approval to the Combined General Meeting of 30 April 2024.

8.2.1

ORDINARY BUSINESSFIRST, SECOND AND THIRD RESOLUTIONS: APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS (PARENT COMPANY ANDCONSOLIDATED) – EXECUTIVE MANAGEMENT DISCHARGE

Explanatory statement
In the ﬁrst and second resolutions, you are asked to approve:s the parent company financial statements for financial year 2023, which show a net profit of €3,459,289,062.33, and the expenses andcharges mentioned in Article 39‑4 of the French General Tax Code (Code général des impôts);s the consolidated financial statements for financial year 2023.

In the third resolution, you are asked to grant discharge to the Executive Management for its management in respect of said ﬁnancial year.
You will ﬁnd:s the consolidated financial statements in the 2023 universal registration document (chapter 5 “Consolidated financial statements”, § 5.1
to 5.6);s the parent company financial statements in the 2023 universal registration document (chapter 6 “Parent company financial statements”,§ 6.1 to 6.5);s the Statutory Auditors’ reports on the parent company and consolidated financial statements in the 2023 universal registration document(chapter 6 “Parent company financial statements”, § 6.9 and chapter 5 “Consolidated financial statements”, § 5.7, respectively).

530

First resolution

Second resolution

Approval of the parent company financial statements

Approval of the consolidated financial statements

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, having
reviewed the Executive Management report on the activity andsituation of the Company, the Supervisory Board report and the
Statutory Auditors’ report for the ﬁnancial year ended 31 December
2023, approves as presented the parent company ﬁnancial
statements for said ﬁnancial year, including the balance sheet,income statement, and notes, which show a net proﬁt of€3,459,289,062.33, as well as the transactions reﬂected in theseﬁnancial statements or described in these reports.

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, having
reviewed the Executive Management report on the activity andsituation of the Group, the Supervisory Board report and the Statutory
Auditors’ report for the ﬁnancial year ended 31 December 2023,
approves as presented the consolidated ﬁnancial statements for saidﬁnancial year, including the balance sheet, income statement, andnotes, which show a consolidated net proﬁt of €4,322 million, as wellas the transactions reﬂected in these ﬁnancial statements or
described in these reports.

Pursuant to Article 223 quater of the French General Tax Code, theGeneral Meeting approves the expenses and charges mentioned in
Article 39‑4 of the French General Tax Code, which amounted in theﬁnancial year ended 31 December 2023 to €321,450, and which
generated an estimated income tax expense of €82,999.

Third resolution

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Executive Management discharge

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, grants
discharge to the Executive Management for its management inrespect of the ﬁnancial year beginning 1 January 2023 and ended
31 December 2023.

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSFOURTH RESOLUTION: ALLOCATION OF NET INCOME – DISTRIBUTION OF AN ORDINARY AND AN EXTRAORDINARYDIVIDEND

Explanatory statement
In the fourth resolution, the allocation of net income for the period, in the amount of €3,459,289,062.33, is submitted for your approval. Of
this amount, pursuant to the Articles of Association (Article 26), the sum of €23,177,236.72 is to be distributed to the Active Partner.
You are asked to allocate €500,000,000.00 to other reserves.
The Supervisory Board proposes that you set the ordinary dividend at €15.00 per share.
In addition, you are asked to decide on an exceptional dividend of €10.00 per share, in order to distribute part of the available cash.
For shareholder beneﬁciaries who are natural persons ﬁscally domiciled in France, this entire dividend will be subject to a single ﬂat‑rate
withholding tax at the overall rate of 30%.
The latter will consist in the application of tax on the income paid as an interim payment (so‑called ﬂat‑rate withholding tax) withheld at source
at a single ﬂat rate of 12.8% of gross revenue, to which will be added social security withholdings of 17.2%.
This ﬂat‑rate taxation at the single rate of 12.8% will be automatically applicable unless the progressive tax scale is opted for overall, allowing
the taxpayer to beneﬁt from the 40% tax allowance (1).
For shareholders who are not ﬁscally domiciled in France, the dividend distributed is subject to withholding tax at source at one of the rates
speciﬁed in Article 187 of the French General Tax Code (Code général des impôts), in accordance with Article 119 bis of said Code, which
may be reduced in application of any tax agreement concluded between France and the State in which the beneﬁciary is ﬁscally resident.
As an interim dividend of €3.50 per share was paid on 15 February 2024, the balance of the ordinary dividend, i.e. €11.50 per share, towhich will be added the exceptional dividend of €10.00, i.e. a total of €21.50 per share, would be detached from the share on 2 May 2024
and payable in cash on 6 May 2024 on the positions closed on the evening of 3 May 2024.
As Hermès International is not entitled to receive dividends for shares held in treasury, the corresponding sums will be transferred to“Retained earnings” on the date the dividend becomes payable.
The ﬁve‑year summary of the Company’s ﬁnancial data required under Article R. 225‑102 of the French Commercial Code (Code decommerce) is presented in the 2023 universal registration document (chapter 6 “Parent company ﬁnancial statements”, § 6.6).

Fourth resolution
Allocation of net income – Distribution of an ordinary dividend and an
exceptional dividend

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, noting thatthe proﬁt for the ﬁnancial year amounts to €3,459,289,062.33 andthat the prior retained earnings amount to €3,358,649,584.15, andafter noting that the legal reserve is fully allocated, approves the
allocation of these sums representing distributable proﬁts of€6,817,938,646.48, as proposed by the Supervisory Board, namely:s to the Active Partner, pursuant to Article 26 of the Articles of
Association, the amount of €23,177,236.72;
s to the shareholders, an “ordinary” dividend of €15.00 per share,
i.e. €1,583,541,180.00 (2);s to the shareholders, an “extraordinary” dividend of €10.00 per
share, i.e. €1,055,694,120.00 (2);s allocation to other reserves of the sum of €500,000,000.00;
s to the “retained earnings” item, the balance of the distributableprofits, i.e. €3,655,526,109.76;
s together €6,817,938,646.48.

The Ordinary General Meeting resolves that the balance of theordinary dividend for the ﬁnancial year (an interim dividend of €3.50
per share having been paid on 15 February 2024), i.e. €11.50 per
share, to which will be added the exceptional dividend of €10.00, i.e.
a total amount per share of €21.50, will be detached from the shareon 2 May 2024 and payable in cash on 6 May 2024 on the positions
closed on the evening of 3 May 2024.
As Hermès International is not entitled to receive dividends for shares
held in treasury, the corresponding sums will be transferred to“Retained earnings” on the date the dividend becomes payable.

81.

Within the scope of the single flat‑rate withholding tax, taxpayers may opt, expressly and irrevocably before the deadline for the declaration and overall for all theirrevenue defined in Article 200‑A‑1 of the French General Tax Code, for their revenue to be taxed using the progressive income tax scale, in accordance with Article
200‑A‑2 of the French General Tax Code (Code général des impôts).

2.

The total amount of the distribution is calculated on the basis of the number of shares comprising the share capital as at 31 December 2023, i.e. 105,569,412
shares, and may vary if the number of shares giving entitlement to dividends changes between 1 January 2024 and the ex‑dividend date, depending in particularon the change in the number of treasury shares, which do not give entitlement to dividends in accordance with the provisions of Article L. 225‑210 paragraph 4 of
the French Commercial Code (Code de commerce).
2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

531

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

For shareholder beneﬁciaries who are natural persons ﬁscallydomiciled in France, this entire dividend will be subject to a single
ﬂat‑rate withholding tax at the overall rate of 30%.
The latter will consist in the application of tax on the income paid as
an interim payment (so‑called ﬂat‑rate withholding tax) withheld atsource at a single ﬂat rate of 12.8% of gross revenue, to which will be
added social security withholdings of 17.2%.
This ﬂat‑rate taxation at the single rate of 12.8% will be automaticallyapplicable unless the progressive tax scale is opted for overall,allowing the taxpayer to beneﬁt from the 40% tax allowance (1).
For shareholders who are not ﬁscally domiciled in France, thedividend distributed is subject to withholding tax at source at one of
the rates speciﬁed in Article 187 of the French General Tax Code

(Code général des impôts), in accordance with Article 119 bis of said
Code, which may be reduced in application of any tax agreement
concluded between France and the State in which the beneﬁciary is
ﬁscally resident.
In accordance with the provisions of Article 43 bis of the French
General Tax Code (Code général des impôts), the General Meeting
duly notes that dividends distributed to shareholders in respect of thethree previous ﬁnancial years were as follows:

Financial year
In euros“Ordinary” dividend“Exceptional” dividend

2022

2021

2020

13.00

8.00

4.55

-

-

-

FIFTH RESOLUTION: APPROVAL OF RELATED‑PARTY AGREEMENTS

Explanatory statement
Related‑party agreements are presented in detail in the 2023 universal registration document (chapter 3 “Corporate governance”, § 3.9.1).
In the ﬁfth resolution, in the absence of regulated agreements signed during the 2023 ﬁnancial year, we ask you to note that there are noagreements to approve.

Agreements authorised in prior years
The agreements authorised and signed during previous ﬁnancial years and whose performance continued during the last ﬁnancial year aredescribed in the Statutory Auditors’ special report on the agreements referred to in Articles L. 226‑10, L. 225‑38 to L. 225‑43, L. 22‑10‑12and L. 22‑10‑13 of the French Commercial Code (Code de commerce). Since they have already been approved by the General Meeting, they
are not resubmitted to you for a vote.
This report can be found in the 2023 universal registration document (chapter 8 “Combined General Meeting of 20 April 2023”, § 8.4.3).
A summary of the related‑party agreements in force is presented in the Supervisory Board corporate governance report in the 2023 universal
registration document (chapter 3 “Corporate governance”, § 3.9.1).

Fifth resolution
Approval of the related‑party agreements

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, having
reviewed the Statutory Auditors’ special report on the agreements
pertaining to the combined provisions of Articles L. 226‑10, L. 225‑38

1.

532

to L. 225‑43, L. 22‑10‑12 and L. 22‑10‑13 of the French Commercial
Code (Code de commerce), approves said report in all its provisions,as well as the agreements and transactions referred to therein.

Within the scope of the single flat‑rate withholding tax, taxpayers may opt, expressly and irrevocably before the deadline for the declaration and overall for all theirrevenue defined in Article 200‑A‑1 of the French General Tax Code, for their revenue to be taxed using the progressive income tax scale, in accordance with Article
200‑A‑2 of the French General Tax Code (Code général des impôts).

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCOMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSSIXTH RESOLUTION: AUTHORISATION GRANTED TO THE EXECUTIVE MANAGEMENT TO TRADE IN THE COMPANY’S SHARESExplanatory statement
In the sixth resolution, you are asked to renew the authorisation granted to the Executive Management to trade in the Company’s shares.

Objective
The shares may be repurchased in order to be allocated to the objectives permitted by Regulation (EU) no. 596/2014 of 16 April 2014 on
market abuse (Market Abuse Regulation – “MAR”):s objectives provided for in Article 5 of the MAR: capital decrease, hedging of debt securities exchangeable for shares and coverage of
employee shareholding plans;s objectives provided for in Article 13 of the MAR and, under the sole market practice accepted by the French Financial Markets Authority(AMF): the implementation of a liquidity contract by an investment service provider acting independently and in accordance with theprovisions of AMF decision no. 2021‑01 of 22 June 2021;
s other objectives: acquisitions, hedging of equity securities exchangeable for shares and, more generally, allocation to the completion of any
transactions in accordance with the regulations in force.

Limits of the authorisations purchases and sales of securities representing holdings of up to 10% of the share capital would be authorised, i.e. for indicative purposes
as at 31 December 2023: 10,556,941 shares;s the maximum purchase price (excluding costs) would be set at €3,000 per share;s the maximum amount of funds to be committed would be set at €6,500 million. It is specified that treasury shares held on the day of theGeneral Meeting are not taken into account in this maximum amount;s pursuant to the law, the total number of shares held at any given date may not exceed 10% of the share capital as at that date.

Duration of the authorisation
This authorisation would be valid for a period of 18 months from the date of the General Meeting.

Sixth resolution
Authorisation granted to the Executive Management to trade in the
Company’s shares

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, having
reviewed the Executive Management report:
1) authorises the Executive Management, with the option tosub‑delegate under the terms and conditions set by law, in
accordance with the provisions of Articles L. 22‑10‑62 et seq. of
the French Commercial Code (Code de commerce) and Regulation(EU) no. 596/2014 of 16 April 2014 on market abuse (MAR), tobuy Company shares or have Company shares bought, within thelimits stipulated by legal and regulatory provisions, provided that:s the number of shares purchased by the Company during theterm of the buyback programme shall not exceed 10% of thetotal number of shares comprising the Company’s sharecapital, at any time; this percentage shall apply to sharecapital adjusted in accordance with transactions that may
affect it subsequent to this General Meeting. In accordancewith the provisions of Article L. 22‑10‑62 of the French
Commercial Code (Code de commerce), the number of sharesused as a basis for calculating the 10% limit is the number ofshares bought, less the number of shares sold during the termof the authorisation if these shares were purchased to ensureliquidity under the conditions defined by the French Financial
Markets Authority (AMF) General Regulation, ands the Company will not at any time own more than 10% of its
share capital on the date in question;2) resolves that the shares may be acquired with a view to:s objectives provided for in Article 5 of the MAR:• cancelling all or part of the shares bought back in this way
in order notably to increase the return on equity andearnings per share, and/or to neutralise the dilutive impact
for shareholders of capital increases, wherein such
purpose is contingent upon adoption of a special resolution
by the Extraordinary General Meeting,• reallocating them upon the exercise of rights attached to8

debt securities giving entitlement by conversion, exercise,redemption, exchange, presentation of a warrant or in any
other way, to the allocation of Company shares,

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

533

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS• allotting or selling the shares to employees and Corporate
Officers of the Company or a Group company, under theterms and conditions stipulated by law, as part of stock
option plans (in accordance with the provisions of Articles
L. 225‑179 et seq. of the French Commercial Code (Codede commerce)), or free share allocations (in accordancewith the provisions of Articles L. 225‑197‑1 et seq. andL. 22‑10‑59 et seq. of the French Commercial Code (Codede commerce)), or with respect to their participation in the
Company’s profit‑sharing or through a shareholding plan or
a company or group savings plan (or similar plan) underconditions provided by law, in particular Articles L. 3332‑1
et seq. of the French Labour Code (Code du travail);s objectives provided for in Article 13 of the MAR and under thesole market practice accepted by the French Financial
Markets Authority (AMF):• ensuring the promotion of a secondary market or theliquidity of the share through an investment service
provider acting independently under a liquidity contract inaccordance with an ethics charter recognised by the
French Financial Markets Authority (AMF), and inaccordance with the provisions of AMF decision no.
2021‑01 of 22 June 2021;
s other objectives:• retaining the shares, in order subsequently to transfer theshares in payment, exchange or as other consideration for
acquisitions initiated by the Company, it being specified
that the number of shares purchased by the Company inview of retaining them and subsequently delivering them inpayment or exchange under the terms of a merger,
demerger or contribution shall not exceed 5% of the sharecapital,• reallocating them upon the exercise of rights attached toequity securities giving entitlement by conversion, exercise,redemption, exchange, presentation of a warrant or in any
other way, to the allocation of Company shares; and moregenerally,• allocating them to the completion of any transactions inaccordance with the applicable regulations.
This programme is also intended to enable the Company tooperate for any other purpose that may be authorised, or come to
be authorised, by law or regulations in force, including inparticular any other market practice that may come to beapproved by the French Financial Markets Authority (AMF),
subsequent to this General Meeting.
In such case, the Company would inform its shareholders by
publishing a special notice;3) resolves that, except for shares acquired for allocation undershare purchase plans for the Company’s employees or Corporate
Officers, the purchase price per share shall be no higher than
three thousand euros (€3,000), excluding costs;

534

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

4) resolves that the Executive Management may nevertheless adjust
the aforementioned purchase price in the event of a change in thepar value of the share, a capital increase by capitalisation ofreserves, a free share allocation, a stock split or reverse split, awrite‑off or reduction in the share capital, a distribution of reserves
or other assets, or any other equity transactions, to take into
account the effect of such transactions on the value of the share;5) resolves that the maximum amount of funds that may becommitted to this share purchase programme cannot exceed six
billion five hundred million euros (€6.5 billion);6) resolves that the shares may be purchased by any means,including all or part of interventions on regulated markets,
multilateral trading systems, with systematic internalisers or OTC,
including block purchases of securities (without limiting the
portion of the buyback programme carried out by this means), by
public tender or exchange offering or the use of options orderivatives (in compliance with legal and regulatory requirements
applicable at the time), excluding the sale of put options, and at
the time that the Executive Management deems appropriate,including during a public offering for the shares of the Company,in accordance with stock market regulations, either directly or
indirectly via an investment services provider. The sharesacquired pursuant to this authorisation may be retained, sold, ortransferred by any means, including by block sales, and at any
time, including during public offerings;
7) grants all powers to the Executive Management to implement thisdelegation, and in particular:s to decide and carry out the transactions provided for by thisauthorisation,s to determine the terms, conditions and procedures applicable
thereto,s to place all orders, either on or off market,
s to adjust the purchase price of the shares to take into accountthe effect of the aforementioned transactions on the value ofthe share,s to allocate or re‑allocate the acquired shares to the various
objectives pursued under the applicable legal and regulatory
conditions,s to enter into all agreements, in particular for purposes ofmaintaining the stock transfer ledgers,s to file all necessary reports with the French Financial Markets
Authority (AMF) and any other relevant body,s to undertake all formalities, ands to generally carry out all necessary measures;8) resolves that this authorisation is granted for a period of 18
months from this meeting.

This authorisation cancels and replaces, for the remaining term andthe unused portion, the authorisation granted by the Combined
General Meeting of 20 April 2023 in its sixth resolution(“Authorisation granted to the Executive Management to trade in the
Company’s shares”).

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSSEVENTH, EIGHTH, NINTH AND TENTH RESOLUTIONS: APPROVAL OF TOTAL COMPENSATION AND BENEFITS OF ALL KINDSPAID DURING OR AWARDED IN RESPECT OF THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 TO THE CORPORATEOFFICERS – ACTUAL APPLICATION OF THE COMPENSATION POLICY

Explanatory statement
The mechanism applicable to sociétés en commandite par actions (partnerships limited by shares) governing Senior Executive compensation
is described in detail in the 2023 universal registration document (chapter 3 “Corporate governance”, § 3.8).
In respect of the past ﬁnancial year (ended on 31 December 2023), this mechanism provides for:s a so‑called “global” ex‑post vote concerning the information referred to in I of Article L. 22‑10‑9 of the French Commercial Code (Code decommerce). This information reflects, for each of the Corporate Officers in office during the financial year ended on 31 December 2023, theeffective application of the compensation policy for that financial year.

The information referred to in 1°, 2° and 4° of Article L. 22‑10‑9, I. of the French Commercial Code (Code de commerce) is detailed andexplained below. The other information referred to in this Article, which is also subject to the global ex‑post vote, is described in the 2023
universal registration document (chapter 3 “Corporate governance”, § 3.8.1, § 3.8.2 and § 3.8.4).

In the seventh resolution you are asked to approve this information for each of the Corporate Ofﬁcers:s a so‑called “individual” ex‑post vote concerning the total compensation and benefits of all kinds paid during or awarded in respect of thefinancial year ended to the Executive Chairmen and the Chairman of the Supervisory Board.

