United Nations Global Compact
Communication On Progress 2015
About main facts and best practices for the year 2014-15
see more particularly the pictogram :
2014-15
The other informations (policies, processes,…) are always available and pursued by LVMH.
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Summary
Statement from the CEO
3
Implementing the Ten Principles into Strategies & Operations :
Criterion 1 : The COP describes mainstreaming into corporate functions and business units
Criterion 2 : The COP describes value chain implementation
5
8
Robust Human Rights Management Policies & Procedures :
Criterion 3 : The COP describes robust commitments, strategies or policies in the area of human rights
Criterion 4 : The COP describes effective management systems to integrate the human rights principles
Criterion 5 : The COP describes effective monitoring and evaluation mechanisms of human rights
integration
22
24
33
Robust Labour Management Policies & Procedures :
Criterion 6 : The COP describes robust commitments, strategies or policies in the area of labour
Criterion 7 : The COP describes effective management systems to integrate the labour principles
Criterion 8 : The COP describes effective monitoring and evaluation mechanisms of labour principles
integration
35
38
47
Robust Environmental Management Policies & Procedures :
Criterion 9 : The COP describes robust commitments, strategies or policies in the area of environmental
stewardship
Criterion 10 : The COP describes effective management systems to integrate the environmental
principles
Criterion 11 : The COP describes effective monitoring and evaluation mechanisms for environmental
stewardship
51
62
75
Robust Anti-Corruption Management Policies & Procedures :
Criterion 12 : The COP describes robust commitments, strategies or policies in the area of anticorruption
Criterion 13 : The COP describes effective management systems to integrate the anti-corruption
principle
Criterion 14 : The COP describes effective monitoring and evaluation mechanisms for the integration of
anti-corruption
81
82
82
Taking Action in Support of Broader UN Goals and Issues :
Criterion 15 : The COP describes core business contributions to UN goals and issues
Criterion 16 : The COP describes strategic social investments and philanthropy
Criterion 17 : The COP describes advocacy and public policy engagement
Criterion 18 : The COP describes partnerships and collective action
83
86
94
95
Corporate Sustainability Governance and Leadership :
Criterion 19 : The COP describes CEO commitment and leadership
Criterion 20 : The COP describes Board adoption and oversight
Criterion 21 : The COP describes stakeholder engagement
102
103
104
ANNEX: Women’s Empowerment Principles (WEP)
105
ANNEX: Business & Peace
109
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The Communication on Progress is in the following format :
 Stand-alone document
What is the time period covered by your COP ?
Year 2014 in accordance with all reports of LVMH :
“2014 Reference document”
“2014 Annual Report”
“2014 Environmental Report”
“Social Responsibility Report 2014”
http://r.lvmh-static.com/uploads/2015/02/lvmh-2014-referencedocument.pdf
http://r.lvmh-static.com/uploads/2015/04/lvmh_ra2014_gb.pdf
http://r.lvmhstatic.com/uploads/2015/05/lvmh_environnment2014en.pdf
http://r.lvmh-static.com/uploads/2015/05/rapport-rse2014_eng.pdf
Does your COP contain a statement by the CEO (or equivalent) expressing continued support for the
Global Compact and renewing your company's on-going commitment to the initiative and its
principles ?
Y/N
Statement from the CEO
« LVMH comprises a family of iconic brands that cultivate their magic and perpetuate exceptional knowhow, a consistent strategy and an exceptionally broad, high-quality retail network. In addition to the
intrinsic stability and financial strength of our company, our brands have been patiently built up over time.
- They take into account issues that are inseparable from our long-term strategy, namely the
safeguarding of the natural environment, to which LVMH owes so much, corporate social
responsibility, and strict ethical standards which we share with our suppliers, customers and
shareholders. This intangible capital is paramount to our future success.
- LVMH is committed to stronger corporate citizenship : we strive to pass on our expertise, promote
diversity and fulfilment among our employees, coach talent and support young designers, and
protect the sometimes very scarce natural resources used in our products. The world is more and
more concerned with such issues, and so are we as they form the foundation of our Group’s future.
Alongside the development of our business, they must serve as a permanent wellspring of
creativity.
With this “Communication on Progress 2015”, LVMH reminds that CSR and Sustainable development are
inseparable from LVMH’s strategy based on four important dimensions : Social policy ; Economic
performance ; responsible Environment ; commitment to citizenship »
Bernard Arnault, Chairman and Chief Executive Officer
Does your COP contain a description of actions and policies related to the following issue areas?
Human Rights
Yes
Labour
Yes
Global Compact – LVMH’s Communication On Progress 2015
Environment
Yes
Anti-Corruption
Yes
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Does your COP contain, if relevant, a description of policies and practices related to your company's
operations in high-risk and/or conflict-affected areas?
Y/N
Does your COP include qualitative and/or quantitative measurement of outcomes illustrating the
degree to which targets/performance indicators were met?
Y/N
How does your organization share its COP with stakeholders ?
 Through the UN Global Compact website only
How is the accuracy and completeness of information in your COP assessed by a credible thirdparty ?
 Information is assured by independent assurors (e.g., accounting or consulting firm) against
recognized assurance standard (e.g., ISAE3000, AA1000AS, other national or industry-specific
standard)
The Statutory Auditors and Independent Verifier ERNST & YOUNG & Associés conducted the work in
accordance with the professional standards applicable in France and the Order of May 13, 2013 determining
the conditions under which an independent verifier should conduct its mission, and with regard to the
limited assurance and the reasonable assurance report, in accordance with the international standard
ISAE 3000.
 See “Independent verifier’s report on consolidated employee-related environmental and social
information” in “2014 Reference Document” (pp. 99-101).
The COP incorporates the following high standards of transparency and disclosure :
 Provides information on the company’s profile and context of operation
 see :
 “2014 Environmental Report” :
- “The framework for action” (pp. 6-19)
- “Environmental reporting methodology notice” (pp. 65-67).
 “Social Responsibility Report 2014” :
- “Highlights of the year 2014” (p. 6)
- “One basic value, four aspects to uphold it” (p. 7)
- “The basic principles behind the Group’s social responsibility” (pp. 8-15)
- “Main Reporting methodologies” (pp. 46-48)
 “LVMH Snapshot – 2014 figures” (February 2015)
(http://www.lvmh.fr/wp-content/uploads/2015/02/2014-snapshot-gb.pdf )
 “2014 Shareholder snapshot” (February 2015)
(http://www.lvmh.fr/wp-content/uploads/2015/03/snapshot-shareholders-2014.pdf )
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Implementing the Ten Principles into Strategies & Operations
Criterion 1: The COP describes mainstreaming into corporate functions and
business units:
 Design corporate sustainability strategy to leverage synergies between and among issue areas and to deal
adequately with trade-offs
 Ensure that different corporate functions coordinate closely to maximize performance and avoid unintended
negative impacts
Blueprint For Corporate Sustainability Leadership
Mainstreaming into Corporate Functions and Business Units:
 Place responsibility for execution of sustainability strategy in relevant corporate functions (procurement,
government affairs, human resources, legal, etc.) ensuring no function conflicts with company’s sustainability
commitments and objectives:
 Align strategies, goals and incentive structures of all business units and subsidiaries with corporate
sustainability strategy
 Assign responsibility for corporate sustainability implementation to an individual or group within each
business unit and subsidiary
1. Commitment and involvement at the highest level:
The long-term corporate sustainability strategy is led by the Group and its Maisons under the responsibility
of the Board of Directors and the Executive Committee.
 The declarations and commitments in the field of CSR and sustainable development have been approved
by Bernard Arnault, Chairman and Chief Executive Officer.
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 Responsibility for implementation: « The Board of Directors of LVMH, to which the Executive
Management of the Group submits each year a report on the implementation of the Code’s principles, will
be the body which ensures its correct application. In accordance with the principle of subsidiarity inherent
to LVMH, the executive management team of each operational and legal entity is responsible for compliance
with the principles of this Code. Any employee who notices a non-conformity to one of the principles
stipulated within the Code should inform his or her hierarchy. » [ See "LVMH Code of Conduct" p 19].
According to the "Charter of the Board of Directors", the mission of the Board of Directors is especially
to :
- disseminate the collective values that guide the Company and its employees and that govern
relationships with consumers and with partners and suppliers of the Company and the Group;
- promote a policy of economic development consistent with a social and citizenship policy based on
concepts that include respect for human beings and the preservation of the environment in which it
operates.
 See "2014 Reference Document" (p. 236).
2. Committees :
2.1. Steering Committee : The "LVMH Code of Conduct", adopted in May 2009, summarizes the
contacts responsible for ensuring CSR implementation and compliance within a dedicated Steering
Committee: Sylvie Bénard (Environmental Affairs Department), Chris Hollis (Financial Communications
Department) and Christian Sanchez (Social Development Department). The collaboration developed
between LVMH and the Houses allow discussing the stakes concerning sustainable development and CSR
through different tools and meetings : committees and specific international networks (social, environment,
supply chain, communication...), local committees, annual conventions, working groups, collaborative tools,
events, etc.
 Social : The functional departments of the Group, like RH Department and particularly Social
Development Department, will support the Brands (in the implementation of commitments and regulations
about CSR stakes linked to labour conditions) with a view to a consistent and uniform application of
commitments and principles. The Social Development Department defines the Group’s strategy in the field
of Social Responsibility and as such reports to Mrs Chantal GAEMPERLE, Director of Group Human
Resources and Synergies and member of the Executive Committee.
o The LVMH Holding relies on a network composed of 30 Correspondents belonging to business
groups and Maisons.
o Group companies, particularly in France, have works councils, employee representatives, as well as
health and safety committees.
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o Generating even greater synergies between the Maisons, the LVMH ecosystem was set up in 2012 to
provide a new, highly collaborative approach, with the creation of a global HR community on the
Group intranet, “Voices”.
