The French language version of this Document d’Enregistrement Universel (universal registration document) was filed on 27 March 2025 with the French Financial Markets Authority (Autorité des Marchés Financiers), as the competent authority under Regulation (EU) 2017/1129, without prior approval in accordance with 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 admission of 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.

When the Faubourg is a refuge

The year 2024 ended with results that bear witness to the robustness of our business model. This is something we can be proud of, and we would like to thank all our employees who have once again contributed to this success.

2024 was also a pivotal year. Today, the news is full of geopolitical complexity and one major climate crisis after another, highlighting the fragility of what we have previously taken for granted.

When times become more uncertain, refuges offer welcome relief. Our customers, both loyal and new, have appreciated the continuity of our approach oriented around creativity, uncompromising quality, and preserving and passing on know-how, all of which provides a guarantee of durability and authenticity.

Hermès’ recruitment initiatives – creating 2,300 jobs, around 1,300 of them in France – its commitment to training – with its 10 Écoles Hermès des savoir-faire – and to raising awareness – with the Manufacto programme run by the Fondation d'entreprise Hermès in 96 schools – all contribute to job creation, to safeguarding and promoting craftsmanship, and to regional development.

The house continued to follow its path in 2024, reaffirming the uniqueness of its integrated business model with the opening of the Maroquinerie de Riom leather workshop in September and the laying of foundation stones for future leather workshops in Loupes (Gironde) and L’Isle-d'Espagnac (Charente). The pace of store openings and the enhancement of the distribution network continued unabated, with new stores in Lille, Atlanta and Shenzhen marking the second half-year, following those in Princeton, Lee Gardens in Hong Kong, and Nantes earlier in the year. The group has also strengthened its vertical integration with the acquisition of the Dubai and Abu Dhabi concessions.

The creative abundance that thrives in all our métiers is testament to the talent and inspiration of our artistic directors. We would like to mention the successful launch of Barénia, the new women’s perfume by Christine Nagel, as well as the warmly-received eighth haute bijouterie collection designed by Pierre Hardy, and the success of the ready-to-wear collections by Nadège Vanhée and Véronique Nichanian. Charlotte Macaux Perelman and Alexis Fabry brought the home universe to life at Milan Design Week and throughout the year at presentations of the Tressages équestres dinner service.

2024 also brought success for our partner riders Jessica von Bredow-Werndl, Simon Delestre and Ben Maher in a thrilling competition at Versailles in the summer!

In a world of algorithms driven by technological acceleration, where uses are constantly evolving, emotion endures and humanity resists, imposing its desire for the beautiful, the good and the lighthearted as well as the sustainable. Perhaps this is what we should remember about 2024.

So it is with confidence that we look forward to 2025 and continue on our path, inspired by the theme Drawn to craft – a theme that combines the imagination of childhood with the precision of craftsmanship in a language that is resolutely human, timeless and universal.

The Group’s consolidated revenue amounted to €15.2 billion in 2024, up by 15% at constant exchange rates and by 13% at current exchange rates compared to 2023. Recurring operating income reached €6.2 billion (40.5% of sales) and net profit (group share) reached €4.6 billion (30.3% of sales).

In the fourth quarter, sales reached €4.0 billion, increasing by 18% at constant exchange rates and current exchange rates. All the geographical areas confirmed solid growth, with a strong performance of the Americas in particular.

Axel Dumas, Executive Chairman of Hermès, said: “In 2024, in a more uncertain economic and geopolitical context, the solid performance of the results attests to the strength of the Hermès model and the agility of the house’s teams, whom I thank warmly. While preserving the group’s major balances and its responsibility as an employer, the house is staying the course, attached more than ever to its fundamental values of quality, creativity and savoir-faire.”

(at constant exchange rates, unless otherwise indicated)

At the end of December 2024, all the geographical areas posted growth. Hermès continued the qualitative development of its exclusive distribution network.

Asia excluding Japan (+7%) recorded a remarkable increase, thanks to solid sales in all the countries in the area. Growth reached 9% in the fourth quarter, despite the downturn in traffic in Greater China since the end of the first quarter. In China, the store in Shenyang’s MixC mall reopened in December after expansion work, following the Shenzhen Luohu store in October and the Beijing SKP store in May. In Singapore, the newly renovated and extended Takashimaya store also reopened in October. 

Japan (+23%) achieved a regular and sustained growth, driven by the loyalty of local clients. A new store was opened in the Ginza district of Tokyo in June, following the Azabudai Hills store which opened in February.

The Americas (+15%) confirmed excellent growth in 2024. In the United States, the Atlanta store reopened in October after being renovated and expanded, following the April inauguration of the store in Princeton, New Jersey. An event showcasing the petit h creations was staged in New York’s Madison store in October.

Europe excluding France (+19%) and France (+13%) both performed well, supported by robust demand and the loyalty of local clients, as well as dynamic tourist flows. In November, a new store was inaugurated in Lille, after the June reopening of the renovated and expanded store in Nantes. The newly renovated and extended store in Naples reopened in December.

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 and needs of society.

In 1880, Charles-Émile Hermès, the founder’s son, moved the workshops to 24, rue du Faubourg Saint-Honoré, and set up an adjoining store. At this now-emblematic address, harnesses and saddles were made to measure. The business was already standing out for the excellence of its creations.

During 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 of an automobile hood. In 1922 he obtained exclusive rights to this American “universal fastener” – known today as the zip – which was used extensively in the House’s luggage and other designs. Under the impetus 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 was born with the Jeu des omnibus et dames blanches design, the first in a long series.

Robert Dumas – one of Émile Hermès’ sons-in-law, who took the helm of the House in 1951 – was a regular visitor to the workshops and designed objects whose details (buckles, fasteners, saddle nails and anchor chains) exuded an elegance that in no way diminished their practicality. Hermès objects stand out for their noble materials, their mastery of savoir-faire, and their bold creativity, stimulated by the House’s keen vision of the world. The Silk métier now invites artists to create unique designs.

The Executive Management ensures the management of Hermès International. The role of Executive Chairman is to manage the Group and 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 Active Partner 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 the Group 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 strategic and operational management. Its composition reflects the Group’s main areas of expertise.

The Operations Committee, which reports to the Executive Management, is made up of certain members of the Executive Committee and the Senior Executives of the main métiers and geographical areas, as well as the sales and support functions of the Group.

Its duties are:

• ◆to involve Senior Executives in the Group’s major issues and strategic orientations;
• ◆to promote communication, sharing and reasonable exchanges amongst its members in their area of responsibility;
• ◆to enable the Executive Committee to take certain decisions.

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

Hermès is an independent company backed by family shareholders. Its strategy is based on three pillars: creation, craftsmanship and an exclusive, balanced 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.

In 2024, the House maintained its vision, preserving the major balances of the House, committed more than ever to respecting its values.

Hermès creates and manufactures quality objects designed to last, to be 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 spanning nearly 200 years, during which the House has continued to develop with audacity and ingenuity, Hermès paid homage to the theme of the Spirit of the Faubourg in 2024. This place, the result of a dream — that of Émile Hermès — is the beating heart of the House. It is found everywhere Hermès is located and infuses the effervescence and joyful spirit so dear to the House. High standards in design and manufacturing encourage the creation 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 and imaginative flair. The unbridled creativity flourishes in all métiers, as reflected in the numerous scarf designs printed every year. It is then expressed through over 50,000 references, developed around a unique identity and a style blending exceptional quality, innovation, surprise, elegance and simplicity. In 2024, it was expressed in particular with the successful launches of Barénia perfumes, a new feminine fragrance inspired by the House’s leather heritage, or Hermessence Oud Alezan. The Hermès Beauty métier completed the fifth chapter of Le Regard with the launch of Trait d'Hermès. New creations have met with great success, in the leather goods collections, alongside emblematic creations, such as the Haut à Courroies en selle, Della Cavalleria Élan and Arçon, Men's and Women's ready-to-wear or in jewellery, with the eighth Haute Bijouterie collection, Shapes of colour. In silk, the dynamic of formats, materials and creations continued to drive the collections.

Hermès’ mission is to create unique and original objects, allowing the time necessary for their careful creation, so that they gracefully accompany the needs and dreams of its customers. Its goal is the pursuit of excellence and uncompromising quality, in each of its métiers and services.

The main companies consolidated as at 31 December 2024 (distribution subsidiaries and divisional holding companies), are detailed in chapter 5 “Consolidated financial statements”, § 5.6, Note 18.

Leather Goods & Saddlery, Hermès’ original métier, groups together bags for men and women, travel articles, small leather goods and accessories, saddles, bridles, and a full range of equestrian products and clothing.

The Leather Goods & Saddlery métier represents 43% of consolidated sales. In 2024, it generated revenue of €6,457 million.

Hermès leather goods and saddlery objects are the result of a very special alchemy, based on a constant dialogue between designers and craftspeople, and the use of the finest materials, selected with the greatest care. The craftspeople use traditional savoir-faire, passed down from generation to generation. This patient daily 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 of expertise that bring together production units, workshops and training centres in Paris, Pantin and six regions of France, together with a network of long-term French partners, selected with the greatest care to ensure respect for Hermès' unique craftsmanship savoir-faire. 