In the eighth to tenth resolutions, you are asked to approve the total compensation and beneﬁts of all kinds paid during or awarded in respectof the ﬁnancial year ended 31 December 2023 to the Executive Chairmen and the Chairman of the Supervisory Board.
The components making up this total compensation and beneﬁts of all kinds are presented in the tables below, as follows:

Resolution

Corporate Oﬃcers concerned

Global ex‑post vote
7th (information on the compensation and beneﬁts of all Corporate Ofﬁcers)

Executive Chairmen, Chairman and members of theSupervisory Board

Individual ex‑post votes
8th (compensation and beneﬁts of Mr Axel Dumas)

Executive Chairman

9th (compensation and beneﬁts of Émile Hermès SAS)

Executive Chairmanth

10 (compensation and beneﬁts of Mr Éric de Seynes)

Chairman of the Supervisory Board

8

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

535

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSEXECUTIVE CHAIRMEN
Components ofcompensation submitted
to the vote

536

Amount awarded in respectof ﬁnancial year 2023 or Amount paid duringaccounting valuation
ﬁnancial year 2023

Presentation

7th and 8th resolutions (ex‑post-global and ex‑post-individual votes):
Mr Axel Dumas

To the extent that the Executive Chairmen receive neither multi‑year
variable compensation nor deferred variable compensation, only thefollowing elements are subject to a vote:s fixed compensation paid during financial year 2023;
s variable compensation awarded in respect of financial year 2022,
paid during financial year 2023;
s variable compensation awarded in respect of financial year 2023
whose payment in 2024 is contingent on approval by shareholders at
the General Meeting of 30 April 2024; ands benefits of all kinds.
The components of compensation detailed below all comply with thecompensation policy for the Executive Chairmen presented in the 2023
universal registration document (chapter 3 “Corporate governance”,§ 3.8.1.1 and § 3.8.1.2).
The other information referred to in Article L. 22‑10‑9, I. of the French
Commercial Code (Code de commerce), which is also subject to theglobal ex‑post vote, is described in the 2023 universal registration
document (chapter 3 “Corporate governance”, § 3.8.1, § 3.8.2 and§ 3.8.4).
In the seventh resolution you are asked to approve this information foreach of the Corporate Ofﬁcers.

Gross annual ﬁxed
compensation for 2023
(or “additional”
compensation in the
Articles of Association)€2,203,574

The ﬁxed compensation of Mr Axel Dumas was determined by the
Executive Management Board on 15 February 2023, in accordance withthe compensation policy for the Executive Chairmen, and submitted to
the Supervisory Board for approval at its meeting of 16 February 2023.
In accordance with the compensation policy for the Executive Chairmen
presented in the 2023 universal registration document (chapter 3“Corporate governance”, § 3.8.1.1 and 3.8.1.2), the actual grossannual ﬁxed compensation in 2023 of Mr Axel Dumas rose (+23.4%) in
respect of the 2022 ﬁnancial year.

Gross annual variable
compensation for 2023
(compensation set by
the Articles of
Association (“statutorycompensation”))€3,648,702
of which 10% forachieving the CSR
criterion

The gross annual variable compensation in 2023 of Mr Axel Dumas,
awarded in respect of ﬁnancial year 2022, was determined by the
Executive Management Board on 15 February 2023, in accordance withthe compensation policy for the Executive Chairmen, and was subject tothe deliberation of the Supervisory Board at its meeting of 16 February
2023.
This component of compensation for Mr Axel Dumas was alreadysubmitted to a vote (ex‑post) by shareholders at the General Meeting of
20 April 2023 (“Gross annual variable compensation awarded in 2023
in respect of 2022”). The shareholders having approved the seventhand eighth resolutions, respectively by 92.15% and 92.12%, thepayment of the gross annual variable compensation of Mr Axel Dumas
took place subsequent to the General Meeting of 20 April 2023
(payment subject to the approval of the General Meeting).
Given the terms of application of the mechanism governing Senior
Executive compensation, this component remains subject to a vote
(ex‑post) by this Meeting, due to its payment in 2023.
In accordance with the compensation policy for the Executive Chairmen
presented in the 2023 universal registration document (chapter 3“Corporate governance”, § 3.8.1.1 and 3.8.1.2), the actual grossannual variable compensation in 2023 of Mr Axel Dumas rose (+35.1%)
in respect of the 2022 ﬁnancial year.

Deferred variable
compensationn/a

The principle of the allocation of deferred variable compensation is notprovided for.

Multi‑year variable
compensationn/a

The principle of such compensation is not provided for.

Exceptional
compensationn/a

The principle of such compensation is not provided for.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCOMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

Components ofcompensation submitted
to the vote

Amount awarded in respectof ﬁnancial year 2023 or Amount paid duringaccounting valuation
ﬁnancial year 2023

Presentation

Stock options,performance‑based
shares or any othercomponent of long‑termcompensation (IFRS
valuation at theallocation date)

Stock options: n/a
Performance‑based shares: n/aOther items: n/aCompensation forassumption of duties

n/a

No such commitment exists.

€0

The conditions governing the severance payment are presented in the2023 universal registration document (chapter 3 “Corporate
governance”, § 3.8.1.2.4).
No payment has been made during or in respect of ﬁnancial year 2023.

n/a

Mr Axel Dumas is not subject to any non‑competition agreement,
therefore no compensation is made in this respect.

Severance payment

Non‑compete indemnity
Supplemental pension
plan

€0

With respect to Article 83: no payment
With respect to Article 39: no payment

No stock option or performance‑based share plans beneﬁting the
Executive Chairmen were implemented during or in respect of the 2023
ﬁnancial year.

The supplemental pension plans (Article 83 and Article 39 of the French
General Tax Code) are presented in the 2023 universal registration
document (chapter 3 “Corporate governance”, § 3.8.1.2.4).
No payment has been made during or in respect of ﬁnancial year 2023.
Deﬁned‑contribution pension plan (Article 83 of the French General Tax
Code)
For information, the estimated maximum gross amount of the annual
pension under the deﬁned‑contribution pension plan, if Mr Axel Dumas
had been able to liquidate his pension rights as at 31 December 2023,
would amount to €11,605.
Deﬁned‑beneﬁt pension plan (Article 39 of the French General Tax Code– Article L. 137‑11 of the French Social Security Code)
Subject to satisfying the conditions of the plan at the time of liquidationof his pension, in particular, the beneﬁciary ending his career in the
Company after at least 10 years’ seniority and the liquidation of theretirement pension as per the basic social security pension regime, andany statutory changes that may occur, the potential pension rights
calculated for Mr Axel Dumas as at 31 December 2023 would be€121,432.

Compensation paid orawarded by a company
falling within the scopeof consolidationn/a

The principle of such compensation is not provided for.

Valuation of beneﬁts ofall kinds€8,832

Beneﬁts in kind are presented in the 2023 universal registration
document (chapter 3 “Corporate governance”, § 3.8.1.2.4).

Death and disability
plan

The death and disability plan is presented in the 2023 universal
registration document (chapter 3 “Corporate governance”, § 3.8.1.2.4).

n/a: not applicable.

82023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

537

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

Components ofcompensation submitted
to the vote

Amount awarded in respectof ﬁnancial year 2023 or Amount paid duringaccounting valuation
ﬁnancial year 2023

Gross annual variable €4,630,203
compensation for 2024 of which 10% for(compensation set by achieving the CSR
the Articles ofcriterion
Association (“statutorycompensation”))

Components ofcompensation submitted
to the vote

Amount awarded in respectof ﬁnancial year 2023 or Amount paid duringaccounting valuation
ﬁnancial year 2023

7th and 9th resolutions (ex‑post-global and ex‑post-individual votes):
Émile Hermès SAS

Gross annual ﬁxed
compensation for 2023
(or “additional”
compensation in the
Articles of Association)

538

Presentation
The gross annual variable compensation in 2024 of Mr Axel Dumas,
awarded in respect of ﬁnancial year 2023, was determined by the
Executive Management Board on 7 February 2024, in accordance withthe compensation policy for the Executive Chairmen, and was subject tothe deliberation of the Supervisory Board at its meeting of 8 February
2024.
A portion of the variable compensation is subject to a “CSR” criterion
representing the Group’s ﬁrm and ongoing commitments to sustainable
development.
The CAG‑CSR Committee evaluated the level of achievement of the CSR
criterion applicable at 10% of the variable compensation of the
Executive Chairmen at its meeting of 11 January 2024 and noted thatthe three indicators making up the criterion were fully achieved. The
details of this assessment can be found in the 2023 universal
registration document (chapter 3 “Corporate governance”, § 3.8.2.1.2).
Consequently, the gross variable compensation awarded in respect ofﬁnancial year 2023 was calculated by applying the change in the
Company’s consolidated net income before tax for ﬁnancial year 2023
compared with 2022, i.e. an increase of +26.9%, to the variable
compensation paid in 2023 in respect of ﬁnancial year 2022.
Payment of this compensation is subject to the approval of the General
Meeting of 30 April 2024.

€749,081

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Presentation
To the extent that the Executive Chairmen receive neither multi‑year
variable compensation nor deferred variable compensation, only thefollowing elements are subject to a vote:s fixed compensation paid during financial year 2023;
s variable compensation awarded in respect of financial year 2022,
paid during financial year 2023;
s variable compensation awarded in respect of financial year 2023
whose payment in 2024 is contingent on approval by theshareholders at the General Meeting of 30 April 2024;s benefits of all kinds.
The components of compensation presented below all comply with thecompensation policy for the Executive Chairmen presented in the 2023
universal registration document (chapter 3 “Corporate governance”,§ 3.8.1.1 and § 3.8.1.2).
The other information referred to in Article L. 22‑10‑9, I. of the French
Commercial Code (Code de commerce), which is also subject to theglobal ex‑post vote, is described in the 2023 universal registration
document (chapter 3 “Corporate governance”, § 3.8.1, § 3.8.2 and§ 3.8.4).
In the seventh resolution you are asked to approve this information foreach of the Corporate Ofﬁcers.
The ﬁxed compensation paid in 2023 to the company Émile Hermès
SAS was determined by the Executive Management Board on
15 February 2023, in accordance with the compensation policy for the
Executive Chairmen, and submitted to the Supervisory Board forapproval at its meeting of 16 February 2023.
In application of the compensation policy for the Executive Chairmen
presented in the 2023 universal registration document (chapter 3“Corporate governance”, § 3.8.1.1 and § 3.8.1.2), the actual grossannual ﬁxed compensation of Émile Hermès SAS in 2023 for ﬁnancial
year 2022 increased (+23.4%).

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

Components ofcompensation submitted
to the vote

Amount awarded in respectof ﬁnancial year 2023 or Amount paid duringaccounting valuation
ﬁnancial year 2023

Gross annual variable
compensation for 2023
(compensation set by
the Articles of
Association (“statutorycompensation”))€1,701,490
of which 10% forachieving the CSR
criterion

The gross annual variable compensation of Émile Hermès SAS in 2023,
awarded in respect of ﬁnancial year 2022, was determined by the
Executive Management Board on 15 February 2023, in accordance withthe compensation policy for the Executive Chairmen, and was subject tothe deliberation of the Supervisory Board at its meeting of 16 February
2023.
This component of compensation for the company Émile Hermès SAS
was already submitted to a vote (ex‑post) by shareholders at theGeneral Meeting of 20 April 2023 (“gross annual variable compensation
awarded in 2023 in respect of 2022”). Shareholders having approved
the seventh and ninth resolutions by 92.15% and 92.07% respectively,
the gross annual variable compensation was paid to the company Émile
Hermès SAS after the General Meeting of 20 April 2023 (payment
subject to approval by the General Meeting). Given the terms ofapplication of the mechanism governing Senior Executive
compensation, this component remains subject to a vote (ex‑post) by
this Meeting, due to its payment in 2023.
In application of the compensation policy for the Executive Chairmen
presented in the 2023 universal registration document (chapter 3“Corporate governance”, § 3.8.1.1 and § 3.8.1.2), the actual grossannual variable compensation of Émile Hermès SAS in 2023 forﬁnancial year 2022 increased (+35.1%).

Deferred variable
compensationn/a

The principle of the allocation of deferred variable compensation is notprovided for.

Multi‑year variable
compensationn/a

The principle of such compensation is not provided for.

Exceptional
compensationn/a

The principle of such compensation is not provided for.

Stock options,performance‑based
shares or any othercomponent of long‑termcompensation (IFRS
valuation at theallocation date)

Stock options: n/a
Performance‑based shares: n/aOther items: n/aCompensation forassumption of duties

n/a

Presentation

No stock option or performance‑based share plans beneﬁting the
Executive Chairmen were implemented during or in respect of the 2023
ﬁnancial year.
Émile Hermès SAS, a legal entity, is in addition not eligible for the stock
option or performance‑based share plans.

No such commitment exists.

Severance paymentn/a

No such commitment exists.

Non‑compete indemnityn/aNo such commitment exists.

Supplemental pension
plan

n/a

Émile Hermès SAS, a legal entity, is not eligible for a supplemental
pension plan.

Compensation paid orawarded by a company
falling within the scopeof consolidationn/a

The principle of such compensation is not provided for.

Valuation of beneﬁts ofall kindsn/aÉmile Hermès SAS does not receive beneﬁts of all kinds.

Death and disability
plan

n/a

Émile Hermès SAS, a legal entity, is not eligible for a death and disability
plan.

n/a: not applicable.

82023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

539

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

Components ofcompensation submitted
to the vote

Amount awarded in respectof ﬁnancial year 2023 or Amount paid duringaccounting valuation
ﬁnancial year 2023

Gross annual variable €2,159,191
compensation for 2024 of which 10% for(compensation set by achieving the CSR
the Articles ofcriterion
Association (“statutorycompensation”))

Presentation
The gross annual variable compensation of Émile Hermès SAS in 2024,
awarded in respect of ﬁnancial year 2023, was determined by the
Executive Management Board on 7 February 2024, in accordance withthe compensation policy for the Executive Chairmen, and was subject tothe deliberation of the Supervisory Board at its meeting of 8 February
2024.
A portion of the variable compensation is subject to a “CSR” criterion
representing the Group’s ﬁrm and ongoing commitments to sustainable
development.
The CAG‑CSR Committee evaluated the level of achievement of the CSR
criterion applicable at 10% of the variable compensation of the
Executive Chairmen at its meeting of 11 January 2024 and noted thatthe three indicators making up the criterion were fully achieved. The
details of this assessment can be found in the 2023 universal
registration document (chapter 3 “Corporate governance”, § 3.8.2.1.2).
Consequently, the gross variable compensation awarded in respect ofﬁnancial year 2023 was calculated by applying the change in the
Company’s consolidated net income before tax for ﬁnancial year 2023
compared with 2022, i.e. an increase of +26.9%, to the variable
compensation paid in 2023 in respect of ﬁnancial year 2022.
Payment of this compensation is subject to the approval of the General
Meeting of 30 April 2024.

CHAIRMAN OF THE SUPERVISORY BOARD

Components ofcompensation submitted
to the vote

Amount awarded in respectof ﬁnancial year 2023 or Amount paid duringaccounting valuation
ﬁnancial year 2023

7th and 10th resolutions (ex‑post‑global and ex‑post-individual votes):
Mr Éric de Seynes€140,000

In accordance with the compensation policy for the members of theSupervisory Board amended at the General Meeting of 20 April 2023,
and approved by the shareholders by 99.94%, the Chairman of theSupervisory Board is entitled, from ﬁnancial year 2023, to ﬁxed annualcompensation of €180,000 (compared to €140,000 previously). This is
deducted from the total amount of compensation awarded to theSupervisory Board by the General Meeting. He is not entitled to any
variable compensation as he attends all Supervisory Board meetings.

Gross annual variable
compensationn/a

The principle of such compensation for the Chairman is not provided for.

Other components ofcompensationn/a

No other form of compensation is provided for.

Other commitmentsn/a

No other commitments exist.

Gross annual ﬁxed
compensation

540€180,000

Presentation
The components of compensation detailed below all comply with thecompensation policy for members of the Supervisory Board described in
the 2023 universal registration document (chapter 3 “Corporate
governance”, § 3.8.1.1 and § 3.8.1.3).
The other information referred to in Article L. 22‑10‑9, I. of the French
Commercial Code (Code de commerce), which is also subject to theglobal ex‑post vote, is described in the 2023 universal registration
document (chapter 3 “Corporate governance”, § 3.8.1, § 3.8.2 and§ 3.8.4).
In the seventh resolution you are asked to approve this information foreach of the Corporate Ofﬁcers.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCOMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSOTHER MEMBERS OF THE SUPERVISORY BOARD
Components ofcompensation submitted
to the vote

Amount awarded in respectof ﬁnancial year 2023 or Amount paid duringaccounting valuation
ﬁnancial year 2023

Presentation

7th resolution (global ex‑post vote):
Members of the Supervisory Board (excluding the Chairman)

The components of compensation detailed below all comply with thecompensation policy for members of the Supervisory Board described in
the 2023 universal registration document (chapter 3 “Corporate
governance”, § 3.8.1.1 and § 3.8.1.3).
The other information referred to in Article L. 22‑10‑9, I. of the French
Commercial Code (Code de commerce), which is also subject to theglobal ex‑post vote, is described in the 2023 universal registration
document (chapter 3 “Corporate governance”, § 3.8.1, § 3.8.2 and§ 3.8.4).
In the seventh resolution you are asked to approve this information foreach of the Corporate Ofﬁcers.

Gross annual ﬁxed
compensation for Board
members

Please refer to Table 3 in the 2023 universal
registration document (chapter 3 “Corporate
governance”, § 3.8.4.3)

The allocation principles provided for in the compensation policy arepresented in the 2023 universal registration document (chapter 3“Corporate governance”, § 3.8.1.3).

Gross annual variable
compensation for Board
members

Please refer to Table 3 in the 2023 universal
registration document (chapter 3 “Corporate
governance”, § 3.8.4.3)

The allocation principles provided for in the compensation policy arepresented in the 2023 universal registration document (chapter 3“Corporate governance”, § 3.8.1.3).

Other components ofcompensationn/a

No other form of compensation is provided for.

Other commitmentsn/a

No other commitments exist.

Seventh resolution

Ninth resolution

Approval of the information referred to in I of Article L. 22‑10‑9 of theFrench Commercial Code (Code de commerce) with regard tocompensation for the financial year ended 31 December 2023, for all
Corporate Officers (global ex‑post vote)

Approval of total compensation and benefits of all kinds paid during
or awarded in respect of the financial year ended 31 December 2023
to the company Émile Hermès SAS, Executive Chairman (individual
ex‑post vote)

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, having
reviewed the Supervisory Board’s corporate governance report,
approves, in accordance with I of Article L. 22‑10‑77 of the French
Commercial Code (Code de commerce), in respect of each Corporate
Ofﬁcer, the information referred to in I of Article L. 22‑10‑9 of theFrench Commercial Code (Code de commerce), as presented in the2023 universal registration document (chapter 3 “Corporate
governance”, § 3.8.2) and in the explanatory statements to theresolutions.

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, in accordancewith the provisions of II of Article L. 22‑10‑77 of the French
Commercial Code (Code de commerce), approves the totalcompensation and beneﬁts of all kinds paid during or awarded in
respect of the ﬁnancial year ended 31 December 2023 to thecompany Émile Hermès SAS, Executive Chairman, as presented in the
explanatory statements to the resolutions.

Eighth resolution
Approval of total compensation and benefits of all kinds paid during
or awarded in respect of the financial year ended 31 December 2023
to Mr Axel Dumas, Executive Chairman (individual ex‑post vote)

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, in accordancewith the provisions of II of Article L. 22‑10‑77 of the French
Commercial Code (Code de commerce), approves the totalcompensation and beneﬁts of all kinds paid during or awarded in
respect of the ﬁnancial year ended 31 December 2023 to Mr Axel
Dumas, Executive Chairman, as presented in the explanatory
statement to the resolutions.

