Sustainable Development Report

2020/2021

1

For 14 years, Guerlain has adopted an ambitious and pioneering sustainability strategy centred on the Bee, the historic symbol of our Maison and universal sentinel of the environment.

And what a long way we’ve come since then... when I joined the Maison Guerlain in 2019, I was very impressed with the high standards adopted and authenticity shown by the Guerlain teams mobilised in their work on sustainable development issues. I de-cided to speed up again in order to embrace the issues at hand more than ever before. Our strategy is part of the LVMH Group’s LIFE 360 CSR road map (see page 8), the aim of which is to em-body a “New Luxury” that reinvents the very precepts of Luxury and links them more profoundly to Sustainable Development.

We have also transformed our Purpose so that preserving and passing on the wonders of nature is placed at its very centre. Nature has inspired us since 1828, and it has ensured the sus-tainability of our creations and savoir-faire. Helping protect it was therefore an obvious way of giving back what it gives us and pre-serving the world’s Beauty.

Bees are without doubt one of the most treasured miracles of Na-ture. They are at the heart of our Guerlain for Bees Conservation Programme, which currently unites no less than 9 partnerships. The fundraising that we initiated for World Bee Day brought in 1 million euros and enabled us to further increase our operations.

Our muse Angelina Jolie is also a strongly committed supporter of our initiatives, which she has notably demonstrated by pos-ing in an unprecedented photograph taken in collaboration with National Geographic, and by becoming the celebrity patron of the 2021 edition of the Guerlain-UNESCO Women for Bees pro-gramme that trains women as beekeeper-entrepreneurs.

This year marks a strategic turning point for our commitment, as we embrace the challenge of expanding the scope of our endeav-ours in a more global and systematic manner through our four pillars: preserving biodiversity, innovating sustainably, acting for the climate, and creating a positive social impact. We will suc-ceed through the mobilisation of all our teams around the world, each a full participant in achieving our ambitions. In addition, our strategy and actions are now clarified and challenged by our new Sustainable Board composed of 13 renowned independent experts presided over by Yann Arthus-Bertrand.

Although the pandemic struck hard this year, it didn’t shake our determination. We have preserved jobs, continued to collaborate with our suppliers, and assumed our responsibilities by standing united with our partner associations. More than ever, the pandemic has generated the desire for a more responsible and united world. We have the talent, ambition and fervent will to contribute to this!

Editorial by Véronique CourtoisChief Executive Officer of Guerlain

32

Protecting biodiversity is achieved by implementing practices that respect the living beings within. To ensure this however, the companies themselves that plant, collect or buy the ingredients stemming from biodiversity must respect the environment and the local populations. This is what the UEBT (Union for Ethical BioTrade) calls “sourcing with respect”. Created in 2007, the UEBT is an NGO that promotes this sourcing with respect by establishing best practices through which companies and their suppliers source their natural ingredients. In 2018, the UEBT launched a new label certifying that a company’s practices fulfil the “sourcing with respect” criteria throughout each of the different stages of the supply chain. By joining the UEBT in 2021, Guerlain has marked a significant new milestone in the organisa-tion of its sustainable development strategy. This strong commitment is discussed in more detail in this joint interview with Rik KUTSCH

LOJENGA (UEBT’s Executive Director) and Cécile LOCHARD (Guerlain’s Chief Sustainability Officer).

What does your partnership with the UEBT consist of?

CL: As part of this partnership, Guerlain has set goals to improve its sourcing in accordance with UEBT standards, both from an ethical point of view and in terms of respecting biodiversity. Our end goal is to certify all 40 of our sourcing channels by 2026. Regardless, the path we are taking with the UEBT leads far beyond this objective. This partnership represents a true commitment that will transform our way of working and envisioning our relationships with our suppliers.

RKL: Yes, that’s true. It takes serious commitment to transform one’s sourcing process into a more equitable model. In this regard, the word “partner” is quite apt: all the companies that we assist are com-mitted to an improvement plan, which represents a contract we make with them and assist them with. Not all of them are excellent, but they are all working to become so. It’s not always easy, and we are in a good position to know. One can’t help but applaud these types of initiatives.

You are one of the first luxury Maisons to show your com-mitment: why?

CL: Our desire to step up our commitment came last year when the LVMH Group led a global brainstorming session for the Fragrances & Cosmetics division. At Guerlain, we have always been committed to our suppliers, and we are already carrying out many projects. With the support of the UEBT, we wanted to demonstrate our approach in a more robust manner as well as take a step back in order to

figure out how to relevantly and appropriately address the challenges faced by each sourcing channel according to its context, produc-tion and specific issues. With its environmental, social and economic cross-functional approach, the UEBT seems to be the ideal partner for developing, supporting, and finally certifying our continuous im-provement approach.

RKL: Becoming a member of the UEBT doesn’t mean you get a free ride; rather, it implies that an intense collective effort will be made by Guerlain and the UEBT during the assessment phase, which is necessary when launching any project. Without an assessment, mem-bership is impossible.

CL: It should be noted that a very precise assessment is performed on all purchasing practices before any company can become a UEBT member. This initial phase involves all departments, from logistics to marketing. It’s a very defining moment since it forces us to examine our processes in order to receive an initial assessment accompanied by UEBT's recommendations for improvement. And this commitment Rik was talking about begins at that moment, well before the imple-mentation of any action plan.

RKL: Absolutely, this initial assessment is fundamental. What’s im-portant to remember is that we envision this project more like a con-tinuous improvement approach. Everyone is welcome; the important thing is to commit and progress. And we have often noticed that this commitment generally snowballs. When a brand initiates a di-

alogue with local suppliers to understand their difficulties and find suitable solutions together, this creates another type of relationship which unites them around a common project. It’s up to the brands to be the leaders by motivating and moving their supplier ecosystem towards a more conscientious approach. And I think that Guerlain has adopted this role.

CL: I’d like to add that internally, this dialogue that we have estab-lished has succeeded in changing perceptions. During the assess-ment phase of our 40 sourcing channels, a Guerlain representative accompanied the UEBT on-site to become completely immersed in the project. Facing the realities existing in the field and speaking with the local suppliers allowed us to understand the situation and make more enlightened decisions: we are committed to creating a relation-ship which goes beyond just a simple commercial transaction.

RKL: It’s very rare for companies to send their own employees out, sometimes very far from France, during the assessment phase of our subsidiaries. The fact that Guerlain does this systematically shows how far they are prepared to go (in both the literal and figurative sense) to lead this project in an exemplary manner.

So, how does this work specifically?

RKL: During the assessment phase of its 40 sourcing channels, which will last 2 years, initial recommendations are made commensurate with progress. By the end of 2022, all the sourcing channels will have been consulted, and different priority action plans will be devised according to each sourcing channel specific requirements and the importance of the ingredients, all with the goal of achieving certifi-cation by around 2026. What’s important, however, apart from this

certification, is that Guerlain must implement a process that involves all the suppliers in order to raise their awareness, assist them, and push them to move forward together... always within this continuous improvement process.

CL: To accomplish this, we have created Sustainable Subsidiary Road Maps that call on the involvement of all our senior management: our CEO, the various Marketing Directors, the Sustainable Development Division, the Purchasing Division, and the Sustainable Innovation Di-vision, so that they will be able to take these challenges into account starting with the design of our products. This is how the process Rik talked about will be conceived, in a balanced way.

40 sourcing channels, that’s ambitious. How are you go-ing to tackle all this?

RKL: Yes, it is. An initiative of this scale is ambitious because it re-quires a lot of time, effort, analysis, and reassessment. But Guerlain, which has already done a lot in terms of more ethical sourcing, is up to the challenge. In my opinion, the issue today is to prioritise and focus Guerlain’s actions where it has the most influence and impact.

CL: And once again, 40 sourcing channels is indeed very ambitious and numerous challenges exist, but it is our responsibility to address them. We have to make our traceability transparent, hence our inter-est in our main sourcing channels as the first step.

RKL: Our interest is also in the example that Guerlain, a pioneer in this field, sets in the luxury sector. Within the LVMH Group, this definitely provides an opportunity to cooperate to everyone’s benefit since this change will be much more significant if the different Mai-sons join forces.

THE 7 PRINCIPLES OF A STRICT STANDARD The UEBT has established an ethical BioTrade standard based on the principles of the BioTrade Initiative of the United Nations Conference on Trade and Development (UNCTD). Regularly updated, this uncompromising standard is in line with the objectives of the Convention on Biological Diversity (CBD) and the sustainable development objectives of the United Nations. To achieve the UEBT standard, one must comply with 7 essential principles:

01. Conservation of biodiversity.

02. Sustainable use of biodiversity.

03. Fair and equitable sharing of benefits derived from the use of biodiversity.

04. Socio-economic sustainability (production, financial and market management).

05. Compliance with national and international legislation.

06. Respect of the rights of participants involved in BioTrade activities.

07. Clarity about land tenure, right of use, and access to natural resources.

40 iconic Guerlain supply chains

2 years of

assessment

2026 UEBT

Certification

2023 formation of a priority

action plan

Foreword - "Breaking news"

54

FOREWORD

05PRESERVING BIODIVERSITY & PROTECTING BEES

13INNOVATING SUSTAINABLY

IN FULL TRANSPARENCY: CLEANER, GREENER, CLEARER

21ACTING FOR THE CLIMATE AND REDUCING

OUR FOOTPRINT

33 CREATING A POSITIVE SOCIAL IMPACT

WHILE SAFEGUARDING THE WONDERS OF NATURE

39A SOCIAL POLICY ORGANISED AROUND WELL-BEING

49MATERIALITY MATRIX

54

December 2020 Guerlain steps up its In the Name of Beauty commitment and communicates its Purpose and refocused pillars (p.06).

20 to 22 May 2021 World Bee Day. Guerlain organised an international operation to raise 1 million euros that will go entirely to benefiting the Guerlain for Bees Conservation Programme.

Following this operation, Guerlain stepped up its commitment to bee preservation by announcing 3 new part-nerships in June: The French Committee of the International Union for Conservation of Nature, the French National Museum of Natural History and its SPIPOLL (photographic monitoring of pollinating insects) pro-gramme, and finally the Shan Shui Conservation Centre (p.41). Angelina Jolie, the Maison’s muse and celebrity patron of the 2021 promotional campaign, posed for National Geographic in an exclusive photo intended to raise awareness of the critical situation bees face around the world.

08 March 2021Inauguration of the Guerlain- UNESCO Women For Bees project.

As of March 15, 2020 Production of hand sanitiser at Guerlain’s La Ruche site in Chartres, distributed free at the Assistance Publique–Hôpitaux de Paris (p.46).

December 8, 2020 Participation of Véronique Courtois, Guerlain’s CEO, during LVMH Climate Week, a week of discussions aimed at sharing the main aspects of the LIFE 360 programme with the Group’s 160,000 employees (p.10) and encouraging each person to work for change with the slogan: “Be The Change”.

March 8, 2021 Signing of the United Nations Global Compact Women’s Empowerment Principles, which commits signatory compa-nies to comply with seven principles promoting gender equality (p.52).

March 2021 • For the Terracotta relaunch in its natural version, Guerlain joined forces with Sephora to launch a project to recycle its legendary in France. Customers are invited to bring their old powder compacts back to the store to give them a second life (p.25).

• Guerlain steps up its quest for naturalness with 3 launches: L’Es-sentiel High-Perfection Foundation (96% natural ingredients(1)), Terra-cotta (96%(1)), and KissKiss Shine Bloom (95%(1)) (p.29).

• Announcement of a major commitment: 90% natural ingredients min-imum wherever possible in each new make-up formula without com-promising the quality, effectiveness and sensoriality unique to Guerlain.

A project that trains women as beekeep-er-entrepreneurs, directed in collaboration with the French Apidology Observatory, alongside Guerlain muse Angelina Jolie as the celebrity patron of the 2021 promo-tional campaign (p.42).

(1) calculated according to the ISO 16128 standard, including water

April 19, 2021 Initiation of a new "Bee School". The international launch of our programme dedicated to protecting bees and their ecosystem with five new progressive levels adapted to children 5 to 12 years old, accompanied by a digital training platform for employees (p.44).

May 22, 2021 Signing of the partnership with the UEBT to audit 40 of Guerlain’s iconic sourcing channel (p.02).

June 2021 Guerlain is chosen as the Pilot Maison within the LVMH Group for making voluntary commitments to responsible communication as part of the Leroy-Bousquet mission and the French Climate Law (p.30).

July 1st, 2021 Guerlain’s cosmetics production site in La Ruche (Chartres) switches to 100% biogas, which enables the site to reduce its carbon footprint by 95%, the equivalent of 1,000 tonnes of CO2 per year (p.36).

July 2021 Launch of Bee Respect in Europe: Germany, Italy, Spain, etc. (p.30).

6 7

Nature has been our source of inspiration since 1828. For more than 14 years, we have placed its preservation at the heart of our ac-tions. Commitments motivated by the duty to act and to pass on our heritage to future generations. A long-lasting ambition made with humble conviction by all our teams around the world: to ensure the quality of our creations and the sustainability of our savoir-faire,

while giving back to Nature what it offers us.

Our commitment to sustainable development has enabled us to incorporate our actions into our “In the Name of Beauty” social and environmental programme in a manner consistent with the new expectations of the Company and our customers and clients, all backed by ambitious goals and concrete achievements. We are committed to preserving biodiversity, innovating sustainably, acting for the climate, and creating a positive social impact, and we are particularly committed to protecting one of the most precious wonders

of nature: the Bee.

We place its preservation at the heart of our Purpose and have dedicated several meaningful partnerships and initiatives to it.

