LVMH 2018  .  Environmental Report

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Manufacture products that withstand the passage of time Increasing the lifespan of products is another way to reduce their environmental impact. The Houses of the LVMH Group strive to achieve this goal, backed by a major asset: their extremely high quality standards, intrinsic to the luxury goods industry and an essential aspect of their activities. To extend the use of the products, after-sale ser- vices are also appearing, such as the one set up by Loewe to maintain and clean the leather and its ready-to-wear items. For perfumes and cosmetics, the Houses are also developing the concept of refillable packaging. More than 80% of the creams and serums of Parfums Christian Dior are marketed in this form, for example. For the cream Capture Totale alone, the House saves 600,000 liters of water and nearly 11.6 tons of waste per year. Refills also lie at the center of the Guerlain strat- egy, which offers its customers the opportunity for infinite refills of their bottles in the perfume foun- tains in its stores. In 2018, the House again illus- trated its desire to extend the longevity of its products as much as possible. Its Orchidée Impériale cream was dressed in an artisan porcelain jewel box crafted by the Bernardaud family estab- lishment, which has embodied the excellence of French porcelain for nearly one hundred and fifty years. This refillable box is the ultimate expression of more sustainable luxury.

Preserve traditional expertise To manufacture their products, the Houses of the LVMH Group and their partners rely on traditional, sometimes age-old, practices and processes. Some are directly linked to the natural resources. This is the case for the methods of growing and picking unique flowers, such as the tuberoses, roses or irises in the Perfumes & Cosmetics sector, the wine-grow- ing techniques in the Wines & Spirits segment, and tanning for the fabrication of Fashion & Leather Goods items. The preservation of this critical expert ise is vital in making high-quality products. The Houses therefore work to protect their long- term survival by ensuring they are passed on and modernized. In France, the barrels of La Tonnellerie de La Sarrazine in Cognac, where the Hennessy brandies age, are therefore made and repaired by hand by master -coopers. They work as their prede- cessors did in the 18th, 19th and 20th centuries, using oak from sustainably managed forests which are PEFC™-certified. In Spain, the incomparably supple and soft Loewe leathers are the fruit of the ancestral expertise of the tanners in the Cordero Entrefino region. However, they also owe their exceptional quality to innovative processes that have improved their environmental profile. In China, the leaves from the Pu er tea trees, the oldest tea in the world, with which Cha Ling develops its line in cosmetic skin care, are cultivated in the thousand - year-old forests of Yunnan without fertilizers or pesticides. Harvested using traditional techniques, they are then used in the composition of the products designed by the House in its R&D labora- tories to place the virtues of the Pu er tree in the service of beauty.

TABLE TRACKING LIFE 2020 PRODUCT OBJECTIVES

Indicators Baseline 2018 Performance 2020 Objective

EPI of packaging

Perfumes & Cosmetics 8.32 8.55 (+4%) +10%

EPI of packaging

Wine & Spirits

Champagne 16.03

Cognac 10.6

16.88 (+5%)

11.9 (+12%)

+10%