A COMMITTED LUXURY LEADER SUSTAINABLE RETAIL CHANEL boutiques are a physical representation of the CHANEL brand, and an integral part of the client experience. They are also a significant source of our own environmental impact. Through LEED (Leadership in Energy and Environmental Design) certification and eco-design guidelines, we are aiming to minimize the impact of our boutiques and other points of sale on the environment and human health. Furthermore, we are moving toward a circular model for retail, and have begun to invest in the technology and partnerships necessary to support that transition. Retail represents a significant and growing To support this new way of working, we are proportion of CHANEL’s business activity investing in LEED training for our boutique and, based on extrapolated data, accounts architecture teams. for approximately 17,000 tons CO eq/year. 2 For FRAGRANCES & BEAUTY boutiques, Managing the environmental impacts of our retail spaces is therefore an important priority. we have decided to pursue LEED Volume certification at a global level, according to LEED: CREATING A MORE the new Version 4 standard. To date, as far as SUSTAINABLE RETAIL we know, we are the only luxury brand to be EXPERIENCE participating in LEED v4 volume. LEED Volume means that a set of environmental guidelines We achieved our first boutique LEED known as a “prototype” is pre-certified, and certification in 2012 for the TaiKoo Hui boutique then applied consistently across all future in China. Since then, we have expanded the projects. This has not been an easy process, approach globally across all activities and since the existing LEED standard is not always regions. To date, we have achieved LEED specific to projects of the size and aesthetic certification for 31 boutiques, with 36 more in nature of luxury boutiques. As a consequence, progress. Going forward, all new construction we have been working closely with the U.S. and major renovation of boutiques will pursue Green Building Council (USGBC) and Green LEED certification. Business Certification Inc. (GBCI) to identify