regenerating healthy topsoil and restoring ecosystem function. This approach is a core component of the Living Soils training program announced by the Wines and Spirits Maisons at the Vinexpo trade fair in February 2020. The Maisons also stepped up their efforts to limit synthetic inputs: since the end of 2020, all of their vine- yards in Champagne are herbicide-free. Since 2019, LVMH has been a partner of UNESCO s Man and the Biosphere intergovernmental scientific program aimed at taking action for global biodiversity conservation. The Group s first initiative under this partnership is being led by Guerlain: a five-year program to train and support women beekeepers in UNESCO-designated biosphere reserves with the aim of promoting and protecting bees and the essential role they play. With respect to animal biodiversity, the Group continued its research into improv- ing breeding practices by establishing standards where they did not yet exist and by carrying out research pro- jects, such as the cage-free rearing of Orylag rabbits in France, conducted under the aegis of the Group s Science Committee as part of its new Animal-Based Raw Materials Sourcing Charter.

Taking action for the climate

Our LIFE 2020 target of reducing energy-related C0 emissions by 25% was met in 2019. This was achieved in part thanks to the widespread adoption of in-store LED lighting, the primary focus of the Group s Scope 1 and 2 targets. A second major driver was the increased use of renewable energy, both at production sites and in stores, with the share of renewables in the Group s energy mix going from 1% in 2013 to more than 39% by the end of 2020. Sephora took an active role in this transformation: its San Francisco headquarters, distri- bution centers and all its stores in the United States now run on 100% green electricity. Carbon and envi- ronmental performance was pivotal to the design of new production sites: following the inauguration of La Manufacture (Celine s new manufacturing facility in the heart of Chianti, Italy) and Louis Vuitton s new leather goods workshop in Beaulieu-sur-Layon (BREEAM®-certified in 2019), Fendi laid the corner- stone for Fendi Factory in November 2020. The newly converted site, a study in glass nestled in the rolling Tuscan countryside, is aiming for LEED Platinum certi- fication. Innovation is a powerful driver of the Group s carbon trajectory: the program focused on sharing low-carbon technology with Bertrand Piccard s Solar Impulse Foundation made it possible to select new energy solutions that were unveiled during LVMH Climate Week in December 2020, in addition to those developed thanks to the LVMH Carbon Fund. In the

five years since the fund was created, a total of 23 projects have been launched, with 3.8 million raised in internal carbon fees, helping avoid 892 met- ric tons of CO2 emissions. In 2020, the Group refined the method used to calculate our carbon footprint, which amounted to 4.8 million metric tons of CO2 equivalent, 94% of which were Scope 3 emissions. This will serve as the baseline for LIFE 360 s new sci- ence-based carbon trajectory in line with the Paris Agreement, and its new change drivers: 100% renew- able or low-carbon energy on-site and in-store by 2026, a green e-commerce program and a carbon innovation policy focused on Scope 3.

Expanding our traceability policies

Demand is growing for better information about product traceability: customers want to know where products come from and the environmental aspects of how they are produced. Meeting this demand requires a thorough understanding of the chains of responsibility within a given supply chain, which certain types of certification can provide. The LIFE 2020 target of ensuring that 70% of supply chains are certified as meeting the highest standards was achieved for most materials by the end of 2020, although progress still needs to be made, particularly for cotton. Traceability objectives once again play a key role in LIFE 360, together with our Respon- sible Purchasing policy, and will benefit from new tech- nological advances, as seen for example in the Aura project, which offers downstream traceability for the luxury industry, while continuing to work on upstream traceability. Access to information on the origin and traceability of our products is another issue that the Maisons are tackling head on. Following the lead of Guerlain s Bee Respect platform, which posts all the information related to the life cycle of its products online, in 2020 Fendi decided to post the full list of its suppliers and the results of its audit program on its website. The Group is working to provide product-level environmental information, in particular by taking part in environmental labeling initiatives, both in France and in Europe, and is providing support for doctoral research to test the CARE (Comprehensive Accounting in Respect of Ecology) model at one of its vineyards, as part of its backing for the Comptabilité Écologique (Sustainable Accounting) Chair launched by Fondation AgroParisTech.