PRESERVING BIODIVERSITY AND PROTECTING BEES

To give back to Nature what it offers us via the sustainable sourcing channels of our iconic ingredients and the Guerlain For Bees Conser-vation Programme.

Contribution to the United Nations

Sustainable Development Goals

INNOVATING SUSTAINABLY IN FULL TRANSPARENCY

To create more natural formulas in more sustainable packaging without compromising on their quality, sensoriality and effectiveness.

To share the background and lifecycle details of our creations via Bee Re-spect, our traceability and transparency platform.

ACTING FOR THE CLIMATE AND REDUCING OUR FOOTPRINT

To protect the living, who depend on the climate, by aiming for carbon neutrality between now and 2030.

CREATING A POSITIVE SOCIAL IMPACT WHILE SAFEGUARDING THE WONDERS OF NATURE

To support women through the Women for Bees entrepreneurial beekeep-ing programme in partnership with UNESCO in its biosphere reserves across the world.

To raise younger generations’ awareness of biodiversity and bee preser-vation via “Bee School”, a volunteer programme for Guerlain employees.

OUR PURPOSE

Guerlain has been creating exceptionalFragrance and Beauty products since 1828,

and strives to preserve, develop, and transmit this unique heritage.

In the Name of Beauty,we act by

elevating Nature to an Art and commit to passing on its wonders to future generations,

with the Bee as sentinel.

We involve and unite our clients and partners that share the same vision

in order to imagine and shape a more beautiful and sustainable world together.

10 1198

Launched in 2016, LIFE 360 is the Group's new environmental performance road map for the coming 3, 6 and 10 years, building on the LIFE 2020 (LVMH Initiatives for the Environment) programme. Its major ambition is to create products that forge a fresh alliance between LVMH and Nature, and which make a positive contribution to biodiversity and fight-ing climate change. Through LIFE 360, launched in 2021, the Group is pursuing a science-based trajectory in line with the Paris Agreement that will promote and support our vision of New Luxury until 2030 via the actions of its Maisons.

Hélène VALADE revisits Guerlain’s commitment to this global dynamic of the Group.

Among the priorities of the LVMH Group, which ones are particularly relevant to Guerlain?

Among the LVMH Group’s priorities pertain-ing to preserving biodiversity, the circular economy, traceability, and the fight against climate change, the most relevant structural-ly for Guerlain is biodiversity.Guerlain has two types of customers: cus-tomers in the normal sense, and Nature. All Guerlain products borrow from Nature. The Maison thus needs to give back to Nature what it offers us; this is its Purpose.Nature has been a central theme for the Maison. It represents the link between its his-tory, its strong presence, and its future.And with the bee as its symbol, it is a pow-erful, coherent, authentic, structural theme. Guerlain is also the first Luxury Maison that has dared to discuss Nature at a more in-stitutional level by highlighting the bee as a sentinel.This Guerlain priority is based on actions implemented through its sourcing channels, such as the work carried out with the UEBT.In fact, the Group was inspired by what Guerlain did to address this issue. This is why we are so delighted that within LVMH, Guerlain has agreed to be the torch-

bearer of our biodiversity commitment. We’ll thus be able to benefit from the lessons learned during all the work that was done.

In your opinion, what are Guerlain’s greatest strengths? The main avenues of progress?

The first of its strengths comes from all the work carried out on biodiversity.The second strong point is the holistic vision Guerlain has of sustainable development through its work on biodiversity. This is so uncommon it deserves to be highlighted.Guerlain has the ability to bridge these issues in a systematic manner. When Guerlain sup-ports women beekeepers, a link is created between the social and business dimensions. When the Maison works with the UEBT on the care given to soil quality, a link is created with the carbon impact.Another Guerlain strength is that it is a step ahead in circular economy terms due to the link created with biodiversity, because the idea is to act to protect our natural resourc-es. Guerlain is also preparing big things for the circular economy. Finally, it should be pointed out that Guerlain has been a pioneer in creating transparency, which is a major customer expectation. With the Bee Respect platform

launched in 2019, Guerlain has created a solid base in this regard. If we had to de-velop a new area for progress, it would be to improve the air/sea ratio. Guerlain has analysed this subject, and progress needs to be made regarding the issue of transport. We are already aware of this issue, and it is being considered by the teams who are currently working to find solutions.

You talk about “New Luxury” by drawing a parallel between it and “Art Nouveau”. Can you tell us a little more about what the term “New Luxury” covers?

I’m struck by the fact that we have arrived at the end of the Anthropocene era, which marks Humankind’s supremacy over nature. We have to recalibrate and consider that the living world, Nature, must be given the same stature as the human world, without either one dominating the other.This is what we have identified in our “360” as “New Luxury”, an allusion to the Art Nou-veau movement born from the post-industri-al revolution realisation that it was necessary to reintroduce Nature into art.In a certain way, luxury is the child of the Anthropocene era since it puts emphasis on savoir-faire, creativity, and artistic genius. To-day, however, we need a more harmonious relationship with Nature. This is what New

Luxury is; it’s a more balanced relationship with Nature that one cherishes and cares for! And we demonstrate our love of Nature by restoring it and honouring it in our formu-las. All our products borrow from Nature: our champagne through grapes, our bags through livestock farming, our fragrances through plants, etc.The creators most sensitive to this subject are perhaps the perfumers, who are in a more subtle position and can embody the role of Nature’s guardian.I love saying that we are growers, livestock farmers, creators and artists all at the same time.

How do you assist each Maison and Guerlain with their sustainable develop-ment programmes?

We have established a reporting tool com-mon to all the Maisons called Cascade (Rainfall). It’s very important to have this shared language whose precision relies on goals and KPIs marked out over time. This enables us to consolidate all impacts and progress and not simply rely on wishful think-ing. Being able to do this in a Group which gives a great deal of autonomy to each Maison is quite remarkable.

In terms of operating and creating synergy, we rely on task forces composed of mem-bers from different Maisons and organised by subject. This allows everyone to interact, refine action plans or create new ones to-gether. For our part, we provide the knowl-edge and identify the relevant people to save time for the Maisons. We do this with regenerative agriculture and circular economy, for example. We have united the relevant actors and implemented projects common to multiple Maisons so that we can press forward in this endeavour.

As you said, it’s easier to make advanc-es with small organisations. How do you ensure environmental progress of a century-old Maison like Guerlain in an economy where small organisations and native CSR brands are emerging with to-tally different logics at their core?

Two key factors exist at Guerlain that will suc-cessfully keep us one step ahead:• The CEO’s leadership. Véronique Courtois

embodies our willingness in this regard to keep Guerlain moving forward even though it is a large time-honoured Mai-son. She provides sincere, consistent and meticulous political leadership.

• Impact culture has become an automat-ic response at Guerlain. Guerlain has agreed to reconsider all its processes: marketing, logistics, purchasing, etc. This is how the transport policy was re-evalu-ated: why send our timeless products by plane if their timing is very different to new products?

In large companies, you’ll often find that everything is so processed that if you don’t re-examine these processes, it's difficult to transform. Fortunately, Guerlain has been able to avoid this pitfall, which is also anoth-er way it has stayed ahead of the pack.

CREATING PRODUCTS IN HARMONY WITH NATURE

Strategic plan 1 • creative circularity, in particular, banning virgin plastic by 2026, incorporating circular practices such as upcycling, reusing, repairing, etc.

Strategic plan 2 • traceability, requiring for example a traceability system covering 100% of our strategic sourcing channels by 2030, etc.

CARING FOR ECOSYSTEMS

Strategic plan 3 • biodiversity, which means preserving as well as restoring Nature through certifications for 100% of our strategic raw materials or regenerative agricultural practices, for example.

Strategic plan 4 • climate, with ambitious goals such as a 50% reduction in greenhouse gas emissions from the energy consumed by our sites and boutiques by 2026 (2019 base), a 100% renewable energy policy, etc.

ENGAGING STAKEHOLDERS

This is key to successfully achieving the goals we have set. We’ll accomplish this through awareness-raising, training, and the mobilisation of our employees, customers and suppliers, with whom we prefer to adopt

a partnership approach.

LIFE 360 outlines the Group ambitions that each Maison will integrate into its own programmes according to 3 themes and 4 ambitious strategic plans. Each one presents precise targets and

time frames that can be viewed on the LMVH website.

AN INSPIRING MODEL MADE IN LVMH

1110

Guerlain’s Sustainable Board(1) succeeds our Ethics Committee cre-ated in 2018. It was restructured in 2021 to best support, guide and challenge the new ambitions driven by our 4 pillars. It unites 13 international experts selected from sectors that specifically address the challenges we face. Their mission is to guide our progress and collaborate in addressing issues relevant to their respective fields of expertise.

Specifically, this Sustainable Board’s mission is to:

• Share the priority issues of their respective sectors with us

• Identify emerging themes

• Confirm that we are addressing these issues in a clear, fair, and appropriate way

• Co-develop different environmental themes with us

• Provide opinions and advice freely and independently on Guerlain’s ongoing actions or projects.

AN ACTIVE PARTICIPANT AT THE HEART OF OUR SUSTAINABLE STRATEGY

We plan to assemble all members twice a year to assess our actions and provide advice, critiques and clarifications. Conferences will be organised based on events occurring in the members’ fields of exper-tise in order to raise the awareness of our audiences (professionals or the general public) and share important, sensitive, or future is-sues with them depending on the challenges we are facing. Thematic workshops will also be created in order to find concrete solutions to social and environmental challenges together. The first workshop will be devoted to bees.

Yann Arthus-Bertrand • Photographer, reporter, director, Chairman of the GoodPlanet Foundation & Honorary President of Guerlain’s Sustainable Board

(1) Sustainable Development Committee

13 EXPERTS

As an activist involved in environmental issues and an Advisory Board Member on the LVMH Group’s Board of Directors, I am now committed to joining Guerlain’s Sustainable Board in order to assist the Maison, which is already very committed, with its sustainable development policy, and specifically with its actions to preserve biodiversity.

“

“

Yann ARTHUS-BERTRAND Photographer, reporter, director & Chairman of the GOODPLANET Foundation

Marie-Sarah ADENIS Co-Founder of the biotech company Pili

Alice AUDOUIN Chairwoman of the Art of Change 21 Association

Sandrine BELIER Director of the Humanité et Biodiversité Association, and Vice-President of the French Office for Biodiversity

Candice COLIN CEO & Co-Founder of Beautylitic & Clean Beauty

Thierry DUFRESNE Founder and President of the French Adipology Observatory (OFA)

Jacques-André FINES-SCHLUMBERGER PhD teaching mobile technologies and Blockchain for the Paris 2 Assas “Digital Uses, Innovation & Communication” Master’s programme, and Director of the Blockchain for Good Association

Rik KUTSCH LOJENGA Executive Director of the UEBT (Union for Ethical BioTrade)

Sébastien MONCORPS Ecologist and Director of the French Committee of the IUCN (International Union for the Conservation of Nature)

Fanny PICARD Founder of Alter Equity (Impact Investing) and Vice-President of the Steering Committee of the Mozaïk RH Foundation

Mohamed RAGOUBI Research professor, Material Sciences, Physics and Responsible Research Development Procedures, UniLaSalle-Mont Saint Aignan

Virginie RAISSON-VICTOR Geopolitician - President of LEPAC (Foresight Studies and Cartographic Analysis Laboratory), co-initiator of Convention21, President of the IPCC Pays-de-la-Loire

Nirmala SEON-MASSIN Expertise Department Director at the French National Museum of Natural History

Cre

dit:

Stud

io Y

ann

Arth

us-B

ertra

nd

Credit: Quentin Jumeaucourt

13

Goal:

repopulated by 2025

million bees 125

1collected during World Bee Day

(20 May to 23 May 2021) and donated to the Guerlain for Bees Conservation Programme,

uniting our partners & initiatives to promote bees

million euros

GIVING BACK TO NATURE VIA THE SUSTAINABLE SOURCING OF OUR ICONIC INGREDIENTS AND THE “GUERLAIN FOR BEES CONSERVATION PROGRAMME”.

Biodiversity is at the heart of our creations, and the Bee, the sentinel of the environment, is at the heart of biodiversity. Without the wonders and the quality of the products bees offer the world, Guerlain would not be the High-Perfumery and High-Cosmetic Maison it is today. Their protection has always guided our sustainable development commitment. Although bees have been our historic cause, (our partnership with the Ouessant Island Brittany Black Bee Conservation Association goes back to 2011), we are strengthening our commitment today by expanding our support to include all the wonders of nature that inspire our creations. This commitment comes in various forms and is embodied in our sustainable sourcing channels projects, partnerships with committed actors, certifications that both guide our initiatives and validate our progress, and many more. Our ambitions, which have been re-examined this year, are high since they are guided by an urgency to act. We carry out these actions and share them with force

and conviction in order to achieve our goals.

Goal:

UEBT certified (sustainable sourcing channels)

by 2026

100% of our iconic sourcing channels

1514

A PARTNERSHIP PHILOSOPHY ABOVE ALL

In France, Europe, and all over the world, Guerlain is partnering with organisations and local actors to implement programmes and sus-tainable sourcing channels for our essential supplies.

Whether at home or abroad like in Asia, we support cultural, envi-ronmental, and socioeconomic approaches to the natural ma-terials that make up our products. That's why we strive to ensure the sustainability of our partners, usually over a period of ten years.

In concrete terms, this can be in the form of financial assistance, technical and scientific support, or even a skills-based sponsorship. In other words, the ad hoc sharing of expertise found in our voluntary teams. For fair and sustainable business, many of the means mobi-lised result from in-person exchanges and meetings “in the field”.