To meet continued strong demand, Hermès is expanding its network of manufacturing sites each year in order to strengthen its production divisions. A new leather goods workshop was inaugurated in September 2024 in Riom (Puy-de-Dôme). Hermès also continued 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). Each new establishment is set up in close collaboration with local stakeholders, administrative and economic development bodies. In this way, Hermès reaffirms its commitment to regions with a strong manufacturing savoir-faire and its will to provide high-quality jobs. Proud to contribute to the expansion of sectors of excellence in France, Hermès thus maintains long-term relationships with its suppliers and partners, with loyalty and high expectations, to maintain the unique qualities of a Hermès object: exceptional materials, training in savoir-faire and dedicated workshops.

The House also places great importance on constantly perfecting 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 multiple partnerships with training structures in the regions concerned. Since 2024, the École Hermès des Savoir-Faire has been present in each of the nine manufacturing divisions.

The equestrian world continues to inspire new designs in 2024. The Hermès Della Cavalleria line, which turns the horse's bit into a clasp, has a new day-to-day Elan format. The Arçon bag, whose rounded contours evoke the curves of a saddle, is given a more compact everyday format, the P'tit Arçon.

In Fashion accessories, the Collier de chien story introduces the Médor line, which showcases the pyramid stud in a diabolo format, the Mini Médor.

The emblematic models continue their metamorphosis: the Kelly bag further extends its family with two new formats, the Kelly Move, a small everyday bag, and the Kelly Jump, a small urban backpack. As for the Constance, it has a very feminine elongated Elan format, for both day and evening.

The quest for the exceptional continues to be expressed through the implementation of numerous elements of savoir-faire that push the limits of creation, in an Arts & Crafts spirit. Corner stitching, lacing and leather braiding are featured on the Sabot bag, whose shape is inspired by a horse’s hoof and whose Pluch version is adorned with merino sheepskin. For the first time, wood marquetry is applied to leather goods with the addition of a small wooden horse to the body of the Kelly Mini and the Kelly Elan. A nod to parade saddles, a story of studs is told on the Constance Mini and Kelly Mini bags, whose bodies are set with hundreds of studs. Finally, the emblematic Bolide is reinterpreted using thread embroidery that draws the Selle Imaginaire pattern all over the bag, or by a set of printed, applied and stitched patches on the body of the bag.

The men's collections confirm their dynamism and bring in new styles designed to meet contemporary needs. Alongside the indispensable Haut à Courroies and Kelly, the emblematic Bolide bag is reinterpreted in an urban format to be worn hands-free, the Bolide à dos, while retaining its signature codes and savoir-faire. Also in tune with the times, the Cab'H is the first full leather tote bag for men. Vertical and functional, it is signed with equestrian-inspired details.

The Haut à Courroies bag unveils exceptional Arts & Crafts versions using unprecedented constructions and savoir-faire: layering of pockets of various sizes for the Haut à Courroies Multipockets, and colour work in the tannery for the Coup de soleil version, on which certain details appear to have left their mark after exposure to the sun.

The R.M.S suitcase odyssey continues in 2024: it now extends its presence to all stores worldwide. New colourful, joyful prints adorn the collection, such as the Bel Oasis pattern, showing a horse quenching its thirst in the middle of cacti in the desert, or the emblematic Quadrige. The exceptional is also invited into the R.M.S universe with the Cargo suitcase, a real globetrotter’s delight with its multiple pockets. Finally, two travel bags in 12- and 72-hour formats complete the R.M.S collection to offer each trip its companion bag.

The collections of small leather goods are constantly expanding and being renewed in order to provide the perfect response to changes in uses in each market.

The range of everyday objects to be worn hands-free and boasting bold silhouettes continues to expand with new contemporary styles, such as the Hermèsnap with its refined profile and a rich colour palette for men, or the very feminine Sursoie To Go, which puts silk in the spotlight with joyful designs and bright colours.

This year, the H Sellier men's line of essential formats welcomes a new card holder with numerous features.

To celebrate the annual theme, the Reading & Writing universe completes its stationery offering with a new illustrated notebook Carnet de notes in the colours of the Faubourg, while the book “24 Faubourg Saint-Honoré” by Frédéric Laffont presents many tales and anecdotes about this historic seat of the House.

Finally, fantasy continues to be expressed through various objects such as the hands-free Hermès Nestor card holder, with a mischievous dog drawn on the flap, or the Bolide Shark charm, an actual functional and playful miniature version of the eponymous bag designed in 2016.

Since its founding, Hermès has never ceased to explore and create materials to enhance the aesthetics, functionality and sustainability of its objects, while continuing to respond to the desires and uses of the present time.

2024 was marked by the introduction of a luminous material, Chamkilight goatskin. The delicate grain of this hide is enhanced by a subtle transparent golden glow, achieved thanks to the perfect application of a new generation of metallic pigments. In this way, Chamkilight goatskin brings an unprecedented dimension to the Kelly Mini and Constance Mini bags.

The range of colours has also been enhanced with new timeless and seasonal shades. A tribute to the talent of Hermès as a colourist, they play with light and combine with materials in an infinite field of exploration: the vivacity of Orange Field on Mysore goatskin or the felted depth of Gris Misty on Clémence bull calfskin, echo the delicacy of the pastel tones of Rose Darling on Milo lambskin or the summer freshness of Vert Peppermint on Swift calfskin.

Silk prints are in the spotlight this year on a series of objects that reveal the richness of their designs and colours, and give them another dimension in volume: the line of small summer Balusoie bags, and in Small Leather Goods, the Avecsoie bottle-carrier, the Sursoie To Go pouch and the Avecsoie pocket cases.

Through the transmission of the excellence of its savoir-faire, the search for exceptional materials, innovation for the well-being of the horse and the daily support of the House’s partner riders – four of whom belong to the top 10 worldwide – and their mounts, Hermès reaffirms its commitment to its first customer, the horse, up to the highest sporting level.

In 2024, the Hermès saddle thus reached the world’s most prestigious podiums and added new titles to its list of wins, notably with Jessica von Bredow-Werndl and TSF Dalera BB in the Hermès Arpège saddle, Ben Maher and Dallas Vegas Batilly in the Hermès Vivace saddle, and Steve Guerdat and Dynamix de Belhème as well as Simon Delestre and I Amelusina R 51 in the Hermès Cavale saddle.

2024 also marks the expansion of the collection of objects dedicated to horses, with the customisable ergonomic bridle II, the felt and leather Equi'libre shock absorbing pad which guarantees an optimal fit between the rider and his or her mount, and the Derby saddle pad with quilted lines reminiscent of the Rocabar pattern.

The rider has not been forgotten, with the arrival of the Fit zipped sweatshirt, the yoga sweater and the Quadrille poncho, inspired by the mosaics of the Faubourg Saint-Honoré, to protect against the cold on horseback and on foot.

Finally, to pamper the rider’s second best friend, the collection of dog accessories offers a dog sweater and an unprecedented array of Médor collars and leashes in Swift calfskin, whose bright colours reinterpret the Médor stud in a graphic version.

In France, Hermès reaffirmed its commitment to the regions through the reopening of two stores. First in Nantes, where the store located in the heart of the spectacular Passage Pommeraye since 2011 reopened in June after being completely renovated. Its single-storey space invites visitors to explore all of the House’s métiers in a warm and natural atmosphere, where wood is omnipresent. Numerous elements pay tribute to this passage, which is classified as a listed historic building, from the high windows reminiscent of the vaulted glass roof, to the acanthus leaf that is reminiscent of the original ornaments of the site, through a selection of works related to the industrial, maritime and cultural heritage of the regional capital.

In November, the Lille store, where the House has been present since the 1950s, reopened after moving. The larger store is located on rue des Chats-Bossus, in the heart of Vieux-Lille, in a group of two 15th and 16th-century houses, a listed historic building, with an interior courtyard and a garden. The collections of the House’s métiers are spread over two levels, across different spaces with distinct identities. The interior design multiplies the play of light, fabrics and colours typical of Lille’s homes. In line with the House’s responsible commitment, several local craftspeople contributed their expertise to the restoration of the premises.

The year was also marked by many events. In January, the palais d'Iéna hosted the fashion show for the fall-winter 2024 men's ready-to-wear collection, while the collège des Bernardins served as the setting for the press presentation of the new Tressages équestres tableware. The month of March saw the fall-winter 2024 women’s ready-to-wear collection fashion show at the Garde Républicaine, then the 14th edition of the Saut Hermès. Organised under the framework of the Grand Palais éphémère, this international CSI 5* competition brought together 25 riders of 15 nationalities, as well as 130 horses. Over three days, spectators were enthralled by the 10 sporting events, immersed themselves in the world of horses and discovered Hermès’ savoir-faire.

The arrival of summer was celebrated by the spring-summer 2025 men's ready-to-wear collection fashion show at the palais d’Iéna, as well as by the presentation of the new Hermès haute bijouterie collection, Les Formes de la Couleur. Unveiled at the end of June in the prestigious setting of the Musée des arts décoratifs de Paris, the collection lit up the Faubourg Saint-Honoré store with its bold colours until mid-July, before setting out on its tour. It was also in June that the Le Monde d’Hermès kiosk made a stopover in Nice, on the promenade du Paillon, before heading to Aix-en-Provence in July. Inspired by Parisian newsstands, this colourful display dedicated to the House’s magazine invited tourists and walkers to soak up the spirit of the Faubourg and the fantasy of Hermès. At the end of September, at the Garde Républicaine, the spring-summer 2025 women’s ready-to-wear collection fashion show brought a little warmth to the beginning of the fall.