 Environment : Set up in 1992, the Environmental Department defines the Group’s strategy and as such
reports to Mr Antonio Belloni, Group Managing Director of the Executive Committee. The Group’s
Environmental Department supports the Maisons in their respective initiatives, ensuring that the
Environmental Charter is observed, and running the Environment Committee which brings together a
network of some 50 environmental correspondents from the Maisons several times a year. The
Environmental Department also runs a variety of specialist in-Maisons working groups which deal, for
example, with the European REACH regulation, eco-design and energy consumption in stores.
 Financial Communications Department is responsible for managing relationships with investors and
sustainability rating agencies.
 Although the Maisons are represented within the Group’s Committee agent network, they also have their
own steering committees. Each Maison has additional means, depending on local conditions and the size of
its in-Maison projects.
 See also about :
 social organization in :
- “ Allocation of responsibilities and accountability for addressing human rights impacts”
(pp. 32-33 in the COP 2015)
- “ Allocation of responsibilities and accountability within the organization” (pp. 40-42 in the
COP 2015).
 environmental organization in :
- “ Allocation of responsibilities and accountability within the organization” (pp. 70-72 in the
COP 2015).
 See also :
 "2014 Environmental Report" (pp. 11-12)
 social organization in "Social Responsibility Report 2014" (pp. 10-11).
2.2. Strategic Committee : A Strategic Committee was set up in 2014 with the mission
2014-15
of providing proactive analysis of matters related to the Group’s social and environmental
responsibility; this mission is carried out in close collaboration with the operational
departments in the business groups and Group companies. These studies and decisions, made well in
advance, must make it possible to prevent media crises harmful to the reputation of LVMH’s brands.
3. Incentive schemes :

Several of our companies take into account CSR issues in collective incentives :
2014-15
o As an example, Parfums Christian Dior chose to raise its staff’s awareness by including an
environmental indicator in the mandatory and voluntary profit-sharing agreement. Under the
new three-year incentive agreement signed in 2014 and applicable in 2014 / 2015 / 2016, a new
indicator on the recovery of waste has been added : “Recovery of Material Wastes” (« Valorisation
Matière Déchets de Marque » VMDM) corresponding to a % of waste recycled. The objective for
2014 was to reach 43% of waste recycled : the achievement of this goal accounted for 2% of payroll
in profit sharing (based on a grid of 0-3% depending on the percentage recycled). In fact, 46.2% of
waste being recycled by 2014, the incentive rates as such represented 3%. The profit sharing
agreement includes 5 criteria which, in total, represents 12% of payroll (thus the recycling target
represents 2/12 within the agreement).
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 Different subsidiaries developed initiatives for some employees categories aiming to take into account
and experiment several topics in the performance appraisal :
o Health & Safety issues (for example: decrease of work-related accidents), decrease of turn-over
and absenteeism, HR and satisfaction performance, KPIs aiming to develop a more effective way
to manage business (develop a team spirit and a better service to the customers).
o Environmental performance is also taken into account : some employees are offered incentives,
such as environmental criteria included in profit-sharing contracts in the Wines and Spirits Houses,
criteria being the reduction of energy or water consumption, or the quality of waste sorting. In order
to encourage employees to go all out and achieve results, environmental criteria have been included
in the calculation of profit-sharing since 2003 at Veuve Clicquot and since 2007 at Moët & Chandon.
At Veuve Clicquot, three criteria were taken into consideration: water and energy consumption and
the quality of selective sorting. At Moët & Chandon, an indicator has been developed, based on
electricity consumption, which takes into account all the activities, from grape production to the final
product, including all stages pressing, assembly, fermentation, racking, corking and packaging. In
2008, Hennessy included an environmental indicator in the calculation of employee incentive
compensation. Approved by its social partners, this new criterion is based on paper consumption in
terms of number of sheets used per person compared to Hennessy’s total consumption at its two sites
in Cognac and Paris. The goal is to achieve a 3% reduction. This initiative is part of the new
environmental policy signed in June 2008 that sets, among other objectives, a means for employees
to have a financial interest in the results achieved from their environmental commitment.
Criterion 2: The COP describes value chain implementation :
Blueprint For Corporate Sustainability Leadership
Value Chain Implementation:
 Analyse each segment of the value chain carefully, both upstream and downstream, when mapping
risks, opportunities and impacts
1. Formalized process about risk exposure analysis:
The implementation of risk management and internal control procedures fully applies to the respect of
ethical and good governance principles and the Group’s commitment to Corporate Social Responsibility.
The activities relating to the control and remediation of internal control weaknesses are reflected,
documented and tracked as part of the management process that guides all of the Group’s core entities. The
Group’s Guidelines may also be found on the Finance Intranet, together with specially designed tools for the
evaluation, prevention and coverage of risks. These materials may be accessed by all personnel involved in
the application of the Group’s risk management procedures. [ See “2014 Reference Document” (pp. 109115).]
 Since 2004, the Group has used a risk mapping tool which systematically identifies its industrial,
environmental and operational risks on the basis of common standards. Ranking these risks clearly indicates
the cases that must be treated as a priority. This information and warning tool ensures early action to reduce
the probability that the dangers identified will occur.
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 In line with European directives and the ordinance of December2008, the Group introduced changes to its
Enterprise Risk and Internal Control Assessment (ERICA) approach, a comprehensive process for
improving and integrating systems for managing major risks and internal control related to our ordinary
activities.
o The main brands and business groups acknowledge their responsibility in relation to this process and
the implemented systems each year by signing two letters of representation.
o Since 2013, and depending on circumstances, Presidents of Group companies have been required to
present to the Audit Committee the approach implemented to achieve progress within their area of
responsibility as well as their achievements, action plans in progress and outlook.
o Finally, the Audit Committee decided in 2013 to implement the ERICA system within all Group
entities by 2015; recently acquired entities are allowed two years to apply the approach, once the
integration process is complete.
As of June 30, 2014, this self-appraisal system covered 80% of the Group’s
2014-15
operating entities and 96% of revenue. It includes all Group companies. The
assessment data from controls and for major risks is input by each entity and
centralized in a database
application, RVR-GRC, also used by other CAC 40 companies. To reinforce the system’s
effectiveness, each Group company includes in its risk map an assessment of the following six risks:
media risk, supplier risk, supply shortage risk, site accident risk, sensitive data loss or theft risk, and
property damage or theft of merchandise risk.
 See : “2.4.1. The Enterprise Risk and Internal Control Assessment (ERICA) approach” in « 2014
Reference Document » (p. 114).
2. Examples of supplier’s risk analysis :
 Critical Suppliers : Different criteria are taken into account in order to identify a list of critical
suppliers. Each Maison has to apply these criteria to their supplier panel in order to rank them by level of
risk.
o Criteria to go through supplier criteria : exclusive, monopoly, use of subcontractors.
o Quantitative criteria : turnover with the supplier, part of LVMH turnover over supplier turnover…
o Qualitative criteria : country origin, type of category, brand names on the product, certification…

Examples of major risks to address :
o Common : reputation/adverse media campaign, damage to image or reputation, industrial and
environmental risks, foreign currency and interest rate risk…
 The attractiveness of the Group’s products depends, from a quantitative and qualitative
standpoint, on being able to ensure adequate supplies of certain raw materials :
- In order to guarantee sources of supply corresponding to its demands, the Group sets
up preferred partnerships with the suppliers in question. This mainly involves the
supply of grapes and eaux-de-vie in connection with the activities of the Wines and
Spirits business group, of leathers, canvases and furs in connection with the activities
of the Fashion and Leather Goods business group, as well as watchmaking
components, gemstones and precious metals in connection with the activities of the
Watches and Jewellery business group.
- By way of illustration, an assessment of the risk that a vendor may fail has been
carried out and good practices have been exchanged, leading notably to implementing
the policy of for strategic Perfumes and Cosmetics products.
- In addition, for some rarer materials, or those whose preparation requires very specific
expertise, such as certain precious leathers or high-end watchmaking components, the
Group pursues a vertical integration strategy on an ad hoc basis...
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o
o
o
o
 Reputation/adverse media campaign, damage to image or reputation, industrial and
environmental risks resulting of suppliers, etc...
Watches and Jewellery : parallel market, product launch failure / excess cost... Watches and
Jewellery has implemented industrial coordination through the use of shared resources, such as
prototype design capacities, and by sharing the best methods for preparing investment plans,
improving productivity and negotiating purchasing terms with suppliers.
Fashion and Leather Goods : counterfeited goods, failure of key suppliers...
Wines and Spirits : product recall, counterfeited goods and parallel markets... In Wines and Spirits,
production activities depend upon weather conditions before the grape harvest. Champagne growers
and merchants have set up a mechanism in order to cope with variable harvests, which involves
stockpiling wines in a qualitative reserve. [ For a description of this mechanism see “§ 1.1.4
Grape supply sources and subcontracting” in the Business description section of the “2014 Reference
Document” (p. 11).]
Perfumes and Cosmetics : failure of key suppliers, credit risk...
 For more information on the different risk categories (contractual constraints, supply sources and
strategic competencies…), see the "2014 Reference Document" (pp. 36-39) :
 “2. Business risk factors and insurance policy”
 and particularly “2.1.8. Supply sources and strategic competencies”.
 Geographical exposure: The Group's production activities are mainly located in France, Spain and
Italy, and the majority of its subcontractors are in Europe.
o However, the Group conducts business internationally and as a result is subject to various types of
risks and uncertainties. In order to protect itself against the risks associated with an inadvertent
failure to comply with a change in regulations, the Group has established a regulatory monitoring
system in each of the regions where it operates. The Group maintains very few operations in
politically unstable regions. The legal and regulatory frameworks governing the countries where the
Group operates are well established. Furthermore, it is important to note that the Group’s activity is
spread for the most part between three geographical and monetary regions: Asia, Western Europe
and the United States. This geographic balance helps to offset the risk of exposure to any one area.
