LVMH 2020 . E n v i r o n m e n t

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T H E E N V I R O N M E N T : A T T H E H E A R T

O F T H E G R O U P S C R E A T I V I T Y A N D I N N O VA T I O N

IN 2020, THE GROUP S ENVIRONMENTAL RESPONSIBILITY POLICY TOOK CENTER STAGE AS A FRESH SOURCE OF INSPIRATION

AND INNOVATION FOR ALL EMPLOYEES. IT HAS HELPED OPTIMIZE THE ENVIRONMENTAL FOOTPRINT OF THE SITES, STORES

AND PRODUCTS OF EACH OF THE GROUP S MAISONS, WHILE PROVING THAT SUSTAINABILITY AND DESIRABILITY CAN GO HAND IN HAND.

The Group s program of environmental commitments, which set targets in 2016 under the LVMH Initiatives for the Environment (LIFE) program, was completed in 2020. Its track record shows a very substantial improve- ment in the carbon footprint of sites, stores and packag- ing, and greater supply chain accountability. These results, in conjunction with more than 30 years of experi- ence in driving environmental change, set the stage for LIFE 2020 s successor program, LIFE 360, under which all the Maisons aim to spur further progress. LIFE 360 is the Group s new environmental compass, guiding it into the future by defining action plans to be implemented by 2023, 2026 and 2030. This new program was jointly developed by the Maisons and involved dialogue with a number of sources: the LVMH Science Committee; several discussion sessions with young employees and students; the Future of Luxury Commission (launched in July 2020, whose members come from outside the Group and represent a range of disciplines); and LVMH Climate Week, which was held from December 8 to 11, 2020, offering the Group s 160,000 employees a week of dia- logue and talks with experts focused on climate and bio- diversity. LIFE 360 charts the course for the next 10 years, championing a new vision of luxury, one in which nature and creativity are inextricably intertwined, with products that epitomize the Group s environmental ambition.

Circularity, creativity and eternity

Part of what makes LVMH and its Maisons products so desirable is their eminent sustainability: products that are designed to last and preserve natural resources. In 2020,

LVMH accelerated its circular economy program. Life Cycle Assessments (LCAs) helped identify top environ- mental priorities for each product category and guide sustainable design choices. As an example, Louis Vuitton set itself the target of ensuring that 100% of its products are sustainably designed by 2025, laying down its com- mitment to various forms of circularity, including upcycling. Patou, Loewe, Kenzo and Dior are adopting sustainable design practices and promoting the use of responsible materials in their collections, from denim to leather. Material innovation is another powerful way to improve the environmental footprint of our products and packaging. Maison/0 the LVMH and Central Saint Martins incubator set up in 2017 to drive the emergence of breakthrough solutions explored new avenues for regenerative design in 2020, including jewelry lines made from biomaterials derived from yeast or lipstick made exclusively from recy- cled algae. In 2020, Ruinart transformed its packaging with the launch of a completely recyclable second skin case. Building on these achievements, LIFE 360 also aims to explore opportunities for circularity between Maisons, such as Nona Source, which lets Maisons exchange their unused fabric and material with one another.

Taking action to restore biodiversity

Nature is the ultimate source of LVMH s products, from inspiration to composition. At the end of 2020, the Group used geolocation databases to measure its pre- cise biodiversity impact so that we could target our action plans as effectively as possible, particularly through regenerative agriculture, which focuses on