Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Employee Development
• Supply Chain Sustainability
• Responsible Sourcing of Raw Materials
• Community Investment

Environmental Achievements

• Reduced average CO2 emissions per employee by 10% (from 3.70 tCO2/FTE to 4.06 tCO2/FTE), despite a 29% increase in sales and 14% increase in employees.
• 23% of the Group’s purchased electricity was ‘green electricity’ (2011: 26%).
• Several Maisons achieved RJC Code of Practices certification, covering human rights, labor standards, environmental management, and business ethics.

Social Achievements

• Opened the Richemont Retail Academy in Shanghai to train sales personnel.
• Launched the Advanced Business Certificate in Digital program for e-business managers.
• Continued investment in training programs for apprentices and employees in production techniques and customer service.
• Employee turnover rate below 10% in Switzerland.

Governance Achievements

• Shareholders given the opportunity to vote on the Richemont compensation report.
• Content of the compensation report further extended in 2012 in response to stakeholder suggestions.
• Seven Maisons (representing 75% of Group sales) achieved RJC Code of Practices certification.

Climate Goals & Targets

Environmental Challenges

• Data collection challenges across diverse and decentralized businesses, particularly regarding consistent and comparable environmental data from leased boutiques.
• Increasing CO2 emissions due to business growth, internalized supply chain, and expansion of boutique networks.
• Challenges in ensuring consistent compliance with the Supplier Code of Conduct across all suppliers.

Mitigation Strategies

• Independent assurance of the Group’s consolidated carbon emission data.
• Focus on collating ‘material’ information to shape decisions and improve data quality.
• Implementation of a risk-based approach to supplier audits.
• Use of carbon offsets to neutralize remaining emissions.
• Re-invoicing the cost of carbon credits to each Maison to incentivize performance improvements.

Supply Chain Management

Supplier Audits: 75 audits/year

Responsible Procurement

• Supplier Code of Conduct
• Risk-based approach to supplier selection and auditing
• Collaboration with industry organizations (RJC)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Reducing energy costs through emissions reduction.

Reporting Standards

Frameworks Used: GRI G3

Certifications: RJC Code of Practices (7 Maisons)

Third-party Assurance: Independent body for CO2 emissions data

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• FTSE4Good inclusion
• Numerous product awards for innovation and design (listed in report)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Human Rights
• Labor Standards
• Community Investment
• Diversity, Equity & Inclusion
• Governance

Environmental Achievements

• Achieved an 'A' rating from CDP for tackling climate change.
• Reached 92% renewable electricity usage.
• Committed to eliminating PVC in all products and packaging by December 2022.
• Reduced absolute Scope 1 and 2 GHG emissions by -67% compared to 2019.

Social Achievements

• Donated over €42 million to community investment initiatives (17% increase year-on-year).
• Ranked among Forbes' World’s Best Employers 2021.
• Concluded the first Product Social Impact Assessment (PSIA) on artisanal and small-scale mined gold.
• Chloé achieved B Corp certification.

Governance Achievements

• Established a Board of Directors’ Governance and Sustainability Committee.
• Appointed a Chief Sustainability Officer.
• Received a Sustainalytics ESG rating of 10.7 (top 2%).
• Activated Global Diversity, Equity & Inclusion Vision.

Climate Goals & Targets

Environmental Challenges

• Overall emissions increased in 2021 due to business recovery post-COVID-19.
• Challenges in sourcing 100% traceable gold.
• Data collection challenges for waste and water usage in smaller boutiques.
• Difficulty in switching to renewable energy in some regions.

Mitigation Strategies

• Partnered with CDP to engage suppliers in emission reduction.
• Implemented a 5-step framework for due diligence in the mining supply chain.
• Improved data collection methods for waste and water.
• Purchased Energy Attributes Certificates (EACs) where local utilities cannot provide renewable energy.

Supply Chain Management

Supplier Audits: 217 audits in 2021

Responsible Procurement

• Group Procurement Policy
• Richemont Supplier Code of Conduct
• Richemont Raw Materials Sourcing Policy
• RJC Code of Practices
• LWG certification

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Core, SASB Apparel, Accessories & Footwear, SASB Multiline and Speciality Retailers & Distributors

Certifications: Null

Third-party Assurance: Ernst & Young Associates LLP

UN Sustainable Development Goals

• SDG 5: Gender equality
• SDG 8: Decent work and economic growth
• SDG 12: Responsible consumption and production
• SDG 13: Climate action
• SDG 17: Partnerships for the goals

Initiatives described throughout the report contribute to these goals.

Sustainable Products & Innovation

• Panerai eLAB-ID™ watch
• IWC TimberTex™ straps
• IWC MiraTex bracelets
• Montblanc recycled nylon products
• dunhill recycled packaging

Awards & Recognition

• CDP A List for climate change
• Forbes World’s Best Employers 2021
• WatchPro Awards for Watchfinder & Co.