Lastly, the Group takes an active part in discussions worldwide on negotiations regarding access to
markets as well as agreements on easing access to the European Union for non-European tourists.
o In addition to the codes and charters already developed by the companies of the Group for their
suppliers, LVMH felt it important to establish a standard policy extending its values to all suppliers
and subcontractors.
o The Group’s companies have been implementing tools and other resources to better identify problem
suppliers and prevent any sort of risk. As an example, in Perfumes and Cosmetics, 95% of suppliers
located in the geographic areas considered at-risk from a social accountability standpoint have been
audited and produced encouraging results.
 Breakdown of supply sources : The "2014 Reference Document" indicates for
each business group different examples :
2014-15
o See pp. 11-13 : resources purchased from non-Group suppliers :
 “In 2014, the champagne houses used subcontractors for about 20 million euros of services,
notably pressing, handling, and stocking bottles.”
 “Like the Champagne and Wine businesses, Hennessy obtains its dry materials (bottles, corks
and other packaging) from non-Group suppliers. The barrels and casks used to age the
cognac are also obtained from non-Group suppliers. Hennessy makes only very limited use of
subcontractors for its core business.”
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o See pp. 16, 18 and 19 the % of subcontracting allowing to analyze the dependence on specific
suppliers :
 the use of subcontractors for Fashion and Leather Goods operations represented about 34% of
the cost of sales in 2014 ;
 manufacturing subcontracting represented for Perfumes and Cosmetics overall about 6 % of
the cost of sales in 2014 ;
 for Watches and Jewelry, subcontracting represented 12 % of the cost of sales in 2014.
3. Tools and meetings:
 Annual Supply Chain Meeting : At the holding company level, a Suppliers Sustainability Meeting
has been held each year since 2005, bringing together the purchasing, sustainable development, legal and
internal control departments of the different Group companies. All of the Group’s business activities in
France and internationally are represented at the meeting. This annual meeting is a forum for Group
companies to present their plans, projects, actions and progress regarding sustainable, responsible
purchasing, and interact with one another on shared issues and best practices. In 2010, this work resulted in
the creation of a shared supplier database for the Perfumes and Cosmetics business group and the
establishment of a common reference guide for supplier assessment. This reference guide will facilitate
exchanges between the various Group companies and follow-ups on social and environmental audits, their
findings, and any action plans put in place.
 In 2009, an Intranet website (“LVMH Mind”) was launched to better communicate internally the
Group’s commitment to responsible corporate citizenship. On this website, specifically devoted to social and
environmental responsibility, employees can find, the Environmental Charter first adopted in 2001, the
Supplier’s Code of Conduct introduced in March 2008 and the LVMH Code of Conduct (ethical and
good governance principles) adopted in May 2009.
 To assist the different brands to evaluate the performance of their products and their suppliers and, if
necessary, assist them in an improvement process, the LVMH environmental department provided them
since 2006 with tools, enhanced with new textile standards. Adapted to each business, it provides a black
and a grey list of chemicals substances used in apparels (more than 20 substances including REACH
substances), information on the current legislation in the different countries and information on asking
suppliers the right questions. Fashion and Leather Goods brands are of course included in the
environmental reporting perimeter and use the corporate indicators like KPI to evaluate their performance.
 In 2012, the Purchasing department has developed a risk assessment matrix that classifies suppliers
based on social and environmental criteria and economic interdependence risks.
 Partnership with Sedex : To improve its supply chain’s performance for Tier 1
2014-15
suppliers and beyond, in 2014 the LVMH group also decided to join Sedex, a nonprofit organization based in London which aims to promote responsible, ethical
improvements to current practices in supply chains. Its approach is based on two main objectives: for
suppliers, lightening the administrative load related to the proliferation of requests for audits, certifications,
etc.; for LVMH, pooling supplier audits and assessments, not only among Group companies but also with
other Sedex members.
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Blueprint For Corporate Sustainability Leadership
Value Chain Implementation:
 Communicate policies and expectations to suppliers and other relevant business partners:
1. Statement and principles:
1.1. Charter of the Board of Directors:
According to the "Charter of the Board of Directors" the principal missions of the Board of Directors are
especially to :
- disseminate the collective values that guide the Company and its employees and that govern
relationships with consumers and with partners and suppliers of the Company and the Group;
- promote a policy of economic development consistent with a social and citizenship policy based on
concepts that include respect for human beings and the preservation of the environment in which it
operates.
 See "2014 Reference Document" (p. 236).
In order to:
- promote and maintain stable relations with ethical and responsible partners (suppliers, distributors,
sub-contractors, etc.) ;
- share best methods for negotiating purchasing terms with suppliers;
- combat counterfeit and parallel retail networks;
- insure strategic procurement and develop preferred partnership with suppliers able to meet LVMH’s
requirements;
- implement independent audits of suppliers aiming to insure that commitments have been observed.
1.2. Codes of Conduct:
 Supplier’s Code of conduct: In March 2008, LVMH deployed a Supplier’s Code of conduct aimed at
its suppliers and subcontractors. Since 2008, all of the Group’s brands have adopted and promulgated the
Supplier's Code of Conduct which sets forth the Group’s requirements in terms of social responsibility
(forced labour, discrimination, harassment, child labour, compensation, hours of work, freedom of
association and collective bargaining, health and safety, etc.), the environment (impact reduction, use of
green technologies, waste reduction, compliance with regulations and standards), and the fight against
corruption. This Code of Conduct also sets forth the principle and procedures for the control and audit of
compliance with these guidelines. Any breach of conduct or any violation of this code of conduct by our
suppliers or their subcontractors would result in a review and possible termination of the business
relationship.
 LVMH Code of Conduct: The LVMH ethical and good governance principles are included in the
LVMH Code of Conduct, which has been adopted at the Board meeting following the AGM on May 14th
2009 (inspired by the Group’s values as well as the principles of the Universal Declaration of Human
Rights, the Global Compact and the OECD Guidelines for Multinational Enterprises) and distributed since
May 2009 to all Group employees. This Code of Conduct serves as the common foundation and source of
inspiration in this area for all of our brands or business lines. This Code indicates that « LVMH is committed
to maintaining equitable and loyal relationships with its partners (suppliers, distributors, subcontractors,
etc.). LVMH will inform all of its commercial partners of its ethical principles and expectations. LVMH asks
its suppliers to comply with the principles set out in the Suppliers’ Code of Conduct. This code specifies the
demands in the areas of social issues (forced labour, child labour, harassment, discrimination, and pay,
working time, freedom of unions, and health and safety), environmental and operational issues (legality,
custom tariffs, safety, subcontracting and corruption). »
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 "Environmental Charter" (deployed in 2001): for example, in the field of consumer safety, the
LVMH group is in compliance with the REACH Regulations and new legislation concerning consumer
safety. All strict internal guidelines imposed by the Group as criteria for their development requires that its
suppliers adhere to these same guidelines. With respect to this regulation, all LVMH entities have prepared
and/or made the necessary changes to contractual and commercial documents and have sent questionnaires
to their suppliers.
2. Risks management of supply sources:
 Formal Policies or Programs on Responsible Procurement : The LVMH Group has a specific
strategy for sourcing and safeguarding raw materials. The choice of components and raw materials used in
product manufacture is key to safeguarding the environment and precious resources. The attractiveness of
the Group’s products depends, from a quantitative and qualitative standpoint, on being able to ensure
adequate supplies of certain raw materials. In addition, from a qualitative perspective, these products must
meet the Group’s exacting quality standards.
 Watches and Jewellery : LVMH’s Watches and Jewelry business group is a member of the
“Responsible Jewellery Council” (RJC), an organization bringing together more than 550 member
companies committed to promoting ethical behavior, human rights and social and environmental practices
throughout the industry, from mine to point of sale. The RJC has developed a certification system designed
particularly to ensure that the diamonds used in manufacturing do not come from conflict zones. The
Kimberley Process is applied to diamonds. Kimberley certification requires the input of independent,
accredited auditors. The Watches and Jewelry companies have all been certified according to the Code of
Practices (2013 version).
 Fashion and Leather Goods (safeguarding raw materials): The choice of components and raw
materials used in product manufacture is a main force behind protecting the environment and precious
resources (exotic leathers, fur, wood, plants, etc.).
o CITES : The LVMH Group applies the Convention on International Trade in Endangered Species of
Wild Fauna and Flora (CITES) signed on March 3, 1973 at Washington. In 2012, LVMH adopted a
Code of Conduct «Animal Sourcing Principles» on procurement of leather. When they use plants
coming from an emerging countries, the Perfumes and cosmetics Brands act under the “access and
benefit sharing” agreement on the Convention on Biological Diversity (CBD) opened for signature at
the Earth Summit in Rio de Janeiro on 5 June 1992 and entered into force on 29 December 1993.
o Exotic Woods : In the Fashion & Leather Goods business group, Louis Vuitton made more
widespread use in 2013 of local species or those with FSC (Forest Stewardship Council) or PEFC
(Pan European Forest Certification) for its communication media and for boxes used in logistics
operations. These FSC or PEFC-certified species are consistently prioritized for store construction,
window displays, and a number of exclusive products. In 2012, Louis Vuitton conducted a program
to educate all staff involved in purchasing wood or wood products – such as for accessories, trunks,
architecture, merchandising, writing implements, eyewear and customs interface – about the
upcoming requirements of the EU Timber Regulation, which entered into force on March 3, 2013. In
2013, a procedure and methodology for putting the Timber Regulation into practice were
implemented, with particularly close attention paid to the sourcing of wooden furniture for stores and
paper/cardboard for packaging and shopping bags.
