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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INCREASINGLY STRINGENT REQUIREMENTS

In September 2019, the Group unveiled its Animal-Based Raw Materials Sourcing Charter. It was the fruit of a long

process of scientific research and collaboration between the Environment Department, the Maisons and their suppliers. It covers the wide and complex range of issues related to

sourcing fur, leather, exotic leather, wool and feathers. Widely

distributed throughout the Group to over 30,000 employees, the Charter sets a new framework of commitments for 2020

and 2025, built around three objectives: - Ensure visibility along the whole sourcing channel to

achieve traceability of origin and in-depth knowledge of

the supply chains.

- Obtain concrete guarantees related to animal welfare by

adopting the most demanding certification systems and

end supplies from value chains that have not demonstrated

willingness to improve welfare practices.

- Ensure respect and support for local communities while

preserving the environment and its biodiversity through-

out the different stages of each of the animal-based supply

chains.

By 2025, the Group will be in a position to guarantee full

traceability back to the country of origin, and even to the farm

in the case of farmed fur, and satisfy the most demanding

standards in terms of animal welfare for all its raw materials.

LVMH is also striving to reduce its environmental impact and

boost the livelihoods of local populations.

INNOVATING AND SUPPORTING RESEARCH TO CONTINUOUSLY IMPROVE FARMING PRACTICES

As awareness of animal welfare and the desire to safeguard wildlife carry more and more weight in public opinion, the

Group continues to conduct research in collaboration with

specialists to enhance its practices. For example, LVMH

develops standards in areas where there currently are none,

innovates to identify new raw materials that meet the same

stringent environmental and social requirements, assesses

the conditions required to enable wildlife farms to contribute

to protecting the species, and implements pilot projects and research projects to enhance understanding in the field.

In 2020, as part of the new animal welfare charter, the Group

launched two projects one on the economic impact of marketing exotic skins on the local population in Indonesia

and another on free-range Orylag rabbit farming in France.

These projects will be assessed by a scientific committee made up of six independent experts using the principles set

out in the charter.

Fashion & Leather Goods prioritizing animal welfare

The Fashion & Leather Goods Maisons use animal-based materials. In addition to its creative craftwork, the Group works with sourcing channels that effectively safeguard animal welfare concerns as part of its efforts to achieve product excellence.