LVMH 2019 . E n v i r o n m e n t

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E N V I R O N M E N T : A K E Y P R I O R I T Y F O R T H E G R O U P,

N O W M O R E T H A N E V E R

LVMH S ENVIRONMENTAL POLICY CONTINUES TO BE ROLLED OUT ACROSS EVERY ASPECT OF THE GROUP S ACTIVITIES. AS SEEN IN 2019, ENVIRONMENTAL

AWARENESS IS NOW AN INTEGRAL PART OF OUR WORK CULTURE. THIS CAN BE SEEN AT EACH MAISON IN THE FORM OF SPECIFIC INITIATIVES,

CONSTANT PROGRESS AND A DESIRE FOR CONTINUOUS IMPROVEMENT.

For nearly three decades, protecting the environment has been one of the cornerstones of LVMH s growth strat- egy. With the creation of an Environment Department in 1992, the 2012 launch of LIFE a comprehensive program organizing initiatives around a common vision and key priorities and the ambitious shared targets set in 2016 for 2020, the Group has also brought its 163,000 employ- ees on board in this endeavor. This shared ambition has united the entire Group around a common cause, embraced by its top leadership. Spearheaded by the Group Managing Director, today the LIFE strategy gives impetus to all the Group s Maisons and business lines, and helps LVMH stand out as a leader in sustainable luxury.

More sustainably designed products

In 2019, new progress was made to offer customers envi- ronmentally friendly products. Sustainable design is a key priority of LIFE 2020 and aims to reduce the envi- ronmental footprint of a product throughout its life cycle. It is now widely applied within the Maisons in a growing number of fields: design, composition, raw materials, manufacturing methods, packaging, shipping, sales, advertising and end-of-life recycling. Today, sustainable design is also applied to furniture and advertising materials used at points of sale and in event planning. Employee skills have also grown thanks to training offered by the Environment Academy, such as a one- and-a-half-day session for people working in creative fields. In parallel, LVMH has continued to develop tools to facilitate decision-making and encourage their use. As an example, Edibox helps Maisons calculate the Environ- mental Performance Index of their products. On the Group intranet, the Matières à Penser (Food for Thought)

section lists around 450 sustainable materials and offers helpful tips and useful information on sustainable design. In 2019, a new recycling directory was launched, reflect- ing the Group s desire to develop the circular economy. Mindful of the importance of innovation in improving the environmental performance of products, LVMH pro- motes creativity at its Maisons and helps them identify disruptive solutions. One such initiative is the Sustaina- bility & Innovation in Luxury | Fostering Creativity pro- gram launched in 2017 with Central Saint Martins College of Art and Design.

Responsible supply chains

LVMH s products are made from natural raw materials, many of which are rare and precious. To preserve this capital, the Group has worked for many years to set up supply chains that meet the highest environmental stand- ards. Selected as a priority for LIFE 2020, this approach is anchored in the increasing use of certification for raw materials and suppliers. By the end of 2019, for example, 98% of diamonds and 82% of gold purchased by LVMH were certified. In 2019, the share of cotton sourced from sustainable supply chains rose from 15% to 54%. While placing the emphasis on certification, the Maisons help guide stakeholders in their supply chains toward best practices using constantly fine-tuned assessment tools, increasingly frequent audits and tailored improvement plans. LVMH supports these initiatives through innovation. In 2019, for example, the Group unveiled its Animal-Based Raw Materials Sourcing Charter. This charter is the result of a long process of scientific research and collaboration between outside environmental experts and those of LVMH, its Maisons and its suppliers. The exhaustive char-