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Use sustainable supplies of plant-based raw materials Along with the actions taken to improve animal well-being, LVMH ensures that it obtains sustainable supplies of plant-based raw materials. This is the meaning of its pioneering commitment to sustain- able viticulture. Thus, its Champagne Houses were the first in the region to receive sustainable viticulture certification in 2014, and then in 2015 to earn the double sustainable viticulture and high environmental value agriculture certification for their entire vineyard. Since 2016, they have been assisting their grape suppliers to follow suit, par- ticularly through training actions. In April 2018, an additional step was taken. In conjunction with the renewal of their approval to provide phytopharma- ceutical product services, the Champagne Houses were also qualified as sustainable viticulture ser- vice providers . With this dual recognition, the Houses can now encourage the deployment of sus- tainable viticulture by working with their vineyard partners that entrust the Houses with their plots. The Houses are also continuing their actions to increase awareness of the challenges and oppor- tunities of sustainable wine growing in Champagne, as illustrated by the conference they organized on this subject during Green Week 2018. In order to develop sustainable viticulture, LVMH innovates. Hennessy s policy in this area is an illustration. The company joined the DEPHY network of farms, charged with promoting the establishment of crop- ping systems that reduce the use of phytosanitary products. In 2018, it continued its work in this area, using the technique of sexual confusion over 46 hectares of land to limit the use of insecticides and testing new options, such as the use of an algae-based green fungicide. As a result of its com- mitment, Hennessy achieved the objectives of the Ecophyto 2025 plan during the year, six years ahead of schedule. For many years, the House has also conducted agri-environmental trials. In 2018, for example, it experimented with a mix of Chinese radishes, oats and vetch grass for plant covers between the rows and a varied mix of green fertil- izers on the resting plots. In addition to these initia- tives, measures beneficial to the local biodiversity were also taken, including the establishment of 10 hectares of fallow land of nectar plants intended to prepare the soil before a new planting, the pres- ervation of 6 hectares of prairie, and even the plant- ing of 685 meters of shrub hedges. Like the companies of the Wines & Spirits business sector, the Perfumes & Cosmetics Houses are work- ing to establish a supply chain while preserving plant resources. Guerlain, in particular, has set up

several sustainable chains for its exotic raw mater ials. Following Chinese orchids, Indian vetiver, and even French lavender, the company has recently developed a new supply chain for Australian sandalwood.

After establishing contact with the company Santanol during a trade show, Guerlain s perfumer Thierry Wasser visited this producer s sandalwood fields. Seduced by their potential, he offered his expertise to assist Santanol in obtaining an excel- lent product, through a responsible process aimed mainly at preserving local biodiversity. This Australian sandalwood made a remarkable entry at Guerlain, since it is used as one of the signature ingredients of Mon Guerlain, the women s perfume launched in 2017.

Monitor the materials and substances present in the products LVMH s sustainable procurement policy begins with very careful attention to the compliance of the materials and substances used to manufacture the products. The Group scrupulously ensures compli- ance with national and international regulations in this area. For example, it ensures application of the regulations resulting from the implementation of the Nagoya protocol, which is intended to provide better protection for the planet s species and eco- systems, and share the benefits more equitably; application of the CITES for trade in certain exotic plants and leathers; the 2013 European Wood Regulation and the environmental obligations related to the Common Agricultural Policy for grapes.

Compliance with regulations is the vital foundation on which LVMH has constructed a much more ambi- tious approach that is equal to its push for excel- lence. To develop this approach, the Group takes into account the opinion of scientific committees and the recommendations of professional associ a- tions. It has established internal rules for the devel- opment of new products and ensures they are applied by its suppliers. It has also established a virtuous circle by identifying the most stringent regulations and assisting its Houses and their part- ners to comply with them. Thus, since 2013, each supplier has undertaken by letter to comply with the REACH regulation (Registration, Evaluation, Authorization and Restriction of Chemicals), which has governed the registration, evaluation and authorization of chemical products within the European Union since 2007 (or similar regulations such as Proposition 65 in California). To provide