To this day, no synthetic substance exists that is capable of complete-ly replacing our natural bergamot extract, a very present note in Guerlain’s ranges of fragranced products. This goes all the way back to the Maison’s founding with Shalimar, which contains 30% Bergamot essence. The bergamot that Guerlain procures, “Citrus Bergamia” in Latin, only thrives in Calabria, where it is grown in a myriad of plots that are essentially family owned. Close to 7,000 people make a living from this arboriculture practised under conditions favour-able to biodiversity; it represents a vital economic resource for local harvesters and processors such as Capua, which has been a Guerlain partner for many generations. Therefore, this ensures traceability ac-cording to sustainable and ethical arboriculture criteria that respects both human and labour rights, from planting the flower beds to the extraction of the aromatic material.

The harvesting is done by hand here by teams that have been prop-erly trained, particularly in terms of safety (gloves are mandatory due to the highly allergic nature of this citrus fruit). Harvesting takes place from November to February, and in 2019, production totalled 22,000 tonnes from 1,300 cultivated hectares. It takes approxi-mately 220 kg of fruit to obtain 1 kg of essential oil. Only the peels contain the aroma compounds fit for fragrances.

To ensure that best practices are followed throughout the entire value chain, a “gentleman’s agreement” governed by 10 key points binds Capua and Guerlain together. As a result, each plot destined

to supply Guerlain and cultivated according to specific specifications (which notably recommend converting to organic practices without endangering the crops, conserving water, reducing the carbon foot-print of the agricultural equipment used, etc.), will see its production purchased at a special higher price. The goal is to remunerate all Calabrian arboriculturists who deliver to Capua and voluntarily adhere to the same environmental standards.

In keeping with this goal, Capua’s extraction of the natural material has also been perfected along with, for example, researching solu-tions for recovering and reusing the co-products arising from the bergamot essential oil extraction process. From a circular economy perspective, the orange juice and pulp, as well as the leftover aroma compounds still present in the residual water from the distillation process, are henceforth likely to find a buyer within the food industry, such as innovative lemonade manufacturers searching for a distinctive bitterness. The drums used to ship the essential oil from Calabria that Guerlain needs are designed to be reused, and in a way, are “returnable”.

CERTIFYING OUR “SOURCING WITH RESPECT” SOURCING CHANNELS IN PARTNERSHIP WITH THE UEBT

In the interests of transparency and the continuous improvement of its practices, our Maison has become a member of the Union for Ethical BioTrade (UEBT). This non-governmental organisation is recognised worldwide for its standard which defines the ethical sourcing practices for ingredients from biodiversity As a member, we have set goals to improve our sourcing in accordance with UEBT standards, both from a social point of view and in terms of respecting biodiversity.

By undergoing an assessment to become a UEBT member, the Mai-son has taken a new step forward. All 40 of its most iconic sourcing channels will be verified. Improvement plans will be implemented with each supplier and producer according to a continuous improvement model. Guerlain thus aims to achieve UEBT certification for its 40 most iconic sourcing channels by 2026.

Raw materials have always been a source of inspiration and innovation for our Maison. Pledging to protect biodiversity is a natural step to take to ensure the quality and longevity of our creations and savoir-faire, and to help contribute in our own way to conserving the Beauty of the World. Our local biodiversity conservation strategy has focused on forging sustainable sourcing channels partnerships, as seen in our procurement of honey, rose, orchid, bergamot, ylang, and more. We consider these unique raw materials to be wonders of nature,

whose preservation and passing down to future generations is part of our Purpose.

UEBT CERTIFICATION requires that practices respect and

reduce the loss of biodiversity as well as protect the rights of workers and

communities.

BERGAMOT FROM CALABRIA Italy

100% OF THE BERGAMOT USED FOR GUERLAIN FRAGRANCES COMES FROM “CALABRIAN GREEN GOLD”.

1716

A natural substance belonging to our original “Guerlinade” accord created in 1921, Ylang grows on the Canaga Odorata tree, which can reach heights of up to 30 metres if it is not pruned to eye level to make picking by hand easier. It can provide up to 20 kg of flowers per year for about 50 years starting from its 5th year of life.

Since chemical inputs are so expensive, the Comorians abstain from using them. Furthermore, the Indian Ocean region has launched an exemplary regional Ylang farming project. It promotes Sustainable Development Goals in a broader sense. Guerlain has thrown itself into this project alongside its partner the Bernardi Group, a processor in Grasse, France, and participates particularly in women's empow-erment and in the fight against deforestation which is at the heart of this programme.

Ylang releases its aroma compounds after undergoing a “gentle” distillation process, which actually means very slow, thus consuming much wood energy. This traditional Comorian distillation process is used a lot which, when added to the daily amount of heating wood needed by communities, contributes to deforestation. “One tonne of wood is required to obtain 3 kg of essential oil, which leads to the disappearance of 8% of the forest each year,” according to the French NGO “Initiative Développement”. This has also led to an increased decline in the amount of carbon available.

A Partnership Agreement between Guerlain and the 2Mains Associa-tion was thus signed in 2018 and officialised in 2020. Its social aim is to improve the life of the islanders and the health of the biodiversity through sustainable economic development projects such as imple-menting carefully controlled distillation practices that improve the en-ergy efficiency of the local equipment. This is how an innovative still

was established at the Ylangndjema CUMA (Agricultural equipment use cooperative) site in Hajoho (Anjouan Island).

This hybrid-type still, co-financed by our Maison and the Georges Sappa Foundation (Bernardi Group), was developed and put into op-eration thanks to the training provided to native professionals. It can produce the steam necessary to distil the Ylang using biomass instead of wood. First and foremost, this biomass must be “green”, locally sourced, and disassociated from any conflicting uses, such as biomass resulting from the cleaning of the surrounding fields and from the flowers used in the Ylang distillation process itself, for example. Our goal is to save at least 90% of the wood traditionally burned to extract the essential oil from the Ylang flowers. If other biomass sources must be used, they will have to comply with the Agreement’s provision of prioritising the use of 100% traceable local biomass.

It is important to note that Ylang farming supports 10% to 15% of the Comorian workforce and constitutes a way to bring about the economic empowerment of local women.

The part richest in aroma compounds is reserved for High Perfumery, while the rest will be used for a wide spectrum of purposes in cos-metics and aromatherapy. This thus increases the eco-efficiency of processing Comorian Ylang, a privileged supply source for Guerlain.

Among the three sourcing channels providing Guerlain with ros-es, the damask rose from Bulgaria is cultivated in open fields in Kazanlak valley. Called “liquid gold” in this Balkan country, this rose is one of Bulgaria's symbols as its essential oil is a source of national prosperity. Guerlain has worked alongside Jean Niel (France’s oldest family fragrance Maison) for 16 years as a stake-holder in this new-found dynamic.

The soil and climate particular to this terroir provides the damask rose with unique qualities. “Jacques Guerlain was completely en-amoured of this rose,”, recalls Thierry Wasser, our Maison’s Mas-ter Perfumer. However, in the face of environmental (planetary) & social (regional) challenges, the Rose Valley in Bulgaria is in the process of organising itself with the help of involved actors such as Guerlain.

A massive conversion to organic farming is currently under way. In order to reduce the number of inputs used, tests have been carried out utilising the practice of growing herbaceous vegetation between the rows of rose bushes, using new technologies to man-age crops, and adopting drip irrigation to reduce not only the use of water but also the water stress endemic to the region. These measures are also in line with the Bulgarian Ministry of Agriculture’s plans, and benefit from European aid.

As part of this booming ecological progress, the harvesting of calyces is a vital source of revenue for the farmers, distillers/extractors and seasonal workers. A minimum guaranteed salary has been established for the seasonal workers, who can hand-pick up to 30 kg/day during the May-June season. Particular attention has been given to the working conditions: a relatively fair and

stable price has been established between Guerlain and all those involved in order to successfully control the hitherto erratic prices of this highly prized raw material. This fair price provides growers and distillers/extractors with a decent wage.

“Part of my work consists of entering into this complex mechanism in order to understand all the ins and outs of it, and thus be ca-pable of knowledgeably addressing the realities of the farmers and the different stakeholders we work with to create successful fragrances,” says Thierry Wasser, the Maison’s Master Perfumer, who was able to successfully evaluate the sustainability challenges faced by Guerlain and firmly incorporate them into his job, thus providing it with an aspect specific to Guerlain.

As soon as they are harvested, the flowers are taken to the dis-tilleries, where they are boiled. The steam is then condensed and distilled again to obtain the essential oil. 100% of the damask rose essential oil that goes to supply Guerlain comes from the Bulgarian Rose. This country was granted the European PGI quality label “Bulgarian Rose oil” in 2015.

YLANG FROM THE COMOROS ISLANDSAn archipelago in the Indian Ocean

DAMASK ROSE Bulgaria

A STILL THAT USES 90% LESS WOOD AND FIGHTS AGAINST DEFORESTATION

CREATING THE CONDITIONS SO THAT BULGARIA’S “LIQUID GOLD” SURVIVES

1918

Bee preservation has been at the heart of the Maison’s sustainable development commitment for over 10 years. Our urgency to act echoes the realities that this guardian of biodiversity faces.

Close to 75% of cultivated plants and 90% of wild flowering plants depend on pollinators, most of which are bees(1). This pact signed millions of years ago between bees and flowers ensures a natural balance is maintained. This balance is now in danger, however, due specifically to a

mortality rate among bees reaching 30%(2).

GUERLAIN FOR BEES CONSERVATION PROGRAMME: A NETWORK OF PARTNERS MOBILISED TO FIGHT FOR THE CAUSE OF BEES

To embody our commitment and spread it around the world, we have created the Guerlain for Bees Conservation Programme, which is a network of 9 partnerships and initiatives mobilised to fight for the cause of bees

PROMOTE & PROVIDE LONG-TERM SUPPORT TO

THE BEEKEEPER PROFESSION

Since 2015, Guerlain has been supporting the French Api-dology Observatory (OFA) created by Thierry Dufresne. Api-dology is the science and study of the behaviour of bees. However, the OFA’s mission goes far beyond just this. It anal-yses the reasons why bees are dying, studies the benefits of hive products on human health, and raises awareness, par-ticularly in the younger generations, of the issues surrounding bees. It also establishes professional training courses, which are few and far between in Europe, in order to transmit the knowledge and skills it has acquired in the beekeeping field. Our partnership with the OFA focuses notably on the major

issue of developing the beekeeping profession.

DRAWING UP THE RED LIST FOR BEES IN PARTNERSHIP WITH THE IUCN

The IUCN is an international organisation in charge of es-tablishing a comprehensive inventory of the health status of the world’s biodiversity, particularly by drawing up Red Lists for each species (from large emblematic species such as the giant panda to other lesser-known species such as plants, mushrooms, and insects). Today, this represents the most reliable scientific tool for assessing the degree to which the world’s biodiversity is threatened. These lists also serve to raise awareness, engage diverse audiences, and prioritise

the implementation of specific actions.Since 2011: a sustainable development sponsorship programme has existed with the Ouessant Island Brittany Black Bee Conserva-tion Association (ACANB) based on two pillars consisting of financial support and support in its research and communications activities.

Since 2015: a partnership between Guerlain and the French Adipology Observato-ry (OFA), created by Thierry Dufresne, has helped develop the stock of hives in Europe and promote the rare and vital beekeeper profession.

In 2018: creation of the Bee School, an awareness programme for primary school children led by Guerlain’s employees, allow-ing children to learn about the bee’s impor-tant role while raising awareness of the need to protect them. After a two-year pilot phase in France, the Bee School was launched in-ternationally in 2021 and is planned to run from May to October.

In 2020: Launch of Women for Bees in part-nership with UNESCO and in collaboration with the OFA. This entrepreneurial beekeep-ing programme is intended to train women as beekeepers, create new apiaries in UNESCO biosphere reserves around the world, and measure the benefits of pollination. By 2025, this partnership will have trained 50 women beekeepers and created 2,500 hives, which represents the repopulation of 125 million bees. Angelina Jolie is the celebrity patron

of this first 2021 promotional campaign. She will meet with women beekeepers and follow their progress this year.

In 2020: A sponsorship with the Good-Planet Foundation was created by world-re-nowned photographer-director and ecologist Yann Arthus-Bertrand. This partnership aims to educate younger generations about the issues surrounding the protection of bees by establishing an artistic and pedagogical space dedicated to discovering the world of beekeeping.

In 2020: Support is provided to the ELYX Foundation, co-founded by artist Yacine Aït Kaci under the aegis of the FACE Foundation, which works to promote the values and prin-ciples established by UN documents, such as the 2030 Agenda for Sustainable Devel-opment and its 17 goals. The ELYX mascot designed by Yacine is the United Nations Digital Ambassador. He also designed BEEZ, the Bee School’s emblem.

In 2021: a three-year sponsorship was cre-ated with the French Committee of the Inter-national Union for Conservation of Nature (IUCN) in order to complete the Red List of Threatened Species of wild bees in France. Identifying the threats to bees and measur-ing their rates of decline will make it possible to inform the general public and alert pub-lic authorities to initiate concrete actions to protect them. Created in 1948, the IUCN’s

mission is to help preserve biodiversity and promote the fair and sustainable use of nat-ural resources.

In 2021: a three-year partnership was created with the French National Museum of History to support their “SPIPOLL” (pho-tographic monitoring of pollinating insects) programme. This participative project in-vites any walker or hiker to take photos of pollinating insects and post them using an application featuring artificial intelligence. Guerlain’s financial support has been used to increase the performance and scope of the application, which acts as a vital data-base for the scientific community and a tool to raise the general public’s awareness about biodiversity.

