“2020 was an important year in which the company set itself ambitious targets to reduce its greenhouse gas emissions by 50% by 2030.”
Axel Dumas, Executive Chairman of Hermès
The group’s climate policy has several stages: measuring the impact of its activities on scope 1, 2 and 3 emissions; prioritising action to reduce emissions in the different categories where the group can act; and putting in place actions to offset its activities.
As it rolls out this policy, the Hermès group is currently one of the lowest carbon emitters of the CAC 40, thanks to its craftsmanship model and France-based production.
The issue of climate change is central to the company’s governance and high-level strategic dialogue. The subject is overseen by the Sustainable Development Committee, which includes two members of the Executive Committee, the Deputy Managing Directors in charge of Industrial Affairs and several senior executives for métiers.
On an operational level, it is managed by the métiers, as well as transversally by the real estate development and commercial departments. Each one has objectives and activities and reports on them every year.
Hermès has committed to setting science-based greenhouse gas emission reduction targets through the Science-Based Targets initiative (SBTi) and putting in place actions to achieve net zero emissions by 2050:
- -50% reduction in absolute value for scopes 1 and 2 emissions over the period 2018 to 2030;
- -50% reduction in relative value for scope 3 emissions over the period 2018 to 2030;
- 100% renewable energy in direct operations by 2030;
- -50% reduction of the carbon footprint/m2 of new or renovated real estate by 2030;
- Move towards 25% of key raw materials with lower environmental impact by 2025;
- Defossilisation of industrial sites: Hermès has decided to stop using fossil fuels as a source of energy for all new industrial investments, unless it is technically impossible.
In addition, Hermès has demonstrated its commitment and increased transparency by presenting its actions in accordance with the framework recommended by the Task Force on Climate-related Financial Disclosures (TCFD) and by responding to the CDP climate questionnaires, as well as by participating in responsible market initiatives, the Fashion Pact and the UNFCCC (Fashion Industry Charter for Climate Action).
These commitments will enable the Group to move towards reducing its direct and indirect emissions, thereby contributing to limiting global warming to below 2°C by 2100.
In addition, the Group has undertaken an analysis of the risks linked to the impact of climate change on its operations and value chain, particularly on the supply chains for leather, silk and cashmere, the company’s emblematic materials, using a scenario-based approach.
The Group has tools that allow it to analyse and update the overall greenhouse gas emissions of its production and distribution sites on an annual basis. This work is done with the help of an independent external specialist firm according to the Bilan Carbone® and GHG Protocol method, and detailed in the CDP Climate.
k tonnes CO2 equivalent on scope 1 and 2 emissions in 2020 (market-based)
k tonnes CO2 equivalent on scope 3 emissions in 2020
Reduction of carbon footprint
Objective -50% in absolute value on scopes 1 and 2 in 2030
reduction on scope 1 and 2 emissions since 2018
reduction on scope 3 emissions since 2018
Reduction of carbon intensity
Objective -50% in relative value on scope 3 in 2030
reduction on scope 3 carbon intensity since 2018
Renewable energy in direct operations
green electricity worldwide (78% in 2019)
carbon offset of scope 1 and 2 emissions
carbon credits (compared to 43,800 in 2019)
million trees planted by the Livelihoods Fund (LCF1)
The Group has put in place solutions to improve the footprint of its logistics, part of a continuous improvement process. As a large part of the company’s turnover is made abroad, logistics is a major area for improvement. The main focuses are favouring carbon-neutral modes of transport for short distances and substituting maritime or rail transport for air transport whenever possible for long distances, as well as optimising the volumes transported.
Since 2012, Hermès has been a partner of the Livelihoods Funds, a coalition of companies financing carbon offset projects with high social and environmental value.
Their objective is to establish long-term projects which have a real impact on climate change, for example, restoring and preserving natural ecosystems, supporting sustainable agricultural practices to promote soil restoration and agroforestry and acting to combat deforestation. Since their creation, the first Livelihoods Funds have contributed to planting more than 130 million trees. In 2019, the group extended its commitment for another 20 years.