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obtained certification by NSF International. The Group is committed to have all farms that supply Heng Long certified under this standard by the end of 2020.

In this way, LVMH guarantees respect for the well-be- ing of the animals on these farms (handling, inter- vention of a veterinarian on site, quality of the living space and food) in addition to the traceability of 100% of the skins already in place. Work is also under way on animal well-being for the production of rep- tile and semi-exotic leathers. In 2018, for example, LVMH made its collaboration with the SARCA offi- cial. This collaboration will lead to the development of a diagnostic on the numbers of animals and the species used by the sector, a prelude to a study on improving practices. The Group sees in these initia- tives a significant, long-term investment for social, ethical and sustainable development that contributes to the protection of breeders and animal species that are otherwise threatened.

Wool Animal well-being in the wool supply chain is another priority for LVMH. The Group is working to improve sheep breeding practices, particularly by encouraging breeders of merino sheep in Australia to develop satisfactory and effective alternatives to mulesing. It is encouraging its suppliers to deploy alternatives and to adopt sustainable stand- ards like the Responsible Wool Standard (RWS). The Houses are aware of their responsibility in the well-being and conservation of the animals raised for their wool. This explains the commitment of Loro Piana to protect the vicuña. This small camelid typical in the high-altitude areas of South America is threatened with extinction. The House has taken action, finding outlets for its high-quality wool, importing breeding techniques from Australia, and even creating a natural park where 3,000 animals now live. These efforts have been successful. The herd has grown from 55,000 twenty years ago to 400,000 today. In Peru, Loro Piana strengthened its commitment to the vicuña by launching the Acqua project in mid-2018. The goal is to protect the water, which is becoming scarce in certain sec- tors because of global warming. This change has irreversible effects on the habitat of the vicuñas and, more generally, on the fauna, flora and local populations. As a result, Loro Piana decided to act to control the situation. In the region of Arequipa, the House has been working for several months to test different technical solutions designed to col- lect the water in reservoir basins and then to use it to irrigate pastures and create wet zones. The most efficient solutions will be rolled out on a large scale,

including in other regions of Peru. Several projects are also being monitored and deployed by LVMH and its Houses for the cashmere supply chain via the Sustainable Fiber Alliance and the Textile Exchange platform.

Leather With regard to the traditional leathers from cattle, sheep and goats, LVMH knows that the quality of the finished products is linked to good breeding and raising conditions, for the breeders and for the ani- mals. This explains the Group s commitment for many years to improve breeding and raising prac- tices in close collaboration with the relevant profes- sional organizations. This collective and participative approach promotes the dissemination of improve- ments and their validation by scientists. It also pre- vents a race to the bottom competition, which is a source of bad practices. LVMH also participates in the Responsible Leather Initiative led by Textile Exchange, which is aimed at defining the best envir- onmental and social practices, from breeding through to tanning.

Finally, in the context of BSR, LVMH participated in 2016 in the drafting of a new version of the Animal Sourcing Principles and promotes its distribution with the suppliers affected.

Launched at the end of 2018, to strengthen the existing approaches and to supplement the LIFE program, an in-depth project to formalize more ambitious, cross-divisional commitments on animal supply chains, including animal well-being, will be fully unveiled in 2019.