In 2021: a partnership was created with the Shan Shui Conservation Centre. This Chi-nese NGO works to preserve species and ecosystems in order to promote harmony between humans and Nature. Its attention is focused on threatened animal species in China, among which is the honeybee. In par-allel, Guerlain is also sharing its Bee School programme with Shan Shui, in collaboration with China’s Ministry of Education. This part-nership has already been overseen locally for a year by the Maison’s Chinese subsidiary.

(1) IPBES Assessment Report on Pollinators, Pollination and Food Production (2) Source: French Adipology Observatory

Florian Kirchner • Coordinator of the species programme of the IUCN French Committee.

Thierry Dufresne • OFA Founder and President

The beekeeper is like a shepherd for bees.

They play a critical and indispensable role in

guaranteeing that earth’s biodiversity continues

to thrive, and quite simply guarantee the

continuance of life on earth thanks to the work of

bees. It is thus imperative that we place all

our collective effort into providing more

opportunities to develop the beekeeping

profession. This fact is what led us to participate

alongside UNESCO and Guerlain in the won-

derful Women For Bees programme (p.42), an

entrepreneurial beekeeping project for women.

Our partnership with Guerlain will last

3 years and allow us to finish the

Red List for wild bees in France. We are going

to unite scientists, naturalists, and associations

in the field for the purpose of accurately

mapping the habitats of all the bee species,

identifying threats, and measuring their rate of

decline. This scientific tool will allow us

to alert the general public of the urgency of

the situation and help establish public policies

to implement actions to protect bees.

Once we have the results,

Guerlain will become a very supportive

representative of bees towards the general

public and its partners. ”

21

CREATING THE MOST NATURAL AND SUSTAINABLE FORMULAS WITHOUT CONTROVERSIAL INGREDIENTS AND WITHOUT COMPROMISING ON SENSORIALITY AND EFFECTIVENESS.

DESIGNING THE MOST ATTRACTIVE, SUSTAINABLE AND ECO-FRIENDLY PACKAGING TO PROTECT OUR PLANET.

SHARING THE BACKGROUND AND LIFECYCLE DETAILS OF OUR CREATIONS VIA BEE RESPECT, OUR TRACEABILITY AND TRANSPARENCY PLATFORM.

For many years, Guerlain has shown its commitment to sustainable innovation through its eco-design approach. This approach is reflected in its products from their design and marketing to their supply and transport. Since 2018, our Eco-Formulation and Eco-Design committees have governed this approach internally by monitoring precise indicators in order to measure our

progress and determine the strategic road map to follow in the coming years.

Our goal is to become the benchmark Maison in terms of sustainable beauty in luxury cosmetics. In order to accomplish this, we need to know how to reinvent the market’s traditional codes of luxury and take risks. Although our eco-design approach began with a strong emphasis on reducing packaging with the relaunch of the Orchidée Impériale cream in 2017 (60% reduction in weight compared to the previous version), it has systematically taken into account the formula over these last few years as well. Our development priorities are clear and have steered towards research into more natural formulas and greener chemical principles since this has now become indispensable. And although reducing the weight and impact of our cases remains at the heart of our strategy, this is now accompanied by a strong willingness to reduce our fossil fuel-based plastics and manage

each new project using a circular economy approach.

This must all be done with full transparency without compromising the level of quality, performance and desirability demanded by our Maison and customers for all our creations.

100% of our product innovations will

possess an improved environmental profile compared to their previous

version by the end of 2025.

100% of our new glass jars and bottles will contain partly recycled glass by the

end of 2023.

90% natural ingredients wherever possible in each new skincare and make-up

formula starting in 2021.

100% of our creations (except limited editions) will be traced by 2022

via Bee Respect .

(1) Cleaner, greener, more transparent

2322

of our glass components purchased in 2021

will contain a percentage of recycled glass compared

to 6% in 2019.

47%carbon footprint

for the Abeille Royale jar(1).

-44%

NEW RETAIL CONCEPT

Our eco-design approach doesn’t end with our formulas and packaging; it also applies to our distribution

points. We are gradually applying new concepts in boutiques that include strict criteria for reducing their

footprint down to the last detail. This includes 100% LED lighting fixtures, PEFC- or FSC-certified wood,

prioritised use of local suppliers—such as in China for natural stone—paper decorations (handcrafted by

artisans), as well as wood veneer, which is sent in rolls to reduce transport-related CO2 emissions.

fossil fuel-based plastic by 2026 (LVMH LIFE 360 goal).zero

Our eco-design strategy is regulated by a rigorous process that monitors the achievement of our goals and measures our progress. Before each new development, our Marketing, Development and Sustainable Development teams thus come together to set ambitious targets according to 3 indicators:

• The Environmental Performance Index (EPI). This score out of 20 denotes how well the eco-design rules are being applied (optimisation of the weight/volume ratio depending on the quantity of formula, the limited number of packaging layers, the ability to separate or refill packaging at end of life) and measures our progress over successive relaunches. Although each new launch must attain an overall minimum score of 12/20, we generally aim for 15/20 for each new skincare or fragrance format. The make-up formats with smaller capacities make this goal more difficult to achieve.

• The CO2 or Climate Change Indicator(1) takes into consideration

the weight of the packaging, the impact and origin of its materi-als, and especially the transport of the components and finished product to our subsidiaries. For each new development, we aim for a CO2 level lower than that of the product it is replacing.

• The number of Rs: Reduce (weight, volume, number of layers, etc.), Reuse (via refillable products for example), Recycle, and now Reintegrate (recycled material), and Reinvent (a new circular economy model). Each innovation must achieve at least 1R, but our goal is to achieve at least 3.

These different indicators are calculated using the Group’s powerful tool called EDIBOX. EDIBOX is currently being optimised, and the new version is expected to be ready by the end of the year. This new version will help us achieve the new eco-design goals defined in LVMH’s LIFE 360 programme in a more exacting and exhaustive manner and oversee compliance with the new regulations.

A STRUCTURED, MEASURED AND CHALLENGED APPROACH

GOALS THAT GUIDE OUR DECISIONS

Our Eco-Design committees meet every 6 months to review existing projects and share avenues for improvement and opportunities to explore. This is done to write, refine and optimise the road map for inventing tomorrow’s luxury packaging. This road map will have to address three major challenges that we have clearly identified, as reflected by the increasing concern of our customers and supported

by regulations around the world.

In addition to these eco-design commitments, eco-design de-cisions must be made at each stage of development. The con-sequences of these decisions are discussed each week during creative packaging meetings bringing together members of top management and the marketing, development, purchasing, qual-ity, regulatory and sustainable development teams. During these meetings, the participants compare and contrast different scenar-

ios and make the most appropriate decisions according to the sit-uation. Refillable products versus market maturity, lighter jars and bottles versus perceived value, adjustments to the boxes versus shelf visibility, use of recycled materials versus the impact on price, timing of development and complying with our quality standards, etc. are all considerations taken into account and discussed at each stage of development.

• Fighting against excess packaging has been the focus of our eco-design strategy for several years. Proof that we are meeting this challenge can be seen in the reduced weight of our jars and bottles, the gradual adjustments of our cases, and the smaller number of layers used in each new development or relaunch.

• Reducing our consumption of fossil fuel-based plastics is a goal that will only be achieved by finding alternative materials that possess similar properties and meet our standards of luxury, but without increasing our environmental footprint. In addition to completely eliminating them wherever possible, we are also searching for ways to substitute them for renewable materials, preferably paper or cardboard. If a polymer is still required for technical reasons, we systematically study alternatives composed of mechanically or chemically recycled plastics or bio-sourced

plastics. Replacing plastic with glass or metal is also an option, but we give preference to refillable products in order to get the most efficient use out of these materials due to the additional impact they may cause.

• Transitioning towards circular economy is achieved by rede-fining our production model and product offer. This translates into using resources sparingly and reducing waste by maximising the reuse of any element generated during the product’s life cycle. Expanding our offer of refillable products is obviously a strong consideration.

We follow our strategy by applying the 3R principles (Reduce, Reuse, Recycle), which have recently been supplemented by an additional 2R (Reintegrate recycled material and Reinvent our model).

(1) This indicator shows the equivalent CO2 emitted by packaging the product and transporting it internationally. The evaluation takes into account the type of materials, the origin and main production process of the constituents, their transportation, and the transportation of the finished product. The evaluation is carried out on the medium-sized product and according to a typical scenario of worldwide distribution.

(1) In comparison to the 50 ml format of the Abeille Royale range launched in 2016. Estimation based on a volume of 800,000 jars and on the evaluation of these 3 first steps of the life cycle of the product: raw materials, production and transport.

Bee Bottle 125 mlEPI score: 17/20CO2: 1kg CO2eq

2 R (refillable and recyclable bottle)

L’Essentiel High Protec-tion Foundation

EPI score: 12/20CO2: 1.4kg CO2eq

1 R (recyclable bottle)

Abeille Royale cream

New Abeille Royale Youth Watery Oil

EPI score: 15.3/20 CO2: 1.3kg CO2eq

3 R (reduced glass weight, recy-cled glass, recyclable)

2524

of short-term POS elements will be made from recycled PMMA

(Polymethyl methacrylate) in 2021. This will reach 100% by the end of 2022.

95%of the plastic merchandising elements and

packaging used for our sales products will be recycled or biosourced, and recyclable

or reusable by 2030.

100%

SECOND-HAND ENTERS INTO ROUGE G’S DRESSING ROOM

Since the circular economy is also a reinvention of the way we produce, Guerlain has experimented with a new practice for designing its new range of collectors. Inspired by sustainable fashion, Guerlain has stripped back its old collectors and provided them with a new wardrobe for the autumn.

The 6 new models launched in September 2021 there-fore use cases from the 2020 collections that couldn’t be sold in the quantities forecast due to the pandem-ic. By sprucing up the cases with velvet to create a new look, Guerlain managed to avoid having to manufacture 377,520 new caps. This initiative, which precedes the French anti-waste law (Loi AGEC), will serve as a text-book example that Guerlain will duplicate as soon as possible for other products. Nothing is lost, nothing is created, everything is transformed!

OASHE

OASHE is a project created by 5 female students from the IPAG business school who won the 2019 Sustainable Beauty Challenge organised by Cosmetic 360 and sponsored by LVMH under the theme of “Sustainable Beauty”. Their idea was to recreate perfumes from old fragrances. Capti-vated by the project, Guerlain supported these students through a mentor-ing programme that breathed life into their project, which was to recover old fragrances from sorting and recycling centres before the bottles were recycled; this then also helped to create their own OASHE perfume line.

IN SEARCH OF NEW WASTE STREAMS

For the relaunch of Terracotta in its natural version, Guerlain, in collabora-tion with Sephora in France, invited its customers to bring their old empty boxes back to store. The boxes returned during this campaign, along with the scrap materials collected while producing La Ruche, enabled us to divert approximately 300 kg of boxes from their waste streams. Their new life will be to serve in a pilot recycling system research project currently being conducted in partnership with Cèdre and LVMH.

CIRCULAB

Launched in July 2021, the Circulab is an initiative that brings together several areas of expertise

(Marketing, Sustainable Innovation, Purchasing, Production, Finance, Sustainable Development, etc.)

to accelerate and implement circular economy projects. The goal is to reinvent our model as efficiently

and as quickly as possible by incorporating more circularity into all stages of development.

Since 2009, Guerlain has been encouraging customers in France to return their empty packaging to the boutiques so that they can be recycled by Cèdre, the sorting and recycling platform created in partnership with the LVMH Group(1). Faced with growing environmental challenges, Guerlain has worked for the past 12 years to make circularity an absolute priority today. Apart from having to assume responsibility for our products’ end-of-life stage, we are profoundly redefining our business model by maximising reuse in all the life cycle stages of our creations. This begins at the design stage by making general use of refillable formats, continues into the development stage by incorporating recycled or biosourced materials

from a waste stream, and finishes at the end-of-life stage via recycling at a minimum or providing for a new second life.

Since 2018, customers have been able to refill all their fragrances at “Guerlain Perfumer” points of sale thanks to our historic Bee Bottle and perfume fountains(1). This concept will now be expand-ed to include the new “L’Art & La Matière” bottle relaunched this year with an eco-design using recycled glass(2). It can now be re-filled for life at Guerlain boutiques thanks to its unscrewable gold pump(1). The bottle will even be cleaned and repaired before each

new refill so that it works like new. This initiative now completes the three-pronged premium refillable offer that the Maison is test-ing in order to expand on its medium-term model: For make-up, Rouge G and its customisable luxury cases; for skincare, Orchidée Impériale Black in its handcrafted Bernardaud porcelain jar; and for fragrances, L’Art & la Matière with its collection of bottles with personalized caps.

PERMANENT RESEARCH INTO REUSING MATERIALS

ULTRA-PREMIUM, ULTRA-SUSTAINABLE: LONG LIVE HIGH PERFUMERY!

The range of possibilities is endless, but numerous tests are still needed to meet all our quality and safety requirements in par-ticular.

• Recycled glass. The incorporation of 25% recycled glass into our Abeille Royale cream jars was an innovative breakthrough in the luxury market in 2019. This has now become a standard at Guerlain. We systematically incorporate a minimum of 10% to 25% recycled glass into each new glass mould, and we aim to work with our suppliers to significantly increase this percentage in the years to come.

