Richemont

Environmental Code of Conduct

1

Richemont Environmental Code of Conduct
As a member of the global community, Richemont strives to act as a responsible corporate
citizen carrying out its business activities in a manner that is consistent with the protection of
the environment and the sustainable utilisation of natural resources.
Through the nature of Richemont’s products and services, the Group is not directly involved
in sectors considered as having a highly significant impact on the environment. Nevertheless,the various Maisons make extensive use of renewable and non-renewable raw materials,such as precious and gem stones, gold, leather, woods and natural resins and Richemonttherefore seeks to address environment related issues throughout its global supply chain andbusiness operations.
The principles outlined in this Environmental Code of Conduct confirm Richemont’s
commitment to environmental stewardship in line with national and international norms andstandards for environmental management. Richemont therefore requires all its employees, tocontribute to its environmental performance by adopting the principles and practices outlinedbelow.
The responsibility for the implementation of the Environmental Code of Conduct within theGroup worldwide will be assigned to the general manager of each facility.
Awareness and training
As part of the implementation of the Environmental Code of Conduct, Richemont willcommunicate its environmental policy to all employees, suppliers and other stakeholders.
Facilities and operations
Richemont will develop, design and operate facilities and conduct activities taking into
consideration the environmental issues in order to minimise the adverse impacts on theenvironment.
Facilities
Richemont will ensure that construction, conversion, modernisation and other building workat each facility will be performed in compliance with local environmental legislation, normsand regulations and executed in harmony with the environmental surroundings.
Energy and water use
Richemont will monitor the consumption of water, energy, oil, natural resources and othermaterials used in its operations with a view to optimise their usage and minimising waste.
This includes heating, lighting, ventilation and air-cooling.
Management and employees responsible for the packing and transport of goods will adopt,
wherever possible, an “efficient energy use” strategy by careful planning, organisation andgrouping of the shipments.

2

Emissions, effluents
Facilities will ensure strict compliance with legal environmental norms and specificindustrial regulations relative to pollution control by installing appropriate retention andfilter systems
Facilities will monitor and control greenhouse gas emissions, ozone-depleting substanceemissions, waste water discharges and any other relevant emissions resulting from the
manufacturing operations in accordance with local regulation and industry best practice.
Waste recycling
Richemont will monitor waste collection and recycling by type with special attention being
paid to the treatment of hazardous materials. Wherever feasible, materials will be recycled.
Endangered or protected species
Richemont will fully comply with special international and local regulations such as theConvention on International Trade in Endangered Species (CITES) related to theprocurement, import, usage and export of raw materials issued from endangered or protectedspecies.
Leather products manufacturing
Richemont entities will adhere to the principles established by the European Leather
Association in terms of the production of leather goods (COTANCE) regarding employee
and customer health and safety and aim at minimising the adverse environmental Impact ofthe production processes.
Perfumes and cosmetic productsGroup companies will comply with EU legislation in terms of the production of perfumes
and cosmetics products. (European Council Directive 76/768/EEC)
Animal testing
The Group will adhere to the principles of Corporate Standards of Compassion for Animals,
seeking to ensure that no materials used in its products have been tested or caused harm toanimals.
Conflict-free diamondsRichemont adheres to the principles of the “World Diamond Council Resolution on Industry
self-regulation” by the introduction of written warranties throughout the whole supply chain
from the supplier until the final customer. Richemont will explicitly state the “conflict-freediamond” warranty statement on its internal invoices and will require it from all suppliers assoon as possible.

3

No “dirty gold”
Richemont adheres to the principles of responsible gold procurement. To the extent feasible
under prevailing industry practices, Richemont will request that its suppliers provide
assurance as far as possible that gold being supplied has been mined in a manner which
respects human and labour rights and does not inflict environmental damage, either directlyor through the subsequent pollution through seepage of chemicals.
With respect to internal manufacturing operations involving gold and other precious metals,
Richemont facilities will operate in full compliance with local laws and regulations and seek
to apply industry-wide best practice in the handling of such materials.
Product stewardship
Richemont Maisons aim to reach technically and economically viable objectives and apply,
wherever appropriate, a “design for environment” approach in order to optimise theenvironmental performance of their products through the product lifecycle.
The nature of Richemont Maison’s products – watches, jewellery, leather goods, writing
instruments, apparel and other high range accessories - requires high packaging quality
standards. However, possible, recyclable and renewable raw materials will be used for
packaging.
Materials used for storage and transportation will be made, wherever possible, of recycled
and recyclable materials and re-used wherever possible.
As part of after-sales maintenance and repair services mainly related to watch products,
Richemont customer services worldwide will secure the replacement, storage andappropriate disposal of any components, including for electronic circuits and batteries, which
may have an adverse impact on the environment.
Precautionary approach
Richemont Maisons will seek to make all necessary adjustments to design, manufacturing or
use of products or services, consistent with the latest scientific and technical knowledge, toprevent any adverse impact on health, safety or the environment arising from the production
process or from products themselves.
Richemont will develop and maintain, where significant hazard related risks exist,
emergency preparedness plans in conjunction with the relevant services and authorities.
Suppliers and other stakeholders
Richemont will encourage its Suppliers to adhere to principles outlined in this Model
Environmental Code of Conduct and promote, where appropriate, necessary improvementsin their practices to make them consistent with those of the Group.
As part of open dialogue with the Stakeholders; any potential concern or proposal for
improvement with respect to the environmentally responsible practices should be reported todirectly to senior management.

4

Monitoring, evaluation and compliance
The Group will regularly monitor the performance of its manufacturing facilities in terms ofcompliance with this Code.
All existing or potential discrepancies between current operations and requirements set out inModel Environmental Code of Conduct should be evaluated and reported along withappropriate recovery action plans.
Any material non-compliance with these guidelines may be reported to the Head of Internal
Audit at "whistle.blowing@richemont.com". To enable a prompt assessment and theimplementation of appropriate corrective action, the informant may not report anonymously.
Nevertheless, protection and confidentiality are guaranteed by the independence of theInternal Audit function.
Regular updates
This Model Environmental Code of Conduct will be revised and updated on an ad hoc basis
to address continuing requirements of responsible environmental management as they arise.

5