in addition to repairing products, offers them a second life by bestowing them with a new appearance. More than ever in 2021, innovation played a key role in optimizing the Group s environmental impact: LVMH and Central Saint Martins signed a new partnership to create a research platform focused on regenerative luxury; Fendi, in part- nership with CSM and Imperial College London, explored the possibility of transforming lab-made keratin into fibers, then bio-based fur. Packaging followed a similar sustain- able design trajectory, with the aim of eliminating the use of plastic derived from fossil fuels by 2026. The use of Eastman molecular plastics recycling technologies is one way of achieving this goal, as Parfums Christian Dior did for the packaging of Dior Addict Lip Maximizer, released in summer 2021.

Collaborating for excellence in traceability

The aim of LIFE 360 is to ensure full traceability across all the Group s strategic supply chains, for each step from field to final product, with the goal of covering all sourcing channels with a dedicated traceability system by 2030. To achieve this goal, LVMH has developed new solutions tailored to each sourcing channel s specific features, and together with Prada Group and Cartier (a subsidiary of Richemont) announced the launch of the Aura Block- chain Consortium: a unique, global blockchain solution, open to all luxury brands worldwide to address shared challenges in responsible sourcing. LVMH has also chosen to participate in certification systems that ensure that ethical, environmental and social standards are met at each step of a material s processing, including GOTS (Global Organic Textile Standard) and RWS (Responsible Wool Standard) for cotton and merino wool, and RJC CoC (Responsible Jewellery Council Chain-of-Custody) certification for precious metals such as gold. Rigorous traceability is also key to being able to collect reliable data, accurately measure a product s environmental performance and share this information with customers, especially as the Group has set a target of ensuring each product is covered by an information system by 2030. Putting this idea into practice by making all its supplier data available online, Fendi achieved a very significant increase in its ranking in the Fashion Transparency Index in 2021. LVMH is also actively involved in initiatives currently underway in France and Europe aimed at introducing

labeling that shows the environmental performance of fashion products, and has joined forces with cosmetics stakeholders to develop a rating system for the environ- mental impact of beauty products.

Taking action for the climate

At the end of 2021, LVMH s new carbon trajectory was validated by SBTi (the Science Based Targets initiative). It is based on the following targets: reducing greenhouse gas emissions from energy consumption at its sites and stores by 50% by 2026 (baseline: 2019); and reducing Scope 3 emissions (raw materials, purchases, transport, waste, product use and end of life) by 55% per unit of added value by 2030 (baseline: 2019). The Group has identified a number of key vectors to achieving these targets, which are covered by specific action plans rolled out at all of its Maisons, including having all sites and stores use only renewable or low-carbon energy by 2026, shifting toward shipping more freight by sea and by road, and launching a green e-commerce program and a mate- rials innovation policy focused on Scope 3 emissions. In 2021, the climate roadmaps for the Group s Maisons were reflected in new policies on logistics, supply chains and packaging. Starting in 2023, Hennessy will transport four million bottles between France and the United States via sailing cargo ships through a partnership with Neoline, a maritime transport company; the Fashion and Leather Goods Maisons (Berluti, Christian Dior Couture, Fendi, Kenzo and Louis Vuitton) are focusing on certified or recycled materials with a reduced carbon impact, while Guerlain, Parfums Christian Dior and Givenchy offer refill- able or significantly lighter packaging: for example, refills for Christian Dior s fragrance Sauvage use less glass, reducing the related greenhouse gas emissions by 56%. In fall 2021, LVMH and SAVE Energies (France s second- largest buyer of biomethane) entered into a three-year partnership to replace the Group s fossil fuel consump- tion in France with green gas, allowing 14,000 metric tons of CO equivalent emissions to be avoided each year starting in 2023. At COP26, LVMH had the opportunity to present and share news of these achievements, along with the roll-out of regenerative farming practices, which, by improving soil quality, also help maximize its carbon capture potential.