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Social sustainability
• Governance & economic sustainability
• Value chain & supply chain sustainability

Environmental Achievements

• Increased annual sourcing of renewable electricity to 97% in 2022 (target 100% by 2025)
• Phased out PVC from products & packaging by December 2022
• Improved CDP Water score to B (from C in 2021)

Social Achievements

• Gender Balance: females represent 57% of global workforce
• 40% of Senior Executive Committee are women in 2023
• Switzerland and France received gender-equal pay certification
• Launched Richemont Speak Up Platform for reporting unethical behavior

Governance Achievements

• Appointed first Chief Sustainability Officer in 2022, who joined the Senior Executive Committee in 2023
• Published first ESG Report in accordance with GRI Standards (2021), including 40 quantitative indicators independently assured by PwC
• Implemented a comprehensive change management program to integrate ESG principles across the business

Climate Goals & Targets

Environmental Challenges

• Overall business growth driving production volumes, capital and operating expenditures leading to a 24% increase in GHG emissions in 2022 compared to 2021
• Covid-19 recovery in some markets led to increased business travel
• Water scarcity across the supply chain, particularly in leather production

Mitigation Strategies

• Transitioning to renewable energy sources and enhancing energy efficiency at owned sites
• Engaging with suppliers to reduce Scope 3 emissions (e.g., Cartier's carbon footprint calculator and trajectory definition tool)
• Implementing best practices to limit Scope 2 emissions (e.g., heat recovery, groundwater use)
• Improving waste management practices (increased recycling and composting, reduced landfill waste)
• Using LWG certification and audits to monitor and improve water usage in leather supply chain

Supply Chain Management

Supplier Audits: 76% of purchased value from suppliers signed the Code of Conduct (2023); 80% target by 2025

Responsible Procurement

• Supplier Code of Conduct, Raw Material Sourcing Policy, RJC Code of Practices certification for gold, diamonds, and gemstones, LWG certification for leather, SMETA audits for other suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, floods, droughts

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products, renewable energy integration

Reporting Standards

Frameworks Used: GRI Standards (2021), GHG Protocol, TCFD

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers SA (PwC)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-design tools and methodologies for packaging, innovative materials as alternatives to PVC

Awards & Recognition

• CDP A- score for climate change (2022), Universum Most Attractive Employer in Switzerland, France & China

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Water stewardship
• Human rights
• Labor standards
• Diversity, Equity & Inclusion
• Governance
• Supply chain responsibility

Environmental Achievements

• 31% reduction vs 2022 in CO2e emissions from transportation and distribution
• 97% of Richemont’s electricity consumption comes from renewable sources in 2023
• Cessation of PVC containing product sales in stores and to wholesalers as of December 2022

Social Achievements

• Achieved global gender EQUAL-SALARY certification covering >38,000 employees across 39 markets (excluding YNAP and sites in Russia)
• Various awards recognizing Richemont as an attractive workplace
• Launched Richemont Sustainability Online Academy for training and development

Governance Achievements

• Established ESG Management System informed by ESG Risk and Opportunity Assessment
• Launched Human Rights Statement
• Speak Up Platform extended to include third-party reporting

Climate Goals & Targets

Environmental Challenges

• Understanding and mitigating the impacts of climate change
• Responsible resource use
• Biodiversity conservation
• Freshwater stewardship
• Human rights and labor standards violations in supply chains
• Talent retention and creation of talent pipeline
• Bribery, corruption, or money laundering accusations
• Unsupported environmental claims

Mitigation Strategies

• Science Based Targets for 2025 and 2030
• Supplier engagement through CDP Supply Chain Programme
• Responsible Sourcing Handbook
• Supplier Code of Conduct
• Raw Materials Sourcing Policy
• Group Procurement Policy
• Gold Sourcing Committee
• Stones Supply Chain Committee
• Richemont Sustainability Online Academy
• Speak Up Platform
• Human Rights training module

Supply Chain Management

Supplier Audits: 96% of purchased value from Tier 1 leather suppliers covered by audits (2024)

Responsible Procurement

• Supplier Code of Conduct
• Raw Materials Sourcing Policy
• Group Procurement Policy
• RJC Code of Practices and Chain of Custody certifications
• LWG certification
• ICFA certification
• SMETA audits

Climate-Related Risks & Opportunities

Physical Risks

• Long-term climate shifts and more frequent extreme weather events
• Water scarcity along the supply chain

Transition Risks

• Not disclosed

Opportunities

• Support environmental performance
• Support the achievement of SBT targets through supplier engagement

Reporting Standards

Frameworks Used: GRI Standards (2021), TCFD, UNGC

Certifications: RJC CoP & CoC, LEED, BREEAM, Minergie, EQUAL-SALARY

Third-party Assurance: PricewaterhouseCoopers SA (PwC)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CDP A- score for climate change (2023)
• Forbes World’s Best Employers and World’s Top Companies for Women
• Universum Most Attractive Employers awards
• Time magazine World’s Best Companies
• Les Meilleurs Employeurs Suisse (2023)
• Top 100 Employer Excellence Award in China

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainability

Environmental Achievements

• Published 2023 ESG Report in accordance with GRI Standards, including 40 independently assured quantitative indicators.

Social Achievements

• Opened the “Cartier Jewellery Institute” to showcase craftsmanship and engage young people.
• Buccellati finalized an agreement with “Scuola Orafa Ambrosiana” to support apprentice training.

Governance Achievements

• Strengthened corporate governance with the appointment of two new board members and two new SEC members.
• Extended Speak Up platform to external stakeholders.

Climate Goals & Targets

Environmental Challenges

• Uncertain macroeconomic and geopolitical environment.
• Unfavorable foreign currency movements.
• Demanding comparatives.
• Challenging environment for multi-brand retailers (YNAP).

Mitigation Strategies

• Continued investment in Maisons, manufacturing capacity, and distribution.
• Focus on cost control.
• Price increases to offset increased production costs and FX impacts.
• Partnership with Farfetch and Alabbar to sell YNAP.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: PWC