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LVMH 2018  .  Environmental Report

69

The surface areas of the main Houses included in the calculation of energy consumption, greenhouse gas emissions, and water consumption, as a percentage of each House s total sales floor area, are as follows:

The following are also taken into account for calcu- lating the energy consumption and greenhouse gas emissions: all the French stores owned by Berluti, Givenchy, Guerlain, Kenzo, and Make Up For Ever; and some stores owned by Acqua di Parma, Benefit, Bvlgari, Celine, Chaumet, Fendi, Fred, Hublot, Loewe, Loro Piana, Marc Jacobs, Parfums Christian Dior, Pucci, TAG Heuer and Pink Shirtmaker.

The following are also taken into account for calcu- lating water consumption: certain Berluti, Bvlgari, Chaumet, Fendi, Guerlain, Kenzo, and Loewe stores. 19% of the store surfaces taken into account con- sume 543,000 m3 of water.

Where the production of waste is concerned, only the DFS, Le Bon Marché, and some Acqua di Parma, Berluti, Bvlgari, Christian Dior Couture, Givenchy, Louis Vuitton and Sephora Europe stores are included in the scope. 17% of the store floor areas taken into account produce 4,760 metric tons of waste.

TOTAL FLOOR AREAS OF EACH HOUSE (as a %)

% of the House s sales floor

areas taken into account for energy

consumption and greenhouse

gas emissions

% of the House s sales floor

areas taken into account

for water consumption

2018 2017 2018 2017

DFS 77 87 52 54

Louis Vuitton 69 66 16

Sephora North America and Latin America

59 71 18

Sephora Europe and Asia

80 74 9 8

Le Bon Marché 100 100

Christian Dior Couture 74 22

Reporting tool and methodology

The system used for the environmental reporting process is an in-house Web-based tool consisting of three kinds of questionnaire:

one questionnaire for compiling corporate data: training, packaging, etc.; a raw materials questionnaire; one (or more) questionnaire for compiling data specific to the manufacturing sites: water and energy consumption, waste generation (quantity and types of waste), and the treatment of waste, etc.

In total, each House collects some 100 pieces of information. The data is then checked and automat- ically consolidated in a central file. This file has many control and warning mechanisms (abnormal data and consistency problems, etc.).

Internal and external assessments

Consistency controls are performed by the sites (the data is compared with the data for the previous year), and when the data is being consolidated by the LVMH Environment Department (abnormalities, and comparisons with the previous year, etc.).

The key qualitative and quantitative information in the following list has been carefully audited to obtain reasonable assurance (marked by an asterisk) by EY as part of its non-financial rating report.

Environmental information considered to be the most important Quantitative information (including key performance indicators):

percentage of industrial sites with ISO 14001 certification (%)*;

total energy consumption (MWh)*; greenhouse gas emissions due to energy use (metric tons of CO2 equivalent)*;

total water consumption for process purposes (m3)*;

chemical oxygen demand (COD) after treatment (metric tons/yr)*;

total waste produced (metric tons)*; total hazardous waste produced (metric tons)*; percentage of waste recovered (%)*; total packaging sent to customers (metric tons)*; EPI of packaging (value); proportion of grapes (in kg), from its own vineyards or purchased, products certified as sustainable viticulture (%);

proportion of palm oil derivatives (in kg) certified RSPO Mass Balance or Segregated (%);