LVMH

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and monitoring the LIFE Sector objective - The fight against climate change and monitoring the LIFE Climate change objective

- Environmental management of sites and monitoring the

LIFE Sites objective

SELECTION AND SUITABILITY OF INDICATORS The environmental indicators published seek to report on

the Group s annual environmental results. They feed into

the environmental themes and data in accordance with the

provisions of articles L. 225-102-1, R. 225-105 and R. 225-105-1

of the French Commercial Code.

RAW MATERIALS

A set of indicators is applied to measure the quantity (in met- ric tons) of raw materials used to manufacture products:

- Wines & Spirits: grapes

- Fashion & Leather Goods: leather, wool, cotton, viscose, etc.

- Watches & Jewelry: gold, diamonds, colored stones, metals, etc.

- Perfumes & Cosmetics: palm oil derivatives, etc.

WATER CONSUMPTION

Water consumption is expressed in m3. This indicator enables

the amount of water consumed to be assessed by distin-

guishing between the following two requirements:

- Agricultural requirement: measurement of the amount of water used for irrigation (banned in France), and for sprin-

kling vines (to prevent frost, etc.). The water volumes used

are either measured directly or, more usually, estimated.

- Processing requirement: measurement of all non-agricul-

tural requirements (industrial and sanitary processes, clean-

ing, and watering green spaces, etc.). These types of water

consumption are generally measured.

WATER POLLUTION

Water pollution is expressed in metric tons of chemical oxy-

gen demand (COD). This indicator reflects the total annual flow discharged into the natural environment by sites, after treatment either on site or at a downstream facility. It applies

to Wines & Spirits, Fashion & Leather Goods and Perfumes

& Cosmetics only, where discharges of organic matter and

other pollution from effluents are material and directly relat- ed to operations.

WASTE PRODUCTION

All the waste produced is measured in metric tons. Waste taken into account includes hazardous and non-hazardous

waste produced by the sites during the reporting period.

The method to process the different categories of waste is

also identified so as to calculate a recovery ratio. The various channels for recycling waste include:

- Reuse: using the waste for the same purpose as the one for

which the product was initially intended.

- Recovery, which involves:

Recycling: waste is directly reintroduced into the pro-

duction cycle from which it came, in order to partially or

completely replace a virgin raw material, e.g. paper and

cardboard, and some plastics, etc.

Organic recovery: composting and controlled spreading

of organic waste in order to fertilize soil, etc.

Energy recovery: incinerating the waste and recovering

the energy generated by the combustion process in the

form of electricity or heat.

ENERGY CONSUMPTION

Energy consumption is expressed in MWh, and represents all

the types of energy used by sites (electricity, natural gas, fuel

oil, heavy fuel oil, steam, chilled water, butane-propane, and

renewable energy) and company cars.

GREENHOUSE GAS EMISSIONS

This indicator is expressed in metric tons of CO 2 equivalent

and corresponds to the greenhouse gas emissions due to

the energy used by the sites. It covers direct and indirect

greenhouse gas emissions.

As part of LIFE 2020, the Group is aiming to reduce its green- house gas emissions across scopes 1 & 2 by 25% in absolute terms between 2013 (base year) and 2020. Site performance (production, logistics and administrative sites) is calculated

by comparing data by site from 2013 and the reporting year. Store CO

2 performance is determined by multiplying the CO

2

efficiency of the reporting year (in metric tons of CO 2 eq./m2)