Elsewhere in Europe, several key moments were also organised. In April, Hermès imagined an exclusive scenography as part of the Watches & Wonders Trade Show in Geneva, to present its new Hermès Cut watch and continue to illustrate its unique approach to time. In Berlin, a fun and quirky Dîner de l’Encravaté put the spotlight on ties in front of the press and influencers. Also in April, Milan Design Week was an opportunity to highlight the latest creations from the Home universe, Métaphores textiles and Cristalleries Saint-Louis. In December, Italy also celebrated the reopening of the store located in Via Filangieri, in the Chiaia district of Naples since 2002. Behind its high-windowed Art Nouveau façade, the store unveils an enlarged and entirely renovated interior space, where the collections are displayed in a colourful environment, a tribute to the landscapes of the Bay of Naples.

Among the travelling programmes, the Le Monde d'Hermès kiosk was invited to Barcelona for a few days in April, and then London and Athens in September. The Hermès in the Making programme took several of the House’s craftspeople to Zurich in November, to demonstrate their savoir-faire.

In 2024, the Group’s consolidated revenue amounted to €15.2 billion, up 15% at constant exchange rates and 13% at current exchange rates compared to 2023.

The gross margin rate reached 70% in 2024, compared to 72% for the 2023 financial year, which benefited in particular from the positive impact of foreign exchange hedges.

Sales and administrative expenses, which represented €3.6 billion (€3.2 billion in 2023), notably included €637 million in communication expenses (€607 million in 2023). Other sales and administrative expenses, which mainly include the salaries of sales and support staff as well as variable rents, amounted to €2.9 billion (€2.6 billion in 2023).

Other income and expenses amounted to €942 million (€889 million in 2023). They include depreciation and amortisation of €693 million (€604 million in 2023), half of which relates to property, plant and equipment and intangible assets and the other half to right-of-use assets. Other expenses also include €180 million related to free share plans in 2024 (€151 million in 2023).

Recurring operating income amounted to €6.2 billion, up by 9% compared to 2023. Recurring operating profitability, despite the negative impact of exchange rates, reached 40.5% of sales compared to 42.1% in 2023, an exceptionally high level.

Net financial income was positive in the amount of €283 million (income of €190 million in 2023). It includes the cost of foreign exchange hedges, interest on lease liabilities and interest payments on cash which, in line with the rise in interest rates, amounted to €400 million in 2024.

The income tax expense amounted to €1.8 billion and represents an effective tax rate of 28.7%.

After taking into account the net income from associates (income of €44 million) and non-controlling interests, the consolidated net income attributable to owners of the parent amounted to €4.6 billion, an increase of 7%.

No significant events have occurred since the closing on 31 December 2024.

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 and entrepreneurial business model, with excellent results in 2024, despite a more uncertain economic and geopolitical context. All geographical areas grew. All métiers, except Watches, continued to make solid progress, reflecting the desirability of creations among its customers. Hermès, firmly rooted and inspired by its heritage, is enriched by its creative freedom and innovation, and its attachment to savoir-faire. Firmly believing that there can be no creation 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 in savoir-faire, the House will continue to blossom, affirming the uniqueness of its style. The year 2025 will be marked by the development of new collections based on the most beautiful materials and an abundant creativity. Among the new products, the Perfume and Beauty métier will launch two new Eaux de Parfum Intenses, first for Terre d’Hermès in the first half of the year, before Barénia in the autumn. Watches will continue to roll out its Kelly and H08 lines, which are expanding rapidly, 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 in particular launch the Hermès en contrepoint tableware. The emblematic bags Picotin and Evelyne, with new ways of being worn and uses, will enrich the Leather Goods collections alongside new creations.

The integrated and exclusive distribution network will continue to strengthen its omnichannel offering. In order to nurture the link with its particularly loyal local customers and to attract new customers, special attention will continue to be paid to the digitisation of uses, the development of services and the expansion of the online product offering. The qualitative development of the store network will continue in 2025, notably with projected openings in Phoenix and Nashville in the United States and Taipei in Taiwan. Priority will continue to be given to the expansions and renovations of around 15 branches around the world, notably in Florence (Italy), Seoul (Korea) and Bangkok (Thailand). In addition, investments will continue for the new London store in New Bond Street, with an opening scheduled for 2026.

In light of with the House’s strong momentum, the development of production capacities will continue in all métiers, and in particular in Home and Perfume, with the finalisation of the construction of a new production cellar in Vaudreuil. The growing demand in Leather Goods & Saddlery will be supported by the ramp-up of new sites. Discussions are underway concerning the opening of a 10th expertise hub by 2028 to strengthen the local presence spread throughout France. The Group will continue its objective of opening on average one production unit per year, representing around 300 new hires. In 2025, Hermès will inaugurate a new leather goods workshop in Isle-d'Espagnac in the Charente region, on the brownfield site of the former Bel-Air aerodrome, in compliance with its responsible real estate standards. It will join the South-West division, which already includes the Montbron and Nontron leather goods workshops and the Saint-Junien leather goods and gloves workshop, which have been present in the region for more than 25 years. The projects of the Loupes (Gironde) and Charleville-Mézières (Ardennes) leather goods workshop projects, scheduled for 2026 and 2027 respectively, will continue. Hermès will strengthen its integration in France in regions with high manufacturing 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. Overall, operational investments should amount to €1 billion in 2025.

True to its commitment as a responsible employer, with the creation of nearly 7,000 jobs over three years, of which more than 65% in France, Hermès will continue this multi-local and multi-métier dynamic in 2025. 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 House will also launch work to formalise its major social commitments through the drafting of several policies on the themes of dialogue with our employees, working conditions, diversity and inclusion.

The enhancement and transmission of savoir-faire will remain at the heart of the priorities of the métiers, with, in particular, the ramp-up of the apprentice training centres (CFA) dedicated to the leather goods métiers, as well as the House's training in the unique savoir-faire of the other métiers, such as Jewellery. Present today in 10 regions, the École Hermès des Savoir-Faire will gradually be set up in all the regional Leather Goods divisions.

Control of the supply chains, guaranteeing the quality of materials, will continue with the implementation at the House’s partners of CSR briefs, supply chain briefs and a responsible purchasing policy, which bring together the Group’s requirements notably in terms of traceability, certification, carbon trajectory, reduction of water consumption and respect for human rights.

The House’s commitments to fighting climate change and the preservation of biodiversity will remain at the forefront. With the development of eco-design strategies for all métiers and the construction of an internal tool to make life cycle analyses systematic, the Group will continue its efforts to encourage the sparing use of resources and waste management. More broadly, the Group’s actions in favour of biodiversity will be strengthened by the continuation of the Science Based Targets for nature (SBTN) initiative with the setting of targets as provided for in step 3 of the framework, and the deepening of impact analyses using the Global Biodiversity Score (GBS) method.

In line with its climate change mitigation commitments, the Hermès Group will continue 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. In 2025, the Group will prepare the update for the SBTi and will work on the formalisation of its long-term objectives, which will make it possible to comply with the “net zero” standard of this same initiative. Work will also be undertaken in 2025 to identify the expenses, investments and financing specifically related to the implementation of the transition plan. The particularly demanding responsible construction framework will continue to be rolled out for new real estate projects. At the same time, Hermès will increase its contribution to projects with a strong environmental, social and economic impact outside its value chain, in particular through the Livelihoods Carbon Funds. The House will also continue undertaking studies for projects within its value chain, in order to prepare for the neutralisation of its residual emissions. In terms of adaptation, the results of a new analysis of climate risks conducted on the sites and the main international flows will provide a comprehensive view of the risks at all of the Group’s sites

Hermès will strengthen its role as a responsible company alongside its suppliers, which it will continue to support, with the rollout of its Supplier code of conduct, and with the communities in which it operates, whether through site openings, job creation, the development of vocational training centres for its craftsmanship métiers, and contributions to the social and cultural life of the regions.

The Group is looking forward to 2025 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 goal for revenue growth at constant exchange rates. Thanks to its unique business model, Hermès is pursuing its long-term development strategy based on creativity, maintaining control over savoir-faire and singular communication.

Driven since 2008, the year of its creation, by the humanist values of the House from which it emanates, the Fondation d’entreprise Hermès carries out its philanthropic actions in ways that set it apart from the French philanthropic landscape. It has chosen to be an operator rather than a distributor, by developing specific programmes in four areas: the creation of new works of art, the transmission of skills and expertise, the protection of biodiversity and solidarity. Through each of its programmes, the Foundation strives to act as effectively as possible, on the ground, in response to targeted needs. Whether they are artists, project leaders or students, the beneficiaries of these actions can thus experience very concretely how the Foundation contributes, on its own scale, to building a better world.

In 2024, the Foundation focused on outreach, with the solidarity actions that are inherent in its commitments. Intended for Hermès employees worldwide, the internal H3 - Heart, Head, Hand programme, launched in 2013, is based on the conviction that those who work within the House share its humanist values. Thus, each employee can propose to the Foundation a solidarity organisation engaged in one of its fields of action so that it can benefit from financial support. In 2024, this programme was the subject of an internal campaign resulting in a large number of applications: 14 projects were selected and financially supported by the Foundation, each time with the involvement of the employee, who assumes the role of ambassador. Launched in 2023, skills-based patronage - another support mechanism set up with the help of the Group’s human resources department - increased in scale this year. Within this scheme, everyone can get involved on the ground with a local solidarity organisation, during their working hours. This format facilitates the concrete efforts of those who wish to take action to benefit a solidarity-based initiative.