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o Partnerships in the field of sourcing :

In November 2014, LVMH joined the eight public research bodies
2014-15
that are members of the Board of Directors of the Biodiversity
Research Foundation (FRB). The admission of LVMH to the FRB
Board of Directors also reflects its involvement alongside the Foundation, which the
company has been supporting for over six years. The partnership between LVMH and FRB
has resulted in a significant amount of research. For instance, at the Group’s request, the
FRB conducted a study aimed at gaining a better understanding of the complexity of the
issues relating to the application of the Nagoya Protocol. This Protocol, which was adopted
in 2010, establishes the principle of access to and sharing benefits, and aims to govern the
relationship between a supplier of genetic resources and a user during research and
development activities. The experts gathered by the Foundation met the LVMH Perfumes
& Cosmetics Research Team, and carried out several assignments in order to gather
information from operators in two supply sectors (Aframomum Angustifolium from
Madagascar, and Anogeissus Leiocarpus from Burkina Faso). They were therefore able to
make a series of recommendations regarding the use of natural substances and accessing
and sharing benefits in the cosmetics industry.
 In order to promote more responsible practices among its suppliers in leather, LVMH is
involved on an ongoing basis in Business for Social Responsibility (BSR) and in the
Responsible Ecosystems Sourcing Platform (RESP) by participating in the working
subgroups dealing with the tracability of exotic leathers, colored stones, wool and certain
plant species. Since 2012 LVMH has also been a member of the Leather Working Group
(LWG), a British industry association which has a system that gives environmental ratings to
tanneries and assesses the traceability of hides. LVMH is also a member of Orée association
(Organisation pour le Respect de l’Environnement or the Organization for the Protection of
the Environment), which brings together companies, regional authorities, professional and
environmental organizations, and institutions, in order to review environmental best practices
and ways of encouraging integrated management of the environment at a regional level.
 See "2014 Environmental Report" :
 “Measures taken to secure access to strategic raw materials and protect biodiversity from the
outset” (pp. 41-43)
 “Initiatives implemented in order to increase the responsibility of suppliers and sub-contractors”
(pp. 46-47).
3. Best practices for the year 2014 : Relations with any partner necessitate the
latter’s commitment to comply with all ethical principles enunciated in the Supplier’s
Code of Conduct. Many initiatives by Group companies illustrate this commitment :
2014-15
 Supplier’s commitments : LVMH also requires that its suppliers adhere to the same guidelines imposed
by regulatory requirements (for example in the field of consumer safety).
o Certain Group companies such as Sephora and Moët Hennessy have implemented their own
supplier specifications in order to best meet their businesses’ specific requirements. In its supplier
specifications documents, Sephora includes clauses dealing with the individual rights of employees,
child labor prevention, equality of opportunity and treatment, working time policy, and the protection
of the environment.
o In the same vein, in 2014 the Perfumes and Cosmetics business group also launched a Responsible
Purchasing Charter that specifies its requirements with regard to the following topics: maintaining
high-quality relations with our suppliers over the long term, mutually improving economic
performance, choosing sustainable materials and responsible suppliers, innovating, and preserving
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materials and savoir-faire. This charter has been rolled out to all Group companies in the business
group.
o Moët & Chandon and Glenmorangie present a specifications document for signature to
subcontractors. All the brands of Moët Hennessy establish a specifications document presented for
signature to their subcontractors that addresses respect for the environment and fundamental labor
law compliance, among other issues; every year, supplier audits are carried out to minimize the most
significant risks.
o LVMH Fragrance Brands has laid out its code of ethics within the framework of the Perfumes and
Cosmetics sector, and communicated this with a letter from the CEO to its suppliers. Suppliers then
sign an agreement before orders are approved.
o Guerlain actively manages its supplier relationships on a number of levels. All calls for tender
include a paragraph formally setting out what is expected of contractors in terms of their
commitment to sustainable development. A questionnaire has also been sent to more than 80% of
strategic suppliers to assess their environmental and social practices. Finally, a special audit was
performed on one of the Maison’s strategic suppliers.
 Questionnaires and audits :
o Louis Vuitton incorporated a supplier environmental assessment protocol into the processes of its
Purchasing Departments. This protocol will enable an initial assessment of the environmental risks
posed by suppliers (20 assessments were performed in 2014, including 15 by external service
providers), and will be followed by a second stage: a risk-mapping process, leading to more in-depth
audits on some companies. The House pays particular attention to the issue of pollution caused by
waste water discharged into the natural environment, and has also formally set down a discharge
analysis program for the suppliers who are principally concerned, beginning with tanneries.
 Louis Vuitton has implemented an ethical system of preliminary audits founded on compliance
with local regulations as well as the SA 8000 social accountability standard, which is based on
international workplace norms included in the International Labor Organization (ILO)
conventions : no child labor, working conditions, health and safety, freedom of association and the
right to collective bargaining, no discrimination, disciplinary practices, compliance with working
hour and wage regulations.
 When carrying out a social audit, Louis Vuitton calls on international firms that specialize in
auditing labor and environmental performance. To ensure that they will be able to perform
preliminary audits independently, Louis Vuitton’s buyers receive theoretical training covering the
approach and criteria as well as field training in the company of an SA 8000 auditor.
 A questionnaire on "environmental practices" is also included in the internal control standard.
Louis Vuitton has an evaluation chart for its Leather Goods suppliers. The environmental portion of
the SA 8000 standard has been included in supplier audits since the last quarter of 2012. A
questionnaire is sent to window dressing suppliers to learn more about their standard of
management. The environmental questionnaire enables an initial diagnosis to be made, revealing
the major risks with the aim of constructing an appropriate action plan. This first phase has resulted
in accurate mapping of suppliers who might be subject to more in-depth environmental audits.
o Among the other outstanding initiatives during the year, Hennessy continued to assess all its dry
materials suppliers on the basis of environmental criteria. 28 partners in total were assessed in
2014, which enabled an average environmental score higher than the previous year’s to be recorded.
65 companies that provide services to Hennessy and operate on-site were also made aware of this
topic at a specific meeting, during which they were given an “Environment, Food Safety, and Safety
Best Practices Handbook”.
o Sephora performed the first four environmental audits on two suppliers in China and has scheduled
19 more in 2015, while Starboard Cruise is preparing to launch its own audits in 2015.
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o Bulgari has completed the roll-out of its social and environmental audit program in all its business
areas (jewelry, diamonds and precious stones, watches, perfumes, leather goods, and textiles).
Furthermore, the House has signed an agreement with Bureau Veritas, which will audit all the
Bulgari Accessories suppliers, as well as their respective sub-contractors.
o Since 2013, Loewe has applied a new process of evaluating and approving its suppliers in accordance
with its “Animal Sourcing Policy” code of conduct. In fur purchasing, for example, Loewe has
embarked on a process aimed at limiting the use of furs solely to certain species of livestock, certain
countries of origin and certain suppliers.
 In 2011, Loewe has adopted an “environmental compliance program” with the help of a
specialist firm. The program primarily provides information about regulations and
implements an improvement plan called “zero legal non-compliance”, which serves as a basis
for the auditing of three Spanish production sites. Loewe requires its suppliers to have
ISO 9001/14011/OHSAS 18000 certification.
 In 2012, Loewe has developed a new supplier assessment and approval process to extend the
validity and quality of the standard criteria taken into account when selecting a supplier.
More specifically, suppliers of exotic leathers and furs are sent the Animal Sourcing
Principles code of conduct, which was developed and adopted in February 2011 by the
founding members of the BSR Sustainable Luxury Working Group (SLWG).
 From 2013, compliance with these guidelines will be an integral part of the supplier
assessment and approval process.
o Marc Jacobs has added an environmental section to its social audit questionnaire. Marc Jacobs and
Donna Karan each have a vendor compliance program. Their programs include the use of third-party
audit firms to conduct independent assessments of suppliers and to assist in remediation efforts. In
2013, Marc Jacobs and Donna Karan jointly hosted a vendor training in China that was conducted by
a third-party expert. The joint training was attended by approximately 200 participants, and covered
topics including social, environmental, and restricted substances compliance. Donna Karan has
developed a Vendor Code of Conduct designed to ensure respect for fundamental principles of labor
law and targeting the highest ethical standards. It has also developed a Vendor Profile Questionnaire,
a document signed by the subcontractor when the pre-approval request is submitted. Donna Karan
has also introduced a Vendor Compliance Agreement, which plans for independent audits of
suppliers to ensure that commitments have been observed. In order to encourage such practices and
share its own expertise, Donna Karan organizes supplier training programs in partnership with Marc
Jacobs.
o In July 2013, Make Up For Ever surveyed all of its suppliers/subcontractors with regard to their
environmental practices. With an initial response rate of 50%, the questionnaire enabled the
company to begin a constructive dialog with most of the respondents.
o TAG Heuer and Loewe require that all new suppliers submit a written pledge indicating their
compliance with the SA 8000 standard. The same is true for Parfums Christian Dior, Parfums
Givenchy, and Guerlain who have introduced specifications documents including compliance with
the SA 8000 standard among their provisions.
o The Glenmorangie Company Limited employs a method to assess its suppliers by establishing an
assessment form. A series of questions is put to suppliers to assess their performance in terms of
human rights. If suppliers – particularly those who are not members of the European Union – do not
meet assessment criteria, the company reserves the right to conduct an audit and/or refuse their
services.
o Moët Hennessy Diageo France signs ethical engagements with its sub-contractors.
o Belvedere audits its suppliers’ dry solids and pure alcohol as part of its safety and environment
control process. Suppliers have made a number of improvements, such as installing a new pure
alcohol distillery boiler, replacing coal, and reducing fuel consumption by 40%.
