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Group, opening new paths for areas as varied as building insulation, lighting efficiency, consump- tion management and air purity.

Integrate the environment into site management The implementation of an EMS is another corner- stone of LVMH s ecological policy at its sites. EMS, which incorporates the environment into manage- ment of the sites, is a very effective tool for contin- uous improvement: simultaneously dynamic, unifying and motivating, it gives the Group better assessments of the environmental impact of its activ- ities and allows it to reduce that impact more effec- tively and rapidly. The Environmental Charter of LVMH already requires the Houses to establish an EMS at the management level. With LIFE 2020, the Group is now targeting 100% of the production sites and administrative sites with more than 50 employ- ees to be certified for their EMS by 2020. The wide- spread roll-out of the EMS process is on track with a rate of 63% at the end of 2018. Most of the Houses have opted for the ISO 14001 standard. This is the case for Guerlain, which has deployed the standard since 2011 and targets world certification in 2021. After France, Belgium, Luxembourg, Germany, Spain, Portugal and Italy, the House extended its process to the sites in Great Britain and Japan in 2018. In 2019, Switzerland, Austria, Mexico and Hong Kong will be included in the scope. The year also saw the renewal of ISO 14001 certification of all Paris sites of Parfums Christian Dior and confir- mation of the certification of its operations at Saint- Jean-de-Braye. This means that the House s activity meets almost all the requirement criteria for an envi- ronmental management system. The auditors stressed, in particular, two strong points of Parfums Christian Dior: the mobilization of the teams and the incorporation of environmental challenges into its business lines.

Eco-management is generating results, as demon- strated by those achieved by Hennessy, which cel- ebrated twenty years of ISO 14001 certification in 2018. The House was the first Wines & Spirits com- pany in the world certified under this standard. In 2016, it was also one of the pioneer Houses certi- fied under standard 2015 of ISO 14001, which is even more stringent and applies to the entire prod- uct value chain. Its dynamic environmental manage- ment system is based on an environmental committee composed of 40 men and women who represent all its departments, 15 auditors, 10 train- ers and 10 internal relays as well as around ten envi-

ronmental performance indicators. After the first audit in 2017, a follow-up audit was completed in 2018 on Hennessy s implementation of the new standard. The scope of the audit covered a total of 7 sites and 15 departments. No non-compliance was found. The audit highlighted 5 sensitive points and 6 elements for improvement on which the House will take action. The report also stresses 17 strong points, including management, the manage- rial leadership, control of the regulatory process, sustainable viticulture, waste management, clean- liness, energy management and the analysis of product development. Hennessy s eco-manage- ment today appears to be mature and adapted to its activities. The audit report stresses that the objectives and targets reached are consistent with the House s commitments, and that actions are taken on the basis of risks and opportunities that are identified, assessed and ranked.

While the hotel Cheval Blanc de Courchevel in France and Randheli in the Maldives are certified EarthCheck, the equivalent of ISO 14001 in the hotel sector, this standard is not the only one on which the Houses rely to improve the environmental performance of their sites. In the United States, Chandon California and Newton, for example, are certified Napa Green Winery and Napa Green Land, standards awarded to vineyards and wineries in the Napa Valley that practice organic agriculture. All Fendi s sites in Italy have dual ISO 14001 and OHSAS 18001 certification (British Standard Occupational Health and Safety Assessment Series), the British standard for health management and workplace safety. Hennessy and the Champagne Houses are ISO 22000 certified for management of food safety. Belvedere, also OHSAS 18001 and ISO 22000 certified, is ISO 50001 certified for the management of energy performance, as are the Champagne Houses and Le Bon Marché, which earned this certification in 2018.

Save and purify water In addition to energy, the Houses work to save water, a precious resource for the Group. In 2018, the Group consumed a total of 5,568,770 m3 for agricultural purposes and 4,170,596 m3 to manu- facture its products (plus 916,490 m3 consumed by 81% of sales floor areas not included within the scope of reporting). To improve its water manage- ment, LVMH had an in-depth study conducted in 2012 using the Pfister 2009 index and the Aquastat 2012 database. The objective was to analyze the sensitivity of each site location by comparing water