Tenth resolution
Approval of total compensation and benefits of all kinds paid during
or awarded in respect of the financial year ended 31 December 2023
to Mr Éric de Seynes, Chairman of the Supervisory Board (individual
ex‑post vote)

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, in accordancewith the provisions of II of Article L. 22‑10‑77 of the French
Commercial Code (Code de commerce), approves the totalcompensation and beneﬁts of all kinds paid during or awarded in
respect of the ﬁnancial year ended 31 December 2023 to Mr Éric deSeynes, Chairman of the Supervisory Board, as presented in the
explanatory statement to the resolutions.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

8

541

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSELEVENTH AND TWELFTH RESOLUTIONS: COMPENSATION POLICIES FOR EXECUTIVE CHAIRMEN AND SUPERVISORY BOARD
MEMBERS (EX‑ANTE VOTES)Explanatory statement
The mechanism applicable to sociétés en commandite par actions (partnerships limited by shares) governing Senior Executive compensation,
introduced by Order no. 2019‑1234 of 27 November 2019, is described in detail in the 2023 universal registration document (chapter 3“Corporate governance”, § 3.8).
This system provides that the Shareholders’ General Meeting votes each year on the compensation policies of the Corporate Ofﬁcers (i.e. theExecutive Chairmen and the Supervisory Board members).
These are presented in the 2023 universal registration document (chapter 3 “Corporate governance”, § 3.8.1.1 to § 3.8.1.3).
As explained in § 3.8.1.2.1 of Chapter 3 “Corporate governance”, the Executive Management Board of Émile Hermès SAS, Active Partner,
renewed the compensation policy for the Executive Chairmen approved by the General Meeting of 20 April 2023, by making two changes
relating to two components of the compensation of the Executive Chairmen.
The ﬁrst change concerns ﬁxed compensation - or additional compensation according to the Articles of Association. The decision of theOrdinary General Meeting of 31 May 2001 set the ceiling at €457,347.05 and provides for indexation, in an upward direction only, linked tothe increase in consolidated revenue achieved in respect of the previous ﬁnancial year, at constant scope and exchange rates, compared tothat of the prior ﬁnancial year. The Executive Management Board of Émile Hermès SAS proposed limiting the annual change in the ﬁxed
compensation of the Executive Chairmen to 5%. In other words, the indexation of the ﬁxed compensation will remain aligned with the increasein consolidated revenue achieved in respect of the previous ﬁnancial year, at constant scope and exchange rates, compared to that of theprior ﬁnancial year, but without exceeding 5% (limit).
The principles of comprehensiveness, balance between the components of compensation, comparability, consistency, intelligibility of therules and measurement were taken into account and applied rigorously in deciding this change.
The second change concerns the supplemental pension plan. Mr Axel Dumas, as an Executive Chairman who is a natural person, potentially
beneﬁts from a deﬁned‑beneﬁt pension plan (see § 3.8.1.2.4 – Supplemental pension plan – Deﬁned‑beneﬁt pension plan ("Article 39"
under the French General Tax Code - Article L. 137‑11 of the French Social Security Code).
You are reminded that, in accordance with Order no. 2019‑697 of 3 July 2019 relating to deﬁned‑beneﬁt occupational plans, no newmembers may join this scheme from 4 July 2019 and no new conditional right to beneﬁts may be awarded for periods of employment after
31 December 2019.
This freezing of the system initially set up in 1991 - and from which the natural person Executive Chairman potentially beneﬁts - led the Groupto conduct a study on the pension system that would be the most relevant and the most suitable to replace the "Article 39" typedeﬁned‑beneﬁt plan under the French General Tax Code.
The system ultimately selected is an "Article 82" type deﬁned‑contribution pension plan, provided for under the French General Tax Code(which is described in detail in § 3.8.1.2.4 - Supplemental pension plan - Deﬁned‑contribution pension plan ("Article 82" type under the
French General Tax Code)).
In accordance with the provisions of the French Commercial Code (Code de commerce) (Article R. 22‑1‑40) and the Afep‑Medef Code (Article
26.6.1):s the acquisition of rights related to this defined‑contribution pension plan is subject to clear, detailed and varied performance conditions, ofboth a financial and non‑financial nature, which contribute to the objectives of the compensation policy described in § 3.8.1.1;s the principles of comprehensiveness, balance between the components of compensation, comparability, consistency, intelligibility of therules and measurement were taken into account and applied rigorously and guided the allocation of this defined‑contribution pension plan.

Émile Hermès SAS, a legal entity, is not eligible for a supplemental pension plan.
This change was presented to the CAG‑CSR Committee, then to the Supervisory Board, which unanimously issued a favourable advisory
opinion.
Its objectives are to:s allow the continuity of the pension plans put in place within the Group, following the freezing of conditional rights under the defined‑benefit
pension plan provided for under Article 39 of the French General Tax Code;s offer a supplemental pension plan structure in line with market practices;s sustain the principle of measuring the compensation policy for the Executive Chairmen, which aims to achieve a fair balance and takes into
account the Company’s corporate interest, market practices, the performance of the Executive Chairmen, and the Company's stakeholders.

542

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCOMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSIn accordance with the provisions of Article R. 22‑1‑40 of the French Commercial Code (Code de commerce), the following elements weretaken into account in proposing this revision:s the manner in which the compensation policy respects the corporate interest and contributes to the Company’s commercial strategy andsustainability;s the manner in which the compensation and employment conditions of the Company’s employees are taken into account in thedecision‑making process;s measures for avoiding or managing conflicts of interest;s the most recent shareholder votes on the compensation policy.

You are therefore asked, under the eleventh resolution, to approve the compensation policy for the Executive Chairmen as revised (you arereminded that this policy had remained unchanged since 2020 when a CSR criterion was introduced for variable compensation).
In the twelfth resolution, you are asked to approve the compensation policy for members of the Supervisory Board (unchanged).

Resolution

Corporate Oﬃcers concerned

Ex‑ante votes
11th (compensation policy)th

12 (compensation policy)

Executive Chairmen
Members of the Supervisory Board

Eleventh resolution

Twelfth resolution

Approval of the compensation policy for the Executive Chairmen(ex‑ante vote)

Approval of the compensation policy for Supervisory Board members(ex‑ante vote)

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, having
reviewed the Supervisory Board’s corporate governance report,
pursuant to II of Article L. 22‑10‑76 of the French Commercial Code
(Code de commerce), approves the compensation policy for Executive
Chairmen, as set out in the 2023 universal registration document(chapter 3 “Corporate governance”, § 3.8.1.1 and § 3.8.1.2).

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, having
reviewed the Supervisory Board’s corporate governance report,
pursuant to II of Article L. 22‑10‑76 of the French Commercial Code
(Code de commerce), approves the compensation policy for membersof the Supervisory Board, as set out in the 2023 universal
registration document (chapter 3 “Corporate governance”, § 3.8.1.1
and § 3.8.1.2).

82023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

543

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSTHIRTEENTH, FOURTEENTH, FIFTEENTH AND SIXTEENTH RESOLUTIONS: REAPPOINTMENT OF SUPERVISORY BOARD
MEMBERS

Explanatory statement
The terms of ofﬁce of four members of the Supervisory Board (Mr Matthieu Dumas, Mr Blaise Guerrand, Ms Olympia Guerrand and Mr
Alexandre Viros) expire at the end of this Meeting.
In the thirteenth, fourteenth, ﬁfteenth and sixteenth resolutions, the Active Partner proposes that you renew, for the three‑year period as set
out in the Articles of Association, the mandates of these members of the Supervisory Board.
These four terms of ofﬁce would thus expire at the end of the General Meeting called in 2027 to approve the ﬁnancial statements for the
ﬁnancial year ending 31 December 2026.
Mr Matthieu Dumas has been a member of the Supervisory Board since 3 June 2008. He brings to the Board his in‑depth knowledge of thehistory and culture of Hermès. His professional background, his skills in the ﬁelds of legal, governance and CSR, as well as his expertise in
the operational management of companies and the commitment with which he carries out his duties and participates in the CAG‑CSR
Committee enable him to make an effective contribution to the quality of the discussions and work of the Board in all of its areas of
responsibility.
Mr Blaise Guerrand has been a member of the Supervisory Board since 29 May 2012. He brings to the Board his in‑depth knowledge of thehistory and culture of Hermès, and emerging countries. His professional and international background, his expertise in the ﬁelds of ﬁnance,
private equity and business management, and the commitment with which he carries out his duties enable him to make an effective
contribution to the quality of the discussions and work of the Board in all of its areas of responsibility.
Ms Olympia Guerrand has been a member of the Supervisory Board since 6 June 2017. She brings to the Board her in‑depth knowledge ofthe history and culture of Hermès. Her experience in the ﬁelds of communications and public relations, her business management skills, andthe commitment with which she carries out her duties enable her to contribute actively to the quality of the discussions and work of the Boardin all of its areas of responsibility.
Mr Alexandre Viros has been a member of the Supervisory Board since 4 June 2019. With signiﬁcant expertise in the e‑commerce universe
and retail, and meeting all the independence criteria provided for by the Afep‑Medef Code, he provides the Supervisory Board with his
knowledge of customer relations and human resources, as well as his ability to evolve in industries undergoing profound change anddisruptive models. The commitment with which he carries out his duties and participates in the Audit and Risk Committee enable him to makean effective contribution to the quality of the discussions and work of the Board in all of its areas of responsibility. Through his career, he also
brings a very open‑minded stance, an innovative approach to topics and a keen eye on the digital world.

Cumulative attendance over the last three years (2021‑2023) of their term of ofﬁce
Supervisory Board

Audit and Risk
Committee CAG‑CSR Committee

Mr Matthieu Dumas

95.24%

n/a

100.00%Mr Blaise Guerrand

100.00%n/an/a

Ms Olympia Guerrand

95.24%

n/a

n/a

Mr Alexandre Viros

100.00%100.00%n/an/a: not applicable.

Information concerning the persons whose reappointment is submitted for your approval is provided in the 2023 universal registration
document (chapter 3 “Corporate governance”, § 3.4.8.1, § 3.4.8.2, § 3.4.8.4 and § 3.4.8.12).
These reappointments are fully in line with the diversity policy applied within the Supervisory Board, which is described in detail in the 2023
universal registration document (chapter 3 “Corporate governance”, § 3.4.3).
The Supervisory Board has set itself objectives or principles in terms of optimal Board size, age limit, number of independent members anddiversity (representation of women and men, nationalities, international experience, expertise, etc.), and has gradually changed thecomposition of the Board to achieve this.
These proposed reappointments submitted to the vote of the General Meeting meet these objectives and principles, in particular by enablinga variety of skills and experience to be retained, covering each of the areas of expertise corresponding to the main operational issues facing
the Hermès Group and the core subjects that the Supervisory Board and its committees are required to oversee as part of their duties. They
also respond to the Board’s desire to maintain a composition that takes into account the speciﬁc nature of the Maison Hermès.

544

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCOMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

Thirteenth resolution

Fifteenth resolution

Reappointment of Supervisory Board member Mr Matthieu Dumas fora term of three years

Reappointment of Supervisory Board member Ms Olympia Guerrand
for a term of three years

On proposal of the Active Partner, the General Meeting, acting underthe quorum and majority requirements applicable to Ordinary General
Meetings, renews, as a member of the Supervisory Board the
mandate of:

On proposal of the Active Partner, the General Meeting, acting underthe quorum and majority requirements applicable to Ordinary General
Meetings, renews, as a member of the Supervisory Board the
mandate of:

Mr Matthieu Dumas

Ms Olympia GuerrandPursuant to Article 18.2 of the Articles of Association, his mandate fora period of three years will expire at the end of the Annual Ordinary
General Meeting called in 2027 to approve the ﬁnancial statements
for the ﬁnancial year ending 31 December 2026.

Pursuant to Article 18.2 of the Articles of Association, her mandate
for a period of three years will expire at the end of the Annual Ordinary
General Meeting called in 2027 to approve the ﬁnancial statements
for the ﬁnancial year ending 31 December 2026.

Mr Matthieu Dumas has indicated that he is prepared to accept the
renewal of his mandate, and that he does not hold any positions andis not subject to any restrictions that could prevent him from carrying
out his duties.

Ms Olympia Guerrand has indicated that she is prepared to accept
the renewal of her mandate, and that she does not hold any positions
and is not subject to any restrictions that could prevent her fromcarrying out her duties.

Fourteenth resolution

Sixteenth resolution

Reappointment of Supervisory Board member Mr Blaise Guerrand fora term of three years

Reappointment of Supervisory Board member Mr Alexandre Viros fora term of three years

On proposal of the Active Partner, the General Meeting, acting underthe quorum and majority requirements applicable to Ordinary General
Meetings, renews, as a member of the Supervisory Board the
mandate of:

On proposal of the Active Partner, the General Meeting, acting underthe quorum and majority requirements applicable to Ordinary General
Meetings, renews, as a member of the Supervisory Board the
mandate of:

Mr Blaise Guerrand

Mr Alexandre Viros

Pursuant to Article 18.2 of the Articles of Association, his mandate fora period of three years will expire at the end of the Annual Ordinary
General Meeting called in 2027 to approve the ﬁnancial statements
for the ﬁnancial year ending 31 December 2026.

Pursuant to Article 18.2 of the Articles of Association, his mandate fora period of three years will expire at the end of the Annual Ordinary
General Meeting called in 2027 to approve the ﬁnancial statements
for the ﬁnancial year ending 31 December 2026.

Mr Blaise Guerrand has indicated that he is prepared to accept the
renewal of his mandate, and that he does not hold any positions andis not subject to any restrictions that could prevent him from carrying
out his duties.

Mr Alexandre Viros has indicated that he is prepared to accept the
renewal of his mandate, and that he does not hold any positions andis not subject to any restrictions that could prevent him from carrying
out his duties.

82023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

545

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSSEVENTEENTH RESOLUTION: APPOINTMENT OF PRICEWATERHOUSECOOPERS AUDIT AS STATUTORY AUDITOR IN CHARGEOF CERTIFYING SUSTAINABILITY INFORMATION FOR A TERM OF THREE FINANCIAL YEARSExplanatory statement
PricewaterhouseCoopers Audit has been appointed by the Executive Management as an independent third party since 2016, pursuant to
Article L. 225‑102‑1, V of the French Commercial Code (Code de commerce).
In accordance with Article L. 822‑17 of the French Commercial Code (Code de commerce) introduced by Order No. 2023‑1142 of 6
December 2023 relating to the publication and certiﬁcation of information on sustainability and environmental, social and corporate
governance obligations of commercial companies, the Company must now submit to the General Meeting for approval the appointment of the
Statutory Auditor or independent third party that will be responsible, from 2025, for certifying the information on sustainability.
The Executive Management proposes to the General Meeting the appointment of PricewaterhouseCoopers Audit as Statutory Auditor in
charge of the certiﬁcation of sustainability information for a term of three ﬁnancial years. This would make it possible to continue to beneﬁt
from the auditor's knowledge of the content of the Non‑Financial Performance Statement as the new CSRD sustainability reporting is put inplace.
This appointment would last for a period of three ﬁnancial years, i.e. until the end of the Ordinary Annual General Meeting called in 2027 toapprove the ﬁnancial statements for the ﬁnancial year ending 31 December 2026. Article 38 of the aforementioned order provides that
“notwithstanding the provisions of the ﬁrst paragraph of Article L. 821‑44 and the ﬁrst paragraph of Article L. 822‑20 of the French
Commercial Code (Code de commerce), for the ﬁrst appointment undertaking the assignment of certifying sustainability information following
the entry into force of the order, companies may appoint the Statutory Auditor or the independent third party: [...] 2 ° Or for a term of threeﬁnancial years. "Pursuant to the provisions of Article L. 822‑19 of the French Commercial Code (Code de commerce), at its meeting on 7 February 2024, theAudit and Risk Committee recommended PricewaterhouseCoopers Audit, without issuing a call for tenders, which is not mandatory. In making
its recommendation, the Committee took into account the expertise and experience of PricewaterhouseCoopers Audit.
In accordance with the provisions of Article L. 822‑16, II. of the French Commercial Code (Code de commerce), PricewaterhouseCoopers
Audit veriﬁed and recorded that:s the elements relating to compliance with the conditions of independence provided for by Article L. 822‑8 of the French Commercial Code
(Code de commerce) and by the Code of Ethics referred to in Article L. 822‑7 of the French Commercial Code, and, where applicable thenecessary safeguards to mitigate the risks to them; ands the information proving that it has the human and material resources necessary for the proper performance of the assignment,

were satisﬁed before accepting the assignment. These elements were shared with the Audit and Risk Committee prior to the issuance of its
recommendation.
By the 17th resolution, you are asked to approve the appointment of PricewaterhouseCoopers Audit as Statutory Auditor in charge of certifying
sustainability information for a period of three ﬁscal years, it being speciﬁed that PricewaterhouseCoopers Audit will be represented by anatural person meeting the conditions necessary to perform the certiﬁcation of sustainability information in accordance with the conditions
provided for under Article L. 821‑18 of the French Commercial Code.

Seventeenth resolution

546

Appointment of PricewaterhouseCoopers Audit as Statutory Auditor
tasked with certifying sustainability information for a term of threefinancial years.

PricewaterhouseCoopers Audit
63, rue de Villiers – 92200 Neuilly‑sur‑Seine
Nanterre Trade and Companies Register (RCS) 672 006 483

The General Meeting, acting under the quorum and majority
requirements applicable to Ordinary General Meetings, having
reviewed the Executive Management report, appoints as Statutory
Auditor tasked with certiﬁcation of the sustainability information, in
accordance with Article L. 821‑40 et seq. of the French Commercial
Code (Code de commerce), the company:

for a period of three ﬁnancial years, i.e. until the end of the Ordinary
General Meeting called in 2027 to approve the ﬁnancial statements
for the ﬁnancial year ending 31 December 2026.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCOMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

8.2.2

EXTRAORDINARY BUSINESSEIGHTEENTH RESOLUTION: AUTHORISATION TO REDUCE THE SHARE CAPITAL BY CANCELLATION OF SHARESExplanatory statement
In the eighteenth resolution, you are asked to renew the authorisation granted to the Executive Management to cancel, on one or more
occasions, in the amounts and at the times it so decides, all or part of the shares acquired by the Company under the programme topurchase its own shares.

Limit
Up to a maximum of 10% of the share capital per 24‑month period.

Duration of the authorisation
This authorisation would be valid for 24 months from the date of the General Meeting.
The Statutory Auditors’ report on the eighteenth resolution is presented in the 2023 universal registration document (chapter 8 “Combined
General Meeting of 20 April 2023”, § 8.4.5).

Eighteenth resolution
Authorisation to be granted to the Executive Management to reduce
the share capital by cancellation of all or part of the treasury shares
held by the Company (Article L. 22‑10‑62 of the French Commercial
Code (Code de commerce)) – General cancellation programme

The General Meeting, acting under the quorum and majority
requirements applicable to Extraordinary General Meetings, having
reviewed the Executive Management report, the Supervisory Board
report and the Statutory Auditors’ special report, authorises the
Executive Management, in accordance with Article L. 22‑10‑62 of theFrench Commercial Code (Code de commerce), to reduce the sharecapital by cancelling, on one or more occasions, in the amounts andat the times it so decides, some or all of the shares held by theCompany or acquired by the Company under the share buyback
programme referred to in the sixth resolution (“Authorisation granted
to the Executive Management to trade in the Company’s shares”)
submitted to this Meeting and/or pursuant to any authorisation
granted by a past or future General Meeting, up to a maximum of
10% of the share capital per 24‑month period.

The General Meeting delegates the broadest of powers to the
Executive Management for the purpose of implementing thisdelegation, and in particular:s to allocate the difference between the purchase price and the parvalue of the cancelled shares to whichever reserve account it sees
fit, and to record the reductions in share capital resulting from thecancellations authorised by this resolution;s to amend the Company’s Articles of Association accordingly, and toundertake all necessary formalities.

This delegation is granted to the Executive Management for a periodof 24 months.
It cancels and replaces, for the remaining term and the unused
portion, the authorisation granted by the Combined General Meetingof 20 April 2023 in its nineteenth resolution (“Authorisation to reduce
the share capital by cancellation of shares”).