• Recycled plastic. Although substituting fossil fuel-based plastic with recycled plastic is a priority, it represents a major chal-lenge for the Maison. Aesthetically below the requirements of the luxury market, mechanically recycled plastic is above all a consumer safety issue throughout the entire cosmetic sector. To prevent the risk of impurities migrating into the formulas, a new food grade quality is required for all plastic in direct contact with

the formula. This requirement puts us in competition with the agri-food sourcing channels, thus making such a material even harder for Guerlain to find. We’ll thus have to wait until 2022 to introduce our first product using 100% recycled plastic. To make up for this lack of supply, chemically recycled plastic is a very interesting alternative for accelerating the process of substituting all our elements using resins in contact with our formulas. For the other components or items not in contact with the formulas (merchandising elements, promotional items, etc.), the system-atic use of mechanically recycled plastic will be carried out as soon as possible.

• New eco-materials. These eco-materials are made from resid-ual materials left over from the production of our formulas and packaging, for example, to create new materials that are both aesthetic and ecological. These alternatives interest us not only for their innovative character, but because they help us in our drive to support the start-ups that invent them.

(1) Service proposed in the countries where regulations allow it (2) 10% recycled glass, of which 1% is post-consumer recycled glass and 9% is internal post-industrial recycled glass (3) Food quality

100% of the caps for the new Rouge G

collection are upcycled

26 27

UPCYCLING IN ART

Ever since its foundation in 1828, Guerlain’s history has been intertwined with that of the artists and artisans invited to shape the most beautiful creations inspired by nature. This connection with nature is what has nourished Guerlain’s incredible originality for nearly 200 years. This unique DNA and connection are evident at all levels, particularly in our Maison’s artistic expression. In 2019, Guerlain initiated eco-collaborations with eminent artists that subtly combined circularity and art.

In 2018, Celia Pardini decorated the Boutique at 68 Avenue des Champs-Élysées with an impressive and enlivening display of flowers made entirely from cardboard.In 2020, William Amor magically transformed the Mon Guerlain Bloom of Rose crystal quadrilobé bottle with a breathtaking garland of flowers in full bloom (made from plastic bags recovered from beaches).

This year, we called upon the genius of Kevin Germanier to sublimely upcycle our iconic Bee Bottle for La Cuvée Secrète. Just as the Empress Eugénie de Montijo supported the budding in-dustry of Parisian Haute Couture in her time, Guerlain has now allied with Kevin Germanier, a symbol of a new generation of fashion de-signers in tune with the ethical issues and concerns of tomorrow.

This young Swiss designer’s signature style comes from upcycling materials such as fabric remnants destined for destruction and glass

beads that are buried because they cannot be melted down, all of which he considers precious and infinitely inspiring materials. He has invented a cutting-edge embroidery technique on silicone that makes use of discarded Swarovski crystals from past collections and breathes new life into them. Using this technique, he can hand-embroider a gown in less than 48 hours, which inspired him to coin the term “fast couture”. He also used this technique on our Bee Bottle for La Cuvée Secrète(1) to create a flowing gown of upcycled Swarovski crystals with a sparkling colour gradient. Made entirely by hand, each piece takes 3 hours to create.

This 3rd collaboration with young talents allows Guerlain to highlight the causes supported by and for a more sustainable luxury.

FLOWERS, THE BEE GARDEN & UPCYCLING

Since 2020, the Bee Garden has decorated our boutiques with a marvellous bee-inspired garden of

preserved flowers. Conceived as an enchanting dreamlike encounter, these magnificent creations were

specifically designed to be reused. The flowers have been reintroduced into the decorations of our Parisian

boutiques or offered to different associations and organisations. The honeycombs comprising the structure

will be reused for the 2022 edition and other events such as Christmas.

Another event, another display of flowers: the sumptuous settings created by Stéphane Chapelle for Orchidée

Impériale to decorate our Parisian boutiques were composed of fresh orchids that were replaced every

15 days. The orchids were then removed while still in excellent condition and given to the École Du Breuil

at the start of the year to be used by the students in their practical work.

(1) The secret cuvée

2928

Clean Beauty doesn’t have an exact official definition. This concept was conceived above all in response to a deep-rooted social movement calling for more natural eco-friendly products that promote conscientious and transparent beauty. Fuelled by controversy due to a lack of consensus within the scientific community as to its definition, Clean Beauty has nonetheless come to rule the market in a myriad of different

interpretations within the regulations.

Following the example set by our eco-design commitments and our Eco-Design Committee, we adopted a structured approach to eco-friendly formulation very early on, thus positioning Guerlain as a world pioneer in Clean Beauty. Our multidisciplinary, cross-functional Eco-Formula-tion Committee (Marketing, Research & Development, Regulatory Affairs, Sustainable Development, etc.) meets every 6 months to assess and report on progress made or still to be made, as well as any potential regulatory changes, etc. that may influence the Maison’s reformulations or its trajectory. This mission is precise and ambitious: to create rare, precious, natural, sustainable beauty without compromising on safety,

effectiveness and sensoriality – which are all historic hallmarks of the Maison.

Even though our goal is to have a minimum of 90% in all our skincare innovations starting in 2022, this challenge is turning out to be more difficult for the make-up formulas since they search above all for vibrant colours and effects, which are traditionally associated with synthetic ingredients. We are therefore aiming to set the same target of 90% natural ingredients for our make-up innovations as soon as this becomes possible, but we know that for certain textures such as eyeshadows, this will take much longer to achieve. For our various foundation and lipstick categories, our R&D teams have been working successfully since 2019 to obtain the highest percentage of natural ingredients in the market. Reinventing the legendary Terracot-ta sun powder in a more natural version that possesses an equally natural-looking make-up result has turned out to be a particularly difficult endeavour. Its new 2021 version formulated with 96% natural ingredients required years of research and screening to find good natural powders that create the right veil effect. The removal of sili-cones from our foundations began in 2017 with the L’Essentiel formu-la, which required our teams to literally start from scratch.

Since then, we have been systematically removing silicones from each new formula. As proof, between 2017 and 2019 we reduced the use of silicones in our emulsions (D5 and D6) by 65% in anticipation of their prohibition in Europe in 2026.

As for our fragrances, setting the goal of 90% natural ingredi-ents doesn’t seem relevant for all our ranges. In fact, even though this goal is attainable for the Eaux fraiches and the Eaux de Cologne fraiches and eaux de Cologne without altering the quality of the expect-ed fragrance trail, this is not the case for the majority of our scents. In addition to increasing the allergenic risk and at times diminishing the formula’s sustainability, maximising the use of natural ingredients while limiting synthetic ingredients in a scented concentrate also reduces our perfumers’ creative olfactory palette. Our alchemists have used syn-thetic ingredients from generation to generation since 1889, such as with Jicky, the first synthetic unisex fragrance. Essential for reproducing the notes of certain “mute” flowers such as lily of the valley, synthetic ingredients combine wonderfully with natural ingredients to intensify their notes or to create new accords that amaze the senses.

volatile silicone by 2023.

zeroGoal

the use of volatile silicone between 2017 and 2021.

65%Reduction in

natural ingredients in all our new

skincare formulas starting in 2022.

90%

new formulas without microplastics(1)

starting in 2023. With the goal of attaining 100% starting in 2024.

90%

Guerlain has always considered the safety of its products an absolute priority. Our quality and safety assurance relies on an uncompromising selection of new ingredients based on risk and environmental impact assessments. Each new raw material is approved only after an analysis is performed to identify its chemical composition, and its usage concentration is evaluated in compliance with the safety margins set by the Scientific Committee on Consumer Safety (SCCS). The cosmetic product’s correct

tolerance is then verified through dermatological and ophthalmological testing.

This rigorous scientific approach is set against current controversial reports in the media regarding a certain number of ingredients that confuse the concepts of risk and danger by omitting to include in their assessment the ingredient’s exposure level and the

product’s conditions of use.

We have been applying our own internal approach to safety assessment for decades, and this, together with strict compliance with the most stringent international regulations, ensures that all Guerlain’s products are completely harmless.

THE RIGHT DOSE

Guerlain is unique in the fact that it has been inspired by nature for nearly 200 years. This natural approach is part of our DNA, and its integration into the development of our formulas is a priority as long as it doesn’t compromise:

• Safety, which is our absolute priority. Each substituted raw mate-rial is subject to an exhaustive analysis by our toxicological experts. Particularly attentive to the allergenic risks associated with the use of natural raw materials, these experts evaluate the proper dose and recommend the ingredient that best respects the skin (p.29).

• The quality of the formulas. Always motivated by the motto of the Maison’s founder Pierre-François Pascal Guerlain, which is “Make excellent products, never compromise on quality. For the rest, keep your ideas simple and execute them scrupulously”, our formulators guarantee the formulas’ effectiveness and sensoriality, the great historic hallmark of our products. Each substitution is meticulously researched by our R&D teams in a sometimes long and arduous process to find natural ingredients with unique sensorial properties.

• Our respect for the environment and the sustainability of our sourcing channels is expressed by a powerful maxim: “Tap into nature without exhausting it.” Guerlain strives to create all new for-mulas using an improved eco-friendly approach. We rely on experts in ecotoxicity and sustainability, and we pay particular attention to the sustainability of our natural ingredient sourcing channels.

• Transparency and traceability. As the fourth fundamental pillar of our strategy, the sustainable sourcing of our iconic ingredients and total traceability of our formulas is a goal we plan to achieve for each formula, regardless of its category, by 2030. Everything will be accessible on our Bee Respect platform. We have also partnered with the UEBT in order to receive “sourcing with respect” certification for over 40 of our iconic sourcing channels (see p.02 and p.16).

We are regularly tracking our progress in this endeavour through pre-cise performance indexes that measure the percentage of natural in-gredients in our formulas, the substitution of controversial ingredients, the traceability of our ingredients, the sustainability of our sourcing channels, etc.

EFI INDEX

As with the EPI index (which measures our packaging’s eco-design), the Eco-Formulation Index (EFI) enables our formulating teams to compare results and accurately test and update formulas using ex-tremely precise parameters. It combines 6 criteria (amount of natural ingredients, environmental impact via biodegradability and ecotox-icity, sustainability, replacement of controversial ingredients, and “smart” formulations that only use the necessary ingredients) and is based on internationally recognised standards (ISO 16128, the So-cial Hot Spot database, the Product Environmental Footprint Guide, etc.).

4 PRINCIPLES THAT GUIDE OUR PROGRESS

(1) Based on the definition proposed by the ECHA in January 2019, currently being discussed prior to its final adoption

KissKiss Shine Bloom95% natural ingredients(1)

L’EssentielPore minimiser Shine control

97% natural ingredients(1)

Orchidée Impériale Micro-Lift Concentrate

92% natural ingredients(1)

Terracotta Bronzing Powder

96% natural ingredients(1)

(1) Calculated based on the ISO 16128 standard including water

3130

For more than 3 years, Guerlain has committed itself to a long and rigorous process of mapping the life cycle of its creations. In 2019, we launched Bee Respect, our transparency and traceability platform designed in partnership with Product DNA (traceability architects). Although accessible to everyone via the guerlain.com website, it is also a precious continuous improvement tool for our internal teams (particularly in

terms of environmental impact), from the flower fields to our customers.

This digital transparency and traceability platform makes it possible to collect information about ingredients and their origin, packaging com-ponents, production sites, suppliers and even carbon footprints.

This is one of the most complete tools in the Beauty market, and it offers total visibility over the entire life cycle of a product, thus meeting the strong demands of our clients and customers, particularly after the health crisis the world has experienced. The amount of people using Bee

Respect increases each month.

Guerlain complies with the very strict eco-design and eco-formulation rules. These standards can be praised, challenged or judged so that trusted third parties can provide additional assurance to the general public. We pay close attention to these matters and follow current social debates in order to best respond to our clients and customers’ particularly increasing desire for more naturalness and the elimination of

certain controversial ingredients.

To share the background and life cycle details of our products more easily to an ever-increasing audience.

• The gradual integration of all our products (skincare ranges in 2019, make-up in 2020, fragrances in 2021). Goal: 100% of our creations traced by 2022 (except limited editions).

• An international launch (Europe in 2021, Asia in 2022), in the languages of each country.

• Advances in ergonomics (more intuitive browsing, updated design) and content (focus and details on emerging themes or themes pop-ular with our audiences, such as end-of-life recycling) are planned for 2022.

OUR FUTURE GOALS

of our creations traced by 2022 (except limited editions) compared to 62% today (157 products)100%

valued suppliers

& partners

40employees & partners

mobilised to make it happen

250ingredients

traced (2021)

550

GUERLAIN: A PILOT MAISON WITHIN THE LVMH GROUP FOR IMPLEMENTING

SUSTAINABLE COMMUNICATION

Concerned about the environmental footprint of its communication, the Group is leading an inter-Maison project

to regulate and control its impact. This initiative was launched as part of the Leroy-Bousquet Law which provides, at

the heart of the French Climate Law, for the establishment of a code of conduct in favour of more environmentally

friendly advertising. The strong interest shown by our Maison and the actions we have already taken in this area

have led us to be chosen to lead this project within the Group and bring all the Maisons together to speak in a

single, more responsible voice. Among the 5 areas of action stipulated in this law, Guerlain plans to actively work

on defining measurement criteria for its choice of broadcast media, production methods and content creation, from

the concept phase to its broadcasting. This will be done by involving all our service providers in implementing a

measured continuous improvement plan. The Group thus hopes to sign the FAIRe agreement created by the French

“Union des Marques” (union of brands), which collectively mobilises brands, leaders in the advertising ecosystem

and stakeholders in a dynamic of progress and sustainability.

More and more sustainable beauty programmes are appearing in the retail world (department stores and specialised shops in particu-lar). We have identified fifteen of them around the world that are all ambitious and increasingly demanding, which enable shops and e-commerce sites to introduce Clean Beauty tags. This new retail re-quirement, which is overwhelmingly supported by our customers as a mark of trust, is becoming the new standard.

