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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G O V E R N A N C E O F T H E LV M H G R O U P E N V I R O N M E N TA L P O L I C Y

A UNIFYING STRUCTURE

The Group Environmental Development Department is structured to unify without standardizing the environmental

policies put in place by the Maisons, whose challenges differ

depending on the business group (Wines & Spirits, Fashion &

Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, Selective Retailing and Other Activities). The Department is charged with formulating the Group s environmental strat-

egy, setting the frame of action (LIFE program), overseeing

the implementation of commitments, managing global envi-

ronmental reporting and coordinating Group-wide initiatives.

The Group Environmental Development Department acts as an intermediary between the Executive Committee and

the Maison s senior management. It also seeks to enhance

collaboration with other departments throughout the Group

on environmental issues.

The Group Environmental Development Department is made up of a dozen specialists who harness their expertise to support

the Maisons by developing foresight tools, impact measures

and stakeholder dialogue as well as providing tailored support.

It is backed up by a network of environment managers, who

are responsible for promoting, relaying and implementing

the LIFE program within their Maison. The network includes

around 60 people from a variety of backgrounds who all

have in common their considerable environmental expertise.

The Environmental Development Department meets in an Environment Committee three times a year.

The Group s executive management team coordinates the

action of the Environment, Audit, Internal Control, Operations, Purchasing, Social Development, Ethics & Compliance and Financial Communication Departments, which work together to raise awareness and drive progress within the Maisons,

especially in risk management and supplier relations regard-

ing the environment, social matters and integrity.

Within the Board of Directors, the Ethics and Sustainable Development Committee structures the approach to ethics and social, societal and environmental responsibility. In

particular, it analyzed the Group s non-financial risk map drawn up in 2018.

MAISONS STEP UP

The Maisons have incorporated the LIFE objectives into their road maps. Over recent years, they have put in place or

bolstered their own environment or sustainable development

departments. A number of Maisons have also set up bodies to specifically discuss environmental policy. For example, Guerlain established its Bee Committee, bringing together

Group employees and third party experts, to oversee and

challenge the initiatives implemented by the Maison as part

of its journey as a responsible luxury brand.

Certain Maisons have put in place a structure specifically designed to champion their environmental policy through-

out the world. This is the case at Louis Vuitton, which has

approximately 100 correspondents, often structured into

local Green Teams representing the key positions for envi-

ronmental performance, to relay its action at all sites and in

everything it does. In countries such as Japan, China, Italy and Switzerland, Louis Vuitton has also appointed CSR

ambassadors and in-store correspondents, known as Green

Advisors. This structure, among other things, earned Louis Vuitton the Butterfly Mark, awarded by Positive Luxury in 2018 for excellence in innovation, social and environmental responsibility, governance, and philanthropy. In order to

act more effectively, the Maisons often seek to gain insight

by setting up specific steering or working groups on issues