82023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

547

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSNINETEENTH RESOLUTION: DELEGATION TO EXECUTIVE MANAGEMENT

Explanatory statement
Limit common to several
authorisations

Resolution

Reason for possible use/ comments

Free shares
19th
resolution

Authorisation: allocation of existing freeordinary shares
Duration (expiry): 38 months (30 June 2027)
Individual limit: 2% of the number of ordinary
shares outstanding2%(ceiling common to the18th resolution approvedby the Combined General
Meeting of 20 April 2022(“Authorisation to be
granted to the Executive
Management to grant
stock options”)

Authorisation that is part of the Group’s compensation
policy, which aims in particular to:s share the fruits of growth with employees andenable them to be more closely involved in Hermès’
long‑term development decisions;s support certain Senior Executives, excluding the
Executive Chairmen, in building up occupational
pension savings.
Delegation may be used during a public offering on
the Company’s shares

Allocation of free shares
By the nineteenth resolution, you are asked to renew the authorisation given to the Executive Management to allocate free existing ordinary
shares of the Company.
The Company wishes to renew this authorisation, because it is part of the Group’s compensation policy, which aims in particular to share thefruits of its growth with employees and enable them to be more closely involved in Hermès’ long‑term development decisions. The employee
shareholding plans in place for many years (the ﬁrst dating back to 1993) recognise the contribution of employees to the House’s
development, regardless of their role and geographical location. They are also an instrument to enhance attractiveness, motivation andloyalty, aimed at aligning the interests of beneﬁciaries with those of the Company and its stakeholders.
The renewal of this authorisation to allocate free shares is also part of the implementation of an occupational pension savings scheme known
as type “Article 82" (with reference to the French General Tax Code), for the beneﬁt of certain Senior Executives, excluding the Executive
Chairmen. This is to offset the freezing of the conditional rights under the deﬁned‑beneﬁt pension plan provided for under Article 39 of theFrench General Tax Code as of 31 December 2019.
The total number of free shares granted under this authorisation and the total number of shares to which the stock options granted under theeighteenth resolution approved by the Combined General Meeting of 20 April 2022 ("Authorisation to be given to Executive Management togrant stock options") and not yet exercised may not represent a number of shares greater than 2% of the number of ordinary shares of theCompany on the grant date, without taking into account:s those already allocated under previous authorisations;s those that have not been definitively allocated at the end of the vesting period provided for in the sixth paragraph of Article L. 225‑197‑1, Iof the French Commercial Code (Code de commerce);s those that are no longer subject to the retention obligation provided for in the seventh paragraph of Article L. 225‑197‑1, I of the French
Commercial Code (Code de commerce).

The total number of free shares granted must also comply with the maximum limit authorised by Article L. 225‑197‑1 of the French
Commercial Code (Code de commerce) and, more generally, by applicable laws.
The vesting period for the shares allocated may not be less than two years, with the Executive Management being authorised to reduce thevesting period to one year, if the allocation of shares is accompanied by a mandatory retention period of a minimum of one year. The
mandatory retention period for shares may not be less than one year, with the Executive Management being authorised to modify it oreliminate it, under the conditions and limits provided for by the law in force on the date of the allocation decision, except for the speciﬁc cases
set out in the resolution.

548

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCOMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONSIn accordance with Article L. 233‑32 of the French Commercial Code (Code de commerce), this delegation of authority may be implemented
during a public offering on the shares of the Company. In the event of allocation to one or more Executive Chairmen:
1) the Company must fulfil one or more of the conditions provided for in Article L. 22‑10‑60 of the French Commercial Code (Code decommerce), namely:• either grant free shares to all of the Company’s employees and to at least 90% of the employees of its French subsidiaries, or• grant stock options to the employees referred to above (in accordance with the authorisation given to Executive Management to grant
stock options to employees and Executive Corporate Officers of the Company and its subsidiaries at the time of the Combined General
Meeting of 20 April 2022 [eighteenth resolution]), or• provide the above‑mentioned employees with a unilateral contribution to the company savings plan, or• improve (or set up, where applicable) the terms of employee incentive and/or profit‑sharing schemes of the Company and its French
subsidiaries;2) in accordance with the provisions of Article L. 225‑197‑1, II of the French Commercial Code (Code de commerce), the Supervisory Board
must ensure that the allocated shares cannot be sold prior to the termination of the duties of the Executive Chairmen, or shall set aquantity of these shares that the latter must hold in registered form until the termination of their duties;3) in addition, in accordance with the Afep‑Medef Corporate Governance Code, to which the Company has adhered:• the free shares allocated will be subject to demanding performance conditions to be met over several years and defined at the time of
their allocation, the maximum percentage of free shares that may be allocated will be 0.05%, this sub‑limit being deducted from the
2% ceiling common to this resolution and to the eighteenth resolution approved by the Combined General Meeting of 20 April 2022(“Authorisation to be granted to the Executive Management to grant stock options”),• the beneficiary Executive Chairmen must make a formal commitment not to use any risk hedging operations relating to theirperformance‑based shares, and until the end of the share retention period.

This authorisation would be valid for 38 months from the date of the General Meeting.
The Statutory Auditors’ report on the nineteenth resolution is presented in the 2023 universal registration document (chapter 8 “Combined
General Meeting of 30 April 2024”, § 8.4.7).

Nineteenth resolution
Authorisation to be given to Executive Management to grant free
existing shares of the Company

The General Meeting, acting under the quorum and majority
requirements applicable to Extraordinary General Meetings, having
reviewed the Executive Management report, the Statutory Auditors’
report and the Supervisory Board’s report, in accordance with Articles
L. 225‑197‑1 et seq. and Articles L. 22‑10‑59 and L. 22‑10‑60 of theFrench Commercial Code (Code de commerce):1) authorises the Executive Management to proceed, on one ormore occasions, for the benefit of employees and/or Corporate
Officers of the Company and of the companies or groups related
to it under the conditions referred to in Article L. 225‑197‑2 of theFrench Commercial Code (Code de commerce), or to certain ofthem or certain categories of them, with the allocation of free
existing ordinary shares of the Company. The existing shares that
may be allocated under this resolution must be acquired by theCompany under the share buyback programme authorised by thesixth resolution (“Authorisation granted to the Executive
Management to trade in the Company’s shares”) under Article
L. 22‑10‑62 of the French Commercial Code (Code de commerce),or any share buyback programme applicable previously or
subsequently;2) resolves that the Executive Management will determine theidentity of the beneficiaries or the categories of beneficiaries of

the allocations as well as the conditions and, where applicable,
the criteria for allocating the shares;
3) resolves that the Executive Management will set, under the legal
conditions and limits, the dates on which the free allocations will
be made;4) resolves that the total number of free ordinary shares granted
under this authorisation shall not be such that the total number offree shares granted under this resolution and the total number ofshares to which the stock options granted under the eighteenth
resolution approved by the Combined General Meeting of 20 April
2022 (“Authorisation to be given to Executive Management togrant stock options”) and not yet exercised may give entitlement
represent a number of shares greater than 2% of the number ofordinary shares of the Company on the day of the free shareallocation, without taking into account:s those already allocated pursuant to authorisations by previous
General Meetings,
s those that have not been definitively allocated at the end of
the vesting period provided for in the sixth paragraph of Article
L. 225‑197‑1 of the French Commercial Code (Code decommerce),8

s those that are no longer subject to the retention obligation
provided for in the seventh paragraph of Article L. 225‑197‑1, Iof the French Commercial Code (Code de commerce);

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

549

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

5) resolves that the Executive Management will set, at the time ofeach allocation, the vesting period at the end of which theallocation of ordinary shares will become definitive, this period
being not less than one year; however, in the event of the deathof the beneficiary, his or her heirs may request the allocation ofshares within six months of the death, subject, where applicable,
to the achievement of the performance conditions; in addition, inthe event of disability of the beneficiary corresponding to theclassification in the second or third of the categories provided forin Article L. 341‑4 of the French Social Security Code (Code de laSécurité sociale) and resulting in the cessation of all professional
activity, the beneficiary may request the allocation of such shares
before the end of this period, subject, where applicable, to theachievement of the performance conditions;
6) resolves that the Executive Management will set, in principle, atthe time of each allocation, a period during which the shares mustbe held by the beneficiaries, which will run from the final
allocation of the ordinary shares and may not be less than one
year. Nevertheless, the Executive Management is authorised tomodify or eliminate the said retention period, under the conditions
and limits provided for by the law in force on the date of theallocation decision. However, the shares will be freelytransferable in the event of the death of the beneficiary, as wellas in the event of disability of the beneficiary corresponding to theclassification in the second or third category provided for in Article
L. 341‑4 of the French Social Security Code (Code de la Sécurité
sociale);7) authorises the Executive Management to set, where applicable,
the conditions and criteria for the allocation of shares, such as,without the following list being exhaustive, the conditions of lengthof service, the conditions relating to the continuation of theemployment contract or corporate office during the vesting period,
and any other financial or individual or collective performance
condition;8) authorises the Executive Management to register the free shares
allocated in a registered account in the name of their holder,stating, where applicable, the unavailability of the shares;
9) authorises the Executive Management to make, if necessary,during the vesting period of the allocated shares, all adjustments
in order to take into account the impact of transactions on the
Company’s share capital and, in particular, to determine theconditions under which the number of ordinary shares awarded
will be adjusted;10) confirms that, pursuant to Article L. 233‑32 of the French
Commercial Code (Code de commerce), this delegation may be
implemented during a public offering on the shares of theCompany;550

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

11) more generally, gives the broadest of powers to the Executive
Management, with the option of subdelegation under the legal
conditions, for the purpose of entering into all agreements,
preparing all documents, carrying out all formalities anddeclarations to all bodies and, more generally, doing whatever isnecessary:s the period during which the Executive Management may makeuse of this authorisation, on one or more occasions, is set at
38 months from the date of this Meeting,s in the event of allocation to one or more Executive Chairmen:• resolves that the Executive Management must ensure that
the Company meets one or more of the conditions provided
for in Article L. 22‑10‑60 of the French Commercial Code
(Code de commerce), and must take all measures to thiseffect,• resolves that the Supervisory Board must ensure that theallocated shares may not be sold prior to the termination of
the duties of the Executive Chairman/Chairmen, or shallset a quantity of these shares that the Executive
Chairman/Chairmen must retain in registered form until theend of their duties,• resolves that, in accordance with the Afep‑Medef Corporate
Governance Code, to which the Company has adhered:- the free shares awarded will be subject to demanding
performance conditions to be met over several years,
defined at the time of their allocation,- the maximum percentage of free shares that may beallocated to the Executive Chairmen under thisresolution will be 0.05%, this sub‑limit being deductedfrom the 2% ceiling common to this resolution and to
the eighteenth resolution approved by the Combined
General Meeting of 20 April 2022 (“Authorisation to be
granted to the Executive Management to grant stock
options”),- the beneficiary Executive Chairmen must make a formal
commitment not to use any risk hedging operations
relating to their performance‑based shares, and until
the end of the share retention period.
s each year, the Executive Management will inform the General
Meeting of the allocations made under this resolution under
the legal conditions, and in particular Article L. 225‑197‑4 of
the French Commercial Code (Code de commerce).

This delegation cancels, for the remaining term and up to the unused
portion, and replaces the delegation granted by the Combined
General Meeting of 20 April 2023 in its twenty‑eighth resolution(allocation of free existing shares).

COMBINED GENERAL MEETING OF 30 APRIL 2024
SUPERVISORY BOARD REPORT TO THE COMBINED GENERAL MEETING OF 30 APRIL 2024

TWENTIETH RESOLUTION: POWERS

Explanatory statement
The twentieth resolution is a standard resolution making it possible to undertake all legal ﬁling and disclosure formalities required by law,following the General Meeting.

Twentieth resolution
Delegation of authority to carry out the formalities related to the General Meeting

The General Meeting, acting under the quorum and majority requirements applicable to Extraordinary General Meetings, confers full powers on
any bearer of an extract or copy of these minutes recording its resolutions, in order to carry out all legal publication or other formalities.

8.3

SUPERVISORY BOARD REPORT TO THE COMBINED GENERALMEETING OF 30 APRIL 2024

In accordance with legal and regulatory provisions, we hereby present
our report on the accomplishment of our duties for the ﬁnancial year
ended 31 December 2023.
Firstly, you are advised that:s the Executive Management has kept us regularly informed of theCompany’s business operations and results;s the balance sheet and its notes, as well as the income statement,
have been provided to us as required by law;s transactions subject to prior authorisation by the Supervisory
Board under the terms of specific provisions contained in the
Company’s Articles of Association have been duly approved by us;s lastly, the Supervisory Board ruled on various matters within its
exclusive competence with respect to the Articles of Association.

1.

COMMENTS ON THE PARENT COMPANY
AND CONSOLIDATED FINANCIAL
STATEMENTS

In the light of the comprehensive review already provided, we have no
speciﬁc comments on the business performance or on the ﬁnancial
statements for the ﬁnancial year ended 31 December 2023. We
issue a favourable opinion on the approval of the ﬁnancial
statements.

2.

ALLOCATION OF NET INCOME

On 8 February 2024, the Executive Management decided to pay aninterim dividend of €3.50 per share. The payment of this interim
dividend took place on 15 February 2024.
You are asked to approve the allocation of net income as it appears in
the explanatory statement in the 2023 universal registration
document (chapter 8 “Combined General Meeting of 20 April 2023”,§ 8.2.1 – Explanatory statement to the fourth resolution) and which
provides for an ordinary dividend per share of €15.00 and an
exceptional dividend of €10.00.

After deduction of the interim dividend, the balance, i.e. a total
amount of €21.50 per share, will be detached from the share on
2 May 2024 and payable in cash on 6 May 2024 on the positions
closed in the evening of 3 May 2024.

3.

RELATED‑PARTY AGREEMENTS

As no related‑party agreement requiring the authorisation of theSupervisory Board was entered into in 2023, you are asked to notethat there are none to approve.
The agreements approved previously by the General Meeting arepresented in the Statutory Auditors’ special report on the agreements
mentioned in Articles L.226‑10, L. 225‑38 to L. 225‑43, L. 22‑10‑12and L. 22‑10‑13 of the French Commercial Code (Code decommerce), which appear in the 2023 universal registration
document (chapter 8 “Combined General Meeting of 20 April 2023,§ 8.4.3). None of these agreements changed signiﬁcantly withrespect to amounts or ﬁnancial terms in 2023.
No other agreements were downgraded in 2023.
A summary of the related‑party agreements in force is presented in
the Supervisory Board's corporate governance report in the 2023
universal registration document (chapter 3 “Corporate governance”,§ 3.9.1.1).
In accordance with the provisions of Article L. 225‑38 of the French
Commercial Code (Code de commerce), authorisation decisions of
the Supervisory Board since 1 August 2014 are all supported byjustiﬁcation. A review of the related‑party agreements entered into
during previous ﬁnancial years and whose execution has continued
over time is carried out by the Supervisory Board each year inaccordance with the provisions of Article L. 225‑40‑1 of the French
Commercial Code (Code de commerce).

8

Following the review of 2023, the Board had no comments to make.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

551

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
SUPERVISORY BOARD REPORT TO THE COMBINED GENERAL MEETING OF 30 APRIL 2024

In addition, the Company is required to put in place a procedure to
regularly assess whether agreements relating to current transactions
and concluded under normal conditions meet these conditions.
This procedure, which applies only to Hermès International and not to
its subsidiaries, was approved by the Supervisory Board on
25 February 2020. Its purpose is to enable Hermès International toperiodically assess the appropriateness of the classiﬁcation used forongoing agreements entered into during the ﬁnancial year, those that
continue over several years, and any agreements that may have been
modiﬁed.
The description of this procedure and its implementation are given in
the Supervisory Board’s corporate governance report in the 2023
universal registration document (chapter 3 “Corporate governance”,§ 3.9.1.3).

4.

ACTIVITIES OF THE SUPERVISORY BOARD

The Supervisory Board’s 2023 activity is presented in the
Supervisory Board corporate governance report in the 2023 universal
registration document (chapter 3 “Corporate governance”, § 3.5.4).

5.

COMPOSITION OF THE SUPERVISORY
BOARD

We fully support the proposal that is made to you in the explanatory
statement in the 2023 universal registration document (chapter 8“Combined General Meeting of 20 April 2023”, § 8.2.1 “Explanatory
statement to the thirteenth to sixteenth resolutions”) to renew for athree‑year term, pursuant to the Articles of Association, the expiringterms of ofﬁce of:s Mr Matthieu Dumas;s Mr Blaise Guerrand;s Ms Olympia Guerrand; ands Mr Alexandre Viros.

The diversity policy applied within the Supervisory Board, including a
progress report on the mission to change the composition of theSupervisory Board, entrusted since 2011 to the CAG‑CSR Committee,
can be found in the Supervisory Board corporate governance report in
the 2023 universal registration document (chapter 3 “Corporate
governance”, § 3.4.3).

6.

COMPENSATION POLICY FOR THE
EXECUTIVE CHAIRMEN

We fully support the proposal that is made to you to modify thecompensation policy for the Executive Chairmen, which consists of(see chapter 8 “Combined General Meeting of 30 April 2024” § 8.2.1- Explanatory statement to the eleventh resolution):s Limit the annual change in the fixed compensation of the Executive
Chairmen to 5%. The indexation of the fixed compensation willcontinue to be aligned with the increase in consolidated revenue
achieved in respect of the previous financial year, at constantscope and exchange rates, compared to that of the prior financial
year, but without exceeding a 5% increase compared to theprevious fixed compensation (limit);
s Set up a new “Article 82” type defined‑contribution pension plan,with reference to the French General Tax Code, following thefreezing of the conditional rights of the defined‑benefit pension
plan under Article 39 of the same code.

7.

APPOINTMENT OF THE STATUTORYAUDITOR TASKED WITH CERTIFYINGSUSTAINABILITY INFORMATION

In accordance with the provisions introduced by Order No.
2023‑1142 of 6 December 2023 relating to the publication andcertiﬁcation of information on sustainability and environmental, socialand corporate governance obligations of commercial companies, theAudit and Risk Committee recommended the appointment ofPricewaterhouseCoopers Audit as Statutory Auditor tasked withcertifying sustainability information.
We fully support this proposal that is made to you in the explanatory
statement in the 2023 universal registration document (chapter 8“Combined General Meeting of 30 April 2024”, § 8.2.1 “Explanatory
statementtotheseventeenth
resolution)
toappoint
PricewaterhouseCoopers Audit as Statutory Auditor tasked withcertifying sustainability information, for a term of three ﬁnancial years,
i.e. until the close of the Ordinary Annual General Meeting called in
2027 to approve the ﬁnancial statements for the ﬁnancial year ended
31 December 2026.

8.

RECOMMENDATIONS ON THE DRAFTRESOLUTIONS SUBMITTED TO THE
COMBINED GENERAL MEETING OF
30 APRIL 2024

We are in favour of all the draft resolutions submitted.
This concludes our report on the information and opinions we
considered necessary to bring to your attention in connection withthis Meeting, and we recommend that you vote to adopt all the
resolutions submitted to you.

The Supervisory Board

552

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCOMBINED GENERAL MEETING OF 30 APRIL 2024
STATUTORY AUDITORS’ REPORTS

8.4

STATUTORY AUDITORS’ REPORTS

8.4.1

STATUTORY AUDITORS’ REPORT ON THE ANNUAL FINANCIAL STATEMENTS

The report can be found in the 2023 universal registration document (chapter 6 “Parent company ﬁnancial statements”, § 6.9).

8.4.2

STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

The report can be found in the 2023 universal registration document (chapter 5 “Consolidated ﬁnancial statements”, § 5.7).

82023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

553

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
STATUTORY AUDITORS’ REPORTS

8.4.3

STATUTORY AUDITORS’ SPECIAL REPORT ON RELATED‑PARTY AGREEMENTS

General Meeting for the approval of the ﬁnancial statements for the ﬁnancial year ended 31 December 2023

To the Shareholders,In our capacity as Statutory Auditors of Hermès International, we hereby report to you on related‑party agreements.
It is our responsibility to report to shareholders, based on the information provided to us, on the main terms and conditions of agreements thathave been disclosed to us or that we may have identiﬁed as part of our engagement, as well as the reasons given as to why they are beneﬁcial
for the Company, without commenting on their relevance or substance or identifying any undisclosed agreements. Under the provisions of article
R.226‑2 of the French Commercial Code (Code de commerce), it is the responsibility of the shareholders to determine whether the agreements
are appropriate and should be approved.
Where applicable, it is also our responsibility to provide shareholders with the information required by article R.226‑2 of the French Commercial
Code in relation to the implementation during the year of agreements already approved by the General Meeting.
We performed the procedures that we deemed necessary in accordance with professional standards applicable in France to such engagements.
These procedures consisted in verifying that the information given to us is consistent with the underlying documents.
Agreements to be submitted for the approval of the General Meeting
Agreements authorised and entered into during the year

We were not informed of any agreements authorised and entered into during the year to be submitted for the approval of the General Meeting
pursuant to the provisions of article L.226‑10 of the French Commercial Code (Code de commerce).
Agreements already approved by the General Meeting
Agreements approved in previous years that were implemented during the year

In accordance with article R.226‑2 of the French Commercial Code, we were informed of the following agreements, approved by the General
Meeting in previous years, which were implemented during the year.

