Resources management (water, energy, waste)

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.

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.

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.

Learn more about

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

Download our documents:

• "Limiting consumption of natural resources"
• "Managing waste"