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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FROM EXTRACTION TO THE POINT OF SALE THE NEED FOR VIGILANCE AT EVERY STAGE

In accordance with the LIFE 2020 objectives, all Watches & Jewelry Maisons are certified by the RJC (Responsible Jewellery Council). They harness this certification, applied in gold and diamond sourcing channels, to expand responsible

sourcing, from extraction to the point of sale. Bvlgari was the

first company in the industry to be granted Chain-of-Custody (CoC) certification, developed by the RJC for gold.

The aim is now to begin the process to create a similar certi-

fication in colored gemstones. That is why in 2015 the Group became a founding member of the Coloured Gemstones

Working Group run by The Dragonfly Initiative an initiative launched by the most prominent jewelry Maisons in France and around the world. It provides those involved throughout

the entire value chain, from extraction to setting, with open

source training materials and methods to assess ethical,

social and environmental practices.

A SPECIFIC FRAMEWORK OF ASSESSMENT FOR COLORED GEMSTONES

Several Maisons decided to audit all their suppliers across the

entire value chain. In 2019, Louis Vuitton, Bvlgari and Hublot

assessed 70% of their suppliers, which represents over 100 structures. Bvlgari, which accounts for a considerable

proportion of the Group s demand for colored gemstones,

last year conducted several visits to mines in Sri Lanka, India,

Mozambique and Zambia.

The aim is to work hand in hand with suppliers to spread posi-

tive social, ethical and environmental practices, especially in

the mines where workers are particularly exposed. The audits

focus on issues including the importance of guaranteeing the

highest safety standards and rehabilitating mines after the

closure of facilities.

These efforts are essential to support the industry and ensure

compliance with OECD due diligence guidance for responsi- ble supply chains in minerals or metals from conflict-affected and high-risk areas.

Watches & Jewelry shining a spotlight on colored gemstones

Sourcing of gold, diamonds and colored gemstones must meet criteria of excellence in terms of ethics, human rights and biodiversity.

70% In 2019, Louis Vuitton, Bvlgari and Hublot assessed 70% of their suppliers, which represents over 100 structures

98% of diamonds used by the Group s Maisons are RJC certified (2020 objective: 100%)