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THE FRAMEWORK FOR ACTION

ORGANIZE TO TAKE EFFECTIVE ACTION TO PROTECT

THE ENVIRONMENT

Decentralized organization LVMH very rapidly organized to give shape to its commitment to the environment and to translate that commitment into useful and concrete actions. In order to act effectively, the Group has prioritized an organizational structure that is both decentralized and unified, one that unites without standardizing the different and very specific businesses. The LVMH Environment Department inspires the shared vision, defines the broad outlines for actions in all areas related to the preservation of natural resources, monitors compliance with the commitments made, and directs the global environmental reporting. It has implemented the LIFE program since its launch. As the real orchestra conductor , the Department serves as the interface between the Executive Committee and the Houses management teams, and coordinates cross-divisional initiatives. It also works to develop collaboration with the other div i- sions of the Group on environmental issues.

Composed of a dozen experts at present, the Environment Department places its expertise at the service of the Houses, helping them to succeed in their own green actions. It offers them useful infor- mation, practical tools and customized support by relying on a network of environment managers. These key officers are responsible for conveying, relaying and deploying the LIFE program within the management of their House. The network consists of around sixty women and men with a variety of backgrounds and positions, all of whom share a high level of environmental expertise. The Environment Department meets with them three times a year in an Environment Committee. These crucial moments for dialog and emulation are an opportunity to assess the progress of the actions taken, the results

obtained and the current projects, or to come and pass on best practices. They also allow the dissem- ination of best practices and the enhancement of collective expertise by inviting international special- ists to speak on issues related to the preservation of natural resources.

Mobilization of the Houses The Houses have incorporated the LIFE objectives into their road maps. Like the Group, several Houses have restructured their organization to support their environmental policy. Guerlain, for example, estab- lished a Sustainable Development Department in 2007 and a steering committee composed of 18 people from all businesses of the company. Each of them writes and deploys an action plan adapted to their site or department based on their area of expertise or targeting a specific annual objective. This organization can coherently cover all activities and provide both pragmatic and comprehensive responses. In June 2018, Guerlain took an additional step by making Director of Sustainable Development Sandrine Sommer a new member of its Executive Committee. With this symbolic appointment, the House affirms the integration of sustainable devel- opment at the center of its governance and its goal to strengthen its action in this area, particularly for the preservation of natural resources. Some Houses place the emphasis on networking in order to mobi- l ize their teams. This is the case for Louis Vuitton, which has entrusted its environmental strategy to a dedicated department. Approximately one hundred correspondents and local Green Teams representing the key positions for environmental performance relay its action at all sites and in all activities. In countries such as Japan, China, Italy and Switzerland,