LVMH 2018  .  Environmental Report

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covers direct and indirect greenhouse gas emissions. Upstream and downstream transportation This indicator is expressed in metric tons per kilo- meter and in metric tons of CO2 equivalent. A dis- tinction is made between upstream and downstream transport:

upstream transport: this is the number of kilometers traveled by the raw materials and components from the initial supplier site to the first delivery site. At the very least the assessment is performed on the main components and products: Wines & Spirits: bottles, cases and caps, etc.; Perfumes & Cosmetics: bottles and pouches, etc.; Fashion & Leather Goods: leathers, metal parts,

packaging and ready-to-wear, etc.; Watches & Jewelry: pouches, boxes, and cases,

etc.; Selective Retailing: store bags, envelopes and

boxes, etc. downstream transport: this concerns the number of kilometers traveled by all finished products from the manufacturing site to the first platform belonging to the wholesale customer or to the stores (for the selective retailing businesses and for the brands that own boutiques).

Packaging given to customers This indicator is expressed in metric tons of material. It includes the primary and secondary packaging introduced to the market by all the Group s Houses. The packaging used for shipment during transpor- tation is excluded from this indicator.

Training and awareness sessions This indicator is expressed in hours. It includes all training and awareness-raising sessions fully or partly dedicated to the environment, specifically:

training employees in order to reduce their impact on the environment (energy consumption, handling of hazardous products, training on environmental regulations, training for health, safety and environment officers, training on environmental audits, water management, waste management, and sustainable viticulture, etc.); training on, and/or raising general awareness of, the environment (the major challenges include greenhouse gases, biodiversity, and raising the awareness of grape harvest workers, etc.) or on environmental

management systems (ISO 14001, etc.); company (orientation seminar for new managers, attendance at the Environmental Committee, and involvement of the LVMH Environment Department in Executive Committees or other meetings, etc.). the hours spent by in-house environmental trainers (Sustainable Development Week, World Water Day, and health, safety and environment officers who conduct training/awareness sessions, etc.).

Expenses and investments incurred in order to prevent the effects of business activity on the environment This indicator is expressed in thousands of euros. It includes the following expenditure incurred and investments made, to avoid a business activity having an impact on the environment:

expenditure on the protection of the ambient air and the climate; expenditure on the management of waste water; expenditure on the management of waste; expenditure aimed at preventing noise and vibrations (not including the protection of the workplace); expenditure aimed at protecting biodiversity and the landscape; research and development expenditure; expenditure on other environmental protection activities.