Solidarity is also one of the drivers of transmission, as evidenced by the Artists in the Community scholarship scheme - a pivotal element of the Foundation’s eponymous programme. In 2024, it funded 119 scholarships to support students enrolled in one of the 20 partner educational establishments and ensure that these young talents can devote themselves fully to their demanding training in dance, theatre, circus and, for the first time, puppetry arts. At the same time, the Foundation invited the third class of these scholarship artists to present a collective post-diploma project, Transmission Impossible, at the Avignon Festival, under the direction of choreographer Mathilde Monnier. One way to support them as they take their first professional steps.

The Foundation is also keen to promote transmission between professionals in a dynamic of collective intelligence: this is the challenge of the Académie des Savoir-Faire. In 2024, the Foundation published the encyclopaedic book Savoir & Faire - La Pierre co-published with Actes Sud, which completes the Academy dedicated to this material in 2023. It also launched a call for applications for the seventh edition of the programme, this time dedicated to paper, which will open in 2025 under the direction of French designer Constance Guisset.

Lastly, the Manufacto programme pays special attention to school children, and has been committed to the transmission of craftsmanship savoir-faire in schools since 2016. More than 2,400 pupils aged from nine to 15, from 16 academic regions, have been familiarising themselves with the leatherwork, saddlery-upholstery, carpentry or plastering know-how under the supervision of a craftsperson since the start of the 2024 school year.

Using the same model, the Manuterra programme, created in 2021, allows pupils to discover gardening savoir-faire during school time. Since the start of the 2024 school year, 850 pupils aged from nine to 15, from 10 academic regions, have been cultivating a plot using permaculture techniques in order to learn about issues related to ecosystem preservation. In addition to this educational initiative, which is managed with the partner academic regions, the Foundation strives to act on other levers to help protect the living world by supporting various large-scale projects as part of the Biodiversity & Ecosystems programme.

The Fondation d’entreprise Hermès remains very committed to the field of creation, particularly performing arts. Launched at the Théâtre de la Cité Internationale in Paris in 2023, the performing arts festival Transforme completed its first season in 2024 after continuing its programming at La Comédie in Clermont-Ferrand, the SUBS in Lyon and the Théâtre national de Bretagne in Rennes, attracting a total of 18,000 spectators. In October 2024, the Foundation launched the second edition of Transforme, again at the Théâtre de la Cité Internationale in Paris, in the presence of a large audience.

The Foundation is also very active in the field of visual arts: in 2024, 11 exhibitions have been organised in the galleries for which it is responsible for artistic programming, in Brussels (Belgium), Saint-Louis-lès-Bitche (France), Tokyo (Japan) and Seoul (South Korea).

In addition, 2024 will have been a year of transition for the Artists' Residencies in the Hermès production units: closing the cycle of residencies mentored by Gaël Charbau, the visual artist Linda Sanchez was invited to the Cristallerie Saint-Louis to create a work by drawing upon the exceptional savoir-faire of the master glassmakers. At the same time, a new cycle began, under the artistic direction of Emmanuelle Luciani: the latter invited Jenna Kaës to the Maroquinerie de la Tardoire and Mounir Ayache to the Holding Textile Hermès (HTH), to create a work with the involvement of Hermès' craftspeople.

In the field of contemporary photography, the Immersion programme, a Franco-American photographic commission, closed with the exhibition in Paris of the work of its final laureate, the American photographer Raymond Meeks: presented at the Fondation Henri Cartier-Bresson, his series “The Inhabitants” was published in co-edition with Mack Books.

Throughout its programmes, the Fondation d’entreprise Hermès conducts its patronage by supporting women and men who act in favour of the public interest and with whom it shares a common humanist purpose. Thus, it continues, with ambition and responsibility, to cultivate collective intelligence and to combine progress and the common good, in order to put people back at the heart of our society.

The activity report of the Fondation d’entreprise Hermès can be found in full at: https://www.fondationdentreprisehermes.org/en, section “the Foundation”.

The sustainability disclosures have been prepared as part of the first-time application of legal and regulatory requirements following the transposition of the European Corporate Sustainability Reporting Directive ("CSRD").

This first year of implementation of the CSRD is marked by many uncertainties. In addition to those inherent in the state of scientific or economic knowledge as well as the quality of the external data used, several interpretations of the texts remain, for which additional clarifications from the standardisation or regulatory bodies are expected, in particular concerning sector-specific standards for the application of the ESRS or the application of the technical criteria of the Taxonomy Regulation.

The Group has therefore endeavoured to apply the normative requirements set by the ESRS, as applicable at the date of preparation of the sustainability report, on the basis of available information (for example, information required on policies, actions, measures or objectives), within the deadlines for preparing the sustainability statement.

The preparation of sustainability information was also complicated by the absence of comparative data and reliable benchmarks, in particular at sector level, as well as by difficulties in collecting market data, particularly within the value chain.

In some cases, these difficulties in accessing reliable data have forced us to use estimates, which it should be possible to refine as the quality of the available data improves.

The sustainability report corresponds to section 2.1 "Sustainability information”. The scope of this sustainability report covers all of the Hermès Group operations, including all sites, métiers and subsidiaries, as well as all regions, the scope of which is detailed in chapter 1 “Presentation of the Group and its results”, § 1.4. The scope of consolidation used for this sustainability report is identical to that of the consolidated financial statements, with the exception of companies consolidated by the equity method which are not included and have been deemed non-material as regards sustainability matters.

The entities consolidated during the year are part of the reporting scope, with the exception of certain indicators for which the limitations of the scope of collection applied on a case-by-case basis on certain data are explained in the sub-section relating to this data.

This sustainability report covers the Group’s entire value chain as well as its business model, as presented in § 2.1.1.5.

The reporting periods used are as follows:

Environmental information is collected on an annual basis that closes at the end of the third quarter to allow for timely consolidation and analysis of data. There were no significant events in the fourth quarter of 2024 that would call into question the significance of these data compared with an analysis based on a financial year.

The time horizons used in the materiality exercise to assess the risks are specified in § 2.1.1.6.

In the context of this sustainability report, Hermès did not use the option to omit specific sensitive information (in accordance with ESRS 1, section 7.7, and Article 19a, paragraph 3 and Article 29a, paragraph 3 of Directive 2013/34/EU).

In accordance with ESRS 1, Hermès assessed the time horizon of occurrence of each IRO whenever the IRO in question was “material”, both in terms of impact materiality and financial materiality. The thresholds were set in accordance with the implementation guidelines published by EFRAG:

●short-term (ST): one year (“the period adopted by the company as the reference period in its financial statements”);

●medium term (MT): more than one year up to five years;

●long-term (LT): more than five years.

Hermès uses the same definitions throughout the report, in particular for the expected figures and for the objectives relating to different time horizons.

The sustainability information may be subject to inherent uncertainty due to the state of scientific and economic knowledge and the quality of internal and external data used (data calculated for the value chain, for example). The subject of estimates concerning the value chain is addressed in two thematic standards, namely § 2.1.2.1.7 (E1 standard - scope 3 data) and § 2.1.2.4.2 (E4 - biodiversity). In addition, the quantification of certain sustainability information, in particular environmental information, is subject to estimates and judgements based in particular on the Group’s experience and internationally recognised sustainability standards as well as the best information available to date. These estimates are sensitive to methodological choices and the assumptions used to prepare them. The nature and scope of the estimates used are as follows:

Details of environmental data

The Group uses estimates to calculate indirect greenhouse gas emissions (scope 3): (i) for estimating activity data, and (ii) for estimating emission factors, as described in § 2.1.2.1.7.

The Group also uses estimates to report data on substances of very high concern, as described in § 2.1.2.2.7.

With regard to biodiversity, Hermès wanted to shape its approach to reducing its impacts on biodiversity using the framework built by the SBTN approach. It is with this in mind that the Group has chosen to align biodiversity reporting with the method used to manage the subject operationally in the Group’s entities. SBTN steps 1 and 2 enabled Hermès to assess the biodiversity of its production sites using two tools (STAR and BII); Hermès is publishing the results obtained from these tools in order to meet the expectations of the E4 standard regarding the identification and prioritisation of sites in biodiversity-sensitive areas. More precise information on these two tools as well as on the results obtained, their processing and their use is available in § 2.1.2.4.2. The Group will monitor future advances in biodiversity-related tools and may develop its work accordingly

In the context mentioned in the introduction, the Group has initiated work that it will continue in the coming years.

The transition plan was drawn up in the following context: SBTi validated the emission reduction objectives for scopes 1, 2 and 3 (horizon 2030) at the end of 2021, based on a reference year of 2018, including a reduction objective for the relative value of scope 3 emissions, whose objective is to contain global warming “well below 2°C”, in accordance with the SBTi sector recommendations at the time of its certification. There is no scope 3 emission reduction objective in absolute value as of this date. Thus, Hermès presents in its sustainability report targets for 2030 and does not present targets for 2050, in line with the SBTi objectives. Moreover, Hermès is not in a position to communicate the consolidation of the quantification of decarbonisation levers for scope 3 emissions implemented and planned in the various Group entities.

Hermès is working on the formalisation of its objectives, which will enable it to comply with the “net zero” standard in accordance with the expectations of the CSRD and will submit a new file to the SBTi in 2025. The physical risk analyses carried out by Hermès will also be supplemented in order to use more pessimistic scenarios.