1) Service agreement with Studio des FleursPerson concerned

Mr Frédéric Dumas, member of the Executive Management Board of Émile Hermès SAS, Executive Chairman of Hermès International
Nature, purpose and conditions

On 29 July 2021, the Supervisory Board authorised an amendment to the initial agreement between Hermès International and Studio des Fleurs
relating to the provision of photography and photo editing services for e‑commerce product pack shots. The purpose of the amendment is toagree on new contractual conditions, as the initial agreement, which was authorised by the Supervisory Board on 20 March 2018, provided for arevision of the fees at the end of an initial three‑year period.

554

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCOMBINED GENERAL MEETING OF 30 APRIL 2024
STATUTORY AUDITORS’ REPORTS

Reasons why the agreement is beneficial for the Company

Studio des Fleurs agreed to the following points, which were fundamental to Hermès International:s compliance with very precise specifications, duty to advise, monitoring of services, quality control and performance indicator monitoring
criteria;s no minimum order guaranteed;s fixed three‑year term followed by indefinite duration;s long notice of termination (18 months);s non‑exclusivity;s undertaking by Studio des Fleurs to take the necessary measures to maintain its economic independence (in particular by expanding anddiversifying its customer base) from the Hermès Group;s confidentiality and prohibition on using Hermès as a reference;s fixed fees for three years.

For 2023, Hermès International was invoiced €3,632,760 for services provided under the agreement.

2) Design agreement with architectural firm RDAI
Person concerned

Ms Sandrine Brekke, partner with a stake of more than 10% in RDAI and member of the Executive Management Board of Émile Hermès SAS,
Executive Chairman of Hermès International.
Nature, purpose and conditions

At its meetings of 7 July 2017 and 13 September 2017, the Supervisory Board authorised a new framework agreement between the Company
and all the companies that it directly or indirectly controls, and RDAI, deﬁning the scope of the work to be undertaken by RDAI in applying an
exclusive architecture design concept to Hermès projects.
Reasons why the agreement is beneficial for the Company

The concept created by RDAI will enable stores and points of sale distributing Hermès products worldwide to be easily identiﬁed for their quality
design.
The new agreement aims to integrate changes in Hermès’ organisation (Real Estate Department, purchasing policy, digital initiatives), specify theroles and obligations of the parties and adjust the terms and conditions of execution to the changing needs in Hermès’ projects. Following
analysis of the renegotiated agreement, it is clear that the changes made are essentially to Hermès International’s beneﬁt, both with regard to
RDAI’s obligations and its fees.
For 2023, Hermès International was invoiced €16,547 for services provided under the agreement.

Neuilly‑sur‑Seine, 27 February 2024
The Statutory Auditors

PricewaterhouseCoopers Audit

Grant Thornton Audit

Amélie Wattel

Vincent Frambourt

82023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

555

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
STATUTORY AUDITORS’ REPORTS

8.4.4

REPORT BY ONE OF THE STATUTORY AUDITORS, DESIGNATED AS AN INDEPENDENT THIRDPARTY, ON THE CONSOLIDATED SOCIAL, ENVIRONMENTAL AND SOCIETAL INFORMATIONCONTAINED IN THE MANAGEMENT REPORTThe report can be found in the 2023 universal registration document (chapter 2 “Corporate social responsibility and non‑ﬁnancial performance”,§ 2.10).

556

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCOMBINED GENERAL MEETING OF 30 APRIL 2024
STATUTORY AUDITORS’ REPORTS

8.4.5

STATUTORY AUDITORS’ REPORT ON THE SHARE CAPITAL REDUCTION (EIGHTEENTHRESOLUTION)

Combined General Meeting of 30 April 2024 – 18th resolution

To the Shareholders,In our capacity as Statutory Auditors of Hermès International, and in accordance with the provisions of article L.22‑10‑62 of the French
Commercial Code (Code de commerce), applicable in the event of a share capital reduction via the cancellation of treasury shares, we hereby
report to you on our assessment of the reasons for and the terms and conditions of the proposed share capital reduction.
Executive Management is seeking a 24‑month authorisation, from the date of this General Meeting, to cancel, for up to a maximum of 10% of theshare capital per 24‑month period, the shares bought back by Hermès International pursuant to an authorisation to buy back its own shares inaccordance with the provisions of the aforementioned article.
This authorisation cancels and replaces, for the remaining term and the unused portion, the authorisation granted by the Combined General
Meeting of 30 April 2023 in its nineteenth resolution.
We performed the procedures that we deemed necessary in accordance with professional standards applicable in France to such engagements.
These procedures consisted in verifying that the reasons for and the terms and conditions of the proposed share capital reduction, which is notconsidered to affect shareholder equality, comply with the applicable legal provisions.
We have no matters to report as regards the reasons for and conditions of the proposed share capital reduction.

Neuilly‑sur‑Seine, 27 February 2024
The Statutory Auditors

PricewaterhouseCoopers Audit

Grant Thornton Audit

Amélie Wattel

Vincent Frambourt

82023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

557

8

COMBINED GENERAL MEETING OF 30 APRIL 2024
STATUTORY AUDITORS’ REPORTS

8.4.6

STATUTORY AUDITORS’ REPORT ON THE AUTHORISATION TO ALLOCATE FREE EXISTING SHARES(NINETEENTH RESOLUTION)

Combined General Meeting of 30 April 2024 – 19th resolution

To the Shareholders,In our capacity as Statutory Auditors of Hermès International, and in accordance with the provisions of article L.225‑197‑1 of the French
Commercial Code (Code de commerce), we hereby report to you on the proposed authorisation to grant existing shares, free of consideration, toemployees and/or corporate ofﬁcers of Hermès International and all or some of its afﬁliated companies or groups, or to certain categories of said
employees and corporate ofﬁcers, under the conditions stipulated by article L.225‑197‑2 of the French Commercial Code, which is submitted toyou for approval. On the basis of its report, Executive Management proposes that, for a period of 38 months from the date of this General
Meeting, the shareholders authorise it to grant free existing shares on one or more occasions, it being understood that:s The total number of shares granted, free of consideration, under this authorisation and the total number of shares underlying the sharepurchase options granted under the eighteenth resolution approved by the Combined General Meeting of 20 April 2022 ("Authorisation to be
granted to the Executive Management to grant share purchase options") and not yet exercised may not represent a number of shares greaterthan 2% of the number of ordinary shares in the Company on the date of allocation;s The maximum percentage of free shares that may be granted to the Executive Chairmen (gérants) under this resolution shall be 0.05% of theshare capital. This sub‑ceiling shall be deducted from the 2% blanket ceiling indicated above.

This authorisation cancels, for the remainder of its term and up to the unused portion, and replaces the authorisation granted by the Combined
General Meeting of 20 April 2023 in its twenty‑eighth resolution.It is the Executive Management’s responsibility to draw up a report on thistransaction which it wishes to carry out. It is our responsibility to provide you with our comments, if any, in respect of the information provided toyou on the proposed transaction.We performed the procedures that we deemed necessary in accordance with professional standards applicablein France to such engagements. These procedures consisted, in particular, in verifying that the proposed methods disclosed in the report
prepared by Executive Management comply with the applicable laws and regulations.We have no matters to report on the information provided in
the report prepared by Executive Management on the proposed authorisation to grant free shares.

Neuilly‑sur‑Seine, 27 February 2024
The Statutory Auditors

558

PricewaterhouseCoopers Audit

Grant Thornton Audit

Amélie Wattel

Vincent Frambourt

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALCOMBINED GENERAL MEETING OF 30 APRIL 2024

82023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

559

9

ADDITIONAL INFORMATION
9.1

PERSONS RESPONSIBLE FOR THE UNIVERSAL REGISTRATIONDOCUMENT AFR

9.1.1

Name and function of persons responsible for the information
contained in the Universal Registration Document
Certification by the persons responsible for the Universal Registration
Document

9.1.2

562
562
562

9.2

PERSONS RESPONSIBLE FOR AUDITING THE FINANCIAL
STATEMENTS AFR

563

9.3

CONSULTATION OF REGULATORY INFORMATION

563

9.4

INFORMATION INCLUDED BY REFERENCE

564

9.5

CROSS‑REFERENCE TABLES

566

9.5.1

568
569

9.5.6

Cross‑reference table for the annual financial report
Cross‑reference table for the management report
Cross‑reference table for the Supervisory Board report on corporate
governance
Cross‑reference table for the Universal Registration Document
Cross‑reference table for the Non‑Financial Performance Statement
TCFD cross‑reference table

572
574
579
580

9.6

GLOSSARY

581

9.5.2
9.5.3
9.5.4
9.5.5

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

561

9

ADDITIONAL INFORMATIONPERSONS RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT

9.1

PERSONS RESPONSIBLE FOR THE UNIVERSAL REGISTRATIONDOCUMENT AFR

9.1.1

NAME AND FUNCTION OF PERSONSRESPONSIBLE FOR THE INFORMATIONCONTAINED IN THE UNIVERSALREGISTRATION DOCUMENTMr Axel Dumas, Executive Chairman.
Émile Hermès SAS, 23, rue Boissy d’Anglas, 75008 Paris, Executive
Chairman.

9.1.2

CERTIFICATION BY THE PERSONSRESPONSIBLE FOR THE UNIVERSALREGISTRATION DOCUMENT

We certify that the information contained in this universal registration
document is, to the best of our knowledge, consistent with the facts
and does not contain any omissions that could affect its import.
We hereby certify, to the best of our knowledge, that the ﬁnancial
statements have been prepared in accordance with the applicableaccounting standards and give a true and fair view of the assets,ﬁnancial position and results of the Company and of all the entities
included in the scope of consolidation, and that the Executive
Management report, the contents of which are listed in § 9.5.2(Cross‑reference table for the management report) presents a trueand fair view of the development of the business, its results and theﬁnancial position of the Company and of all the entities included in
the scope of consolidation, and that it describes the main risks anduncertainties to which they are exposed.

Paris, 26 March 2024
Executive Management

Axel Dumas

Henri‑Louis Bauer
Representative of Émile Hermès SAS

562

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALADDITIONAL INFORMATIONPERSONS RESPONSIBLE FOR AUDITING THE FINANCIAL STATEMENTS

9.2

PERSONS RESPONSIBLE FOR AUDITING THE FINANCIAL
STATEMENTS AFR

The Principal Statutory Auditors serve for a term of six years.

First appointed: Ordinary General Meeting of 30 May 2011.

If a Statutory Auditor is appointed to ﬁll a vacancy left by the
resignation of a Statutory Auditor or any other reason, he or she isappointed for the remainder of his or her predecessor’s term.

Term of current ofﬁce: Ordinary General Meeting called to approve theﬁnancial statements for 2028.

The terms of the Principal Statutory Auditors will end in 2029.
The Principal Statutory Auditors are:Member of the Compagnie Régionale des Commissaires aux Comptes
de Versailles.

PricewaterhouseCoopers Audit

29, rue du Pont

Member of the Compagnie Régionale des Commissaires aux Comptes
de Versailles.

92200 Neuilly‑sur‑Seine

63, rue de Villiers
92200 Neuilly‑sur‑Seine
Represented by Ms Amélie Wattel

9.3

Grant Thornton Audit

Represented by: Mr Vincent Frambourt.
First appointed: Ordinary General Meeting of 31 May 1999.
Term of current ofﬁce: Ordinary General Meeting called to approve theﬁnancial statements for 2028.

CONSULTATION OF REGULATORY INFORMATIONThe Company’s ﬁnancial website can be accessed at the following address: https://ﬁnance.hermes.com/en/. This site provides shareholders
and investors with information available in French and English for the last ﬁve ﬁnancial years.

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

563

9

ADDITIONAL INFORMATIONINFORMATION INCLUDED BY REFERENCE

9.4

INFORMATION INCLUDED BY REFERENCE

Pursuant to Article 19 of Regulation (EU) no. 2017/1129 of 24 June 2017, this universal registration document incorporates the following
information by reference, to which the reader is invited to refer:

Section of the relevant Document(s) containing the information
appendix(with hyperlink)

Parts incorporated by reference

18.1.1
18.3.1

Universal registration document ﬁled with the French Financial
Markets Authority (AMF) on 23 March 2022 under reference
D22‑0134.
This document is available on the website https://ﬁnance.hermes.com/en/publications/.

In respect of the ﬁnancial year ended 31 December 2021:
consolidated ﬁnancial statements, parent company ﬁnancial
statements and related Statutory Auditors’ reports, on pages
360 to 408 and 412 to 436 respectively.

18.1.1
18.3.1

Universal registration document ﬁled with the French Financial
Markets Authority (AMF) on 24 March 2023 under reference
D23‑0142.
This document is available on the website https://ﬁnance.hermes.com/en/publications/.

In respect of the ﬁnancial year ended 31 December 2022:
consolidated ﬁnancial statements, parent company ﬁnancial
statements and related Statutory Auditors’ reports, on pages
398 to 446 and 450 to 474 respectively.

Information included in these two registration documents, other than the information referred to above, has been replaced and/or updated,
where appropriate, by the information contained in this universal registration document. Copies of this universal registration document areavailable as described on the website https://ﬁnance.hermes.com/en/publications/.
The information on the websites mentioned by the following hyperlinks in this universal registration document is not part of the universal
registration document. As such, this information has not been reviewed or approved by the AMF.

URLParagraph

https://ecole.hermes.com/lecole/

chapter 2§ 2.1.3/page 58

https://www.hermes.com/us/en/story/135446‑footsteps‑across‑the‑world/

chapter 2§ 2.7.2.1.2/page 223

https://ﬁnance.hermes.com/en/a‑value‑creating‑and‑sustainable‑french‑model/

chapter 2§ 2.7.3.1/page 228

https://ﬁnance.hermes.com/en/ethics‑human‑rights‑and‑diversities/.

chapter 2§ 2.6.1.6/page 212§ 2.7.3.2/page 230§ 2.8.1.2.1/page 251§ 2.8.1.2.2/page 252§ 2.8.1.2.3/page 252§ 2.8.2/page 255§ 2.8.2.2.2/page 256
chapter 3§ 3.3.4.3/page 291
chapter 4§ 4.1.1.2/page 388§ 4.3.1/page 405

https://ﬁnance.hermes.com/en/responsible‑sourcing/chapter 2§ 2.4.2/page 127§ 2.8.1.3.1/page 252
chapter 2

https://ﬁnance.hermes.com/en/animal‑welfare/§ 2.4.2.2/page 1305642023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALADDITIONAL INFORMATIONINFORMATION INCLUDED BY REFERENCEURLParagraph

https://ﬁnance.hermes.com/en/governing‑bodies‑rules‑procedure‑articles‑association/

chapter 3§ 3.1.2/page 276§ 3.4.7.1/page 307§ 3.4.7.2/page 307§ 3.4.7.3/page 307§ 3.6.2.2/page 341§ 3.6.3.2/page 344
chapter 4§ 4.3.2/page 405
chapter 7§ 7.1.3/page 497§ 7.2.4/page 514

https://ﬁnance.hermes.com/en/corporate‑ofﬁcers/

chapter 3§ 3.8.1.1.4/page 351
chapter 2§ 2.6.1.6/page 212§ 2.8.4/page 258

https://ﬁnance.hermes.com/en/

chapter 3§ 3.1.2/page 277§ 3.5.6.3/page 338
chapter 7§ 7.1.1/page 496§ 7.5.5/page 523§ 7.5.8/page 524
chapter 9§ 9.3/page 563

https://ﬁnance.hermes.com/en/regulated‑information/

chapter 7§ 7.2.1.2/page 505§ 7.5.3/page 522§ 7.5.7/page 524

https://ﬁnance.hermes.com/en/calendar/

chapter 7§ 7.5.6/page 524

https://ﬁnance.hermes.com/en/publications

chapter 7§ 7.2.2.3.1/page 506

https://talents.hermes.com/en/

chapter 2§ 2.2/page 71§ 2.2.3.1/page 76§ 2.2.3.2/page 77

https://ﬁnance.hermes.com/en/general‑meetings

chapter 3§ 3.8.5/page 373

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

565

9

ADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

9.5

CROSS‑REFERENCE TABLES

The universal registration document consists of presenting in a single
document information that the Company has already disclosed inother forms, and separately, in application of existing law.

• the Non‑Financial Performance Statement required by Articles

This universal registration document thus aggregates various
information which is also published by the Company in accordancewith the legislative and regulatory obligations in force. It also includes:• the report on corporate governance required by Article L.

s the annual financial report required by Articles L. 451‑1‑2 of theFrench Monetary and Financial Code and Article 222‑3 of the AMF
General Regulation;s all the information required for the General Meeting and provided
for by Articles L. 225‑100 and R. 225‑83 of the French
Commercial Code (Code de commerce), including the documents
and information sent to shareholders.

s the full management report within the meaning of Article L. 232‑1of the French Commercial Code (Code de commerce), including:L. 225‑102‑1 and R. 225‑105, I of the French Commercial
Code (Code de commerce),
226‑10‑1 of the French Commercial Code (Code de commerce);andAs a result, and in accordance with the AMF position‑recommendation
DOC‑2021‑02, it is speciﬁed that this universal registration document
is presented in the form of a “4‑in‑1 URD”.

The table below summarises the content of the aforementioned documents:

Document(s)Reference texts

Chapter / § / Page

1. Universal registration document

Headings in Annexes 1 and 2 of DelegatedRegulation (EU) no. 2019/980 of 14 March 2019,supplementing Regulation (EU) no. 2017/1129 of
14 June 2017

chapter 9§ 9.5.4/pages 574‑578

2. Annual ﬁnancial report

Article L. 451‑1‑2 of the French Monetary and
Financial Code
Article 222‑3 of the AMF General Regulation

chapter 9§ 9.5.1/page 568

3. Management report

Articles L. 225‑100, L. 232‑1 et seq., R. 225‑102
et seq. of the French Commercial Code (Code decommerce)

chapter 9§ 9.5.2/ pages 569‑571

Non‑Financial Performance Statement

Articles L. 22‑10‑36, L. 225‑102‑1, L. 225‑102‑4,
L. 464‑2, R. 225‑73‑1, R. 225‑105 and R.
225‑105‑2 of the French Commercial Code (Codede commerce)
Articles 223 quater and 223 quinquies of theFrench General Tax Code (Code général des impôts)

chapter 9§ 9.5.5/pages 579‑580

Supervisory Board report on corporate governance

Articles L. 226‑10‑1 and L. 22‑10‑78 of the French
Commercial Code (Code de commerce)

chapter 9§ 9.5.3/pages 572‑573

4. Documents intended for the General Meeting
Information relating to the Executive Chairmen and members of
the Supervisory Board

Articles L. 225‑100 and R. 225‑83 of the French
Commercial Code (Code de commerce)
Articles L. 22‑10‑78 and L. 225‑37‑4 of the French
Commercial Code (Code de commerce)

chapter 3§ 3.3.2/pages 282‑285§ 3.4.5/pages 299‑304§ 3.4.6/pages 305‑306§ 3.4.8/pages 310‑328

First, second and third resolutions
Approval of the annual ﬁnancial statements (parent company
and consolidated) – Executive Management discharge

Articles L. 225‑100 and L. 22‑10‑34 of the French
Commercial Code (Code de commerce)

chapter 8§ 8.2.1/page 530

Fourth resolution
Allocation of net income – Distribution of an ordinary dividend

Article L. 232‑12 of the French Commercial Code
(Code de commerce)

chapter 8§ 8.2.1/page 531

Text of the draft resolutions
Ordinary resolutions

566

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

Document(s)Reference texts

Chapter / § / Page

Fifth resolution
Approval of the related‑party agreements

Articles L. 225‑38 to L. 225‑43, L. 226‑10, L.
22‑10‑12 and L. 22‑10‑13 of the French
Commercial Code (Code de commerce)

chapter 8§ 8.2.1/page 532

Sixth resolution
Authorisation granted to the Executive Management to tradein the Company’s shares

Articles L. 22‑10‑62 et seq. of the French
Commercial Code (Code de commerce)“MAR” Regulation (EU) no. 596/2014 of 16 April
2014

chapter 8§ 8.2.1/pages 533‑534

Seventh, eighth, ninth and tenth resolutions
Approval of total compensation and beneﬁts of all kinds paid
during or awarded in respect of the ﬁnancial year ended
31 December 2023 to the Corporate Oﬃcers – Actual
application of the compensation policy

Articles L. 22‑10‑9 and L. 22‑10‑77 of the French
Commercial Code (Code de commerce)

chapter 8§ 8.2.1/pages 535‑541

Eleventh and twelfth resolutions
Compensation policies for the Executive Chairmen andSupervisory Board members (ex‑ante votes)

Article L. 22‑10‑76 of the French Commercial Code
(Code de commerce)

chapter 8§ 8.2.1/pages 542‑543

Thirteenth, fourteenth, ﬁfteenth and sixteenth resolutions
Reappointment of Supervisory Board members

Article L. 226‑4 of the French Commercial Code
(Code de commerce)

chapter 8§ 8.2.1/pages 544‑545

Seventeenth resolution
Appointment of the Statutory Auditor tasked with certifying
sustainability information

Article L. 822‑17 et seq. of the French Commercial
Code (Code de commerce)

chapter 8§ 8.2.1/page 546

Eighteenth resolution
Capital reduction

Article L. 22‑10‑62 of the French Commercial Code
(Code de commerce)

chapter 8§ 8.2.2/page 547

Nineteenth resolution
Delegation to Executive Management

Articles L. 22‑10‑59 and L. 22‑10‑60, L.
225‑197‑1 et seq. and L. 233‑32 of the French
Commercial Code (Code de commerce).

chapter 8§ 8.2.2/pages 548‑550

Twentieth resolution
Powers for formalities

Article R. 210‑18 of the French Commercial Code
(Code de commerce)

chapter 8§ 8.2.2/page 551

Text and explanatory statements presented by shareholders aswell as the list of items added to the agenda at their request

Articles L. 225‑105, R. 225‑71 to R. 225‑73 of theFrench Commercial Code (Code de commerce)n/aInformation relating to corporate governance

Articles L. 226‑10‑1 and L. 22‑10‑78 of the French
Commercial Code (Code de commerce)

chapter 9§ 9.5.3/pages 572‑573

Supervisory Board report to the Combined General Meeting of
30 April 2024

Article L. 226‑9 of the French Commercial Code
(Code de commerce)

chapter 8§ 8.3/pages 551‑552

Information on the members of the Supervisory Board whose
renewal is proposed to the Combined General Meeting of
30 April 2024

Article R. 225‑83 of the French Commercial Code
(Code de commerce)

chapter 3§ 3.4.8.8/pages
319‑320§ 3.4.8.9/page 321§ 3.4.8.11/page 324§ 3.4.8.14/page 328

Annual ﬁnancial statements

Article L. 232‑1 of the French Commercial Code
(Code de commerce)

chapter 6§ 6.1 et seq./page 468
et seq.

