CHANEL’s CSR governance and operating model ensures that engagement on CSR issues become part of the daily activities of every employee, and that CSR is ingrained in decision-making at the senior-leadership level and fully integrated in the company’s overall business process. The key challenge in ensuring a transition toward a sustainable business model is to engage a profound change of culture, not only at top management, but also, and more importantly, across the whole employee base. The successful implementation of CHANEL’s overall CSR road map must not be only in the hands of experts; it is possible only through the empowerment of each and every individual in the company. Inspired by these principles, we have organized our governance on three aspects: • A strategic approach and corporate framework endorsed by top management. • A coherent operating model that empowers teams in each activity and market. • An Innovation and Sustainable Development Fund, which acts as an acceleration mechanism toward a sustainable business model. STRATEGIC APPROACH AND CORPORATE FRAMEWORK CSR strategy is led by the Corporate CSR Team, which is in charge of defining the vision of the brand for societal and environmental impact, proposing commitments to engage different operational teams, and defining a global plan of action as well as a set of operational guidelines. The Corporate CSR team reports directly to the CEO. All key decisions concerning the brand commitments and their implementation are decided at top-management level. The team is composed of experts in the fields of sourcing, climate, and circular economy. They aim for consistency and coherence in the approach we take across the business. Specific teams of CSR experts exist in each activity, and in the other corporate functions, to implement operational CSR plans. CSR GOVERNANCE REPORT TO SOCIETY