8

THE FRAMEWORK FOR ACTION

TO BE A PIONEER IN ENVIRONMENTAL

COMMITMENT

For nearly three decades, the Group has strived con- stantly to preserve the quality of our water, air, and soils, and to protect biodiversity and ecosystems. As the world leader in luxury, it must be exemplary. Its approach is therefore characterized by very stringent standards. It is underpinned by heavy financial com- mitment: in 2018, the company s purely environmental expenditure totaled 38.8 million, including 26.1 mil- lion in operating expenses and 12.7 million in invest- ments. The LVMH environmental policy was defined in an Environmental Charter signed by Bernard Arnault in 2001, structured around five vectors:

achieve a high level of environmental performance; generate collective commitment; optimize the management of environmental risks; incorporate the environment into product design; be engaged and act beyond the Group.

In 2012, this policy inspired the development of the LIFE program. In 2008, the Group also developed Codes of Conduct intended to frame the practices of employees and suppliers. In addition to these found- ing texts, new, national and international voluntary commitments form the framework for the environ- mental approach of LVMH. For example, the Group joined the United Nations Global Compact, estab- lished to promote the civic responsibility of busi- nesses, and the Caring for Climate program which goes hand in hand with the Compact. LVMH also supports the Universal Declaration of Human Rights, the OECD Guiding Principles, the

International Labor Organization s Fundamental Conventions, the Kimberley Process (an international system for certification of rough diamonds dating from 2003), and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). One of the primary commitments of LVMH is its con- tribution to the 17 Sustainable Development Goals (SDG) established on September 25, 2015, in conjunc- tion with the UN General Assembly, by the leaders of 193 countries. These goals, defined in 169 targets, are designed to guarantee the fate of future generations, by solving the problem of climate change. In July 2018, the Group once again demonstrated its proactive approach by signing a charter of commitments within the context of Act4nature, launched by Entreprises pour l environnement (EpE), the French association of businesses for the environment. Ten of these commit- ments are collective and should allow for the incorporation of the issue of biodiversity into all activi- ties of the signatory companies, from governance and strategy to the most concrete operations so that they make a net positive contribution to nature. Each com- pany also commits to implementing new actions adapted to its businesses. By participating in this action for progress, LVMH will contribute to prepara- tions for two major deadlines in 2020: the World Congress of the International Union for Conservation of Nature to be held in Marseille, France, and the COP15 of the Convention on Biological Diversity organized in Beijing, China.

Strong contribution to the objective Contribution to the objective

CONTRIBUTION OF THE LIFE ENVIRONMENTAL PROGRAM TO SUSTAINABLE DEVELOPMENT GOALS (SDG)

LIFE program principles

1. Environment incorporated in design 2. Secure access to strategic raw

materials 3. Traceability and compliance

of the raw materials and products used

4. Suppliers environmental and social responsibility

5. Preservation of critical skills 6. Reduction of activity-related

CO2 emissions 7. Environmental excellence

8. Product lifetime and reparability

9. Ability to answer customers questions