Hermès has also indicated in this sustainability report that it is not able to quantify certain data points: on the planned cancellation of carbon credits (E1-7 AR 64), on inflow resources (E5-4-31), on the total amount of fines, penalties, and compensation for damages as a result of incidents and complaints relating to discrimination and harassment (S1-17-103c), on the prevention of corruption (G1-3-21b) and on payment terms (G1-6-33b). These data points do not contain any material information likely to influence the reader’s judgement. Capital expenditure (CapEx) and operating expenses (OpEx) related to action plans that are not disclosed in this document are not material from the point of view of the Group.

Lastly, to take into account the best practices and recommendations of the market as well as better knowledge of these new regulatory and normative provisions, the Group may be required, where necessary, to change certain reporting and communication practices, as part of a continuous improvement approach.

Hermès, present throughout the world, is an independent House supported by family shareholders, a sign of stability and longevity.

The House benefits from an experienced and balanced governance, allowing proper consideration of sustainability matters and issues in its strategy.

Hermès details the composition and role of its administrative, management and/or supervisory bodies in chapter 3 "Corporate governance", § 3.2. The cross-reference table below highlights the sections relating to the information covered in § 2.1.4.1.3.

For Hermès International, these bodies are the Executive Management and the Supervisory Board.

The Executive Management plays an active role in the operational implementation of the policies, actions and results associated with Impacts, Risks and Opportunities (IRO). In 2024, several joint sessions with the Group’s Executive Committee were held to validate the main strategic orientations relating to the IROs that were material for the Group, monitor the objectives and associated results, and ensure that the resources allocated were appropriate.

Sustainability governance as structured at Group level is as follows:

Definition of major governance bodies above:

Sustainable Development Board

The Sustainable Development Board comprises directors of the Group’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 the House’s main entities, launches and monitors ad hoc working groups, and identifies key decisions to be submitted for approval to the Executive Management and its Executive Committee.

Sustainable Development Directors’ Committee (C3D)

To complement the Board’s functions and structure the management of the sustainable development function within the Group, this new body now brings together the sustainable development directors of the métiers, sustainable development functions and subsidiaries within the House. This Committee addresses the management of the entity’s roadmaps and promotes discussion on cross-functional training and internal communication issues.

Group sustainable development department

Reporting to a member of the Executive Committee, this proposes and implements the Group’s strategy and oversees the approach taken by the committees and all functional and operating departments and Group subsidiaries, both in France and internationally. It monitors achievements, coordinates the operation of various committees, provides support to local committees and manages, with its internal partners, cross-functional projects and non-financial reporting.

Group Operations Committee

Composed of more than 100 members representing the main métiers and central functions, as well as the French-speaking distribution subsidiaries, it analyses the technical and functional aspects of the projects carried out by the various entities of the House and enables its members to share best practices and topical sustainable development information.

Local Sustainable Development Committees

Led by the main métiers and subsidiaries, they initiate and monitor the actions undertaken. 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 Group departments, manage issues, often of a medium-term nature, that are of common interest. They focus in particular on issues relating to recycling, materials innovation, the circular economy, sustainable construction and logistics.

Métier/subsidiary sustainable development departments

These are responsible for leading the approach at their level and for committing to a CSR roadmap each year. The Group’s main métiers and subsidiaries have a part-time or dedicated sustainable development manager.

The Group’s Supervisory Board is involved, through its committees (see chapter 3 "Corporate governance", § 3.4), in the oversight of the proper management of the impacts, risks and opportunities (IRO) identified. It is kept informed of the process of identifying these IROs, notably through its committees and the Executive Management. Starting in 2023, a multi-year training programme on environmental issues,  and climate in particular, was developed in collaboration with an external firm to raise the Board’s awareness of these issues and their reporting using the CSRD. In November 2024, the work in progress on the double materiality matrix was presented to the Board. In early 2025, the Audit and Risk Committee and the CAG-CSR Committee were given a presentation on the double materiality analysis completed during the financial year and its material IROs. This report was also presented to the Audit Committee on 13 March 2025, which also reported on it to the Board as a whole.

The Supervisory Board, in accordance with the powers granted to it (see chapter 3 "Corporate governance", § 3.5), through its two committees, is also responsible for overseeing the processes, controls and procedures in place to manage the IROs identified. This role involves regular presentations by the House’s experts on the House’s major sustainable development issues (i.e. Group sustainable development department, finance department, human resources department, compliance department, industrial department, etc.). These presentations make it possible to verify in particular the definition and achievement of the targets for the various material IROs.

The majority of Supervisory Committee members (excluding employee representative members) have skills in one or more areas of sustainability. These skills enable adequate supervision of the management of information and data relating to material impacts, risks and opportunities, within the framework of the role strictly allocated to the Supervisory Board. In addition to the aforementioned training programme, Supervisory Board members also benefited from awareness-raising conferences on environmental issues led by WWF France (World Wildlife Fund). Details of the training received by members of the Supervisory Board as well as attendance statistics are available in chapter 3 "Corporate governance", § 3.5.

Alongside other members of the Executive Committee, the Executive Management drives compliance with ethics rules, applying a firm policy of zero tolerance of any breach of internal policies relating to compliance. Thus, the governing bodies’ commitment in terms of business conduct can be seen at the Group’s highest level. In addition, the Executive Vice-President Corporate Development and Social Affairs receives regular reports on the work of the Compliance and Vigilance Committee from the Legal Compliance Director and the Group General Counsel. In this way, these subjects are supervised directly by the Executive Committee, which supports the Executive Management.

The Hermès Supervisory Board monitors in particular matters relating to business conduct covered by the 2.1.4. standard. This covers in particular the fight against corruption, ethical and balanced relations with suppliers, the duty of care and animal welfare. The Supervisory Board’s expertise on business conduct matters is also presented in chapter 3 “Corporate governance”, § 3.4. Thus:

• ◆the Supervisory Board is regularly informed of the ethics and compliance programmes as well as the progress of the Group’s corruption prevention plan, in accordance with the Sapin II law, notably through its Audit and Risk Committee;
• ◆since 11 September 2018, the Supervisory Board’s rules of procedure include missions relating to the system for preventing and detecting corruption and influence-peddling;
• ◆in 2024, Hermès published its second stand-alone vigilance plan(1) and continues its continuous improvement approach to the Group’s vigilance, including: a strengthened risk mapping methodology, an in-depth risk assessment, the continued rollout of risk mitigation measures and the development of the whistleblowing system. In this respect, a presentation was made to the Audit and Risk Committee on the measures put in place to strengthen all the key processes implemented in the Group, in particular those relating to the assessment of third parties and the H-Alert! whistleblowing system.

2024 marks the first year of identification of IROs as required by the CSRD Directive. These IROs cover issues that have long been known and taken into account by the Group and its governance bodies. For the past two years, the Group has been analysing its material issues according to a principle of double materiality, without applying all the expectations of what would become the CSRD, but rather by already applying this multi-criteria approach to analyse the importance of the issues.

In early 2025, the double materiality matrix, as well as the main material IROs identified, were the subject of dedicated presentations to the Audit Committee and the CAG-CSR Committee, which reported on this work to the Supervisory Board. The Executive Management is involved in more operational oversight of the policies and actions associated with the main material IROs, as well as the monitoring of Group targets, included in the double materiality analysis.

Executive Management reviewed:

• ◆the Group’s decarbonisation and carbon offset strategy (which corresponds to IRO 1 to 5);
• ◆the development of animal welfare partnerships (IRO 22 and 23);
• ◆compliance with the CSRD (cross-functional for all IROs);
• ◆the social model (IRO 24 to 29);
• ◆sustainable development training for employees and governing and governance bodies.

The Supervisory Board reviewed the following topics (see chapter 3 “Corporate governance”, § 3.7):

• ◆presentation of the “CSR trajectory” of the Shoes métier;
• ◆presentation of the Sustainability Academy (IRO 28 and 29);
• ◆monitoring of the use of sustainable development commitment handbooks in the métiers;
• ◆group disability policy (IRO 27);
• ◆presentation of non-financial risks;
• ◆corruption risk mapping (IRO 38);
• ◆vigilance plan (IRO 30 to 35, IRO 38);
• ◆monitoring the rollout of non-financial reporting;
• ◆update on the main achievements in 2023 and 2024 guidelines in terms of CSR;
• ◆review of the concrete actions taken as part of the social model (IRO 24 to 29).

The Executive Management receives a portion of variable compensation set by the Articles of Association (known as “statutory compensation") which is subject in part (10%) to a non-financial criterion consisting of three quantifiable indices measured each year:

• ◆decoupling of activity growth at constant scope and exchange rates and the evolution of industrial energy consumption;
• ◆Group initiatives in favour of gender equality;
• ◆actions taken to promote the Group’s local presence in France and around the world, outside of major cities.

Details relating to the implementation of this criterion and the achievement of this objective are given in chapter 3, “Corporate governance”, § 3.8

Given the role assigned to the Supervisory Board and the compensation policy for Board members, as described in chapter 3, “Corporate governance”, § 3.8, this compensation is not subject to performance criteria. It includes a fixed component and a variable component, based on the attendance of Board members. As a reminder, the employee representative members of the Supervisory Board do not receive any compensation for their duties.

To date, the compensation of Hermès’ Executive Corporate Officers does not include any incentive criterion directly related to climate change mitigation or adaptation. Nevertheless, a corollary criterion determines the receipt of part of their variable compensation, i.e. the decoupling of industrial energy consumption and growth in activity.

The Group’s internal control is organised into a network of correspondents, coordinated by a central unit. It operates under the authority of the audit and risk management department, which ensures the rollout of an internal control system adapted to the Group’s issues and risks across all processes (see chapter 4 “Risk factors and management”, § 4.3.).