And although each initiative establishes its own set of specifications, it is not unusual to find common criteria. To comply with these stand-ards, formulas must be “formulated without” a list of ingredients de-termined by the brand, which are often the subject of controversy.

These ingredients are now to be replaced by natural ingredients (re-quired minimum of 90% to 95% natural ingredients). Traceable in-gredients or the use of a label are also required. Eco-design criteria are increasingly being added to these standards as well: those refer-ring to refillable products and the percentage of recycled materials contained in packaging are the most common examples. All these requirements are an integral part of our sustainable innovation strat-egy, and our latest innovations can be considered as meeting these criteria. As a result, the new Abeille Royale Youth Watery Oil, Abeille Royale Eye R Repair Serum, KissKiss Shine Bloom lipsticks and Terra-cotta powders have been showcased in several of these programmes.

Numerous organic, natural, safe, and clean, etc. labels exist... but they are all governed by different criteria. Fur-thermore, very few of them are reg-ulated. As such, our aim is to avoid using labels that are purely for mar-keting purposes.

DISTRIBUTOR PROGRAMMES: AN ADDITIONAL REQUIREMENT

LABEL REQUIREMENTS: NOT ALL ARE THE SAME

Abeille Royale Eye R Repair Serum

New Abeille Royale Youth Watery Oil

Terracotta Bronzing Powder

• The ISO standard for natural and organic cosmetic ingredients and products

• The UEBT for assessing and certifying the social and environmental improvements to our sourcing channels

• The Bee Respect platform for traceability

• The LVMH Group’s Responsible Purchasing Charter for Fragrances & Cosmetics

• The life cycle analysis of our creations for our environmental commitment

We attach great importance to that which is demonstrable and of interest to our customers:

33

Guerlain, its partners and its service providers are firmly committed to meeting the climate challenge, which also involves the available local and international infrastructures. For its part, Guerlain prepares a green-house gas emissions report each year (Bilan Carbone© and GHG Protocol methods), which has iden-tified the transport sector as the main activity contributing to Guerlain’s greenhouse gas emissions.

We are thus reorganising to prioritise sea transport.

We have set carbon neutrality as a goal for all our scopes (1, 2 & 3) by 2030. This is an ambitious yet realistic project. We are working on this in all sectors that emit greenhouse gases (GHG) by involving each actor in our

supply chain, particularly via ISO 14001 certification, whose principles we apply to structure our approach.

100% renewable energy in France

(green electricity and biomethane) since 1 July 2021.

100% of our supply chains ISO 14001

certified by 2022 (56% worldwide today).

36 373534

Carbon neutrality will be achieved in 2 stages in accordance with our carbon 2030 trajectory (calculated based on our forecasts for growth and increased activity) and the associated action plan.

SCOPE 1 & 2: BY 2023

Our total greenhouse gas (GHG) emissions for Scopes 1 & 2 were 1,559 tonnes of CO2eq in 2019. To reach carbon neutrality, Guerlain is implementing 3 key measures in the following order of priority:

• Starting in July 2021, our La Ruche site will stop using natural gas and switch to 100% biomethane. Obtained by refining biogas, which itself comes from the fermentation of organic waste, biometh-ane is a completely renewable non-fossil energy source. This switch to “green gas”, which is produced in France, will enable Guerlain’s plants to reduce their carbon footprint by 95%, which is the equiva-lent of 1,000 tonnes of CO2 per year. The remaining 596 T CO2eq will be managed by implementing 2 other key measures.

• Periodic energy audits and actions taken to reduce energy consumption at our highest consuming sites.

• CO2 capture projects for the remaining emissions. Our pri-ority is to reduce our emissions, but certain emissions cannot be reduced for technical reasons. We are currently studying diverse solutions, particularly with our partners who support ethical ag-ricultural/forestry projects near our production sites. The first projects will be launched starting in 2022.

ACCORDING TO THE PRINCIPLES OF THE SBT (SCIENCE BASED TARGETS) INITIATIVE

In 2020, our CO2 reduction goals aimed at attaining Scope 1, 2 & 3 neutrality have been validated by the SBT initiative (SBTi). The SBTi is a coalition of the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI), and the World Wild Fund for Nature (WWF). It defines and promotes the best practices to follow when setting science-based goals, and inde-pendently evaluates the goals of companies.

Guerlain commits to reduce absolute scopes 1 and 2 GHG emissions 47% by 2030 from a 2019 base year. Guerlain also commits to re-duce purchased goods and services and downstream transportation & distribution GHG emissions by 57% per ton of product produced within the same timeframe. Guerlain commits that 45% of its sup-pliers by spend covering purchased goods & services will have sci-ence-based targets by 2025.

ISO 14001 CERTIFICATION: 100% OF OUR SITES & SUBSIDIARIES CERTIFIED BY 2022

56% of our supply chains and 100% of our French sites are cur-rently certified (The La Ruche and Orphin production sites as well as our HQ and Paris boutiques).

Our goal is to have 100% of our infrastructures (a total of 23 sites and supply chains) ISO 14001 certified by 2022.

This time-phased goal setting is an excellent illustration of what ISO 14001 is all about: a continuous improvement approach. More than just obtaining certification, it is the processes and goals it establishes that motivates us.

It entails painstaking implementation on a case-by-case basis.

We audit each subsidiary using a checklist containing a hundred items that are adapted to each type of site and activity so that we can then define an action plan to implement according to the situation. Monitor-ing and evaluation is overseen conjointly with periodic controls, discus-sions and reorientation. Certain subsidiaries require more substantial updating, particularly due to different national regulations.

This translates into a continuous improvement process in all cases.

The results from the checklist are used to define which actions take priority, although these priorities may evolve depending on innova-tions and current events; for example, 20 years ago, a lack of LED lighting would have been acceptable. Today, it has become the rule.

It is truly an ethical and contagious movement.

Once shared, this checklist becomes a precious tool for supply chains to closely follow when relocating or renovating. And since our offices are often shared with other Group Maisons, all our initiatives aimed at achieving ISO 14001 certification have a positive impact that ex-tends beyond Guerlain itself.

of our total emissions

Our greenhouse gas emissions for

Scope 3 represent

2%

Our greenhouse gas emissions for

Scopes 1 & 2 represent

of our total emissions

98%

Now that our La Ruche site has switched to 100% biogas, we are taking advantage of

the occasion to raise our employees’ awareness on the subject of green energy in their own

personal sphere. We are doing this by communicating the initiative led by WWF and Selectra

that champions more accessible and environmentally friendly green energy.

The project consists of selecting the best green energy provider (biogas and electricity) that

can offer a rate lower than the regulated rate (up to 7%) based on a group purchasing plan.

A questionnaire is sent to gage interest in the offer, calculate the amount of energy, and

determine the price. Although these are only attempts to switch to green energy, the conversion

rate last year was 20%. We have communicated this interesting method for accelerating

energy transition to all our employees in France.

SELECTRA: RAISING OUR EMPLOYEES’ AWARENESS OF

GREEN ENERGY

THE BUMBLEBEEA 100% electric truck that runs silently at night

without any CO2 or fine particulate emissions,

which has been supplying our HQ and

7 Paris boutiques since 2013.

Since its first use, 60 tonnes of CO2

emissions have been avoided compared to

the use of a diesel vehicle.

End of life

Purchased products & services

98% SCOPE 3

Capital assets

Distribution & Transport

of merchandise (upstream & downstream)

Fuels and energy

Work travel

0.7%0.4%

57.9%

2.7%

1.7% SCOPES 1 & 2

4.5%

23.1%

8.9%

SCOPE 3: BY 2030

Scope 3 represents the largest percentage of GHG emissions by Guerlain. Among the sources of GHG emissions, transport repre-sents a very important area for progress: we are addressing this by implementing numerous initiatives and measures.

More than half our emissions come from aeroplanes.

For all the scopes, downstream logistics represent 54%, 99% of which is due to air travel. This is why we and our supply chains share the desire to promote maritime shipping so that we can continue to satisfy our most distant customers as much as possible. Reducing the weight/volume ratio through the eco-design of packaging is also a major component of our policy (p.22), as is the operational planning of our product launches, which allow for lead times suf-ficient for maritime transport.

In addition, we assist our logistics teams with indicators and CO2 calculation tools that enable them to determine the emissions of a given transporter for a given voyage and, if necessary, choose the most ethical option based on the constraints and time frames.

We are also conducting tests on rail transport between Europe and Asia, a solution that falls between air and maritime transport in terms of CO2 emissions.

Waste

38 393736

We designed our La Ruche production site like a laboratory and an example of sustainable innovation. Inaugurated in Chartres in 2015, La Ruche is HQE certified and was able to reduce its CO2 emissions by 40% within 5 years. The recent switch to biometh-ane (July 2021) will enable the site to reduce its remaining GHG emissions by 95%. As part of our goal of achieving carbon neu-trality by 2030, projects to reduce our energy consumption as well

as programmes supporting ethical agricultural practices are being studied. In 2018, La Ruche added a pond to promote biodiversity (as part of a blue network), as well as Ouessant sheep on the sur-rounding green spaces to enable eco-grazing, which helps maintain the property without using combustion engine equipment or phy-tosanitary products.

The forthcoming relocation of our headquarters (end of 2021) and the opening of a new Guerlain boutique (January 2022) in the La Samaritaine building marked an opportunity to implement numer-ous initiatives supporting our goal of achieving carbon neutrality by 2030.

This complex construction and renovation project adheres to an ambitious set of specifications determined according to Guerlain and La Samaritaine’s respective sustainable programmes, to which both are equally committed. Our renovations will have to be in line with the approach taken by La Samaritaine, and La Samaritaine will take particular care to adhere to our (numerous) environmental requirements.

In practical terms, this translates into implementing a GHC emis-sions reduction strategy (prioritisation of renewable energy sourc-es such as geothermal energy, thermal recovery, etc.), a waste management plan (reuse or collection for recovery and recycling)

during and after the construction work, choosing ethical and san-itary materials and equipment (eco-labelled paints with low VOC emissions, LED lighting with automatic shut-off at the end of the day, as much locally sourced high-quality materials as possible, etc.), and renovations that optimise work comfort and energy conser-vation (optimised use of natural light, bike parking, etc.). We have limited the amount of water used by the sanitary equipment and have installed solenoid valves to prevent water leaks. This sanitary equipment is supplied by a rainwater collection system. Insulation and thermal comfort are ensured by a triple-skin façade.

Of course, selective sorting is strongly encouraged with a voluntary waste deposit area on each level in order to recycle a maximum amount of avoidable waste.

Finally, with regard to work travel, the building’s basement has se-cure enclosed areas for up to 70 bicycles and 20 scooters that complements the extensive service provided by public transport.

OUR LA RUCHE PRODUCTION SITE

NEW SAMARITAINE HEADQUARTERS

3 CERTIFICATES OF EXCELLENCE

FOR OUR RIVOLI BUILDING:

• HQE “Tertiary buildings” Exceptional Level • BREEAM “Europe Commercial 2009” Excellent Level • LEED “Core & Shell” Gold Level

At the same time, Guerlain is aiming to earn the BREEAM “International Non-Domestic Refurbishment 2015 Part 4 – Interior Design” certification for its Rivoli renovation project.

“Excellent” is Guerlain's target

FOR OUR PONT NEUF BUILDING (STORE 3):

• LEED “Core & Shell Gold level expected • PEQA certification • Effinergie Renovation Label

Cre

dit:

Pier

re-O

livie

r D

esch

amps

, Age

nce

Vu

39

BY SUPPORTING WOMEN THROUGH THE WOMEN FOR BEES ENTREPRENEURIAL BEEKEEPING PROGRAMME IN PART-NERSHIP WITH UNESCO IN ITS BIOSPHERE RESERVES ACROSS THE WORLD.

BY RAISING YOUNGER GENERATIONS’ AWARENESS OF BIODIVERSITY AND BEE PRESERVATION VIA THE VOLUN-TEER PROGRAMME FOR GUERLAIN EMPLOYEES CALLED BEE SCHOOL.

Guerlain has always been inspired by beauty. It is our job, our passion and now our responsibility, as expressed in our Purpose today: “We work in order to imagine and shape a more beautiful world.” Whether it is the present or future beauty of the world, the beauty of a gesture, beauty that provides confidence or works towards a more prosperous future... Our savoir-faire works for beauty but also for good: this is the key element that drives us, the common thread binding all our actions to promote a more united, fair and stable world in the face of climate change, adversity and injustice. This is embodied not only in its international programmes such as Women for Bees or the Bee School, but also more locally through gestures and kind actions taken when

they are most needed, such as in situations of illness, uncertainty or loneliness.

in 25 UNESCO biosphere reserves.

hives establishedtrained and supported in establishing their apiaries.

Women beekeepers50 2500

within the Bee School since 2018.

children educated 2700

By 2025 By 2025

4340 41

COLLECTING 1 MILLION EUROS TO PROMOTE THE CAUSE OF BEES

From 20 to 22 May, as part of World Bee Day , Guerlain organised an international campaign aiming not only to collect up to 1 million euros for the Guerlain for Bees Conservation Programme, but also to mobilise its communities and, more broadly, the general public.

Mission accomplished. The entire amount was donated to support the Guerlain for Bees Conservation Programme.

This was an unprecedented worldwide operation. Specifically, the Maison donated 20% of its worldwide sales(1) and €20 for each repost of the World Bee Day visual published by Guerlain on Instagram 20 May accompanied by #GuerlainForBees and #WorldBeeDay, dedicated to the informational campaign. This educational and mobilising informational campaign shined the spotlight on key data concerning bees and their future.

