Gestion des ressources

Resources management (water, energy, waste)

“Faithful to the spirit of craftsmanship, we implement a responsible and frugal management of natural resources.”

Axel Dumas, Executive Chairman 

Water

Ambition

The Group’s ambition is to control the footprint of its activities in relation to water by reducing its consumption and controlling its potential impact on local ecosystems, such as extractions or emissions, and on biodiversity.

Governance

Environmental matters relating to water are overseen by the Sustainable Development Committee and, more specifically, by the member of the Executive Committee responsible for the Manufacturing Divisions. Support is provided by a Deputy Managing Director responsible for Industrial Affairs and the Construction Development Department. An annual analysis of the main challenges is carried out and shared with the Executive Committee.

Commitments

With regards to water, the environmental policy formalised in 2003 is structured around the following key objectives:

  • respecting regulatory environmental obligations while anticipating future changes wherever possible;
  • improving production processes, favouring the cleanest, most energy-efficient technologies and the most environmentally friendly substances;
  • reducing overall footprint and controlling emissions, reducing their production as far as possible and recovering them wherever possible;
  • implementing a multi-party approach and co-constructing with external stakeholders. As most production takes place in France, many of these discussions are organised within the legal framework of DREALs (Regional Directorates for the Environment, Development and Housing), but also with the municipalities where sites are located.

Management system

An environmental data management system is used for each of the group’s Métiers, and serves as a base for strategic monitoring, reporting and verification during external audits. Water is one of the key data processed in this reporting system, which distinguishes industrial-use water (e.g. used by the tannery and textile Métiers, which represents 90% of the total) and the water used for farming to irrigate the pools of reptile farms.

Logo Disclosure Insight Action

The CDP Water score of “B” illustrates the extent of the House’s efforts, particularly with regards to managing the resource across our operations. In addition, a specific water risk analysis has been carried out using the Water Risk Filter, in partnership with the WWF.

Changes to industrial water consumption (in m3)

Graphic - Change in industrial water consumption

Changes to industrial water consumption (in m3)

In 2019, the overall consumption of industrial-use water reduced significantly, by 7% compared to 2018, despite an activity increase of 12.4%.

Distribution of industrial water consumption by Métier (in thousands of m3)

Graphic - Water consumption

Distribution of industrial water consumption by Métier (in thousands of m3)

Industrial water is predominantly consumed in tanneries and textile units (668,469 m3/year globally - excluding the farms in Australia and the United States where water is used differently).

 

Over the past ten years, the group has maintained its uncoupling ambition with industrial water consumption increasing by a factor of 1.9 compared with activity growing by a factor of 3.6.

Recycling, monitoring and wastewater management

  • picto eau SVG
    100%

    of the main Métiers have at least one water recycling project

  • picto fichier SVG
    100%

    of the main Métiers have a water-specific operational management system

  • picto argent 1 SVG
    1.8

    million euros invested in the improvement of wastewater treatment facilities for tanneries

Initiatives within our house

Plantation de bois de santal
Santalwood plantation view from the sky © Charlie Bliss Creative

Initiatives within our house

Several effluent reuse projects have been implemented in Australia over the past two years. Effluents from reptile farms, enriched in organic matter, are used to irrigate and fertilise crops:

  • on a 10-hectare sandalwood plantation in collaboration with the Group’s Perfumes division, since September 2018. In total, 20% of the volume of effluents from the farm has been reused on this plantation in 2018;
  • since 2019, during the dry season, around 15% of wastewater from a farm is reused on a neighbouring sugar cane plantations. A proportion of the same water of this farm comes from the cane sugar production plant supplied by the irrigated fields.

Energy

Ambition

To maintain an artisanal manufacturing activity with low energy consumption and introduce better mechanisms for reducing energy consumption throughout the value chain in the production, distribution and service sectors.

Governance

Environmental matters relating to energy are overseen by the Sustainable Development Committee. An annual analysis of the main challenges is carried out and shared with the Executive Committee.

Commitments

To implement actions that are compatible with the 1.5 degrees trajectory of global warming and, in particular, to continue to uncouple business growth from energy consumption. This translates into actions on:

Energy efficiency

  • production sites, services and stores: implementing the most energy-efficient measures through insulation, lighting, energy management and energy selection.
  • industrial equipment: improving energy efficiency through investment in lower-energy equipment and reducing consumption by optimising operating settings

The energy mix

  • 100% renewable energy across our direct operations by 2030, where over 60% of production is carried out internally.

Management system

An IT system to manage industrial energy data is used for each of the group’s Métiers, and serves as a base for strategic monitoring, reporting and verification during external audits. In parallel, monitoring is performed by the Construction Development Department. These tools incorporate permanent “sub-metering” and permanent monitoring devices, the use of which allows energy to be managed as accurately as possible.

Changes to the group’s energy consumption

  2019 2018 2017
Changes to the group’s energy consumption (MWh) – 2% reduction in 3 years 203,640 208,682 208,406
Changes to energy intensity (MWh/€M) 23 27 29

 

 

Distribution of energy consumption by activity in 2019

Distribution of energy consumption by activity

Distribution of energy consumption by activity in 2019

Almost all the Group's energy consumption is dedicated to its industrial activity (crystalworks, tanneries, textile, leather), representing nearly 78% or 158 k MWh/year.

The group’s industrial energy mix

Graphic - Change in energy consumption

The group’s industrial energy mix

Since November the 1st 2015, Hermès decided to actively participate in the energy transition process. At global level, 78% of total electricity consumed in 2019 was renewable.