It has contributed to compliance with the CSRD in two ways:

• ◆participation in the project rollout with the departments in charge of the project (finance and sustainable development);
• ◆coordination of the work of internal controllers.

The purpose of the internal control system is to ensure the reliability of the published data (completeness and accuracy). The risk assessment method was thus as follows: work in 2024 focused primarily on quantitative metrics, in particular those resulting from manual processes including complex restatements. Certain criteria were prioritised: stakeholder expectations with regard to the Group’s activity, subject to any findings and recommendations from previous external audits or which changed significantly compared to the previous year.

For priority metrics, the central internal control unit ensured the clarity and precision of the associated reporting protocols in order to ensure homogeneity of the data reported by all contributors (precision of definitions, scope, calculation methods, etc.). Expected key controls were also added to these to ensure the reliability of the data, from their collection to their publication in the final report, including calculation, consolidation, restatement and correction if necessary.

The purpose of the controls planned and described in the reporting protocols in 2024 was to build on those already carried out in previous years as part of the NFPS (Non-Financial Performance Statement). Requirements for formalisation and documentation are nevertheless expected to increase. In some cases, additional controls have been added to this existing system, such as the verification of calculation formulas in the case of the use of manual files to collect and reprocess data. As part of a continuous improvement approach, this new requirement has led to the strengthening of the internal control culture among contributors. This involved explaining the objectives of the system, the roles and responsibilities of each function, as well as the expectations.

Since central internal control is based on level 1 controls carried out at sites and entities, it mainly carried out some checks with the help of local internal controllers on priority metrics at risk in the entities that contribute most. The local internal control network will be more heavily involved in level 2 controls from the second year of application of the CSRD.

Central internal control ensured that the controls at the level of consolidation of the central departments were carried out and documented to the expected level of requirement.

As some metrics are provided via reporting tools, the control system relied on automatic controls wherever possible, improving the formalisation of the controls carried out by the various contributors (e.g. explanation of significant changes).

To facilitate the appropriation of sustainability matters, the conclusions of the reviews carried out and the progress of the project in terms of internal control were presented at CSRD project steering committees. These committees include three members of the Executive Committee, namely the Executive Vice-President Finance, the Director of Human Resources and the Executive Vice-President of Governance and Organisational Development.

In addition, the double materiality analysis implemented as part of the CSRD was presented to the Audit and Risk and CAG-CSR Committees at a joint meeting in early 2025. The internal control system now includes an item on sustainability matters.

Details regarding the major groups of products and services offered by the Group, including its major geographic markets over the reference period, are provided in chapter 1 “Presentation of the Group and its results”, § 1.5.

The breakdown of the Group’s headcount is described in chapter 1 “Presentation of the Group and its results” § 1.4, and § 2.3.1.2.

The Group has no activity in the sectors listed by ESRS 2 in point 40b (fossil fuels, production of chemicals, weapons, cultivation and production of tobacco).

Since 1837, Hermès has been producing exceptional objects designed to last and be passed on. Moreover, with its craftsmanship savoir-faire, its exclusive distribution network and its creative heritage, Hermès integrates sustainability into all aspects of its business model, taking into account its product and service offering, its customers, geographical areas and relations with stakeholders.

Hermès ensures that all its products are responsibly manufactured, using sustainable materials, with a frugal use of materials, an approach based on craftsmanship and by applying the principles of the circular economy in its production approach as much as possible. The Company is also working to reduce the carbon footprint of its activities, contributing to the transformation of its supply chain practices and favouring less emitting practices in its direct operations (i.e. energy efficiency, adoption of renewable energy, optimisation of logistics transport chains, etc.).

The Company strives to meet the growing expectations of its customers in terms of transparency on ethics and the environment. Since 2022, it has been gradually providing them with information on the environmental footprint of its products.

Present in 45 countries, Hermès’ commitment to sustainability is global, yet adapted to local specificities. Hermès is mainly present in France (62% of its own workers, and 60 production sites). In each region where the Company operates, it works with local partners to promote sustainable practices, support a community presence and comply with local environmental regulations.

Hermès maintains close relationships with its internal and external stakeholders to achieve its sustainability objectives, objectives that are based on a long-term approach and the building of trust. The procedures for dialogue with Group employees are described in § 2.1.3.2. For external stakeholders, dialogue is fuelled by long-term relationships of trust. An example of this is the average length of relationships between Hermès and its top 50 direct purchasing suppliers, which is 19(2) years. The Company undertakes not only to engage in regular dialogue with its suppliers, customers, employees and local communities, but also to contribute, at its own level, to the adoption of more responsible practices (e.g. raising awareness among its customers, supporting and transforming its suppliers’ practices, etc.).

Hermès regularly assesses its products and services to ensure that they are consistent with its sustainability objectives. Sustainability, the quality of the raw materials used and the quality of the savoir-faire are intrinsic characteristics of Hermès’ products. This assessment includes, for example:

Products and objects:

• ◆an analysis of the environmental impact of the raw materials used (for example: leather, cashmere, silk, cotton, precious metals);
• ◆management of the environmental footprint throughout the product life cycle;
• ◆the implementation of eco-circular manufacturing practices whenever possible (including reuse and recycling);
• ◆limitation of unnecessary single-use plastics (particularly in product packaging and for packing items).

Significant markets and customer groups:

• ◆a range of products that can be based on a circular approach (for example, petit h, upcycled leather goods or ready-to-wear items, packaging for perfume and beauty products);
• ◆an after-sales service and repair service at each point of sale, and monitoring of the number of repair operations in various markets;
• ◆raising customer awareness of sustainable consumption practices by training sales associates in  sustainable development issues.

Backed by a history shaped by six generations, Hermès evolves with the times while always respecting tradition, transmission and innovation. Thus, true to its values of freedom, demanding savoir-faire and authenticity, the House of Hermès business model includes several strategic pillars focused on sustainability issues:

• ◆women and men committed to a “family spirit”: craftsmanship values and high standards drive employees at Hermès, which undertakes ambitious social programmes to guarantee the sustainability and transmission of the savoir-faire essential to the creation of its objects;
• ◆exceptional and sustainable materials: the House’s emblematic objects are made from raw materials, mainly of natural origin. Hermès limits its use of virgin raw materials by promoting their frugal use. It sources resources whose origin is controlled and certified, and even by participating directly in the creation of social and environmental “best practices” in certain sectors (e.g. participation in the construction of the SAOBC standard(3) in the ostrich sector);
• ◆craftsmanship production and a moderate and controlled environmental impact: Hermès is one of the lowest greenhouse gas emitters in the CAC 40(4) and is committed to reducing its carbon footprint (SBTi reduction trajectory) and to even more rigorous management of water and waste resources;
• ◆a balanced and long-term relationship with its supply chain: thanks to long-standing relationships - some of which are more than 60 years old - Hermès exercises its duty of care with regard to the social, ethical and environmental practices of its partners. It supports and promotes changes in practices in order to prevent harm to the environment and fundamental freedoms;
• ◆a strong local footprint, particularly in France: France is the heart of the Group’s production, source of 74% of its production, and location of its 60 production sites.

• ◆Climate change adaptation: adapting to the consequences of climate change remains a major challenge. Hermès is working on plans to adapt its direct operations and those in its value chain to the major transitions brought about by the climate issue and by the physical hazards already observable, by integrating resilient and sustainable practices.
• ◆Measurement and restoration of biodiversity: due to its strong relationship with materials of natural origin, Hermès is committed to the SBTN (Science-Based Targets for nature) organisation in order to better understand its impacts on nature, with the aim of participating in preservation projects and to improve practices. In addition, restoration and renaturing projects aim to prepare, in the long term, so-called “nature-positive” operations with a positive net impact on biodiversity.
• ◆Transition to a circular economy: Hermès is committed to a more circular manufacturing model, where material resources will be reused and waste minimised. This transition requires investments in new technologies and gradual changes in production methods, to maintain the exceptional quality expected by its customers.

• ◆Mitigation of the carbon emissions of Hermès and its value chain:  initiatives include investments in projects to implement regenerative agricultural practices in the upstream value chain thus making systems more resilient, in addition to those described in § 2.1.2.1.2.
• ◆Environmental information, labelling and raising customer awareness: driven by the requirements of the French AGEC law, the gradual rollout of environmental labelling makes it possible to inform consumers and stakeholders of the environmental footprint of Hermès objects. Firstly, it commits the House to better understanding its impacts, but through transparency and awareness-raising, it also informs customers.

In 2015, Hermès developed a strategic framework to address the social, environmental and societal issues identified. For nearly a decade, this framework has structured its sustainable development actions around three axes and six pillars (see figure below).

This framework is based on a premise: “all artisans of sustainable development”. It constitutes the sustainable development reference framework applicable to all Group employees and entities. This strategic framework is based on appropriation and implementation of topics at a collective level, a key factor in its sustainability.

The results obtained annually through the rollout of this approach are presented in the Group roadmap in § 2.1.1.6.

Hermès stands out on account of a highly integrated upstream and downstream value chain. The Group continues its efforts to ensure the traceability and transparency of its sources of supply by working closely with a large network of direct (raw materials) and indirect (other goods and services) suppliers. Details of the production, manufacturing and distribution operations managed by the Group are set out in chapter 1 “Presentation of the Group and its results”, § 1.4.

The Group’s interactions with its stakeholders are rich, diversified and take many forms. The following matrix illustrates the various stakeholders with which the Group interacts in its value chain and the associated communication methods:

All of these stakeholders are included in the Company’s due diligence and materiality assessment processes (IRO 2 - SBM3).