Consolidated ﬁnancial statements

Articles L. 233‑18 to L. 233‑26 of the French
Commercial Code (Code de commerce)

chapter 5§ 5.1 et seq./page 416
et seq.

Management report

Articles L. 225‑100, L. 232‑1 et seq., R. 225‑102
et seq. of the French Commercial Code (Code decommerce)

chapter 9§ 9.5.2/pages 569‑571

Allocation of net income

Article R. 225‑83 of the French Commercial Code
(Code de commerce)

chapter 8§ 8.2.1 (4th resolution)/
pages 531‑532

Extraordinary resolutions

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

567

9

ADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

Document(s)Reference texts

Chapter / § / Page

Executive Management report on transactions carried out
by the Company or aﬃliated companies in connection withstock subscription or purchase options reserved for employees
and Senior Executives

Article L. 225‑184 of the French Commercial Code
(Code de commerce)

chapter 3§ 3.8.3/page 366

Executive Management report on transactions carried out
by the Company or aﬃliated companies in connection withfree share allocations reserved for employees
and Senior Executives

Article L. 225‑197‑4 of the French Commercial
Code (Code de commerce)

chapter 3§ 3.8.3/page 366

Statutory Auditors’ report on the ﬁnancial statements

Articles L. 823‑9 and R. 823‑7 of the French
Commercial Code (Code de commerce)

chapter 6§ 6.9/pages 489‑492

Statutory Auditors’ report on the consolidated ﬁnancial
statements

Articles L. 823‑9 and R. 823‑7 of the French
Commercial Code (Code de commerce)

chapter 5§ 5.7/pages 460‑464

Statutory Auditors’ special report on related‑party agreements

Articles L. 226‑10 and R. 226‑2 of the French
Commercial Code (Code de commerce)

chapter 8§ 8.4.3/pages 554‑555

Statutory Auditors’ special report on the share capital
reduction (nineteenth resolution)

Article L. 22‑10‑62 of the French Commercial Code
(Code de commerce)

chapter 8§ 8.4.5/page 557

Statutory Auditors’ report on the authorisation to allocate
existing free shares (19th resolution)

Articles L. 225‑197‑1 and L. 225‑197‑2 of theFrench Commercial Code (Code de commerce)

chapter 8§ 8.4.6/page 558

Report of one of the Statutory Auditors, appointed
independent third party, on the
consolidated Non‑Financial Performance Statementin the management report of the Executive Management

Articles L. 22‑10‑36, R. 225‑105 and R. 225‑105‑1of the French Commercial Code (Code decommerce)

chapter 2§ 2.9/pages 262‑268

Statutory Auditors’ reports

9.5.1

CROSS‐REFERENCE TABLE FOR THE ANNUAL FINANCIAL REPORT(Article 222–3 of the AMF General Regulation)

In order to facilitate the reading of this document, the cross‑reference table below makes it possible to identify, in this universal registration
document, the information that constitutes the annual ﬁnancial report that must be published by listed companies in accordance with Articles L.
451‑1‑2 of the French Monetary and Financial Code and 222‑3 of the AMF General Regulation.

568

Required elements

Chapter / § / Page

Hermès International annual ﬁnancial statements

chapter 6§ 6.1 et seq./page 468 et seq.

Hermès Group consolidated ﬁnancial statements

chapter 5§ 5.1 et seq./page 416 et seq.

Executive Management reportchapter 9§ 9.5.2/pages 569‑571

Responsibility statement for the annual ﬁnancial reportchapter 9§ 9.1.2/page 562

Statutory Auditors’ report on the ﬁnancial statements

chapter 6§ 6.9/pages 489‑492

Statutory Auditors’ report on the consolidated ﬁnancial statements

chapter 5§ 5.7/pages 460‑464

Supervisory Board report on corporate governancechapter 9§ 9.5.3/pages 572‑573

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

9.5.2

CROSS‑REFERENCE TABLE FOR THE MANAGEMENT REPORT(Articles L. 225‑100 et seq., L. 232‑I, II and R. 225‑102 of the French Commercial Code (Code de commerce))

In order to facilitate the reading of this document, the cross‑reference table below makes it possible to identify the information that must be
included in the management report, in accordance with the provisions of the French Commercial Code (Code de commerce) applicable tosociétés en commandite par actions (partnerships limited by shares).
Items that are not applicable to Hermès International are marked “n/a”.

No.

Required elements

1

Group situation and activity in 2023 / Comments on theﬁnancial year

Reference texts

Chapter / § / Page

1.1

Situation of the Company during the past ﬁnancial year
and objective and exhaustive analysis of the evolution of
the business, earnings and ﬁnancial position of theCompany and the Group, in particular its debt position,with regard to volume and complexity of the business

Articles L. 225‑100‑1, I., 1°, L. 232‑1, II,
L. 233‑6, L. 22‑10‑35 and L. 233‑26 of
the French Commercial Code (Code decommerce)

Highlights 2023 / pages 6‑8
chapter 1§ 1.6 / pages 26‑34§ 1.7 / pages 35‑38§ 1.8 / pages 39‑40§ 1.9 / page 41

1.2

Financial key performance indicators

Article L. 225‑100‑1, I., 2° of the French
Commercial Code (Code de commerce)

chapter 1§ 1.5.1 / page 23§ 1.5.2 / page 23§ 1.5.3 / pages 23‑24

1.3

Non‑ﬁnancial key performance indicators relating to theCompany’s speciﬁc activity, in particular information on
environmental and staff issues with reference made toamounts featured in the annual ﬁnancial statements andthe relevant additional explanations

1.4

Important events between the closing date of the ﬁnancial
year and the date the report is established

Articles L. 232‑1, II. and L. 233‑26 of
the French Commercial Code (Code decommerce)

chapter 1§ 1.9/page 41

1.5

Identity of the main shareholders and holders of voting
rights at General Meetings, and changes made during theﬁnancial year

Article L. 233‑13 of the French
Commercial Code (Code de commerce)

chapter 7§ 7.2.2.5/pages 506‑507

1.6

Existing branches

Article L. 232‑1 of the French
Commercial Code (Code de commerce)

chapter 6§ 6.8.1/page 488

1.7

Signiﬁcant equity investments in companies
headquartered in France or the takeover of suchcompanies

Article L. 233‑6 par. 1 of the French
Commercial Code (Code de commerce)

chapter 6§ 6.8.3/page 488

1.8

Disposals of shares arising from the effect of regulating
cross‑shareholdings

Articles L. 233‑29, L. 233‑30 and R.
233‑19 of the French Commercial Code
(Code de commerce)

n/a

1.9

Foreseeable developments of the Company and its outlook

Articles L. 232‑1, II and L. 233‑26 of theFrench Commercial Code (Code decommerce)

chapter 1§ 1.10/pages 42‑43

1.10

Company research and development activities

Articles L. 232‑1, II and L. 233‑26 of theFrench Commercial Code (Code decommerce)

chapter 2§ 2.4 / pages 112‑150§ 2.5 / pages 152‑199§ 2.6 / pages 200‑214

1.11

Table of the Company’s results during each of the last ﬁve
ﬁnancial years

Article R. 225‑102 of the French
Commercial Code (Code de commerce)

chapter 6§ 6.6/page 486

1.12

Information regarding payment terms of suppliers andcustomers of the Company whose annual ﬁnancial
statements are certiﬁed by a Statutory Auditor

Article D. 441‑4 of the French
Commercial Code (Code de commerce)

chapter 6§ 6.7/page 487

1.13

Amount of loans with a maturity of less than two years
granted by the Company, on an ancillary basis to its main
activity, to micro‑companies or small or medium‑sizedcompanies with which it has economic links

Articles L. 511‑6 and R. 511‑2‑1‑3 of theFrench Monetary and Financial Codechapter 6§ 6.8.2/page 488

chapter 1§ 1.5.4/page 25
chapter 2§ 2.1 - 2.8/page 51 et seq.

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

569

9

ADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

No.

Required elements

Reference texts

Chapter / § / Page

1.14

Activity of the Company’s subsidiaries and companies
under its control

Article L. 233‑6 of the French
Commercial Code (Code de commerce)

chapter 1§ 1.4/pages 17‑22§ 1.8/page 39 et seq.

1.15

Notice given to another joint‑stock company in which theCompany holds more than 10% of its share capital

1.16

Progress made or difﬁculties encountered

2

Internal control and risk management

2.1

n/a
Article L. 22‑10‑35, I of the French
Commercial Code (Code de commerce)

chapter 1§ 1.8/page 39 et seq.

Description of main risks and uncertainties the Company
faces

Article L. 225‑100‑1, I., 3° of the French
Commercial Code (Code de commerce)

chapter 4§ 4.1 et seq./page 384 et seq.

2.2

Guidance on ﬁnancial risks linked to the effects of climatechange and steps taken by the Company to reduce themby implementing a low‑carbon strategy in all areas of its
activity

Article L. 22‑10‑35, I of the French
Commercial Code (Code de commerce)

chapter 4§ 4.1.4/pages 397‑400

2.3

Principal characteristics of the internal control and risk
management procedures put in place by the Company
relating to accounting and ﬁnancial reporting procedures

Article L. 22‑10‑35, 2° of the French
Commercial Code (Code de commerce)

chapter 4§ 4.3.4.2/pages 411‑412

2.4

Information regarding the Company’s objectives and its
policy as to the hedging of each main category ofscheduled transactions for which hedge accounting isused, along with its exposure to price, credit, liquidity andcash risk; these indications include the Company’s use ofﬁnancial instruments

Article L. 225‑100‑1, 6° of the French
Commercial Code (Code de commerce)

chapter 4§ 4.1.5/pages 401‑403
chapter 5§ 5.6 (note 10)/page 447 et seq.

2.5

Anti‑corruption system

Law no. 2016‑1691 of 9 December
2016 known as “Sapin 2”

chapter 2§ 2.8.2/pages 255‑257.

2.6

The vigilance plan helps to identify risks and prevent
serious breaches of human rights and fundamental
freedoms, health, safety and the environment arising fromthe activity of the Company and companies it controls, aswell as the activities of subcontractors and suppliers.
Reporting of the effective implementation of the vigilance
plan

Article L. 225‑102‑4 of the French
Commercial Code (Code de commerce)

chapter 4§ 4.1.2.3/page 394§ 4.1.4.3/page 399
chapter 2§ 2.8.4/page 258 et seq.

3

Information relating to corporate governance
Refer to the cross‑reference table for the Supervisory
Board report on corporate governance570

chapter 9§ 9.5.3/page 572 et seq.

4

Information on shareholding and share capital

4.1

Structure, change in the company’s share capital andcrossing of thresholds

Article L. 233‑13 of the French
Commercial Code (Code de commerce)

chapter 7§ 7.2.2.4 / page 506§ 7.2.2.5 / pages 506‑507§ 7.2.2.7 / page 509

4.2

Information regarding the Company’s acquisition of its own
shares with a view to allocating them to employees or
Senior Executives (share buyback programme)

Article L. 225‑211 of the French
Commercial Code (Code de commerce)

chapter 7§ 7.2.2.10/pages 510‑511

4.3Statement of employee and Senior Executive holdings in
the share capital on the last day of the ﬁnancial year, andproportion of the capital represented by the shares held byemployees managed collectively (in an employee savings
plan or an employee mutual fund), and the registeredshares held directly by them following the allocation of freeshares or from other schemes

Article L. 225‑102, par. 1 of the French
Commercial Code (Code de commerce)

chapter 7§ 7.2.2.8/page 509

4.4

Statement of any adjustments for securities giving accessto the share capital in the event of share buybacks or
ﬁnancial operations

Articles R. 228‑90 and R. 228‑91 of theFrench Commercial Code (Code decommerce)n/a2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

No.

Required elements

Reference texts

Chapter / § / Page

4.5

Summary of transactions carried out on their securities by
Senior Executives, senior managers or persons with which
they are closely linked

Article L. 621‑18‑2 of the French
Monetary and Financial Code (Codemonétaire et ﬁnancier)chapter 7§ 7.2.3/pages 512‑513

4.6

Amount of dividends distributed over the last three years,
and amount of distributed income eligible and ineligible fordeductions, broken down by share class

Article 243 bis of the French General Tax
Code (Code général des impôts)

chapter 6§ 6.6/page 486
chapter 8§ 8.2.1 (4th resolution)/pages
531‑532

4.7

Restrictions imposed by the Board regarding the exercise
of options granted or the sale of free shares awarded to
Senior Executives

Article L. 225‑185 of the French
Commercial Code (Code de commerce)

n/a

4.8

Calculation elements and results of adjustment to theconversion basis, and terms of subscription or exercise of
securities giving access to the share capital or options to
subscribe for or purchase shares

Articles R. 228‑90 and R. 228‑91 of theFrench Commercial Code (Code decommerce)n/a5

Non‑Financial Performance Statement
chapter 9§ 9.5.5/page 579

Refer to the cross‑reference table for the Non‑Financial
Performance Statement
6

Other information

6.1

Additional tax information

Articles 223 quater and 223 quinquiesof the French General Tax Code (Codegénéral des impôts)

chapter 8§ 8.2.1 (1st, 2nd and 3rdresolutions)/page 530

6.2

Injunctions or ﬁnes for anti‑competitive practices imposedby the Competition Council, the inclusion of which in theannual report was prescribed by said Council

Article L. 464‑2 of the French
Commercial Code (Code de commerce)n/a7

Other documents

7.1

Supervisory Board report to the Combined General
Meeting of 30 April 2024

Article L. 226‑9 of the French
Commercial Code (Code de commerce)

chapter 8§ 8.3/pages 551‑552

7.2

Executive Management report on transactions carried out
by the Company or afﬁliated companies in connection withstock subscription or purchase options reserved for
employees and Senior Executives

Article L. 225‑184 of the French
Commercial Code (Code de commerce)

chapter 3§ 3.8.3/page 366

8Documents attached to the management report

8.1

Executive Management report on the use of a delegationof authority or a delegation of powers of the General
Meeting

Article L. 22‑10‑10 of the French
Commercial Code (Code de commerce)

chapter 3§ 3.9.4/pages 377‑379

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

571

9

ADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

9.5.3

CROSS‑REFERENCE TABLE FOR THE SUPERVISORY BOARD REPORT ON CORPORATE
GOVERNANCE(Articles L. 226‑10‑1 and L. 22‑10‑78 of the French Commercial Code (Code de commerce))

In accordance with Article L. 226‑10‑1 of the French Commercial Code (Code de commerce), the report on corporate governance is attached tothe management report.
Items that are not applicable to Hermès International are marked “n/a”.

572

No.

Required elements

Reference texts

Chapter / § / Page

3

Compensation information

3.1

Compensation policy for Corporate Ofﬁcers

Article L. 22‑10‑8, I, paragraph 2 of theFrench Commercial Code (Code decommerce)

chapter 3§ 3.8.1/pages 349‑360

3.2

Compensation and beneﬁts of any kind for each Corporate
Ofﬁcer paid or awarded during the past ﬁnancial year

Article L. 22‑10‑9, I., 1° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.8.2/pages 360‑366

3.3

Relative proportion of ﬁxed and variable compensation

Article L. 22‑10‑9, I., 2° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.8.1.2.4/pages 353‑358§ 3.8.1.3.4/pages 359‑360

3.4

Use of the option to request the return of variable
compensation

Article L. 22‑10‑9, I., 3° of the French
Commercial Code (Code de commerce)

n/a

3.5

Commitments of any kind made by the Company in favourof its Corporate Ofﬁcers, and corresponding tocomponents of compensation, indemnities or beneﬁts due
or liable to be due in respect of the taking up, terminationof or change in their duties or subsequent to the exercise
thereof

Article L. 22‑10‑9, I., 4° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.8.1.2.4/pages 353‑358

3.6

Compensation paid or allocated by a company included in
the scope of consolidation within the meaning of Article L.
233‑16 of the French Commercial Code (Code decommerce)

Article L. 22‑10‑9, I., 5° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.8.1.2.4/pages 353‑358

3.7

Ratios between the level of compensation of each
Executive Corporate Ofﬁcer and the average and mediancompensation of the Company’s employees

Article L. 22‑10‑9, I., 6° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.8.2.3/pages 364‑365

3.8

Annual change in compensation, company performance,
average compensation of company employees and theaforementioned ratios over the ﬁve most recent ﬁnancial
years

Article L. 22‑10‑9, 7° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.8.2.3/pages 364‑365

3.9

Explanation of how the total compensation complies withthe agreed compensation policy, including how it
contributes to the long‑term performance of the Company
and the way in which the performance criteria have been
applied

Article L. 22‑10‑9, 8° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.8.2.1/pages 361‑363§ 3.8.2.2/page 363§ 3.8.2.4/page 366

3.10

Way in which the vote of the last Ordinary General
Meeting, as provided for in I of Article L. 22‑10‑34 of theFrench Commercial Code (Code de commerce), was taken
into account

Article L. 22‑10‑9, 9° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.8.1.2.1/pages 352‑353§ 3.8.1.3.1/page 359

3.11

Deviation from the procedure for implementing thecompensation policy and any exceptions

Article L. 22‑10‑9, I., 10° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.8.1.2/pages 351‑358§ 3.8.1.3/pages 358‑360

3.12

Application of the provisions of the second paragraph of
Article L. 225‑45 of the French Commercial Code (Code decommerce) (suspension of the payment of compensation
to members of the Supervisory Board in the event of
non‑compliance in terms of parity in the composition of theSupervisory Board)

Article L. 22‑10‑9, I., 11° of the French
Commercial Code (Code de commerce)

n/a

3.13

Allocation and retention of options by Corporate Ofﬁcers

Article L. 225‑185 of the French
Commercial Code (Code de commerce)

chapter 3§ 3.8.3/page 366§ 3.8.4.8/page 371

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

No.

