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 proportion of CHANEL’s business activity and, based on extrapolated data, accounts for approximately 17,000 tons CO 2 eq/year. Managing the environmental impacts of our retail spaces is therefore an important priority. LEED: CREATING A MORE SUSTAINABLE RETAIL EXPERIENCE We achieved our first boutique LEED certification in 2012 for the TaiKoo Hui boutique in China. Since then, we have expanded the approach globally across all activities and regions. To date, we have achieved LEED certification for 31 boutiques, with 36 more in progress. Going forward, all new construction and major renovation of boutiques will pursue LEED certification. To support this new way of working, we are investing in LEED training for our boutique architecture teams. For FRAGRANCES & BEAUTY boutiques, we have decided to pursue LEED Volume certification at a global level, according to the new Version 4 standard. To date, as far as we know, we are the only luxury brand to be participating in LEED v4 volume. LEED Volume means that a set of environmental guidelines known as a “prototype” is pre-certified, and then applied consistently across all future projects. This has not been an easy process, since the existing LEED standard is not always specific to projects of the size and aesthetic nature of luxury boutiques. As a consequence, we have been working closely with the U.S. Green Building Council (USGBC) and Green Business Certification Inc. (GBCI) to identify SUSTAINABLE RETAIL A COMMITTED LUXURY LEADER