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Blueprint For Corporate Sustainability Leadership
Value Chain Implementation:
 Implement monitoring and assurance mechanisms (e.g. audits/screenings) for compliance within
the company’s sphere of influence
The Supplier’s Code of Conduct sets forth the principle and procedures for the control and audit of
compliance with these guidelines. In the interest of continued improvement in this area, the Group’s Houses
have continued their supplier audit programs in 2014, together with follow-ups on action plans. In addition
to the codes and charters already developed by the companies of the Group for their suppliers, LVMH felt it
important to establish a standard policy extending its values to all suppliers and subcontractors.
 Social and environmental audits : The Supplier Code of Conduct also sets forth the
2014-15
principle and procedures for the control and audit of compliance with these guidelines. In
2014, 925 social and/or environmental audits were carried out, nearly 90% of which by specialized external
service providers, at 787 of our suppliers. Among these audits, 543 related exclusively to social criteria.
Suppliers and audits break down as follows, by region :
o More than 40% of these audits showed results in line with our standards and 37% identified minor
non-compliance issues.
o Audits whose conclusions indicated a need for significant improvement by suppliers or the existence
of major non-compliance issues accounted for 17% and 4% of audits performed, respectively. The
non-compliance issues identified during these audits were mainly related to two indicators: health
and safety and working time. In all, 261corrective action plans were implemented at our suppliers
where audits had identified areas in need of improvement.
o The use of preliminary audits also enabled better advance identification of supplier practices, thus
leading to the decision to refrain from working with certain potential suppliers. In keeping with this,
Louis Vuitton has set up systematic audits for all new suppliers located in an at-risk area, which are
based on the Louis Vuitton risk matrix, and are updated on a regular basis.
o The use of follow-up audits (450 in 2014 vs. 373 in 2013) also showed that Group companies
regularly monitor their suppliers and support them in their efforts to improve.
o In addition, where necessary, some Group companies ended their existing relationships with
suppliers whose social audit findings revealed major issues of non-compliance with the LVMH Code
of Conduct.
 See “9.1. Relations with suppliers” in "2014 Reference Document" (pp. 83-84).
 See “The LVMH Supply Chain” in "2014 Annual Report" (pp. 30-31).
 RJC Certification : LVMH’s Watches and Jewelry business group is a member of the “Responsible
Jewellery Council” (RJC), an organization bringing together more than 550 member companies committed
to promoting ethical behavior, human rights and social and environmental practices throughout the industry,
from mine to point of sale.
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o The RJC has developed a certification system designed particularly to ensure that the diamonds used
in manufacturing do not come from conflict zones. An approach of this kind provides assurance that
all the stages of the extraction, processing, and marketing process comply with sustainable
development issues and criteria. The Watches and Jewelry companies have all been certified
according to the Code of Practices (2013 version) and Bulgari certified chain of custody.
o On working group and audits. All the gold is certified Dodd Franck Act.
o The Kimberley Process is applied to diamonds. Kimberley certification requires the input of
independent, accredited auditors.
About Responsible jewellery and certification (RJC) see :
 RJC-certified Houses in "2014 Environmental Report" (p. 29).
 “1.1. Evaluation and certification programs and organization” in "2014 Reference Document" (p. 89).
 ISO 14001 certification : As an example, Louis Vuitton is the first company in the world to have been
awarded ISO 14001 environmental certification for its entire Leather Goods and Accessories logistics chain.

Health and Safety :
o Applied to suppliers since December 2010, the Globally Harmonized System of Classification and
Labelling of Chemicals (GHS) designed to standardize the classification and labeling of chemicals
and contributes to the safety of substances used in cosmetics products.
o REACH Regulation :
 All Maisons have incorporated the European REACH regulatory requirements in their
contractual documents to involve suppliers in this effort. They are requested to ensure that the
substances used are registered under REACH, or regulations similar to REACH for nonEuropean suppliers. They are also requested not to use any substances listed in the Group’s
monitoring tool. The tool, which suppliers can access online, includes a list of 286
substances, particularly substances subject to restriction or authorization by REACH, and
substances of very high concern (SVHC). The tool aims to help Maison suppliers better
identify the potential use of these substances and the materials in which they may be found.
The Maisons also conduct tests by independent laboratories to certify that products placed on
the market contain no SVHC. Experts from the various Maisons meet regularly as part of a
REACH working group to anticipate future phase-outs and share best practices. An
individual specially appointed at the Group level coordinates the network and supports the
Maisons in their plans to replace substances and innovate.
 The LVMH Environmental Department has set up a network of 150 REACH officers at the
Houses. It brings those officers together on a regular basis, in order to exchange information
and best practices, anticipate future regulatory deadlines and foster the emergence of
substitution or innovation projects.
Blueprint For Corporate Sustainability Leadership
Value Chain Implementation:
 Undertake awareness-raising, training and other types of capacity building with suppliers and
other business partners
 See “9.1. Relations with suppliers” in “LVMH Reference Document 2014” (pp. 83-84).
 See “The LVMH Supply Chain” in “2014 Annual Report” (p. 30-31)
1. Strategic disclosure:
 Social: Since 2011, Social Development Department of LVMH published a specific report giving a
very clear picture of the way in which the Group’s sense of responsibility is put into practice and presenting
all the social responsibility initiatives carried out over the year by its firms. The fields were selected to
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cover – in a way that is relevant, global and exhaustive – the various areas usually observed by credit rating
agencies, investors and, more generally, all stakeholders involved in the problems of sustainable
development and social responsibility.
LVMH discloses the “Main Social Responsibility Issues” and business groups
2014-15
particularly affected. [ See "Social Responsibility Report 2014" (p. 12).]
 Environment: The LIFE program (LVMH Initiatives For the Environment) was designed in 2011 to
reinforce the inclusion of environmental concerns in management processes, facilitate the development of
new steering tools, and take into account the changes and enhancements resulting from Group companies’
innovative practices.
In 2014, Group Managing Director Antonio Belloni decided that Group companies
2014-15
should include the LIFE program in their strategic plan.
The LIFE program was implemented by the Steering Committee of each Group company and is based on
nine key aspects of environmental performance whose two of them at least are linked to "Supply Chain
Management" :
 “secured access to strategic raw materials”
 “environmentally & socially responsible suppliers”.
 See “2014 Reference Document” (p. 89), “2014 Annual Report” (p. 36) and “2014 Environmental
report” (pp. 14-18).
2. Support of suppliers:
 Training and guidance for suppliers : Driven by the desire to interact closely
2014-15
with its suppliers, the Group helps them implement and comply with environmental,
workforce-related and societal best practices, while raising awareness and providing training on the
sustainable development and responsible purchasing issues specific to their business.
o One of the highlights of 2014 that perfectly illustrates this collaborative dimension is the Group’s
first “Suppliers Day” held in Florence, Italy. This event brought together the main Group
companies with a significant industrial network in Italy (Louis Vuitton, Givenchy, Céline, Loewe,
Kenzo, Fendi, Loro Piana, Emilio Pucci, Marc Jacobs, Donna Karan and Bvlgari) along with 140 of
their suppliers (leather goods, footwear, ready-to-wear, furs, etc.), for a total of around 250
participants.
o In the same vein, in 2014, more than 60 key suppliers, most of which are based in Asia, took part in
an experimental series of six online training sessions held by Donna Karan. Three sessions focused
on social compliance and the other three on regulated substances and the environment in general.
Donna Karan plans to continue offering these online training sessions in 2015 to help suppliers in
their continuous improvement initiatives.
o 65 companies that provide services to Hennessy and operate on-site were also made aware of this
topic at a specific meeting, during which they were given an “Environment, Food Safety, and
Safety Best Practices Handbook”.
o The work engaged towards the LVMH Lighting Program was extended in 2014 by the signing of a
collaboration agreement with around 20 lighting equipment suppliers, and the publication of a
catalogue including 500 items. The catalogue was presented at the Group Head Office in Avenue
Montaigne on June 20, along with product samples, during the “LEDEXPO2014” event. To mark
that event, a ‘speed-dating’ process was also organized between the Houses and the suppliers, while
four conferences were offered on topics such as “light and architecture”, and “light and marketing”.
An e-commerce website (lvmhlighting.com) intended for the Group and its lighting installers was set
up during the summer, in order to optimize the supply chain. The website has been trialed by three
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pilot Houses (Christian Dior, Louis Vuitton and Sephora) since November, while its general roll-out
is scheduled for 2015.
o Belvedere is making its suppliers more responsible. The Belvedere Distillery in Zyrardow introduced
a partnership with its pure alcohol suppliers in 2014. The House is pursuing a triple goal, namely
securing and strengthening the quality of the alcohol supply, ensuring that the supply is local, and
guaranteeing environmentally-friendly farming practices.
o In 2013, Hennessy held the second edition of the Technical Forum for its partners in the vintner
industry on the topic “The vine, the number-one production tool”. There were ten themed workshops
at the event, which dealt with topics such as the protection of water, management of effluents, and
preservation of soil in vineyards. Technical environmental advice was also provided by experts. The
result of the initiative is that relations with suppliers have been strengthened and the framework of
audits for the Maison has been examined in greater depth.
o In the Watches & Jewelry business group too, De Beers Diamond Jewellers has informed its
suppliers of the implications of its commitment to the Group’s “LIFE” project and has rolled out its
first educational campaign for its packaging suppliers.
o Louis Vuitton promotes the sharing of best practices with its suppliers specifically in the area of
material recycling. For example, environmental requirements tailored to each business line are
included in all service provider contracts for the French sites. A guide provides advice on how to
deal with recyclable waste (leather, metal parts, etc.). In the latter part of last year, a feasibility study
was launched between the CEDRE platform and the event provider on the idea of setting up a
segment to recycle fashion show decor and show-room fittings.
o Critical skills are a key advantage in the luxury goods sector, while some skills, such as sustainable
viticulture and ethno-botany, are directly related to the environment. The LVMH Group Houses take
care to preserve and transmit these skills by performing regular strategic reviews.