The table below summarises the main forms of exchange and dialogue undertaken with each of these stakeholders:

The Group maintains balanced relationships with its stakeholders. They are particularly involved in the context of the development of joint projects benefiting both the Company and its communities (i.e. regional mobility plans, university chairs with academic bodies, supplier decarbonisation plans, etc.). Whenever necessary, the conclusions of this ongoing dialogue with the Group’s stakeholders are shared with the governance bodies.

Creative and commercial freedom, a value at the heart of the Group’s strategy, guides Hermès’ business model. Hermès is deeply committed to dialogue with its stakeholders and has remained an independent creative house since 1837. To preserve its identity, these inherent values determine the choices and orientations of its business model.

Thus, several areas of its strategy  demonstrate this virtuous balance which favours the interests of its stakeholders:

• ◆developing a carbon emission reduction trajectory for emissions generated by its activities;
• ◆maintaining its craftsmanship production primarily in France, and supporting local employment in regions where it is located;
• ◆cultivating close relationships with suppliers, helping them in their development and improving management of social and environmental issues in the value chain.

A responsible family business, true to its humanist values, Hermès offers its employees a collective and human-centered project. As part of its strategy and business model, Hermès pays particular attention to dialogue with its employees (the term employee here refers to the Company’s employees, and excludes non-salaried staff). Employees are key stakeholders in the Group’s strategy. Hermès strives to maintain local dialogue at all levels, a fundamental element of the Group’s oral culture, through the sharing of top-down information and the opportunity for each employee to express their point of view and share their ideas. These opportunities for dialogue, described in § 2.1.3.1.4 and below, inform and enlighten the House’s strategy.

As indicated in § 2.1.3.1.4, formal interviews between employees and managers (annual interview, mid-year interview) are an opportunity for a structured dialogue that is complementary to the existing local managerial relationship, thus allowing an adaptation of development pathways to the needs of employees.

Thanks to the Hermès Hears survey, conducted every two years, Group employees directly assess their well-being and the quality of their working conditions. This feedback not only identifies areas in which Hermès could make improvements, but also helps in maintaining and reinforcing what is working. Strategies may be adjusted accordingly. In France, employee representatives are involved in the process via the Social and Economic Committees.

In accordance with regulations and as part of the Group’s ethics approach, a mechanism for reporting incidents and complaints (H-Alert!) completes the system.

Human resources governance makes it possible to integrate employee feedback into the social strategy thanks to an HR Council composed of four representatives of the Company’s different divisions - upstream, métiers, Retail and support - as well as representatives of the Group’s human resources department.

In France, engagement with the Company’s own workers and their representatives revolves around:

1. ◆an annual day, the “H-Day”, which takes place with all employee representatives and includes time for training, inspiration, information and dialogue;
2. ◆a committee for monitoring dialogue with Hermès’ employees, composed of union representatives on the Group Works Council and management representatives, and which provides an opportunity to take stock of dialogue with Hermès’ employees;
3. ◆the Group Works Council, which brings together employee representatives and general management representatives once a year. This meeting is an opportunity to draw up an overall assessment of the past year (social, industrial and financial assessment) and to present the outlook for the coming year, while reaffirming the House’s strategic vision.

In all countries where Hermès operates, formalised procedures are followed, in accordance with local practices. For example, in the United States monthly Employee Resource Groups are organised, while in Spain, surveys relating to the social climate take place every two months.

Listening to the expectations of workers in the value chain is at the heart of the process of supporting Hermès’ suppliers towards more responsible practices. Such an approach enables Hermès to adapt its control practices by focusing on the highest priority issues (safe and pleasant working conditions, decent compensation, etc.). The H-Alert! ethics whistleblowing system is accessible to all workers in the value chain, and makes it possible to prevent and identify possible situations detrimental to respect for human rights identified directly by the employees of its partner companies. In addition, a more direct dialogue with workers in the Group’s value chain can take place through interviews during field audits. More information is available in § 2.1.3.2.4.

Collecting and listening to the point of view of workers in the value chain therefore has a direct influence on the Group’s sourcing strategy and practices. If practices are identified where these workers are at risk, Hermès initially seeks to support suppliers in resolving any problems identified, however if necessary, it may decide to suspend its supplies in the supply chain concerned, thus modifying its value chain, or even its product offering.

Dialogue with the local communities neighbouring Hermès’ sites and activities is mainly carried out through their representatives (public authorities, elected representatives, associations, representatives of indigenous communities). It focuses in particular on the challenges of employment, environmental protection, skills development, mobility, the provision of essential services (local shops, associations, etc.) and economic development. These methods of dialogue are detailed in § 2.1.3.3.4.

The Group’s local presence strategy, which is at the heart of its business model, is based on this dialogue with local stakeholders. Hermès constantly adapts the solutions and initiatives it develops (training courses, École des Savoir-Faire, biodiversity projects, etc.) through sustained dialogue with the communities affected by its activities.

The Hermès Group pays particular attention to any concerns and expectations of its customers. In this respect, the direct relationship between the customer and the sales associates is often a preferred channel. Although mainly intended for product quality and customer experience, the dedicated consumer telephone service can also make it possible to capture more specific expectations related to the safety of products and objects, in order to improve the customer experience, as well as the characteristics of the products and services offered by the Group when necessary (see chapter 1 “Presentation of the group and its results”, § 1.4. for the description of the Group’s activities).

Details of the mechanisms for customer dialogue and feedback are presented in § 2.1.3.4.4.

As required by the CSRD directive, Hermès has undertaken its first double materiality analysis, making it possible to identify the priority material impacts, risks and opportunities (IRO) for the Company, according to its business model and specificities.

This work was carried out with the assistance of a leading consultancy firm, in particular to ensure the proper interpretation of the texts for this first financial year.

The governance set up for the Group’s first double materiality analysis is summarised in the table below:

After delineation of the scope (see § 2.1.1.1.1 - mapping of stakeholders, identification of the value chain, etc.), the double materiality exercise was carried out according to the following methodology:

• 1.step 1: identification of ESG issues based on the CSRD, as well as, where appropriate, issues specific to Hermès and breakdown into impacts, risks and opportunities (IRO);
• 2.step 2: assessment of the materiality of the IROs, i.e. their materiality given the Group’s activities (rating exercise);
• 3.step 3: consolidation and validation of the results of the double materiality analysis to identify the Hermès Group’s reporting obligations.

This work was carried out with the assistance of a leading consultancy firm, in particular to ensure the proper interpretation of the texts for this first financial year.

Step 1 consisted in identifying sustainability issues based on:

• 1.topics previously identified by the Group;
• 2.information specific to the Group’s various activities;
• 3.the Group’s business model and value chain; and
• 4.sustainability topics, sub-topics and sub-sub-topics listed by the ESRS (AR 16).

It should be noted that this identification phase led to exclusion of the following topics and sub-topics, considered as not relevant for Hermès with regard to its business model. As a result, no IROs were extracted from the following themes:

Impacts, risks and opportunities were identified using a top-down approach, which adds “Group” IROs to IROs that may only concern certain métiers or very specific sectors. The Company’s entire value chain was taken into account in the approach to identifying IROs.

The list of impacts, risks and opportunities was drawn up by capitalising on the existing situation. It is based on the mapping of the Group’s major risks, on the mapping of stakeholders, as well as the list of ESG issues from the latest Non-Financial Performance Statement (NFPS).

In order to separate ESG issues into impacts, risks and opportunities, several areas were examined:

• ◆For ESG risks and opportunities, the areas examined include regulation, employees, customers, transition costs and business continuity;
• ◆For impacts, the areas are human rights, health and safety, the environment and socio-economic impacts.

After defining the priority ESG issues for the Group as well as the associated IROs, Hermès consulted the main stakeholders in order to discuss the rating of these issues in terms of impacts, risks and opportunities.

The assessment of the materiality of the IROs is based on dialogue with stakeholders. In this regard, several groups of key internal contributors were identified and interviewed in scoring workshops.

A panel of external stakeholders was consulted on the results of the analysis. Thus, between June and September 2024, more than 40 of the Group’s external stakeholders rated the major sustainability matters through an online survey. The results collected and then weighted supplemented the internal assessment results.

As indicated in ESRS 1, the financial materiality of the risks and opportunities was assessed according to two regulatory criteria:

• ◆potential magnitude: magnitude of the financial effects of risks and opportunities related in particular to natural, intellectual (organisational), human, social and relationship capitals on the undertaking’s financial statements;
• ◆the likelihood that these risks and opportunities may occur in the short, medium or long term.

Quantitative thresholds were defined depending on the impacts, including cash flows, access to capital and its cost. This work aims to define the potential scale of the financial impact. The risk scales are identical to those used by the audit and risk management department to map the Group’s operational risks.

The financial materiality threshold for risks and opportunities was set by the Project Committee at “strictly greater than 2.5” on a scale of 1 to 4, with 1 representing moderate financial materiality and 4 representing significant financial materiality. This threshold was approved by the Internal Steering Committee, due to its relevance in relation to:

• ◆consistency with the Group’s CSR strategy, in particular previous materiality analysis exercises;
• ◆the expectations of the Group’s stakeholders.

The analysis carried out, in accordance with the recommendations of the Project Committee, stands out for its objectivity and its prudent approach. It demonstrates the financial strength and sustainability of the business model, with a limited number of IROs having significant financial materiality.