Required elements

Reference texts

Chapter / § / Page

3.14

Allocation and retention of free shares to Executive
Corporate Ofﬁcers

Articles L. 225‑197‑1 and L. 22‑10‑59of the French Commercial Code (Code decommerce)

chapter 3§ 3.8.3/page 366§ 3.8.4.10/page 372

3.15

Ofﬁces and positions held in any Company by each
Corporate Ofﬁcer during the past ﬁnancial year

Article L. 225‑37‑4, 1° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.3.2.2/pages 283‑285§ 3.4.8/pages 310‑328

3.16

Agreements, other than those relating to current
transactions concluded under normal terms andconditions, directly or through an intermediary, between i)one of the Corporate Ofﬁcers or shareholders holding morethan 10% of the voting rights of a company and ii) anothercompany in which the ﬁrst company directly or indirectly
holds more than half of the share capital

Article L. 226‑10 of the French
Commercial Code (Code de commerce)

chapter 3§ 3.9.1/pages 373‑375
chapter 8§ 8.2.1 (5th resolution)/page 532§ 8.4.3/pages 556‑557

3.17

Summary table of delegations of authority and powers
granted by the General Meeting to Executive Managementwith respect to capital increases

Articles L. 225‑37‑4, 3° and L. 226‑10of the French Commercial Code (Code decommerce)

chapter 3§ 3.9.4/pages 377‑379

3.18

Methods of operation for Group Management

Article L. 225‑37‑4, 4° of the French
Commercial Code (Code de commerce)

n/a

3.19

Composition and conditions governing the preparation andorganisation of Supervisory Board’s work

Article L. 22‑10‑10 of the French
Commercial Code (Code de commerce)

chapter 3§ 3.4 to 3.7/pages 293‑348

3.20

Application of the principle of balanced gender
representation on the Board and description of thediversity policy applied within the Board

Article L. 22‑10‑10, 2° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.4.3/pages 296‑298

3.21

Possible limitations on the powers of the Executive
Chairmen

Article L. 22‑10‑10, 3° of the French
Commercial Code (Code de commerce)

n/a

3.22

Reference to a Corporate Governance Code andapplication of the comply or explain principle

Article L. 22‑10‑10, 4° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.1/pages 275‑277

3.23

Speciﬁc terms and conditions relating to shareholder
participation in the General Meeting

Article L. 22‑10‑10, 5° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.9.3/pages 376‑377

3.24

Procedure implemented by the Company to regularly
assess the nature of ordinary and regulated agreements

Article L. 22‑10‑10, 6° of the French
Commercial Code (Code de commerce)

chapter 3§ 3.9.1.3/page 375

3.25

Information on factors liable to affect the outcome of apublic offering

Article L. 22‑10‑11 of the French
Commercial Code (Code de commerce)

chapter 3§ 3.9.2/pages 375‑376

3.26

Non‑discrimination and diversity policy with respect to thebalanced representation of women and men in the
Governing bodies and diversity in the 10% of key
management positions

Articles L. 225‑37‑4, 6° and L.
22‑10‑74 of the French Commercial
Code (Code de commerce)

chapter 3§ 3.4.3/pages 296‑298

Governance information

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

573

9

ADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

9.5.4

CROSS‑REFERENCE TABLE FOR THE UNIVERSAL REGISTRATION DOCUMENT

The following table cross‑references this document with the main headings required under Annexes 1 and 2 of Delegated Regulation (EU) no.
2019/980 of 14 March 2019 supplementing Regulation (EU) no. 2017/1129 of 14 June 2017, amended and corrected by DelegatedRegulation (EU) no. 2020/1273 of 4 June 2020.
Items that are not applicable to Hermès International are marked “n/a”.

574

No.

Required elements

1

Persons responsible, third party information, experts’ reports
and competent authority approval

1.1

Name and function of responsible persons

chapter 9§ 9.1.1/page 562

1.2

Statement of responsible persons

chapter 9§ 9.1.2/page 562

1.3

Statement of the expert reportchapter 2§ 2.9/pages 262‑268

1.4

Information from third parties

n/a

1.5

Statement without prior approval of the competent authority

Page 1

Chapter / § / Page

2

Statutory Auditors

2.1

Name and address of the Statutory Auditors

chapter 9§ 9.2/page 563

2.2

Information on the Statutory Auditors who have resigned or been
dismissed from their duties

n/a3

Risk factors

chapter 4§ 4.1 et seq./page 384 et seq.

4

Information about Hermès International

4.1

Company name and commercial name

4.2

Place of registration and registration number and legal entity identiﬁer
(LEI)

4.3

Date of incorporation and duration

4.4

Registered ofﬁce, legal form, applicable legislation, country of origin,address and telephone number

Headings in Annexes
1 and 2 of DelegatedRegulation (EU) no. 2019/980
of 14 March 2019,
amended and correctedby Delegated Regulation (EU)no. 2020/1273
of 4 June 2020

chapter 7§ 7.1.1/page 496
chapter 7§ 7.1.1/page 496
chapter 7§ 7.1.1/page 496
chapter 7§ 7.1.1/page 496

5Business overview

5.1

Principal activities

5.1.1

Transactions carried out and main activities

chapter 1§ 1.6/pages 26‑34
chapter 2§ 2.1/pages 51‑69

5.1.2

New products and services

chapter 1§ 1.6/pages 26‑34§ 1.10/pages 42‑43

5.2

Principal markets

chapter 1§ 1.6/pages 26‑34§ 1.7/pages 35‑38

5.3

Important events in the development of the issuer’s businessHighlights 2023/pages 6‑8
chapter 1§ 1.1 Hermès in key dates/pages 10‑122023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

No.

Required elements

Chapter / § / Page

5.4

Strategy and objectives

chapter 1§ 1.3/pages 14‑16§ 1.10/pages 42‑43
chapter 2§ 2.1/pages 51‑69

5.5

Extent to which the issuer is dependent on patents or licences,industrial, commercial or ﬁnancial contracts or new manufacturing
processes

chapter 4§ 4.1.3.2/page 397

5.6

Competitive position

chapter 1§ 1.1/pages 10‑12
chapter 2§ 2.1/pages 51‑69

5.7

Investments

5.7.1

Signiﬁcant investments madeHighlights 2023/pages 6‑8
chapter 1§ 1.5.3/pages 23‑24§ 1.8.2/page 40
chapter 5§ 5.5/page 419§ 5.6 (note 7)/pages 436‑442

5.7.2

Major investments in progress or for which ﬁrm commitments havealready been madechapter 1§ 1.10/pages 42‑43§ 1.8.2/page 40

5.7.3

Joint ventures or undertakings in which the issuer holds a share ofcapital likely to have an impact on its assets/liabilities, its ﬁnancial
position or its earnings

n/a

5.7.4

Environmental issues that may inﬂuence the use of property, plantand equipment

6

Organisational structure

6.1

Brief description and organisational chart for the Group

6.2

List of signiﬁcant subsidiaries

Headings in Annexes
1 and 2 of DelegatedRegulation (EU) no. 2019/980
of 14 March 2019,
amended and correctedby Delegated Regulation (EU)no. 2020/1273
of 4 June 2020

chapter 9§ 9.5.5/page 579

chapter 1§ 1.4/page 17
chapter 5§ 5.6 (note 16)/pages 458‑459
chapter 6§ 6.5 (note 7.3)/page 479

7Operating and ﬁnancial review

7.1

Financial condition

7.2

Operating income

7.2.1

Major factors signiﬁcantly affecting operating revenue

chapter 1§ 1.5/pages 23‑25§ 1.8.1/page 39

7.2.2

Signiﬁcant changes in net revenue or net income

chapter 1§ 1.6/pages 26‑34§ 1.7/pages 35‑38

8

Capital resources

8.1

Information concerning capital resources

chapter 1§ 1.8.3/page 40

chapter 1§ 1.5.3/page 23§ 1.8.3/page 40
chapter 5§ 5.3/page 417§ 5.4/page 418
chapter 6§ 6.2/page 469§ 6.3/page 470
chapter 7§ 7.2/pages 505‑516

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

575

9

576

ADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

No.

Required elements

Chapter / § / Page

8.2

Cash ﬂows

chapter 1§ 1.8.2/page 40
chapter 5§ 5.5/page 419
chapter 6§ 6.4/page 470

8.3

Borrowing requirements and funding structure

chapter 5§ 5.6 (note 10.3)/page 451§ 5.6 (note 11)/pages 453‑455

8.4

Restrictions on the use of capital

n/a

8.5

Anticipated sources of funds

chapter 1§ 1.8.3/page 40

9Regulatory environment

chapter 2§ 2.2/pages 70‑97§ 2.4/pages 112‑150§ 2.5/pages 152‑199§ 2.8/pages 248‑262
chapter 4§ 4.1.3/pages 396‑397

10

Trend information

chapter 1§ 1.9/page 41§ 1.10/pages 42‑43

11Proﬁt forecasts or estimates

n/a

12

Administrative, management and supervisory bodies and Senior
Management

12.1

Information on administrative, management and supervisory bodies

12.2

Administrative, management and supervisory bodies and Senior
Management conﬂicts of interests

13

Remuneration and beneﬁts

13.1

Remuneration and beneﬁts in kindchapter 3§ 3.8/page 349 et seq.
chapter 8§ 8.2.1 (7th to 10th resolutions)/pages
535 et seq.

13.2

Amounts set aside or accrued to provide pension, retirement or similar
beneﬁts

chapter 5§ 5.6 (note 5.5)/page 433

Headings in Annexes
1 and 2 of DelegatedRegulation (EU) no. 2019/980
of 14 March 2019,
amended and correctedby Delegated Regulation (EU)no. 2020/1273
of 4 June 2020

chapter 1§ 1.2/page 13
chapter 3§ 3.3/page 281 et seq.
§ 3.4/page 293 et seq.
§ 3.6.1/pages 339‑340§ 3.6.3/pages 340‑343§ 3.10.2/page 381
chapter 3§ 3.4.7.5/pages 309§ 3.8.1.1.3/page 351

14

Board practices

14.1

Expiration dates of current terms of ofﬁce

chapter 3§ 3.3.2/pages 282‑285§ 3.4.5.1/pages 299‑300

14.2

Service contracts

chapter 3§ 3.4.7.5/page 309§ 3.8.1.2.4/pages 353‑358§ 3.10.2.4/page 381

14.3

Information on the Audit and Risk Committee and the CAG‑CSR
Committee

chapter 3§ 3.6/pages 339‑346
chapter 4§ 4.3.2/pages 405‑407

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

No.

Required elements

Chapter / § / Page

14.4

Statement of compliance with the applicable corporate governanceregimechapter 3§ 3.1.1/page 275

14.5

Potential material impact on corporate governance

n/a

15

Employees

15.1

Number of employees and breakdown of workforce

Highlights 2023/pages 6‑8
chapter 1§ 1.5.3/page 23
chapter 2§ 2.1/pages 51‑69§ 2.2.2/pages 74‑76
chapter 5§ 5.6 (note 5.1)/page 430

15.2

Shareholdings and stock options held by members of administrative,
supervisory and management bodies

chapter 3§ 3.4.5.1/page 300§ 3.8.3/page 366§ 3.8.4.4 to 3.8.4.12/pages 370‑373§ 3.10.1/page 380

15.3

Arrangements for involving employees in the share capital

chapter 2§ 2.2.6.2/pages 93‑96
chapter 7§ 7.2.2.8/page 509

16

Major shareholders

16.1

Notiﬁable interests – shareholders holding more than 5% of the sharecapital or voting rights

16.2

Existence of different voting rights

16.3

Control of Hermès International

16.4

Arrangements known to Hermès International whose implementation
could result in a change of control

17

Related‑party transactions

18

Financial information concerning the assets and liabilities,
ﬁnancial position and proﬁts and losses

18.1

Historical ﬁnancial information

18.2

Interim and other ﬁnancial information

n/a

18.3

Auditing of historical annual ﬁnancial information

chapter 5§ 5.7/pages 460‑464
chapter 6§ 6.9/pages 489‑492
chapter 9§ 9.4/pages 564‑565

chapter 7§ 7.2.2.5/pages 506‑507
Headings in Annexes
1 and 2 of DelegatedRegulation (EU) no. 2019/980
of 14 March 2019,
amended and correctedby Delegated Regulation (EU)no. 2020/1273
of 4 June 2020

chapter 7§ 7.2.1.2/page 505§ 7.2.2.5/pages 506‑507
chapter 7§ 7.2.2.3/page 506
chapter 7§ 7.2.5.2/page 515
chapter 3§ 3.9.1.1/pages 373‑374
chapter 5§ 5.6 (note 13)/page 456‑457
chapter 6§ 6.5 (note 11)/page 485
chapter 8§ 8.2.1 (5th resolution)/page 532§ 8.4.3/pages 554‑555

chapter 5§ 5.1 to 5.6/page 416 et seq.
chapter 6§ 6.1 to 6.6/page 468 et seq.
chapter 9§ 9.4/pages 564‑565

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

577

9

578

ADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

No.

Required elements

Chapter / § / Page

18.4

Pro forma ﬁnancial information

n/a

18.5

Dividend policy

chapter 7§ 7.3/page 517

18.6

Legal and arbitration proceedings

chapter 4§ 4.1.3/pages 396‑397

18.7

Signiﬁcant change in the ﬁnancial position of Hermès International

n/a

19

Additional information

19.1

Share capital

chapter 5§ 5.3/page 417§ 5.4/page 418§ 5.6 (note 11)/page 453‑455
chapter 6§ 6.2/page 469§ 6.3/page 470§ 6.5 (note 9)/page 484§ 6.6/page 486
chapter 7§ 7.1.3/page 497§ 7.2.1.1/page 505

19.1.1

Amount of issued share capital

chapter 5§ 5.6 (note 11.1)/page 453

19.1.2Other sharesn/a

19.1.3

Treasury shares

chapter 5§ 5.6 (note 11.3)/page 453
chapter 7§ 7.2.2.4/page 506§ 7.2.2.5/pages 506‑507§ 7.2.2.6/pages 507‑508

Headings in Annexes
1 and 2 of DelegatedRegulation (EU) no. 2019/980
of 14 March 2019,
amended and correctedby Delegated Regulation (EU)no. 2020/1273
of 4 June 2020

19.1.4

Securities

19.1.5Acquisition rights and/or obligations over authorised but unissued
share capital

19.1.6

Options or agreements

n/a

19.1.7

History of the share capital

chapter 7§ 7.2.2.6/pages 507‑508

19.2

Memorandum and Articles of Association

chapter 7§ 7.1.1/page 496§ 7.1.3/pages 497‑504

19.2.1

Register and corporate purpose

chapter 7§ 7.1.1/page 496§ 7.1.3/page 497

19.2.2Rights, preferences and restrictions attached to the shares

chapter 7§ 7.1.3/pages 497‑504

19.2.3

Provisions of the Articles of Association and other provisions that could
delay, defer or prevent a change in control

chapter 7§ 7.2.5/pages 515‑516§ 7.5.8/page 524
chapter 8§ 8.2.1 (Sixth resolution)/pages
533‑534

20

Material contracts

chapter 7§ 7.2.5.1/page 515

21

Documents available

chapter 7§ 7.5.3/page 522
chapter 9§ 9.3/page 563

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

n/a
n/a

ADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

9.5.5

CROSS‑REFERENCE TABLE FOR THE NON‑FINANCIAL PERFORMANCE STATEMENT

No.

Required elements

Reference texts

Chapter / § / Page

5.1

Business model

Articles L. 225‑102‑1 and R. 225‑105, Iof the French Commercial Code (Code decommerce)

chapter 2§ 2.1/pages 51‑69

5.2

Description of the main risks related to the business of theCompany or Group, including, where relevant andproportionate, risks created by business relationships,
products or services

Articles L. 225‑102‑1 and R. 225‑105, I.
1° of the French Commercial Code
(Code de commerce)

chapter 2§ 2.1.4/page 61

5.3

Information on the way in which the Company or the Grouptakes into account the social and environmental
consequences of its activity, and the effects of this activity
on respect for human rights and the ﬁght against
corruption (description of the policies applied and due
diligence procedures implemented to prevent, identify andmitigate the main risks related to the business of theCompany or Group)

Articles L. 225‑102‑1, III, R. 225‑104 et
R. 225‑105, I. 2° of the French
Commercial Code (Code de commerce)

chapter 2§ 2.6.1/pages 204‑212§ 2.8.1.2.1/page 251§ 2.8.2.3/page 256§ 2.8.4/pages 258‑261

5.4

Results of policies applied by the Company or Group,
including key performance indicators

Articles L. 225‑102‑1 and R. 225‑105, I.
3° of the French Commercial Code
(Code de commerce)

chapter 2§ 2.2/pages 70‑97§ 2.3/pages 98‑111§ 2.4/pages 112‑150§ 2.5/pages 152‑199§ 2.6/pages 200‑214§ 2.7/pages 216‑247§ 2.8/pages 248‑262

5.5

Social information (employment, work organisation, healthand safety, labour relations, training, equal opportunity)

Articles L. 225‑102‑1 and R. 225‑105,
II. A. 1° of the French Commercial Code
(Code de commerce)

chapter 2§ 2.2/pages 70‑97§ 2.3/pages 98‑111

5.6

Environmental information (general environmental policy,
pollution, circular economy, climate change)

Articles L. 225‑102‑1 and R. 225‑105,
II. A. 2° of the French Commercial Code
(Code de commerce)

chapter 2§ 2.4/pages 112‑150§ 2.5/pages 152‑199

5.7

Societal information (societal commitments in favour ofsustainable development, subcontracting and suppliers,
fair practices)

Articles L. 225‑102‑1 and R. 225‑105,
II. A. 3° of the French Commercial Code
(Code de commerce)

chapter 2§ 2.6/pages 200‑214§ 2.7/pages 216‑247§ 2.8.1.2.3/page 252

5.8

Anti‑corruption information

Articles L. 225‑102‑1 and R. 225‑105,
II. B. 1° of the French Commercial Code
(Code de commerce)

chapter 2§ 2.8.2/pages 255‑257

5.9

Information on actions in favour of human rights

Articles L. 225‑102‑1 and R. 225‑105,
II. B. 2° of the French Commercial Code
(Code de commerce)

chapter 2§ 2.6.1.6/page 212§ 2.8.1.2.1/page 251

5.10

Speciﬁc information:s the Company’s policy to prevent the risk oftechnological accidents;s the Company’s ability to cover its civil liability in respectof property and persons as a result of the operation ofsuch facilities;s the means planned by the Company to manage thecompensation of victims in the event of a technologicalaccident involving its liability.

Article L. 225‑102‑2 of the French
Commercial Code (Code de commerce)

n/a

5.11

Collective agreements concluded within the Company andtheir impact on the Company’s economic performance aswell as on the working conditions of employees

Articles L. 225‑102‑1, III and R.
225‑105 of the French Commercial
Code (Code de commerce)

chapter 2§ 2.2.7/page 96‑97

5.12

Statement of the independent third party on theinformation presented in the NFPS

Articles L. 225‑102‑1, III and R.
225‑105‑2 of the French Commercial
Code (Code de commerce)

chapter 2§ 2.9/pages 262‑268§ 2.10/pages 270‑272

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

579

9

ADDITIONAL INFORMATIONCROSS‑REFERENCE TABLES

9.5.6

TCFD CROSS‑REFERENCE TABLE

The international working group on transparency of climate‑related ﬁnancial risks (Task Force on Climate‑related Financial Disclosures, TCFD) was
created at COP21 by the G20 Financial Stability Board to establish a common global framework for the reporting of climate risks to companies.
The TCFD published its recommendations on the information to be published by companies in June 2017.
The references to the elements of the universal registration document that meet these recommendations are indicated in the cross‑referencetable presented in chapter 2 “Corporate social responsibility”, § 2.7.5.2.

