As an independent House of luxury, Chanel has the opportunity to play an active role in restoring ournatural world and climate, protecting our planet and the people who depend on it, whilst
simultaneously supporting our business with a long-term perspective. As climate change continues at
an unprecedented rate, the latest science shows us that urgent action is necessary to avoid raisingtemperatures to a critical point.
In 2020, we formalised our commitment to tackling the climate crisis with CHA NEL Mission 1.5°, ourclimate action plan. This included science-based targets to reduce the carbon footprint of ouroperations and value chain, supporting the transition to a low -carbon future 1. Across the House, we
are improving the analysis of our carbon footprint and making progress to decarbonise our businessand supply chains. We have published our progress against this strategy every year, highlighting
initiatives across our House as well as opportunities to improve our performance.
However, we must go further to meet the urgent call for action from scientists, governments, andsociety. This requires stronger targets and deep business transformation.
Consequently, we have evolved our targets and roadmaps in line with Science Based Targets initiative(SBTi) Corporate Net-Zero Standard, the world’s only framework for corporate net-zero target settingin line with climate science.
This paper outlines our Net-Zero 2040 target, which has been validated by the SBTi, and provides ahigh-level summary of our priority actions. This includes reducing our footprint, helping to restore ourclimate, and investing in partnerships and research to accelerate our positive impact. Through our netzero transition plan, we aim for responsible growth and a just transit ion to net-zero.
We know we will face challenges along the way, but we are committed to this journey with thededication of our senior leadership and all our people across the House.

1 Our previous CHANEL Mission 1.5° science-based targets were to: Decrease our own emissions (scope 1 and 2) by 50% by2030; decrease emissions from our value chain (scope 3) by 40% by 2030 (per unit sold, equivalent to 10% reduction in absoluteemissions); and shift to 100% renewable electricity in our own operations by 2025.Our journey to reduce our carbon footprint began several years ago. Over the last few years, ourCHANEL Mission 1.5° targets helped us accelerate climate action, refine the accuracy of our carbon
footprint, identify hotspots and build important foundations for our net-zero transition plan.
We maintain a strong focus on keeping our scope 1 and 2 carbon emissions footprint low, particularly
as we continue to welcome supply chain operations into our House, taking on their whole carbon
footprint. Our decarbonisation roadmap includes driving efficiency across our operations, technology
transformation and our target to shift to 100% renewable electricity in our operations by 2025.
In 2023, our scope 1 and 2 carbon emissions are less than 5% of our total footprint; the bulk of ourimpact comes from within our value chain – scope 3. Our current scope 3 hotspots include raw
materials, capital goods (e.g. buildings and equipment), freight, packaging, events, media, andbusiness travel. We continue to prioritise our hotspots, designing roadmaps to decarbonise at theproduct, supply chain, business unit or regional level. Thi s includes expanding regenerative
agricultural practices, decarbonising transportation and supply chain manufacturing, and investing incircularity.
We have also invested in the building blocks for transformative change , which includes education andawareness of the latest climate developments. We continue to increase expertise within our House,
embed sustainability performance into our company bonus criteria and expand on the Chanel
Sustainability Academy, equipping our people with the knowledge to support our net-zerotransformation.
We recognise the important intersection of social and environmental sustainability. We are taking aparticipatory approach to restoring nature and climate in the just transition to a net -zero world; codesigning solutions that ensure a fair future for all people, suppliers and communities both within andbeyond our value chain.

Chanel’s net-zero ambition pushes us further and evolves CHANEL Mission 1.5° targets to a higher
level of ambition.
The diagram below shows our net-zero ambition and the scale of the reductions we must make on thejourney to 2040.

Our net-zero transition plan is focused on deep business transformation. We design, implement andcontinually refine our roadmaps to achieve net-zero. Some actions have a clear and established scaleup plan, while others are still in a test and learn phase. We remain committed and agile as we invest,learn and implement solutions now and in the future.
The diagram below outlines our high-level net-zero transition plan. More detailed roadmaps for each of
our business functions, business regions and hotspot areas, which have been modelled against
different business growth scenarios, sit behind this high-level summary.
We will continue to collaborate with external experts in the design and implementation of ourroadmaps, in the development of our approach and to ensure our plans meet our high ambition andintegrity.
Case studies of our performance and progress updates will be shared in future communications.

Map and address key raw material supply
chain impacts
Implement regenerative agriculturalpractices (e.g. leather, cashmere andOpen Sky Labs for cosmetic ingredie nts)
Partner with suppliers on technology
switche s, including renewable electricity
Invest in start-ups focused on alternative
materials and technologies

Increase energy efficiency in ouroperations and buildings
Transition to 100% renewable electricityin our own operations by 2025

Invest in circular systems to reduce
end-of-life impact for events decor, visualmerchandising, and promotional mate rials

Switch from air to sea, rail or roadfreight; investment in scaling up
sustainable aviation fuels (SAF)

Integrate circular design solutions andswitching to sustainable materials within
our boutique architecture and decor

Invest in removing carbon through re generative agriculture and farming andhabitat restoration – managed by local communities – both within our supply
chain and at the landscape level

Upskill our people through the Chanel
Sustainability Academy

Supplier engagement transformation
programmes

Support research in fundamental
climate science

Improve rigour in methodologie s andperformance tracking

Novel collaborations to solve comple xproblems and encoura ge wider
business action

Support research into technologicalsolutions to combat the threats ofclimate and biodiversity degradation

Embed carbon impact into de cision -making
Maintain sustainability performance as partof company bonus metrics
Explore innovative approaches for fasterbusiness transformation

Amplify voices and support climate
justice through Foundation CHANEL
Industry influence and collaboration tosupport equitable and collective
climate action

True business transformation and redesigning for responsible growth will take time.
As an independent House of luxury, Chanel is dedicated to the highest level of craftsmanship. As wecontinue to welcome skilled métiers into our House and acquire new busin esses, we commit to taking
on their whole footprint, across carbon emissions scopes 1, 2 and 3. In doing so we can embed
responsible growth across our value chain; helping to preserve savoir faire while also promoting a justtransition to a net-zero society.
We are focused on developing and implementing robust plans, as we believe that urgent action isnecessary to support a net-zero future, but we recognise that we don’t have all the answers yet andwe must continue to learn.
We know there will be moments when we need to make transformative decisions. This will require us toremain agile and resilient, to drive innovation and identify solutions to challenges, even as ouroperating environment and climate continues to evolve.
Our actions are underpinned by our integrity, both within and beyond our House. We are ensuringaccountability through external reporting; internal tracking at Leadership and Board levels; and byembedding sustainability within our House as a key performance driver impacting bonus metr ics.
As an independent House of luxury, we have the collective commitment to play a role in restoring
nature and climate, supporting not just the future of our House, but also our planet and the people who
depend on it.