LVMH

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W O R K I N G F O R I N C R E A S I N G LY S T R I N G E N T I N T E R N AT I O N A L S TA N DA R D S

CONSIDERABLE INCREASE IN SUPPLY FROM SOURCES CERTIFIED BY THE MOST STRINGENT STANDARDS

As part of the LIFE 2020 program, LVMH set itself the objec- tive to ensure 70% of sourcing channels meet the highest standards by 2020, and 100% by 2025. In 2019, LVMH made further progress in respect of certified sourcing. The propor- tion of sustainable cotton purchased by the Group surged

from just 5% to 54%. Fendi now uses only sustainable cotton to produce its packaging and it has extended the approach

to other areas of its business. In certain channels, the target to

source 100% of materials from certified supplies has already been or is very close to being reached. This is the case for gold

and diamonds, which are sourced by the Group from suppli-

ers certified by the RJC (Responsible Jewellery Council), as well as grapes. The Group s wine-growing Maisons are

pioneering these efforts, with all vineyards in France and 58% of vineyards around the world having obtained sustainable

viticulture certification.

The Fashion & Leather Goods Maisons source leather from

LWG-certified tanneries that meet the standard developed by the Leather Working Group to encourage sustainable

and appropriate environmental business practices within

the leather industry. Since 2017, LVMH has been working to achieve LWG certification at the tanneries from which it

purchases its leather. Currently, 66% of the tanneries with which the Group works have been certified. This approach also applies to other animal- or plant-based raw materials, includ-

ing fur, for which the Group increasingly works with sources

that have certifications such as the Welfur European label.

TIGHTENING OR DEVELOPING NEW STANDARDS

LVMH takes measures to continuously improve its respon-

sible sourcing for natural materials. The Group pursues

a collaborative approach, taking part in various collective

projects and efforts to drive forward practices and facilitate the development of specific standards for materials where there currently are none. LVMH has been a member of

the Textile Exchange for many years and is involved in its

efforts to implement new standards, for example for wool

(RMS Responsible Mohair Standard and RWS Responsible

Wool Standard) and down (RDS Responsible Down Standard). The Group also supports the efforts to recog-

nize and align existing certifications to expand responsible sourcing in leather and cashmere at the RLRT (Responsible

Leather Round Table) and RCRT (Responsible Cashmere

Round Table). LVMH is also a member of the Sustainable

Fibre Alliance, an initiative that promotes animal welfare in cashmere production in Mongolia, recognized by the RCRT.

Where no certification exists and the Group has particular scientific expertise in the area, it initiates the development of standards. For example, LVMH was responsible for the first certification for crocodile leather in the market. The audit protocol was developed by a committee of world- renowned

experts, which included an independent third party.

Furthermore, LVMH has undertaken to have an independent

third party audit all the farms that supply its Singapore-based

Heng Long exotic leather tannery, according to the new

standard, so they can be certified by the end of 2020..

LVMH conducts a very ambitious natural raw materials sourcing policy that respects resources and the planet. The Group applies the highest standards and strives to go above and beyond regulatory requirements.