As indicated in ESRS 1 Annex 3.4, the materiality of negative impacts is assessed according to two criteria:

• ◆the severity is determined based on the following factors:
  • ●the scale of the negative impacts on people or the environment,
  • ●the scope of negative impacts on the environment and people,
  • ●the irremediable character (concerns only negative impacts);
• ◆the likelihood, with short-, medium- and long-term time horizons (similar to financial materiality). It should be noted that likelihood only applies in the event of a potential impact.

The rating of positive impacts is based on the same calculation since their severity (or “scale”) and likelihood of occurrence are considered.

The severity score is obtained by taking the higher of the two scores: severity or scope. The irremediable character criterion is no longer taken into f positive impacts.

Hermès has structured its impact rating methodology according to the following two principles:

• ◆impact rating adopts a maximisation approach. Regulations recommend considering all possibilities and favouring the “scenario” that leads to the maximum IRO score, in order to ensure the comprehensiveness of the list of material topics. However, it is crucial to remain in a realistic scenario;
• ◆the human rights impact rating: only the rating awarded to severity is taken into account in the assessment of these impacts. The rating assigned to the likelihood of occurrence is not taken into account in the case of either positive or negative human rights impacts.

Like financial materiality, the impact materiality threshold was set by the Project Committee at “strictly greater than 2.5” on a scale of 1 to 4, with 1 representing a moderate impact and 4 a major impact. This threshold was approved by the Internal Steering Committee, due to its relevance in relation to:

• ◆consistency with the Group’s CSR strategy, in particular previous materiality analysis exercises;
• ◆the expectations of the Group’s stakeholders.

The impact materiality threshold is aligned with the financial materiality threshold to ensure consistency in the analysis. This consistency between the materiality thresholds ensures exhaustive consideration of the main issues and improved clarity for the results.

The materiality thresholds may be updated by the Group each time the double materiality exercise is repeated.

The rating of the various impacts, risks and opportunities was based on the knowledge of the stakeholders interviewed during workshops organised with these various stakeholders. These assessments were supported by sectoral studies specific to the IROs assessed as well as through the risk projection and study exercises previously carried out by the Group.

The thresholds used to assess the time horizon are aligned with the requirements of ESRS 1 (excluding items specific to an ESRS), according to the following methods:

The scale used to assess materiality was chosen for general consistency with the practices of the risk department: a scale of 1 to 4.

The Group plans to update the assessment of the relative importance of impacts approximately every two years, barring significant changes (new external factors, change in the organisational structure, etc.).

The double materiality exercise highlighted the materiality of 38 IROs. These structure the House’s sustainable development policy, in line with the strategic framework previously defined.

The solidity and resilience of Hermès’ business model as well as the agility of its strategy (see § 2.1.1.5.1) enable the Group to address the issues identified as material. In particular, with regard to risks and opportunities, the current financial effects do not have a very significant impact on financial performance or cash flows.

Hermès has defined the material information to be published in strict compliance with the recommendations in Annexes C and E of ESRS 1. In particular, these annexes present a decision-making tool for determining the material information on the basis of the material IRO issues.

The list of disclosure requirements that Hermès addresses in its sustainability report is detailed below:

Report on the certification of sustainability information and verification of the disclosure requirements under Article 8 of Regulation (EU) 2020/852

(For the year ended 31 December 2024)

This is a translation into English of the statutory auditor’s report on the certification of sustainability information and verification of the disclosure requirements under Article 8 of Regulation (EU) 2020/852 of the Company issued in French and it is provided solely for the convenience of English speaking users.

This report should be read in conjunction with, and construed in accordance with, French law and the H2A guidelines on “Limited assurance engagement - Certification of sustainability reporting and verification of disclosure requirements set out in Article 8 of Regulation (EU) 2020/852".

To the Shareholders,

This report is issued in our capacity as statutory auditor of Hermès International. It covers the sustainability information and the information required by Article 8 of Regulation (EU) 2020/852, relating to the year ended December 31, 2024 and included in section 2.1 «Sustainability information» in the group management report.

Pursuant to Article L. 233-28-4 of the French Commercial Code, Hermès International is required to include the above mentioned information in a separate section of the group management report. This information has been prepared in the context of the first time application of the aforementioned articles, a context characterized by uncertainties regarding the interpretation of the laws and regulations, the use of significant estimates, the absence of established practices and frameworks in particular for the double-materiality assessment, and an evolving internal control system. It enables to understand the impact of the activity of the group on sustainability matters, as well as the way in which these matters influence the development of the business of the group, its performance and position. Sustainability matters include environmental, social and corporate governance matters.

Pursuant to Article L.821-54 paragraph II of the aforementioned Code our responsibility is to carry out the procedures necessary to issue a conclusion, expressing limited assurance, on:

• ◆compliance with the sustainability reporting standards adopted pursuant to Article 29 ter of Directive (EU) 2013/34 of the European Parliament and of the Council of 14 December 2022 (hereinafter ESRS for European Sustainability Reporting Standards) of the process implemented by Hermès International to determine the information reported, and compliance with the requirement to consult the social and economic committee provided for in the sixth paragraph of Article L. 2312-17 of the French Labour Code;
• ◆compliance of the sustainability information included in section 2.1 “Sustainability information” of the group management report with the requirements of L. 233-28-4 of the French Commercial Code, including ESRS; and
• ◆compliance with the reporting requirements set out in Article 8 of Regulation (EU) 2020/852.

This engagement is carried out in compliance with the ethical rules, including independence, and quality control rules prescribed by the French Commercial Code.

It is also governed by the H2A guidelines on “Limited assurance engagement - Certification of sustainability reporting and verification of disclosure requirements set out in Article 8 of Regulation (EU) 2020/852".

In the three separate sections of the report that follow, we present, for each of the sections of our engagement, the nature of the procedures that we carried out, the conclusions that we drew from these procedures and, in support of these conclusions, the elements to which we paid particular attention and the procedures that we carried out with regard to these elements. We draw your attention to the fact that we do not express a conclusion on any of these elements taken individually and that the procedures described should be considered in the overall context of the formation of the conclusions issued in respect of each of the three sections of our engagement.

Finally, where deemed necessary to draw your attention to one or more disclosures of sustainability information provided by Hermès in the group management report, we have included an emphasis of matter paragraph hereafter.

As the purpose of our engagement is to express limited assurance, the nature (choice of techniques), extent (scope) and timing of the procedures are less than those required to obtain reasonable assurance.

Furthermore, this engagement does not provide guarantee regarding the viability or the quality of the management of Hermès International, in particular it does not provide an assessment, of the relevance of the choices made by Hermès International in terms of action plans, targets, policies, scenario analyses and transition plans, which would go beyond compliance with the ESRS reporting requirements.

It does, however, allow us to express conclusions regarding the entity’s process for determining the sustainability information to be reported, the sustainability information itself, and the information reported pursuant to Article 8 of Regulation (EU) 2020/852, as to the absence of identification or, on the contrary, the identification of errors, omissions or inconsistencies of such importance that they would be likely to influence the decisions that readers of the information subject to this engagement might make.

Any comparative information that would be included in the group management report are not covered by our engagement.

In accordance with French law no. 2017-399 of 27 March 2017 relating to the duty of care of parent companies and contractors, the Group has drawn up a vigilance plan to identify risks and prevent serious violations of human rights and fundamental freedoms, and the health and safety of people and the environment, resulting from its activities as well as the activities of its subcontractors and suppliers. 

Since 2023, the Group published its vigilance plan in a stand-alone document, accessible on its institutional website.(66) The measures required by the duty of care are presented in detail there. They are summarised below. 

The Compliance and Vigilance Committee oversees the vigilance plan. It meets quarterly in order to: 

define compliance guidelines;

recommend preventive actions;

manage and roll out employee awareness and training campaigns;

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 independent firm. 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. 

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 of the elements of the universal registration document that meet these recommendations are indicated in the cross-reference table below.

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 and opportunities 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, this group published a transparency framework, to which Hermès is aligned by publishing the information required in this Non-Financial Performance Statement. The details of the alignment with this framework are presented in the table below:

Voluntarily, without waiting for the implementation of the Convention on Biological Diversity as a French national biodiversity strategy or other binding mechanism, Hermès has launched a reflection with its partners, such as WWF France, in order to generate concrete responses by companies under the Kunming-Montreal Global Biodiversity Framework, in particular on objectives for Hermès’ activities. They are summarised in the table below:

The National Biodiversity Strategy for 2030 (SNB) is the expression of France’s commitment to the Convention on Biological Diversity for the period 2022-2030, succeeding two previous strategies covering the periods 2004-2010 and 2011-2020. It also falls within the framework of the European Green Deal. Its major objective is to reduce pressures on biodiversity, protect and restore ecosystems, as well as initiate fundamental changes to reverse the trajectory of biodiversity decline. The philosophy of Hermès’ biodiversity strategy (train, collaborate, measure, act) is fully aligned with the four pillars of the SNB:

It was prepared with the assistance of the Chairman of the Supervisory Board, the CAG-CSR Committee and the Secretary of the Board, on the basis of the work and procedures carried out by the functional departments concerned. It was approved by the Supervisory Board at its meeting of 13 February 2025.

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 in June 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:

• ◆concerning corporate governance and the compensation of Executive Corporate Officers (AMF position-recommendation - DOC-2021-02 and AMF recommendation - DOC-2012-02);
• ◆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 and analyses, make it possible to adapt the systems in force each year with the aim of constant improvement.