Optimisation of energy consumption

  • picto ampoule SVG
    80%

    of store lighting is LED

  • picto prise feuille SVG
    78%

    of electricity supplied at group level is renewable

  • picto doc decroissance SVG
    20%

    average reduction in energy consumption linked to LED lighting

Initiatives within the house

 Magasin Hermès © Pablo Zamora
Hermès store in Marbella © Pablo Zamora

Initiatives within the house

“All-LED” lighting solutions

Hermès pioneered the introduction of LED lighting in its stores in 2013. Bespoke solutions deployed at the time, in the absence of a generic solution. Over 80% of stores are now equipped in this way, making consumption savings of around 20%.

Multiple renewable energy experiences

With regards to heating methods, three of our leather workshops are equipped with a wood boiler, and our Pantin site (20,000 m2) uses geothermal energy.

Three industrial sites are equipped with solar panels providing an average of 20% of their electricity requirements, and the logistics centre in the United States covers 100% of its needs with photovoltaic panels.

The new leather workshops incorporate best practice in energy terms, obtaining the HQE label for the Manufacture de l’Allan, and achieving BEPOS targets for new projects.

Waste

Ambition

Given the exceptional quality of raw materials used and the desire to reduce our environmental impact, waste management drives each of the house’s different métiers to do everything possible to reduce waste production, to recover waste or process it.

Governance

Environmental matters relating to waste are overseen by a member of the Executive Committee responsible for the Manufacturing Division, supported by its Deputy Managing Director responsible for the Industrial Affairs Department. An annual analysis of the main challenges is carried out by the House’s Métiers and shared with the Executive Committee. Material recycling issues are overseen by a group committee made up of members of the main entities involved: Leather Goods, Textiles, Ready-to-Wear, and the Sales division.

Commitments

The House’s policy is structured around different priorities:

Reducing waste production

  • innovating across industrial or production management procedures, for example through “exactly enough” as opposed to “surplus” production in the textile industry;
  • leading waste management training and awareness-raising activities, particularly for the offices;
  • reducing the number of unsold items through bespoke commercial management: freedom of purchase for stores, replenishment flexibility and transfers between stores.

Waste recovery

  • Facilitating waste collection, and following a circular economy logic, internally and externally, as soon as possible;
  • Working on materials end-of-life through the best certified waste treatment channels;
  • Avoiding the destruction of unsold items through a policy of sales discounts, staff sales, donations and upcycling. In France, Hermès is committed to ending the destruction of its unsold items by 2022.

Management system

An environmental data management system is deployed in each of the group’s Métiers, and serves as a base for strategic monitoring, reporting and verification during external audits.

Reducing industrial waste

  • picto poubelle SVG
    7,050

    tonnes of ordinary industrial waste
    (OIW)

  • picto recyclage déchets SVG
    6,359

    tonnes of hazardous industrial waste (HIW)

  • picto doc decroissance SVG
    5.6%

    reduction in the production intensity of ordinary industrial waste (OIW)

  • picto doc decroissance SVG
    10.7%

    reduction in the production intensity of hazardous industrial waste (HIW)

Awareness-raising among employees

  • picto collaborateurs trio SVG
    100 %

    of employees have received an eco-action booklet on the prevention of waste production or waste management

Reprocessing of industrial waste

  • picto recyclage cuir SVG
    88%

    of waste recycled and recovered compared with the total tonnage of leather waste

  • picto maroquinerie SVG
    100%

    of leather waste from production sites has been processed via approved channels

Recycling of non-industrial waste

  • picto tri sélectif SVG
    100%

    of the house’s sites have introduced waste sorting systems

Distribution of ordinary industrial waste (OIW) by Métier

Graphic - OIW

Distribution of ordinary industrial waste (OIW) by Métier

The management of ordinary industrial waste is specifically undertaken by each industrial division through a dual waste reduction and recovery policy when possible. The main contributors are tanneries and leather, given that leather goods and saddlery objects represent over half of the House’s business.

Distribution of hazardous industrial waste (HIW) by Métier

Graphic - HIW

Distribution of hazardous industrial waste (HIW) by Métier

The house’s Métiers do everything possible to reduce their production of hazardous industrial waste, to recover or process it. Producing 61% of its objects internally in our exclusive workshops, the main producers of hazardous industrial waste are therefore tanneries, alongside the crystal and textile divisions.

Controlling our leather waste

  • picto cuir SVG
    3%

    reduction in total quantity of waste related to the leather activity (contributing 12% of total waste)

Initiatives within the house

Graphic - Tonnes of waste recovered in Ile-de-France recycled in 2019

Initiatives within the house

Improving recycling stations

In 2019, a new sorting and recycling system was rolled out across all sites in Paris and the Ile de France region. It includes an increase in the number of sorting streams to a total of 22, and the introduction of recycling banks. 570 tonnes of waste were recycled in 2019, which is 180 tonnes more than in 2018. In addition, to assist employees in the process, the following have also been rolled out during the year: a network of 37 recycling ambassadors, dedicated communication tools indicating the new sorting instructions, and the installation of 4000 collection stations.

 

Recycling on production sites

Leather offcuts from production sites, the parts not used during the cutting stage in leather workshops, are resold via specialised channels and then transformed to become raw materials for other products.

At "Les Établissements Gandit", which belongs to the Textile Métier division, the recycling of printing frames is constantly increasing. Despite more stringent material quality requirements, 17% of frames have been recycled in 2019 compared with 10% in the previous year.

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Discover how the management of natural resources takes part in our strategy "All artisans of our sustainable development". 

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