 In Spain, Loewe focuses on preserving the traditional working methods used by tanners to
produce lambskin leather, working closely with its suppliers.
 The principal tasks of the La Sarrazine Cooperage in Cognac are to manufacture, maintain
and repair the casks that contain the Hennessy House’s eaux-de-vie. These casks, which are
made entirely by hand, are the result of know-how that goes back almost 250 years, and has
been passed down from generation to generation by the master coopers. To make its casks,
the House uses only French oak, sourced primarily from the Limousin forests, which are all
sustainably managed and PEFC (Program for the Endorsement of Forest Certification)
certified.

Socially Responsible Procurement :
2014-15
o LVMH favours the use of the “Sheltered employment”. This sector enables a person who is
seriously disabled, whether permanently or temporarily, to work in an environment that is adapted to
his or her circumstances.
 Following the LVMH Disability and responsible purchasing seminar in 2012, companies such
as Louis Vuitton, Bulgari, Guerlain and Parfums Christian Dior reviewed their purchasing
policy to develop their relationship with companies operating in this sector.
 On 17 July 2014, at the launch of the new LVMH directory of supported employment
suppliers, the Mission Handicap unit organised an event where Group companies went to
meet some people working in such suppliers.
 This event also enabled Group companies to share their best practices in the field. Guerlain,
for example, has opted to outsource the cleaning of all its linen from its store at 68, avenue
des Champs Elysées (Paris) to a supported employment provider.
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 At Group level in France, services outsourced to the supported employment sector were
worth EUR 4.9 million in 2014.
o As a reminder, on November 7, 2012 the Group organized its first exhibition on Disabilities and
Responsible Procurement as part of its approach to responsible decision-making in procurement.
Presented by Group Managing Director Antonio Belloni and Group Human Resources Director
Chantal Gaemperle, this exhibition showcased various organizations specializing in disability
employment as well as the sponsorships run by Hennessy, Moët & Chandon, Guerlain, Louis
Vuitton, Make Up For Ever and Parfums Christian Dior. The event was attended by about 170
managers from all Group companies.
 Local procurement : Special value is placed on the criterion of local sourcing for a good number of our
sites, particularly as regards the choice of service providers. The Barbera workshop in Spain, for example,
achieved a 75% increase in its purchases from suppliers located within a 60 km radius. The shoe
manufacturing facility in Fiesso d’Artico in Italy also purchases many components and raw materials
locally. Another type of example is Switzerland, where 80% of the building materials and equipment for
TAG Heuer’s buildings at its Chevenez site are sourced from companies and suppliers in the Jura region.

Fair Labour :
o Together with the Wildlife Conservation Society and Invisible Children, Edun set up the
Conservation Cotton Initiative Uganda (CCIU) in 2008. Based in Gulu in the northwest of Uganda,
an area which until recently was devastated by civil war, the CCIU programme currently supports
5,000 farmers and their families. The CCIU program is managed by TechnoServe and enables Edun
to affect change at the start of the supply chain. Edun is proud to use CCIU cotton in the production
of its fashion collection. Also, the Edun T-shirt line, Edun Live, primarily uses CCIU cotton.
Through its operations, Edun looks to build long term, sustainable growth opportunities by
supporting manufacturers, infrastructure and community building initiatives.
Edun strives to provide an example of the viability of trade with sub-Saharan
2014-15
Africa, where 85 % of the Spring 2014 collection will be produced.
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Robust Human Rights Management Policies & Procedures
Criterion 3: The COP describes robust commitments, strategies or policies in
the area of human rights:
 Commitment to comply with all applicable laws and respect internationally recognized human
rights, wherever the company operates (e.g., the Universal Declaration of Human Rights, Guiding
Principles on Human Rights) (BRE1 + ARE1)
The Group is committed to acting responsibility in every business sector, and to ensuring that human rights
are respected in all of its establishments including in countries where these rights are not sufficiently
entrenched. LVMH is very careful to promote Human Rights and the respect of ILO’s fundamental
principles.
 Commitments :
o Compliance with international conventions : This strong commitment is written in the “2014
Reference Document” ( "10. Compliance with international conventions", p.86): « Taking each
individual, his or her freedom and dignity, personal growth and health into consideration in each
decision is the foundation of a doctrine of responsibility to which all Group companies adhere.
Accordingly, all Group companies have policies for equal opportunity and treatment irrespective of
gender, race, religion and political opinion, etc. as defined in the standards of the International
Labour Organization. This culture and these practices also generate respect for freedom of
association, respect for the individual, and the prohibition of child and forced labour. »
o New commitments :
2014-15
 After the chief executives of Group companies in Europe signed the UN’s Women’s
Empowerment Principles (WEP) in November 2013, all the Group companies in the USA
signed on 7 October 2014. By the end of 2014, a total of 41 Group companies were
therefore committed to adhering to the seven principles in the WEP. Demonstrating the
Group’s culture of male-female equality, the principles concern education, training and
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professional development of women as well as a commitment towards gender equality at the
highest level within a company.
 The sixth annual Women’s Empowerment Principles (WEPs) conference was held at the
United Nations HQ in New York on 5 March 2014. Gena Smith, Senior Vice-President of
Human Resources at LVMH, was on stage to present the measures the Group has taken to
apply the principles enshrined in the WEPs. The outcome of a joint effort by UN Women, the
United Nations Entity for Gender Equality formed in 2010, and the United Nations’ Global
Compact, the WEPs comprise seven principles on female empowerment in their jobs, in the
job market, and in society more broadly.
 Internal Codes :
o The LVMH Code of Conduct, adopted in May 2009, covers all brands and all employees of the
Group. This Code and its principles must be respected by each employee, each brand and each
business group of LVMH. The LVMH Code of Conduct serves as a basis for the drawing-up of
codes of conduct at brand and business group levels, adapted to their context and their sector. Thus
the principles of this Code can, when appropriate, be developed or specified in relation to local
regulations and legislation, and, when they exist, locally applied charters or codes. The LVMH Code
of Conduct reminds "International agreements supported by LVMH" (see p. 21) particularly on
"social stakes" :
- Universal Declaration of Human Rights.
- United Nations Global Compact.
- OECD Guidelines.
- International Labour Organization conventions.
- Millennium Development Objectives.
- Women’s Empowerment Principles.
Accordingly, « LVMH respects and defends the principles of the Global Compact in relation to
fundamental rights and principles in the workplace, namely :
- elimination of professional and employment discrimination;
- freedom of association and effective recognition of the right to collective bargaining;
- elimination of any form of forced or bonded labour;
- effective abolition of child labour. » (p. 10)
« Respecting and supporting human rights : LVMH respects and promotes human rights and makes
sure that its activities do not encourage human rights abuses. LVMH intends to reflect its attachment
to human rights through exemplary behaviour in the operation of its business and to encourage,
within its sphere of influence, the improvement of social conditions which constitute an essential
factor in economic development. » (p. 14)
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o The LVMH Supplier’s Code of conduct deployed in March 2008 has been implemented at all
Brands and subsidiaries by the end of 2008. All of the Group’s brands have adopted and promulgated
the Supplier Code of Conduct which sets forth the Group’s requirements in terms of labour
principles (forced labour, discrimination, harassment, child labour, compensation, hours of work,
freedom of association and collective bargaining, health and safety, etc...).
o Since 2009, the "LVMH Recruitment Code of Conduct" has been widely disseminated to all
employees active in recruitment processes across the Group. It sets forth the ethical principles to be
observed in recruitment at LVMH and guarantees that fair hiring practices are followed at all of the
Group’s operations worldwide. This Code of Conduct is embodied in fourteen commitments, which
aim in particular to prevent any form of discrimination and to promote diversity. Across the Group,
ethical principles to be applied in recruitment and the LVMH Code of Conduct for Recruitment are
reinforced by the training program “Recruitment without Discrimination”.

 Integrated or stand-alone statement of policy expressing commitment to respect and support
human rights approved at the most senior level of the company (BRE 1 + BRE5 + ARE 1 + ARE 5)
 Statement of policy stipulating human rights expectations of personnel, business partners and
other parties directly linked to operations, products or services (BRE 1)
 The previous declarations and commitments have been approved by Bernard Arnault, Chairman and
Chief Executive Officer. LVMH respects and promotes human rights and makes sure that its activities do
not encourage human rights abuses. LVMH intends to reflect its attachment to human rights through
exemplary behaviour in the operation of its business and to encourage, within its sphere of influence, the
improvement of social conditions which constitute an essential factor in economic development. LVMH
demonstrates active solidarity with humanitarian and social causes and also provides continuous support for
medical research on public health challenges in France and the rest of the world.
 Responsibility for implementation: « The Board of Directors of LVMH, to which the Executive
Management of the Group submits each year a report on the implementation of the Code’s principles, will
be the body which ensures its correct application. In accordance with the principle of subsidiarity inherent
to LVMH, the executive management team of each operational and legal entity is responsible for compliance
with the principles of this Code. Any employee who notices a non-conformity to one of the principles
stipulated within the Code should inform his or her hierarchy. » [ See "LVMH Code of Conduct" p 19].
 According to the "Charter of the Board of Directors", the mission of the Board of Directors is
especially to:
- disseminate the collective values that guide the Company and its employees and that govern
relationships with consumers and with partners and suppliers of the Company and the Group;
- promote a policy of economic development consistent with a social and citizenship policy based on
concepts that include respect for human beings and the preservation of the environment in which it
operates.
 See "2014 Reference Document" (p. 236).
 Statement of policy publicly available and communicated internally and externally to all personnel,
business partners and other relevant parties (BRE 1 + BRE 5 + ARE 1 + ARE 5)
The following statements and documents are publicly available on the LVMH website
(http://www.lvmh.com/investors/profile/governance-sri/ ) and on the intranet website (“LVMH Mind”)
launched in 2009 in order to better communicate internally the Group’s commitment to responsible
corporate citizenship.
