LVMH

2 0 1 9 E n v i r o n m e n t a l R e s p o n s i b i l i t y R e p o r t

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A F R A M E W O R K F O R A C T I O N T O A C H I E V E E N V I R O N M E N TA L

E X C E L L E N C E T H E L I F E P R O G R A M

The normative framework

The LVMH Group sets itself apart through its continu-

ous quest for excellence. These efforts involve setting

the benchmark in ethical conduct, social responsibility

and environmental friendliness. Over recent years, the

Group has supported or signed up to a number of

international standards, including the United Nations

Global Compact (joined in 2003) and its Caring for Climate initiative, the Universal Declaration of Human Rights, the guidelines of the OECD, the Fundamental Conventions of the International Labor Organization,

the Diversity Charter, the 17 Sustainable Development Goals identified and pursued by the United Nations, the French National Biodiversity Strategy and the

Act4Nature charter of commitment launched in 2018 by the non-profit Entreprises pour l Environnement, the Kimberley Process, which is the international

certification scheme for rough diamonds, the CITES Convention on International Trade in Endangered

Species of Wild Fauna and Flora, and UNESCO s

intergovernmental scientific program Man and the Biosphere .

The Group has also set up its own internal standards,

such as the Environmental Charter adopted in 2001,

which is boosted by the LIFE strategic program

launched in 2011, the Code of Conduct adopted in 2009

and revised in 2017, the Supplier Code of Conduct drawn up in 2008 and revised in 2017, both of which are translated into more than 10 languages, and the

Animal-Based Raw Materials Sourcing Charter intro- duced in 2019 (see p. 52 to 54 of the 2019 Universal Registration Document).

The LIFE program

The LVMH approach to environmental responsibility

is structured by the LIFE (LVMH Initiatives For the

Environment) program, which identifies the nine core elements of the Group s environmental performance,

including product design, customer experience, trace-

ability of sourcing channels and the preservation of

critical skills. It also set quantitative targets for 2020

to improve the environmental performance across all

products, deploy sustainable sourcing channels, cut

greenhouse gas emissions and reduce the environ-

mental footprint of sites.

Since 2014, with the support of the Environment Department, all the Maisons have incorporated LIFE into the strategic plan they present every year to the

Group Executive Committee. This is their opportunity

to set out their action plan to achieve the four LIFE

2020 goals. Progress is monitored based on a set

of indicators, some of which are applied across the

Group, such as the Environmental Performance Index

(EPI), which calculates the environmental performance

of packaging (see p. 50). Others are specific, enabling the Maisons to take their individual operating methods

into account.

LIFE forms the backbone of the LVMH environmental

policy. The program has structured the Group s action

around a unified vision, a collective commitment and priorities shared by the Maisons with a long-term

perspective. As a result, the Maisons have been able to more effectively integrate environmental consid-

erations into their strategy and managerial processes.

LIFE structures the action that feeds into the Group s

four environmental ambitions to protect biodiversity,

contribute to the fight against climate change, make our products more sustainable and step up environ-

mental information and transparency.

In 2019, the Group organized two Future LIFE events

in Paris and New York, where it communicated on

the progress made toward the LIFE 2020 objectives and connect with specialists to start work to prepare

LIFE 2030.