(1) For all product ranges at its points of sale and via e-commerce

20 MAY: WORLD BEE DAY

This day designated by the United Nations coincides with the birthday of Anton Janša, who pioneered modern beekeeping techniques in his native Slovenia in the 18th century and paid tribute to the Bee for its ability to work hard while requiring little attention.

22 MAY: WORLD BIODIVERSITY DAY

Established by the UN General Assembly, this date was chosen to cel-ebrate the day the Convention on Biological Diversity was adopted. This convention went into effect in 1993 with the following aims: the conservation of biological diversity, the sustainable use of its compo-nents and genetic resources, and the fair and equitable sharing of benefits arising from them.

A CAMPAIGN STRUCTURED AROUND 2 HIGHLY SYMBOLIC DAYS

WORLD BEE DAY ACHIEVES EXCEPTIONAL RESULTS

The success of this event marked a major step forward for our Bee Conservation Programme , which will broaden and amplify its actions to further the cause of wild bees (see boxed text) with the help of 3 new partners:

• The French Committee of the IUCN, with whom we’ll prepare the Red List of threatened bees (see p.19).

• The French National Museum of History and its “SPIPOLL” programme (photographic monitoring of pollinating insects), a participative sci-ence project whose goal is to study pollination networks, i.e. the complex interactions not only between plants and insects, but also between the flowers’ visitors themselves.

• The Chinese NGO Shan Shui Conservation Centre, which works to preserve endangered species, notably the Bee. Guerlain collab-orates in its awareness-raising activities for younger generations through the information presented by the Bee School, which will benefit 30 schools in Shanghai.

A total of 9 projects & initiatives constitute the heart of the Bee Con-servation Programme .

35% of our food depends directly or indirectly on the actions of

pollinating insects(1).

75% of cultivated plants and

90% of wild flowering plants

depend on pollinating insects, mainly bees(2).

30% mortality rate among honeybees(3).

(1) Abeilles, gardiennes de notre Avenir (Bees, guardians of our future) (Paul Fret) (2) IPBES Assessment Report on Pollinators, Pollination and Food Production (3) Source: French Adipology Observatory

OUR COMMITMENT TO BEE PRESERVATION LIVES EACH DAY THROUGH

OUR VARIOUS INITIATIVES AND PARTNERSHIPS. HOWEVER,

ONE DAY IN PARTICULAR PROVIDES US WITH THE OPPORTUNITY

TO RAISE AWARENESS AND ENLIGHTEN OUR AUDIENCES IN A COMPELLING

MANNER ABOUT THE DANGERS FACED BY BEES: WORLD BEE DAY.

THIS YEAR, AS PART OF THE DYNAMIC PROCESS TO STEP UP

ALL OUR COMMITMENTS, WE HAVE GIVEN CONSIDERABLE

WEIGHT TO THIS EVENT.

Bees are the principal pollinating insects, and the pact signed millions of years ago between bees and flowers ensures that a natural balance is maintained. This balance is now in danger, however,

due specifically to a mortality rate among bees reaching 30%(3).

There are 2 types of bees, both of which ensure pollination: The wild bee and the domesticated bee, which is commonly called the honeybee. The most predominant species is the apis mellifera,

also called the European honeybee. The Apis mellifera can gather pollen from 15 flowers per minute and pollinate close to 170,000 different species(3). More than 20,000 bee species have been identified worldwide,

90% of which are wild(2). Making the fight to preserve them part of our commitment was a priority, which is why we have joined forces with 3 new partners committed to their study and preservation.

THE CAUSE OF BEES

4542 43

BEES: SENTINELS OF THE ENVIRONMENT.

Thanks to the Women for Bees programme, the role played by women beekeepers around the world will be recognised for the

first time. This concern arose from the realisation that local savoir-faire in the field of beekeeping is being lost in a large number of

regions. Pollination is essential to life on earth, and beekeeping plays a vital role in our need to protect biodiversity.

We wish to expand this women beekeepers network from the current 25 biosphere reserves to other biosphere reserves spread

throughout 129 countries. Women beekeepers live in biosphere reserves located in developing countries, and they lack access to

the science and technological advances required for managing their hives properly. Providing them access to this science,

technology and knowledge will allow them to rise in society.

After 2 years of careful preparation, the Women for Bees Programme was officially launched at the start of 2021. It was created in collaboration with the French Adipology Observatory (OFA) and in partnership with the UNESCO-MAB (Man and the Biosphere) Programme, an intergovern-mental scientific programme that partners with the LVMH Group and aims to conserve biodiversity and promote sustainable practices by combining

the natural and social sciences with economics. These are the exact same goals that our Women for Bees Programme works towards.

Cécile Lochard Guerlain’s Chief Sustainability Officer

Our Women for Bees entrepreneurial beekeeping programme has several goals: transmitting beekeeping savoir-faire, creating

entrepreneurial opportunities for women, preserving bees, addressing issues concerning food and pollination, and establishing

ethical agricultural practices in Biosphere Reserves (in collaboration with the OFA via our partnership with the UNESCO-MAB).

We are very proud that this project is finally seeing the light of day; never has Guerlain carried out a project of such magnitude.

PARTICIPATING ON A LARGER SCALE IN POLLINATION AND WORLD FOOD SECURITY

Pollinating insects, particularly bees, pollinate a third of the crops that go to feed us. This doesn’t only mean fruits, nuts and vegetables, however. Bees also pollinate alfalfa, which is used to feed livestock, as well as other crops linked indirectly to food.

AN INITIAL DEPLOYMENT WITHIN 25 BIOSPHERE RESERVES

This pioneering project’s goal is to develop standard-setting apiaries within UNESCO Biosphere Reserves, some of which constitute sourc-es for the Maison’s sustainable sourcing channels. The Biosphere Re-serves participating in the first two years of this programme are: Îles et Mer d’Iroise, Moselle Sud, Fontainebleau-Gâtinais, the Camargue and Mont Ventoux (France), Sila (Italy), Terres de l’Ebre/Montseny (Spain), the Balkans (Bulgaria), Kozjansko & Obsotelje (Slovenia), Great Altay Transboundary (Russia), Tonlé Sap (Cambodia), Kafa (Ethiopia), Volcans National Park (Rwanda), and Xishuangbanna (China).

Shamila Nair-Bedouelle

Assistant Director-General for Natural Sciences of UNESCO

ECONOMIC SUPPORT OF A REGIONBeekeeping is capable of generating considerable revenue for dis-advantaged populations in rural areas who don’t possess land or have small to medium-size family farms with limited capital. It can provide extra income and thus improve food security, particularly in regions with marginal agricultural production.

2,500 hives

established within

125 million bees

Repopulated by 2025 according to our estimates

50 WOMEN BEEKEEPERS TRAINED WITH THE OFA AND UNITED BY AN INTERNATIONAL NETWORK

The one-month training programme was provided by the OFA in June 2021 in the Sainte-Baume Massif in Provence. One of the pro-gramme’s key goals it to highlight the diversity of local beekeeping practices and share the savoir-faire of different cultures. Thanks to the OFA experts, each participant acquires all the theoretical and practi-cal beekeeping skills necessary to create and manage a sustainable apiary. These new women entrepreneurs thus become members of a worldwide community of women beekeepers who help strengthen local biodiversity with their bee colonies and work to transmit their knowledge of the crucial role bees and pollination play in world food security. And of course, this may also give rise to new beekeeping vocations.

Alongside the OFA and UNESCO, we continue to support these women beekeepers in achieving their goals.

A COMMITTED CELEBRITY PATRONTHAT EMBODIES OUR PROGRAMMEThis striking portrait of Angelina Jolie, the celebrity patron of our 2021 campaign and Guerlain muse since 2017, caused quite a stir, particularly on social media (with 3 billion views). It has also helped us to achieve our goal of raising massive public awareness of Bees and the dangers they face. This memorable image created to raise awareness of and support the training of women beekeepers in UNESCO Biosphere Reserves was taken by photographer Dan Winters. An amateur beekeeper, he was inspired by the famous portrait by Richard Avedon (1981) of a bald beekeeper with his chest covered with bees. For actress and humanitarian activist Angelina Jolie, this portrait is an opportunity to remind everyone that bees are one of the cornerstones of our food chain, and they are currently threatened by parasites, pesticides, the destruction of habitats and climate change. It is also an opportunity to support the initiative to create a virtual worldwide network of women being trained to protect these essential pollinators.

25 biospheres UNESCO

WHAT IS A BIOSPHERE? A Biosphere Reserve is a site designated

by national governments and recognised by UNESCO. Its goal is to:

• reconcile natural and cultural diversity with economic and social development

• test and develop innovative sustainable development approaches at the local and international level

4744 45

AN OPERATION THAT (ALSO) INVOLVES EMPLOYEES

The Bee School invites each of Guerlain’s 3,700 employees to become spokespersons for sustainable development, more specif-ically as part of our commitment to preserve bees, by becoming involved at the institutions of their choice (mainly primary schools, but also recreation centres, hospitals, etc.). In addition to receiving prior training focusing on the programme’s content, issues and teaching techniques, they also receive a complete teaching kit that enables them to conduct a 2-hour session for children aged 8-10. Discussions, Q&A sessions and fun workshops to test students’ knowledge through various games end with the presentation of the Bee School diploma. It goes without saying that this aware-ness-raising programme never makes reference to the Guerlain brand.

CONTENT EXPANDED TO INCLUDE GLOBAL ENVIRONMENTAL CHALLENGES

After 2 years of confirmed success, we have been able to refine the programme thanks to the feedback received from our employees. As a result, we have updated the teaching kit by creating 5 versions adapted to different age groups (ages 5 to 12).

Its content was created through a partnership between UNESCO, the French Adipology Observatory (OFA) and the Elyx Foundation (Elyx is the UN mascot), with scientific support coming from the French Committee of the International Union for Conservation of Nature (IUCN). The goal now is to go beyond the subject of bees (domesticated and wild) and address the issues of biodiversity, pol-lination and climate change.

1BETTER UNDERSTAND

THE ISSUES SURROUNDING BIODIVERSITY and climate change.

2UNDERSTAND

THE ROLE BEES PLAY in their daily lives and become aware of

the need to protect them.

3IDENTIFY SIMPLE AND CONCRETE ACTIONS

to implement.

4EXPERIMENT

and develop a taste for discovery.

5 BECOME

engaged citizens

THE 5 GOALS OF THE BEE SCHOOL

Students will be able to:

A SUCCESS IN FRANCE WITH AN INTERNATIONAL ROLL-OUT

The programme has also gone international with its translation into ten different languages. This will allow Guerlain employees to par-ticipate on a global scale. A digital platform has also been created

so that participating employees can organise themselves better, re-cord their sessions, receive online training, find all the supporting materials for the kit, and share their feedback.

of our employees will have led at least one Bee School session in the world.

100%2023 Goal

The programme, which started out as a pilot project, rapidly convinced not only the young students, but the employees as well. In 2021, each employee, from the Executive Committee and Head-quarters to the subsidiaries, will be granted a day to dedicate to the Bee School Programme. This was instituted as part of Outreach Day, a day granted by Guerlain to its employees around the world.

It is a fun and gratifying opportunity for employees not only to feel useful by transmitting an encouraging message to younger gener-ations, but also to increase their own awareness and learn more about our historic commitment to the preservation of the Bee. To

reinforce the collaborative team spirit, sessions are now led by two employees.

A GREAT TOOLTO CREATE INTERNAL COHESION & AWARENESS

Defending the Bee has been at the heart of our sustainability commitment for more than 10 years, and we know that one of the key ways to achieve this goal is through education. Such a profound sustainable change can only be made by raising the awareness of younger genera-tions. It was to this end that the Bee School was established in 2018. This vast awareness programme targeting primary school students has

been so successful that we are increasing its size and scope in 2021.

4946 47

PROVIDING SUPPORT TO FACE ILLNESS WITH DIGNITY & CONFIDENCE

Boosting self-esteem is often an excellent way to fight illness. This is why Guerlain supports initiatives that work in this regard by providing financial support and donating products.

• Cosmetic Executive Women (CEW) has been providing hos-pitalised patients support, comfort, and a sense of dignity and self-esteem since 1992 through personalised individual aesthetic care. Care is provided privately by socio-aestheticians who are all trained in a hospital environment and assigned, supervised and paid by CEW. In close collaboration with the medical staff, they help patients better face treatments that cause physical discomfort and harm morale.

• Guerlain has partnered with Belle & Bien (the French branch of Look Good Feel Better) for the last 18 years. Belle & Bien supports both men and women suffering from cancer by providing them with aesthetic care that boosts their confidence and self-es-teem, both additional weapons with which to fight their illness. This year, Guerlain made a financial donation along with donated skin-care products and make-up.

LVMH COMMITTED COMPANIES DINNER TO SUPPORT RESEARCH AGAINST SICKLE CELL ANAEMIA

Last 17 December, the 8th edition of the Committed Companies Din-ner was held remotely and brought together the Group’s Maisons at the invitation of Chantal Gaemperle, Human Resources and Syn-ergies Director, and Toni Belloni, LVMH Group Managing Director. Despite the public health situation, the Group insisted on maintaining this annual event, which since 2011 has united all the Group’s Mai-sons to celebrate its social commitment and support for the commu-nity. Throughout the evening, LVMH and its Maisons pledged their financial support for the fight against sickle cell anaemia All the dona-tions made by each Maison were donated to the Robert-Debré Hos-pital to financially support the team of Professor Baruchel and Doctor Benkerrou, who are in charge of conducting the research against sickle cell anaemia and treating children affected by this hereditary genetic disease. Spread widely throughout the world, this disease af-fects 250,000 newborns each year and is still incurable.

