A COMMITTED LUXURY LEADER 1 2 REDUCING CARBON TRANSITIONING TO EMISSIONS IN OUR GREEN POWER IN OUR DIRECT OPERATIONS DIRECT OPERATIONS Emissions associated with our corporate As one of the central pillars of our climate buildings, main industrial sites, logistics strategy, we have committed to making a facilities, and boutiques are approximately gradual transition to using only green power 40,000 tons CO eq/year (2015 baseline). in our direct operations, including manufacturing 2 In line with the Paris Agreement ambitions, sites, distribution centers, offices, and stand- we aim to halve these emissions in absolute alone boutiques by 2030. terms by 2030. Coupled with energy-efficiency measures, An extrapolation of committed operational our approach to achieving this objective action plans indicates that a 50 percent has three pillars: reduction in emissions by 2030, from a • Maximizing on-site renewable-energy 2015 baseline, is possible at certain key sites production. through energy-efficiency measures and the environmental certification of all our buildings, • Purchasing green tariffs as an interim factories, and boutiques. measure. Emissions associated with transporting goods • Investing in community renewable-energy and people are approximately 162,000 tons projects. COeq/year. In line with COP21 ambitions, 2 This transition will be challenging for several we aim to reduce these by between reasons, the main one being our presence 40 percent and 46 percent, depending in many markets where green power is not on the business activities. readily available and renewable-thermal- The operational action plans we have identified energy solutions are lacking. Nevertheless, we to date, including packing optimization to are committed to the transition to renewable reduce the volume of transport, a shift from energy wherever we can have an impact. air to sea transport where feasible, and further optimizing transport flows, are not enough for us to reach our targets by 2030. Consequently, we will need to further rationalize elements of our supply chain and increase the volume of products shipped by sea. We will also need to work with our freight providers to identify more sustainable solutions for transport, including, for example, switching to electric vehicles.