580

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALADDITIONAL INFORMATIONGLOSSARY

9.6

GLOSSARY

Active Partners

Capital increase

See “société en commandite par actions” (partnership limited byshares).

Adjusted free cash ﬂow is the sum of cash ﬂows related to operating
activities, less operating investments and the repayment of leaseliabilities recognised in accordance with IFRS 16 (aggregates in the
consolidated statement of cash ﬂows).

Operation conducted to increase the Company’s equity. A capitalincrease is either done by increasing the par value of existing shares,
or by creating new shares proceeding from subscriptions in cash,
contributions in kind or proﬁts, reserves or issue of share premiums
incorporated into the capital. Capital increases may be carried out
with or without preemptive subscription rights. They may enable newshareholders to hold a part of the Company’s share capital. They
must be previously approved by an Extraordinary General Meeting.

Afep‑Medef CodeCDP (formerly “Carbon Disclosure Project”)

Corporate Governance Code of listed corporations developed by the
Association française des entreprises privées (Afep) and theMouvement des entreprises de France (Medef), after consultation
with the various parties of the ﬁnancial marketplace. This codeprovides a set of demanding and precise recommendations on
corporate governance. It can be designated by listed corporations as
their reference code pursuant to Article L. 22‑10‑10, 4° of the French
Commercial Code (Code de commerce). The Afep‑Medef Code isrevised and updated on a regular basis.

International non‑proﬁt organisation, independent and recognised,offering a system for measuring the strategy, measures and results ofcompanies in the ﬁght against climate change, sustainable water
management and protection of forests.

Adjusted free cash ﬂow

Consensus

This is the mean value of forecasts made by analysts.
Consolidated ﬁnancial statements

Companies in which your company does not own, directly or indirectly,
more than 50% of the share capital.

The consolidated ﬁnancial statements consolidate all of the ﬁnancial
statements of the companies forming the Hermès Group, for the
purpose of presenting the ﬁnancial position as if they formed a single
entity.

Articles of Association

Corporate Sustainability Reporting Directive (CSRD)

The Articles of Association are a deed of incorporation of a company
which deﬁnes its characteristics and the rules governing its operation.
An amendment to the Articles of Association requires the agreementof all the Active Partners and a vote by an Extraordinary General
Meeting.

European Directive 2022/2464 of 14 December 2022 applicablefrom 1 January 2024, which sets new standards and obligations fornon‑ﬁnancial reporting.

Afﬁliates

Audit and Risk Committee

A committee of the Supervisory Board in charge of the ﬁnancial
statements, audit, risks, and corruption prevention.
Bearer share

When shares are in bearer form (the most common), the custodian isa ﬁnancial intermediary (bank or stock market ﬁrm). This intermediaryis the only entity to know the individual shareholder’s identity, so theissuing company does not know the name of the holders of theseshares.
Biodiversity

Corporate governanceCorporate governance:s covers certain principles of efficient operation and transparency toimprove a company’s management and meet demands frominvestors and the public;s concerns all the responsibilities, processes and practices designed
to define Group Management and the Company’s strategic actions,to ensure that risks are correctly managed and that goals areachieved;s covers all the different bodies (Supervisory Board and its
specialised committees, Executive Committee, etc.) put in place tooversee the management of a publicly‑traded company.

CSR

Biodiversity refers to all living species. It encompasses the diversity ofgenes, species and ecosystems and the way they interact.

Corporate social responsibility.

CAG‑CSR Committee

Declaration by Senior Executives (upon disposal of securities)

A committee of the Supervisory Board in charge of compensation,
appointments, governance, and corporate social responsibility.

Declaration that the Senior Executives, the persons acting on theirbehalf, and the persons related to them are required to make to theissuer and the AMF, in respect of the transactions they carry out on
the shares and debt securities of the Company in which they performtheir duties and the related ﬁnancial instruments. This declarationmust be made within three working days starting from the date of thetransaction (for more information, see the “Guide to Permanent
Information and Management of Inside Information” DOC‑2016‑08 of
the AMF).

Capital gain

The proﬁt made on the sale or disposal of a security. It is equal to thepositive difference between the sale price and the purchase or
subscription price.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

9
581

9

ADDITIONAL INFORMATIONGLOSSARY

Dividends

French Financial Markets Authority (AMF)

Portion of the Company’s proﬁts, retained earnings or reserves that
the General Meeting, on a recommendation by the Supervisory Board,
decides to distribute to the shareholders. The dividend represents theshare earnings, and its amount varies each year depending on the
Company’s results and the policy it adopts.

Financial markets authority regulating French ﬁnancial market players
and products. The authority regulates, authorises, monitors and,
when necessary, audits, investigates and imposes sanctions. It also
ensures that investors are correctly informed and offers investor
assistance, where necessary, via its mediation procedure.

Double voting rights

The French Financial Markets Authority (AMF) is an independent
public authority responsible for:The double voting right departs from the legal principle that the
number of votes attaching to shares must be proportional to theshare of capital they represent (principle of “one share one vote”).
A double voting right is granted:
s to any fully‑paid Hermès International registered share which has
been duly recorded on the books in the name of the same
shareholder for a period of at least four years, and from the date of
the first General Meeting following the fourth anniversary of thedate when the share was registered on the books; ands to any Hermès International registered share allocated as a bonus
share to a shareholder, in the event of a capital increase byincorporation of amounts entered in share premium, reserve or
retained earnings accounts, in proportion to existing sharescarrying a double voting right.

The double voting right automatically ceases to exist in the conditions
stipulated by law.
Earnings per share

This is a calculation done for stock market analysis obtained by
dividing the Company’s net proﬁt by the number of shares comprising
the capital.
EHS

Environment, Health and Safety.
EquityCapital belonging to the shareholders comprising equity
subscriptions, proﬁts left in reserves and income for the period.
ESG

Environment, Social and Governance
ESRS

European Sustainability Reporting Standards, or European standards
on sustainability information.
Executive Chairman

The role of the Executive Chairman consists in running the Group andacting in the general interests of the Company, within the limits of its
corporate purpose and in compliance with the powers granted by law
to the Supervisory Board and Shareholders’ General Meetings.
Extraordinary dividendThis is a dividend of an exceptionally high amount compared to thedividend ordinarily paid and which is not therefore recurrent. It may
complete or replace the ordinary dividend.

582

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

s protection of savings invested in financial products;
s investor information;s proper financial market operation.

“Épargne Info Service” answers your questions about savings
products, the stock market or the role of the AMF on +33 (0)1 53 45
62 00 (local call rates in France).
General Meeting

The General Meeting is a decision‑making body comprising all
shareholders (Limited Partners).
Except for the appointment and dismissal of members of theSupervisory Board, the appointment and dismissal of the Statutory
Auditors, the allocation of proﬁts for the ﬁnancial year and theapproval of agreements subject to authorisation, no decisions may bevalidly made by the General Meetings unless they are approved by
the Active Partners at the latest by the end of the Meeting that votedon the decision in question.
Global Reporting Initiative (GRI)The Global Reporting Initiative (GRI) is a non‑proﬁt organisation. Its
purpose is to raise sustainable development reporting methods to a level
equivalent to that of ﬁnancial reporting, for the sake of comparability,
credibility, rigour, frequency and veriﬁability of the information
communicated.
Greenhouse gases

Gases listed in Part 2 of Annex V to Regulation (EU) 2018/1999 of
the European Parliament and of the Council. These gases include
carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulphur
hexaﬂuoride (SF6), nitrogen triﬂuoride (NF3), hydroﬂuorocarbons(HFCs), perﬂuorocarbons (PFCs).
Growth in revenue at constant exchange rates

Growth in revenue at constant exchange rates is calculated byapplying, for each currency, the average exchange rates of theprevious period to the revenue for the period.
HCGE

Corporate Governance High Committee (Haut comité degouvernement d’entreprise), whose role is to conduct oversight of theapplication of the Afep‑Medef Code and to propose changes therein,subject to public consultation.
Hermès family group

The Hermès family group consists of the partners of Émile HermèsSAS, their spouses, children and grandchildren, and their direct andindirect holding companies of Hermès International and Émile
Hermès SAS. The right to be a partner of Émile Hermès SAS isreserved for the descendants of Mr Émile‑Maurice Hermès and his
wife, and their spouses, but only as usufructuaries of shares.

ADDITIONAL INFORMATIONGLOSSARY

Identiﬁcation on request

In order to know the identity of all or part of its holders of bearer
shares at a given time, a publicly‑traded company may ask theCompany Euroclear France for a breakdown of its shareholders using
its notiﬁcation platform, which allows identiﬁcation information to becollected from ﬁnancial intermediaries.
Law no. 2021‑1308 of 8 October 2021, which transposed Directive(EU) 2017/828 of 17 May 2017 (known as “SRD II”) into French law,amending Directive 2007/36/EC of 11 July 2007 (known as “SRD I”)
has replaced the TPI (identiﬁable bearer share) procedure by thisprocedure.

See “société en commandite par actions” (partnership limited byshares).
Liquidities

For a given security, this corresponds to the ratio between the volumeof shares traded on the market and the number of shares comprising
the ﬂoating stock. A security or a market is said to be “liquid” whenbuy or sell transactions can be completed without causing any
excessive variations compared to the last trading price.
Management report

Interim dividend

Information document required by the French Commercial Code (Codede commerce) whereby the Senior Executives and management
bodies of a company report to the governing body on their
management over the past year, and provide all signiﬁcant
information about the issuer and its future prospects. It is preparedby the same bodies as those that approve the annual ﬁnancial
statements. Companies preparing consolidated ﬁnancial statements
must also provide information about the management of the Group.
This document is included in the universal registration document.

Advance payment of a portion of the forth coming dividend.

Market capitalisation

Joint Council

This is the market value of a company at a given time. It is calculated
by multiplying the stock market price by the number of sharescomprising the capital.

IFRS
International Financial Reporting Standards.
Institutional investors

Financial institutions (pension funds, insurance companies, banks,
sovereign funds, etc.) investing money in securities.

Whenever it considers it necessary, the Executive Management ofHermès International or the Chairman of the Supervisory Board ofHermès International calls a Joint Council between the Executive
Management Board of Émile Hermès SAS and the Supervisory Boardof Hermès International.
The Joint Council is an institution designed to enable extensive
consultation between the Executive Management Board of the ActivePartner, an internal body needing to have knowledge of the main
aspects of Hermès International’s Executive Management, and theSupervisory Board, an emanation of the shareholders.
The Joint Council hears all questions that are submitted to it by the
person calling it or which it decides to examine, without howeverbeing able to make decisions in place of the bodies to which such
powers are granted by law, the Company’s Articles of Association andthose of Émile Hermès SAS.
The Joint Council of the Executive Management Board and theSupervisory Board does not, itself, have any decision‑making powers.
It acts solely as a consultation body. If they so wish, at a Joint Council
meeting, the Executive Management Board and the Supervisory
Board may make any decision or give any opinion within their sphereof competence.
LEI

LEI is a unique, global identiﬁer that takes the form of a 20‑characteralpha‑numeric code. It is linked to key reference information.
Developed by the International Organisation for Standardisation (ISO),
the LEI is compulsory for all transactions in ﬁnancial instruments
listed on the stock exchange: it clearly and uniquely identiﬁes thelegal entities involved in such transactions.
Limited Partners

Net cash position
Net cash position includes cash and cash equivalents presented
under balance sheet assets, less bank overdrafts which appear
under short-term borrowings and ﬁnancial liabilities on the liabilities
side. Net cash position does not include lease liabilities recognised inaccordance with IFRS 16.
Net income

A company’s net income is the balance between all of its income andall of its expenses over a given period. It reﬂects what the Company
has earned or lost through its activities over that period.
Net proﬁt

Positive income statement balance.
Non‑Financial Performance Statement (NFPS)

All information required by regulations (European Directive of 22
October 2014 transposed by the Order of 19 July 2017) inenvironmental, social, Human rights, anti‑corruption and tax evasion
matters.
Operating cash ﬂows

Operating cash ﬂows are all the ﬁnancial resources generated by theCompany in connection with its activity and which it could use tocover its ﬁnancial needs. It measures the Company’s ability to ﬁnanceits requirements in order to exist, using its own resources, such as
investments or debt repayments.
Parent company ﬁnancial statements

The parent company ﬁnancial statements are the annual ﬁnancial
statements of Hermès International taken individually.

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

583

9

ADDITIONAL INFORMATIONGLOSSARY

Preemptive subscription rights

Revenue

Tradable right, detached from each existing share, enabling existing
shareholders to purchase new shares or securities giving access tothe share capital in an offering before the general public has theopportunity to do so, or to obtain, by selling their rights, an amountequivalent to the notional reduction in the value of their shares thatwould arise from the new issue.

Revenue is the total amount of sales of goods and services made by
the Company, over a given period, in the normal course of business.

Priority subscription right/priority subscription period

Science Based Targets for Nature

In return for the cancellation of preemptive subscription rights, theExecutive Management may introduce a priority right, which may be
pro‑rated. A priority right, like a preemptive subscription right, enables
existing shareholders to subscribe to the proposed issue inproportion to the number of shares they currently hold. However,unlike a preemptive subscription right, a priority right is (i) exercisable
within a priority period (in practice, at least ﬁve trading sessions) thatis shorter than the period allowed for a preemptive subscription rightand (ii) not tradable.

Scopes 1, 2 and 3

Pro‑rated (subscription rights)

Science Based Targets Initiative.
SBTN

Scopes within which greenhouse gas emissions are studied.
According to the Green House Gas Protocol, Scope 1 corresponds to“direct emissions from sources owned or controlled by the reporting
entity”. Scope 2 corresponds to “indirect emissions related to theconsumption of electricity, heat or steam necessary for the
manufacture of the product or the operation of the reporting entity”.
Scope 3 corresponds to “other indirect emissions related to the
supply chain (upstream) and the use of products and services during
their life cycle (downstream)”.

In some cases, the Executive Management may introduce pro‑rated
subscription rights in favour of existing shareholders. This means that
if irreducible subscriptions (i.e. subscriptions by shareholders
exercising preemptive subscription rights) fail to entirely absorb thecapital increase, the unsubscribed equity securities would beallocated on a pro‑rated basis to those shareholders who made anapplication for additional shares (over and above the entitlement
given by their preemptive subscription rights) in proportion to thesubscription rights they hold and within the limit of the number ofshares applied for by that shareholder.

Share

QuorumAfter consulting its shareholders at a General Meeting and obtaining
their consent, a company may purchase its own shares on the stock
market, within the limit of 10% of its share capital (in accordance withthe objectives deﬁned in the share buyback programme). Shares thus
purchased may then be held, sold, transferred or cancelled.

Minimum percentage of shares present or represented and carrying
voting rights, required for a General Meeting to validly proceed.
Recurring operating income

Recurring operating income is one of the main performance indicators
monitored by Group Management. It excludes non‑recurring items
having a signiﬁcant impact that could affect understanding of theGroup’s economic performance.
Registered share

When shares are registered shares, the custodian is the Company
itself or an agent appointed by the issuing company to keep its
registered share accounts. For Hermès International, this agent isUptevia. Holders of registered shares are known by name by theissuing company. They may either manage their shares themselves, inwhich case they are described as “pure” registered shareholders; orappoint an agent of their choosing to manage their account held with
the issuing company, in which case they are described as“administered” registered shareholders.
Remote voting

A shareholder may vote by post using a form provided for this purposeor online (please refer to the corresponding notice of meeting).
Restated net cash position

The restated net cash position corresponds to net cash plus cash
investments that do not meet the IFRS criteria for cash equivalents
due in particular to their original maturity of more than three months,
less borrowings and ﬁnancial liabilities.

584

SBTI

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

A marketable security issued by a listed (publicly‑traded) or unlisted
incorporated company, representing the unit value of the Company’s
share capital and granting the holder shareholder status. This sharecarries rights to disclosure of information and the right to vote atGeneral Meetings, as well as ﬁnancial rights (right to dividends,
preemptive subscription rights). A share may be a bearer share or aregistered share.
Share buyback

Share capitalPortion of equity contributed by shareholders when the Company isestablished or upon a subsequent capital increase.
Shareholding certiﬁcate

Document provided by the ﬁnancial intermediary proving that a holder
of bearer shares is a shareholder. This document enables theshareholder to take part in General Meetings.
Société en commandite par actions (SCA) (partnership limited byshares)A company whose capital is divided into shares comprising one ormore Active Partners having status as merchant and who haveunlimited joint and several liability for the Company’s debts, andLimited Partners (or shareholders) who are not merchants and are
only liable for the Company’s debts in proportion to their investment.
Subsidiaries

Companies in which your company owns, directly or indirectly, morethan 50% of the share capital.

ADDITIONAL INFORMATIONGLOSSARYSupervisory Board

Universal registration document

The Company has a Supervisory Board (Conseil de surveillance),comprising between three and ﬁfteen members (in addition toemployee representative members) who are appointed for term of
three years (unless otherwise speciﬁed pursuant to Article 18.2 of
the Articles of Association) from among shareholders that do not havestatus as Active Partner, legal representative of the Active Partner or
Executive Chairman.

Summary document ﬁled on a voluntary basis by issuers. This is acommunication tool enabling the market (ﬁnancial analysts, investors,
individual shareholders, etc.) to have access to annual informationthat includes all the information necessary to make a judgment on
the business, ﬁnancial position, results and outlook of the issuer aswell as the governance and shareholding structures. It contains legal,ﬁnancial and accounting information, information concerning theactivities and shareholding as well as a description of the issuer for agiven ﬁnancial year. While this document is optional, most large listedcompanies prepare a universal registration document.

The powers and competence of the Supervisory Board are deﬁned in
Article 18 of the Articles of Association.
Task Force on Climate Related Financial Disclosure (TCFD)

Working group created in 2015 to propose recommendations on how
to report and publish the risks and opportunities related to climatechange.
Taxonomy

From European Regulation 2020/852 of 18 June 2020, designates aclassiﬁcation of economic activities having a positive impact on theenvironment.
Treasury share

A share that a company holds in its own capital. Treasury shares do
not carry any voting rights and do not grant entitlement to dividends.

Voting rights

A voting right attached to a share is exercised at the Company’s
General Meetings and enables shareholders to take part in the
Company’s principal decisions. A share may carry a single or multiple
voting right(s), or no voting right at all, but only shareholders may holdvoting rights.
Yield

Ratio of the dividend to the share price.
This glossary contains the most frequently used terms. The
deﬁnitions are provided for information only and do not purport tobe exhaustive. On no account shall this glossary be interpreted as
replacing rules in force (legislation, regulations, Articles of
Association, etc.), or documents and communications issued by theCompany (notice of meeting, universal registration document,
ﬁnancial disclosures, etc.).

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

585

9

586

ADDITIONAL INFORMATION

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONALADDITIONAL INFORMATION

92023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

587

9

588

ADDITIONAL INFORMATION

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

Hermès International
Société en commandite par actions (partnership limited by shares)
with share capital of €53,840,400.12 – Paris Trade and Company Register no. 572076396
Registered ofﬁce : 24, rue du Faubourg Saint-Honoré – 75008 Paris.
Tél. : + 33 (0)1 40 17 49 20
ISBN 978-2-35102-0838
A Hermès publication@ Hermès, Paris 2024
Illustration credits
Pages 4, 281, 282, 283, 285: Valérie Archeno - Page 13: Mathieu Richer 1, Edouard Caupeil 2 - Pages 54 - 55: Hermès International 1, Martin Bruno 2,
Chris Payne 3, François Coquerel 4, Benjamin Schmuck 5, Studio des ﬂeurs 6, Osma Harvilahti 7, Kejia Chen 8, Javier Dardo 9,Maxime Verret 10,
Eugénia Sierko 11 - Page 70: Paul Pintard - Page 98: Jérémie Leon - Page 112: Anne Soullez - Page 152: Maxime Verret –Page 200: Hermès International - Page 216: Benoît Teillet - Page 286: Mathieu Richer
Pages 299, 310, 311, 312, 314, 315, 316, 317, 319, 321, 322, 324, 325, 327, 328, 340, 344: Edouard Caupeil
Accessible PDF powered by .....................
This document was printed in France by an Imprim’Vert, FSC and PEFC certiﬁed printer.