MONTFERMEIL: THE FASHION SHOW OF TOMORROW For 11 years, Guerlain has supported the “Cultures et Création” Fashion Show. This initiative has partnered the LVMH Group with the towns of Clichy-sous-Bois and Montfermeil. Entirely unique, this fash-ion show unites more than 40 nationalities around fashion in a way that allows both young and experienced designers of different nationalities to share their savoir-faire and showcase traditional gar-ments from their own countries. 8 volunteer make-up artists from our Paris boutiques had the pleasure and honour to apply makeup to the models for this 11th edition, which was held on 3 July 2021.

THE SINGAPORE INITIATIVE DAUGHTERS OF TOMORROWIn June 2020, our Singapore subsidiary participated in the Daugh-ters of Tomorrow initiative that supports women from low-income families by giving them the means and education to find employment and improve their life situation. This test project, which will expand into a larger operation over the coming years, organised three-day (virtual) work sessions led by Guerlain employees on the subject of Perfumery & Cosmetics. These sessions provide them the skills and confidence they’ll need to apply for jobs at companies in this sector... like Guerlain.

GUERLAIN & THE COVID PANDEMICThis pandemic took the whole world by surprise and forced each company to modify its relationships not only with other companies, but also those within their own company. Faithful to its spirit of openness and

solidarity, Guerlain didn’t hesitate to mobilise and react.

In March 2020, under the leadership of Bernard Arnault, Guerlain successfully mobilised its teams to reconfigure production lines in just a few days to produce hand sanitiser and mitigate the risk of shortages. As a result, 107,131 litres of hand sanitiser (out of 376,726 total litres produced by 3 LVMH Maisons,

along with Givenchy and Dior) were produced by Guerlain for Assistance Publique-Hôpitaux de Paris. All the personnel who took part in this operation

did so voluntarily and in large numbers. The teams were greatly satisfied to see how many people responded so quickly and returned to La Ruche to produce the hand sanitiser. This hand sanitiser was

delivered as a priority to the Assistance Publique-Hôpitaux de Paris from Monday17 March.

49

We pay rigorous and demanding attention to our employees’ comfort and development. We do this by following the general policy instituted by the LVMH Group:

• Respect each person’s dignity and individuality, notably with regard to diversity and gender equality• Support our employees by acting to ensure their safety and well-being

• Transmit the savoir-faire inherited by humanity through an agile cutting-edge training policy and our apprenticeship initiatives and programmes

• And finally, work towards a better society by actively sponsoring projects such as our Women for Bees Programme (see p.42) and projects aimed at helping people with disabilities or those with no job opportunities.

2020 has been quite unique: the pandemic and the upheaval it caused has been an opportunity for us to strengthen our ties and test new ways in which to collaborate and help each other, as well as to reaffirm more than ever our duty to listen and

foster solidarity.

The social chapter of this report, to be relevant in terms of indicators, only covers France.

employees 1173

women in the workforce

74% women managers

and executives

78% In France In France In France

5350 51

ACTIVELY SUPPORTING OUR DISABILITY POLICY

Our initiatives are carried out in accordance with the Professional Integration of Disabled Persons Charter signed by LVMH as well as the “Mission Handicap LVMH” (LVMH Disability Project) goals, which are structured around 5 themes: raising awareness, reducing stigma (particularly during the European Disability Employment Week), re-cruiting, maintaining employment, promoting indirect employment, and taking social action. This year of the pandemic has unfortunately limited our sphere of action (notably with raising awareness) on this subject, but we have maintained and strengthened several areas of action.

Partners with the ARPEJEH association since 2021, we help inte-grating disabled persons into the company by working notably on training, non-discrimination, accessibility, workstation layouts, etc. whenever necessary. In 2019, Guerlain hired 7 people with disabi-lites, which brought the total number of disabled employees to 50 at the end of 2020. Initiatives aimed at young people were also imple-mented. We are also planning to renew our pilot project “Accueil duo stage découverte” (Duo discovery welcome course), which was launched in 2019 along with the “Mission Handicap LVMH” (LVMH

Disability Project). The goal of this initiative is to offer an internship to a disabled final-year student so they can experience the Guerlain work environment. Our partnership with the “Vivre et travailler au-trement” (Live and work differently) association led us to launch a fulfilling project that supports people with autism (see text box).

Guerlain also supports indirect employment whenever possible by working with institutions that promote the reintegration of people with disabilities through subcontracted work. One such example is the laundry service for the Guerlain Institute at 68 Avenue des Champs-Élysées, which is entrusted to the Le Castel ESAT (work assistance service) and currently employs 103 people with dis-abilities. This also includes our long-time partner, Cèdre, which is in charge of recycling the Group’s bottles & packaging. Cèdre’s goal is to combine solidarity and respect for the environment: 55% of its employees are disabled, one third are hearing impaired, and their processes utilise materials and innovative methods to reduce their carbon footprint (biogas vehicles, optimised collection, waste recovery and recycling).

INTEGRATING AUTISTIC YOUNG PEOPLE

AT OUR PRODUCTION SITES

This project was born from our partnership with the “Vivre et travailler autrement” (Live and work

differently) association, whose mission is to provide adults suffering from moderate to severe autism

with jobs in our factories, open housing, and activities that promote their integration and personal growth.

It should be noted that people with autism don’t like unexpected changes and are reassured

by performing repetitive tasks such as those that can be found working in a factory. Guerlain welcomed

Mavryck in 2020 as a packaging operator at La Ruche (Chartres). Three people are in charge of supervising

him, and everyone who works with him has been specially trained. This successful experience has inspired

confidence in our project, so we are looking to hire a second autistic employee in September.

From now until 2025, we’ll invite eight young people with autism to work for us.

And as with Mavryck, we’ll find accommodations for each of them close to La Ruche. Apart from

this operation’s impact on our inclusion goals, it has also enabled Guerlain to question and change

its entire view of disability. The spirit of solidarity created around Mavryck has made

everyone truly proud to be part of the company.

Guerlain acts to promote equal opportunity by opening its doors to young and sometimes not so young generations, especially those liv-ing in at-risk environments. This is also an opportunity to open up new perspectives on their future by immersing them in a real work environment where they are supervised and welcomed. The various projects that we have carried out have all been strongly supported by our employees, who often promote and participate in them. It is an incredible tool for creating internal cohesion and sharing skills.

For recent graduates, the “Nos quartiers ont des talents” (Talent from our neighbourhoods, an LVMH partner since 2007) initiative supports both male and female students from priority neighbour-hoods or low-income social backgrounds by offering them appren-ticeships and employment. Mentored by employee volunteers, these students attend regular meetings designed to help them define their

career objectives, organise their job search, increase their knowledge of the business world and its customs and practices, provide them ac-cess to a professional network, and give them confidence in their own talents. This programme has garnered very strong internal support, and we are considering how to continue it in tandem with the Group.

Finally, since job integration is much more difficult when not in a learning programme, the LIVE Institute (vocational institute for employment), created in 2019 by Brigitte Macron in partnership with LVMH, offers young adults (aged 25 to 35) in very at-risk situa-tions 9-month paid training courses designed to define their career objectives. In 2020, Guerlain invited 30 people from the 2019 class to introduce them to the Human Resources, Legal and Security pro-fessions.

MAKING EDUCATION A FACTOR FOR INTEGRATION

5552 53

DIVERSITY & INCLUSION POLICY

Having all our recruiters trained to be non-discriminatory is a prerogative at Guerlain.

Women on average represent 74% of our employees, as well as 78% of our managers and executives. In addition, Guerlain has signed the Women’s Empowerment Charter in partnership with the UN. This charter is based on seven actions which the signatories agree to undertake: fight against gender discrimination, guarantee health and safety in the workplace, promote education, training and professional development of women, encourage the presence of women in the business world, and publish the progress made.

In terms of gender equality, Guerlain obtained an outstanding score of 96/100 according to the Inclusion Index scoring tool (LVMH index), with 75 being the minimum score to be considered ethically responsible. This tool brings together the best internal initiatives re-lated to diversity and inclusion. We’d like to highlight that women are paid 23% less than men in France: at Guerlain, both are paid equally.

We also ensure diversity based on age:

37% of our employees are at least 35 years old, and 12% are older than 55. The average age is 40.

HEALTH, SAFETY AND WELL-BEING POLICY

This year was marked by an unprecedented exercise in crisis management. It was of course an economic crisis, but it was also a social crisis that saw personal ties weakened and moments of isolation that Guerlain has strived to mitigate, remedy and support.

Maintaining ties. Maintaining trust.

This was one of the priorities of our Human Resources Department. We have kept in close contact with the Social and Economic Committee (SEC) by maintaining frequent and constructive dialogue with them during this moment of crisis. Meetings have been held each week in order to stay on top of any possible problems found by the teams and to resolve them in collabora-tion with the elected representatives of the SEC. It has been thanks to this dialogue that we were able, for example, to reopen the factories and unite 130 em-ployee volunteers to urgently produce over 100 tonnes of hand sanitiser to prevent a shortage.

During the COVID pandemic, Guerlain worked to en-sure that all employees retained their jobs. In fact, we even hired 84 people during this period.

Our BLOOM Questionnaire implemented at our French headquarters in 2020 acts as a barometer to assess the work environment (management, internal communication and stress). A psychosocial risk pre-vention tool currently being tested, Bloom@work will soon become the main tool for monitoring profession-al development at work for the entire headquarters, as soon as our new La Samaritaine location opens in September 2021.

The new working rhythms dictated by confinement have been supported accordingly. Although a policy on teleworking and quality of life at work has existed since 2017, we have had to reorganise the tools and conditions to make it more adapted to the situation.

Average number of years worked at our Maison

10.7years

persons trainedin first aid techniques400

CARE workshop participants

150satisfaction

rate

100%

TRAINING & TALENT S POLICY

Training is a powerful catalyst for person-al growth and performance, and Guerlain makes it their duty to evaluate their employ-ees’ training needs and wishes during yearly reviews and does its best to accommodate them.

474 employees have benefited from training in 2020 despite the unfavourable Covid situation, and we continued to accept work-study students (34) and interns (116) to enable them to carry out their appren-ticeships.

In particular, we urgently established the CARE programme, which offers daily support to our teams during extended periods of confinement.

Distance and confinement have damaged the bonds and team spirit, which are particularly alive at Guerlain. This unprecedented situation has caused much stress for all our staff, and the managers have found themselves struggling to re-establish ties with their teams. In just a few weeks, we put together the CARE programme, which consists of remote interactive workshops.

27 workshops have been held dealing with topics such as confi-dence, balancing one’s professional/personal lives, remote manage-ment (80% of the managers received training), and how to manage returning to the office (from logistics to interpersonal relationships).

These training sessions taken on a volunteer basis were so successful that we are offering them again on other topics when confinement finally ends.

We have also saved the “Lunch&Learn” modules (1 hour at lunchtime) to speak freely about general topics and foster sharing, curiosity and creativity.

25-35 years old 33%

35-44 years old 29%

<25 years 4% 55+

12%

45-54 years old 22%

WORKFORCE BY AGE

55

During the 2020 financial year, Guerlain has updated its materiality analysis so that it can reassess the challenges it must face and the expec-tations of its internal and external stakeholders.

This reassessment was used to modify the CSR policy during the 2020-2021 financial year.

The challenges identified as top priorities are the following:

IMPO

RTA

NC

E FO

R ST

AK

EHO

LDER

SIMPORTANCE FOR THE MAISON

LITT

LE S

IGN

IFIC

AN

CE

LITTLE SIGNIFICANCE

SIG

NIF

ICA

NT

SIGNIFICANT

VERY

SIG

NIF

ICA

NT

VERY SIGNIFICANT

CORPORATE GOVERNANCE

HUMAN RIGHTS

WORK RELATIONS AND CONDITIONS

ENVIRONMENT

CONSUMER-RELATED ISSUES

SOCIETAL COMMITMENT

54

Supplier support

Fair trade

Well-being at work

Support for artisanal

savoir-faire

Empowerment of local

populations

Relations with representative

leaders

Workplace safety

Social policy:

diversity/ inclusion/ training

Cross-functional teamwork

Management of customers’ personal data

Implementation of the CSR

policy in all

departments

Alignment with

the LVMH sustainable

development policy

Creation of wealth throughout

the entire value chain

Mitigating climate change

Sustainable use of resources

Innovative formulas & circular

economy

Safety & naturalness of formulas

In order to reduce our environmental impact, this document has primarily been designed for digital use. Only 100 copies

have been printed in total.

For this edition, the Curious Matter paper used for the cover uses an innovative recycling technique based on starch to create the unique texture. The Cocoon Silk Mat paper used

for the internal pages is 100% recycled.

This paper is also FSC certified in order to ensure that the forest the wood was taken from is properly managed.

We would like to thank Hélène Valade, Shamila Nair-Be-douelle, Yann Arthus-Bertrand, Rik Kutsch Lojenga, Thierry Dufresne and Florian Kirchner, who agreed to be interviewed.

Thanks also to our partners who designed and produced this report. Concept, Design & Writing: Hyssop. Cover and main section visuals: Anaïs Profit. Printing: Handiprint, a disabili-

ty-friendly company.

Finally, thank you to the entire Guerlain Sustainable Devel-opment team involved in the production of this report: Cécile Lochard, Clément Renaudet, Pauline de Rodellec, Laetitia Corbet, Angélique Clézardin and Katel Broguière, but also Manon Salle, Agnès Pinel, Alice Parsy, Claire Martinat and

Marie-Charlotte Héliot.