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 The ethical and good governance principles are included in the "LVMH Code of Conduct", which has
been distributed since May 2009 to all Group employees. This Code of Conduct serves as the common
foundation and source of inspiration in this area for all of our brands or business lines. In particular, in the
Houses, the Group recommends and oversees the implementation of codes of conduct, supplier charters,
formalized procedures for declaring and monitoring conflicts of interest, and the implementation of
delegation matrices that outline the responsibilities and powers of each employee.
 The "Supplier’s Code of Conduct" is shared with suppliers and other stakeholders. Applied by all the
Brands of the Group, compliance with the Supplier’s Code of conduct is a requested condition for
collaboration.
Criterion 4: The COP describes effective management systems to integrate
the human rights principles:
 Process to ensure that internationally recognized human rights are respected
 On-going due diligence process that includes an assessment of actual and potential human rights
impacts (BRE 2 + BRE 3 + ARE 2 + ARE 3)
1. On-going due diligence of the Supply Chain:
"Supplier’s Code of Conduct" adopted in March 2008 is applied by all the Brands of the Group : compliance
with the Supplier's Code of conduct is a requested condition for collaboration. [ See “9.1. Relations with
suppliers” in "2014 Reference Document" (pp. 83-84).]
 The LVMH Suppliers’ Code of conduct stipulates the principle and procedures for the inspection and
auditing with compliance with the rules as regards social responsibility, environmental management and the
fight against corruption. Regular coordination of the purchasing managers enables the exchange of best
practices for auditing suppliers to ensure the correct application of the ethical principles defined in the
Suppliers’ Code of conduct.
 LVMH also monitors its Brands’ business practices with reporting systems and audits (both social an
environmental). Many of the Brands’ suppliers are required to enforce the SA 8000 social standard
and are thus submitted to external audits.
 In the Group Code of conduct, a paragraph is dedicated to implementation and compliance, specifying the
principles of implementation, the resources to support implementation, the responsibility for implementation
and the verification of implementation processes.
2. Best practices for the year 2014 :
 “Supplier’s commitments” and “Questionnaires and audits” :
2014-15
 See answer to “Criterion 2: The COP describes effective management systems to integrate the human
rights principles” : “Supplier’s commitments” and “Questionnaires and audits” (pp. 14-16 and 25-26 in the
COP 2015).
 See “9.1. Relations with suppliers” in "2014 Reference Document" (pp. 83-84).
 See “The LVMH Supply Chain” in "2014 Annual Report" (pp. 30-31).
 Specific due diligence :
o RJC Certification : LVMH’s Watches and Jewelry business group is a member of the “Responsible
Jewellery Council” (RJC), an organization bringing together more than 550 member companies
committed to promoting ethical behavior, human rights and social and environmental practices
throughout the industry, from mine to point of sale.
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 The RJC has developed a certification system designed particularly to ensure that the
diamonds used in manufacturing do not come from conflict zones. An approach of this kind
provides assurance that all the stages of the extraction, processing, and marketing process
comply with sustainable development issues and criteria. The Watches and Jewelry
companies have all been certified according to the Code of Practices (2013 version) and
Bulgari certified chain of custody.
 On working group and audits. All the gold is certified Dodd Franck Act.
 The Kimberley Process is applied to diamonds. Kimberley certification requires the input of
independent, accredited auditors.
 See “RJC Certified Maisons” in "2014 Environmental Report" (p. 29).
 See “1.1. Evaluation and certification programs and organization” in "2014 Reference
Document" (p. 89).
 In the respect of “Children’s Rights and Business Principles” LVMH gives the opportunity to young
people to develop a professional experience.
o As a signatory of the “Apprenticeship Charter”, the Group devotes considerable efforts to the
development of apprenticeship opportunities, which facilitate young people’s access to
qualifications. On December 31, 2014, there were more than 964 young people working under
apprenticeship or professionalization contracts in all of the Group’s French companies. The
majority of those offered a professionalization contract have found stable employment afterwards.
o The Institut des Métiers d’Excellence : A new initiative launched in 2014 testifies to the Group’s
desire to better meet Group companies’ current and future needs and demands. The Institut des
Métiers d’Excellence (IME) crafts and design vocational training institute provides professional
training leading to qualifications and certificates, enabling the Group to transfer craft and design
skills to the younger generation. [ See “Social Responsibility Report 2014” (p. 22)]
 Internal awareness-raising and training on human rights for management and employees:
Blueprint For Corporate Sustainability Leadership
Issue-Based and Sector Initiatives:
 Join and help advance one or more existing UN Global Compact initiatives, e.g. Caring for
Climate, CEO Water Mandate, Women’s Empowerment Principles, and Global Business Initiative on
Human Rights.
Employees are sensitized during training about labour law and human rights. Besides, the topics of
moral and sexual harassment are specifically tackled during these prevention trainings. The Group makes
every effort to prevent and deal with phenomena such as harassment and stress in the workplace.
1. Global frame about diversity and non-discrimination:
 Commitments : LVMH is notably a signatory of :
- the United Nations Global Compact ;
- and, in France, of the Diversity Charter and the Enterprise Charter for Equal Opportunity in Education.
o After the chief executives of Group companies in Europe signed the UN’s
2014-15
Women’s Empowerment Principles (WEP) in November 2013, all the Group
companies in the USA signed on 7 October 2014. By the end of 2014, a total
of 41 Group companies were therefore committed to adhering to the seven principles in the WEP.
Demonstrating the Group’s culture of male-female equality, the principles concern education,
training and professional development of women as well as a commitment towards gender equality
at the highest level within a company.
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o The sixth annual Women’s Empowerment Principles (WEPs) conference
2014-15
was held at the United Nations HQ in New York on 5 March 2014. Gena Smith,
Senior Vice-President of Human Resources at LVMH, was on stage to present
the measures the Group has taken to apply the principles enshrined in the WEPs. The outcome of a
joint effort by UN Women, the United Nations Entity for Gender Equality formed in 2010, and the
United Nations’ Global Compact, the WEPs comprise seven principles on female empowerment in
their jobs, in the job market, and in society more broadly.

Processes and tools :
o The Recruitment Code of Conduct is widely distributed to everyone in the Group involved in
recruitment. It sets out the ethics of recruitment at LVMH through fourteen undertakings.
Particular emphasis is given to preventing any form of discrimination and to promoting diversity.
o The LVMH Code of Conduct for Recruitment is reinforced since 2011 by the training program
“Recruitment without Discrimination” which has been mandatory for all human resources
managers involved in recruitment.
Special modules are gradually being rolled out by country so as to relate LVMH
2014-15
Group’s undertakings to local legislation (Italy and the United States in 2014).
o As the last aspect to this code, since 2008, LVMH has continuously monitored its recruitment
practices by appointing an independent firm to conduct discrimination tests on its own job
vacancies.
The 2014-2015 tests were conducted worldwide. At the end of each test campaign,
2014-15
the findings are shared with Group companies’ human resources departments.
Discrimination test campaigns are a means of managing the recruitment
discrimination prevention mechanism.
o The cross cutting issue of job maintenance : In regards to the links between continued employment
and preventing discrimination, various policies and best practices have been applied by Group
companies. Examples include preparing and supporting employees returning from parental leave,
adapting the workstations and working time for older employees, or providing staff with disabilities
with a suitable working environment, as offered by Moët Hennessy Entreprise Adaptée (MHEA).
2. Equality of opportunity for men and women :
 see :
 “2014 Reference Document” (pp. 77-78)
 “Social Responsibility Report 2014” (pp. 32-33)

2014-15
Results :
o Gender diversity is an integral part of LVMH’s corporate culture. Women account for 74% of the
Group’s workforce. This strong feminine presence is an essential characteristic of the Group. It is
attributable in particular to the nature of the Group's business lines, notably Perfumes & Cosmetics
(83% of employees are female), Selective Retailing (82%) and Fashion & Leather goods (70%). In
contrast, men make up the majority in Wines & Spirits, where they account for 63% of the
workforce. In 2014, 63% of managerial positions were held by women.
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o LVMH will be continuing its efforts in 2015 to reach its target of 40% female representation on
executive committees. The Group has had more and more women on its executive committees
every year, from 26 % in 2010 to 38 % in 2014. Its objective is to provide an environment of
excellence where all talents can achieve their potential. Five Group companies have a female chief
executive, namely Krug, Loewe, Acqua di Parma, Fred and Miami Cruiseline.

Drivers :
o LVMH particularly tracks the development of its female talents during the annual review of
organisations, with a set of key objectives and metrics. The Group provides annual coaching for the
most promising of its female talents, to smooth their move into executive roles. In 2014, 50
individuals received this full coaching programme.
o Launched in 2007, the purpose of the EllesVMH initiative is to develop female talent and help them
to realise their potential within LVMH Group. In 2014, the measures taken in this regard involved
more than 850 people, both men and women, around the world. In September 2014, the first
international meeting of EllesVMH coordinators took place. Regional EllesVMH networks bringing
together female talent from all Group companies and business lines present on the various markets
organised ten development and networking events. With regards to online communication, the
EllesVMH Intranet community is already one of the largest in-house communities.
Main international best practices for the year 2014 :
 In China, on 13 February 2014, 135 female managers attended a forum on female leadership,
with talks given by Group senior executives. On 20 May 2014, 14 key female talents attended a
workshop on the subject of “marketing yourself”.
 In Paris on 21 March 2014, 65 future leaders from various Group companies attended a
lecture-debate on women and the luxury goods industry.
 On International Women’s Day, 150 female talents attended a career development forum in
Spain, with both in-house and external speakers. In the UK, 40 people gathered for a workshop and
training on networking. Lastly, in the United States, 90 women heard female senior executives
share their experiences within the Group.
 Running in parallel with the Group programme, Group companies are also developing their
own initiatives and best practices. Loewe has rolled out an e-learning course for its managers on
managing diversity, plus a 3-day training course organised in conjunction with Navarre University
for female managers. In Italy, Fendi gave a briefing session to 200 head office staff through a talk
on gender equality, and has launched a partnership with a charity working on getting women back
into work. In France, Hennessy organised a second “women in winegrowing” event, where women
in the industry shared their experiences and development.
 In China, the policies and measures implemented by Bulgari to promote women into positions
of responsibility have resulted in 80% of senior positions being held by females. Again in China,
Louis Vuitton is actively encouraging female involvement in various workshops on female
leadership and women’s empowerment organised by LVMH. In 2014, 16 female members of staff
attended, with 13 at the female leadership forum, two at a workshop on marketing oneself, and one
at a meeting on work-life balance.
Global Compact – LVMH’s Communication On Progress 2015
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3. Actions in favour of employees over 50s :
 see :
 “2014 Reference Document” (p. 78)
 “Social Responsibility Report 2014” (pp. 34-35).
-
-
-
2014-15
The importance of preserving expertise in the Group’s various business lines makes skills transfer the
heart of the Group's policy on older employees. The holders of craft skills and invaluable expertise
acquired throughout their working lives, older employees are called on to add further value by
mentoring other employees.
Ensuring older employees can access and stay in work is an on-going concern for the Group. Led by
the Group's Corporate HR division, the companies endeavour to implement a global approach to the
management and development of older employees. The companies have adapted this policy to their
unique characteristics, which were previously identified through an assessment.
The commitments made by the companies also concern the recruitment and training of older
employees. The Human Resources teams pay specific attention to this age group to ensure that it is
fairly and sustainably represented in both processes.
 Results : Worldwide, 12.8 % of the LVMH group’s active workforces are over the age of 50. In
France, this population accounts for 21.7 % of employees.
 Among the priorities identified, 80% of the Group’s Houses took on quantified commitments to
end-of-career planning, while 70% vowed to improve workplace conditions. In France, 22 Group
companies have made commitments, either through agreements or action plans, to encourage the
recruitment, employment and career development of employees over the age of 50. All of the Group's
French companies, regardless of their size, have negotiated or introduced a "Generation Contract" (being a
French government measure promoting the employment of younger and older employees) with three
specific aims, namely to improve long-term access of young people to work, to keep the over-50s in work
and skills and knowledge transfer between the generations. The commitments made by Group companies
also concern the recruitment and training of older employees.
 Human resources managers from all Group companies have been trained in conducting mid-career
interviews based on a programme established by the Group's Human Resources Department. These
interviews take place within Group companies (Moët & Chandon, Hennessy, Berluti, Parfums Christian
Dior, Le Bon Marché, etc.) in order to better manage the careers of older employees and systematically offer
employees over the age of 50 an appropriate appraisal.
 Different initiatives and best practices : Group companies pay close attention to the issues of
continued employment for the over-50s.
o Efforts are made in regards to the ergonomics of workstations, preventing arduous work, and on
working conditions, particularly with regards to positions that are most exposed to risks in
workshops and on production sites (for example at Louis Vuitton). Domaine Chandon in Argentina
has set up an adapted workshop to enable operators aged over 50 who have developed
incompatibility for certain tasks to remain in employment. This objective also includes skills
preservation and development. At Guerlain and Bulgari in Asia, it is reflected in a special effort in
terms of training and mobility.
o Employees nearing retirement may be offered flexible working time arrangements. Céline offers
support to those nearing the end of their career, notably by encouraging requests to move to part-time
working, and for retirement-related courses and workstation adaptations. Givenchy has agreed on
over-50s working from home as part of the “Generation Contract”. LVMH Fragrances Brand offers
the over-50s the option to work from home one day a month, and part-time working with social
security contributions maintained and pension payments calculated on a full-time basis.
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o Lastly, retirement information meetings (“retirement workshops”) are organised at Hennessy and
Louis Vuitton, enabling employees to best prepare for the switch from working to retirement.
4. Employment of disabled persons :
 see :
 “2014 Reference Document” (p. 79)
 “Social Responsibility Report 2014” (pp. 33-34).

2014-15
Organization and methodology :
o The Group's commitment to this subject is embodied in Mission Handicap LVMH. Created in 2007,
it steers Group policy in this area and is made up of a network of 30 disability coordinators in the
Group companies. The purpose of the Mission Handicap scheme is to implement any measures
aimed at encouraging the recruitment and continued employment of individuals with disabilities. It
also builds various partnerships with organisations and institutions working towards the social
inclusion and workplace integration of individuals with disabilities
o In 2014, LVMH started the EXCELLhanCE initiative, an original training programme to improve
the employment prospects of people with disabilities. It had the support and trust of AGEFIPH
(French agency to promote private sector employment of those with disabilities). The initiative
enabled individuals with disabilities to simultaneously gain a qualification, meaningful experience in
LVMH Group companies, and specific expertise in the luxury goods sector. It is based on extended
course lasting from 12 to 24 months in three fields, i.e. sales, logistics and human resources
management. Candidates are selected by means of the “Handi-Talents” processes, based on workrelated simulation exercises adapted to candidates with disabilities. These innovative recruitment
sessions make recruitment objective and allow skills that are transferable to a professional
environment to be identified. In 2014, 24 people joined the EXCELLhanCE scheme. Various Group
companies are stakeholders in the scheme, namely Veuve Clicquot, Louis Vuitton France, Berluti,
Parfums Christian Dior, LVMH Fragrance Brand, Make Up For Ever, Sephora, Le Bon Marché, Les
Echos and Christian Dior Couture.
o As a reminder, on February 10, 2012 the Group organized a conference involving more than 50
managers on the subject of disabilities and management. This initiative has continued in the form of
a training program called Le Manager et le Handicap.
 “Sheltered” employment : LVMH also encourages use of the supported employment sector in France,
the figures from which can be used in calculating the overall proportion of employees with disabilities. The
supported employment sector enables a person with a serious disability, whether permanent or temporary, to
work in an appropriately adapted environment.
o At Group level in France, the value of services procured from the supported
employment sector is EUR 4.9 millions.
2014-15
o On November 7, 2012 the Group organized its first exhibition on Disabilities and Responsible
Procurement as part of its approach to responsible decision-making in procurement. This exhibition
showcased various organizations specializing in disability employment as well as the sponsorships
run by Hennessy, Moët & Chandon, Guerlain, Louis Vuitton, Make Up For Ever and Parfums
Christian Dior. The event was attended by about 170 managers from all Group companies.
o Since the Disabilities and Responsible Procurement forum held by LVMH in 2012, Group
companies have worked in depth on their purchasing policies to develop closer relations with
employers. Louis Vuitton, Bulgari, Guerlain and Parfums Christian Dior are examples of this.
On 17 July 2014, at the launch of the new LVMH directory of supported employment
2014-15
suppliers, the Mission Handicap unit organised an event where Group companies
went to meet some people working in such suppliers. This event also enabled Group
Global Compact – LVMH’s Communication On Progress 2015
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companies to share their best practices in the field. Guerlain, for example, has opted
to outsource the cleaning of all its linen from its store at 68, avenue des Champs
Elysées (Paris) to a supported employment provider.
o Formed in 2011, MHEA welcomes employees from Moët & Chandon sites whose disabilities make
it no longer possible for them to work in a standard environment (this in fact being the principle
behind all “Entreprises Adaptées” in France). Other Group companies have decided to develop
production lines adapted to employees with medical conditions (Guerlain, Parfums Christian Dior,
among others).

Partnerships and supports :
o Promoting employment opportunities for disabled people requires a focus on special training efforts
at the outset. LVMH chairs ARPEJEH, an association supporting the study aims of pupils and
students with disabilities), an organisation with some 60 member companies involved in training
young people with disabilities. Group employees have spent time and energy working on five
specific actions led by the ARPEJEH to benefit these young people.
o From 17 to 23 November 2014, LVMH supported Group companies taking part
2014-15
in France’s Employment of People with Disabilities Week, with staff attending
various awareness workshops.
 Hennessy organised sensory and exploratory workshops on its production sites to introduce
the roles performed by individuals with disabilities and the equipment developed to improve
their working conditions.
 Le Bon Marché created an interactive game to provide an understanding of how employees
with disabilities are integrated within sales outlets.
 This week was also an opportunity to spread the word about job vacancies within Group
companies. Make Up For Ever played host to students from the ARPEJEH programme
(supporting the study aims of pupils and students with disabilities) at its “TV & Cinema
Academy” on the Cité du Cinéma to introduce them to the profession of make-up artist. The
Sephora store on the Champs-Elysées invited jobseekers with disabilities to introduce them to
the positions it has available and advise them on their applications in the sales area.
o In 2011-12, LVMH obtained the assistance and support of AGEFIPH, the French agency
responsible for facilitating the employment and retention of workers with disabilities.
On 1 July 2014, LVMH extended its partnership agreement with AGEFIPH and the
2014-15
leading organisation in the field. The commitment of Group companies has also
been demonstrated through AGEFIPH agreements signed by both Veuve Clicquot
and Parfums Christian Dior. Hennessy meanwhile has been accredited since 2011,
with a three-year renewal agreed in 2013.

Results :
2014-15
The Group’s redoubled efforts have enabled it to increase the proportion of its employees with disabilities in
France to 4.10% according to official standards (sum of direct and indirect proportions) at the end of 2014.
Internationally, as the situation is dependent on local legislation, the proportion of staff with disabilities
stands at 0.96%.
Number and % of Disabled persons :
France
Group
total headcount
global employment rate
total headcount
global employment rate
2009
2010
2011
2012
2013
2014
438
507
543
572
623
620
3.21 %
3.57 %
3.72 %
4.1 %
4.1 %
4.1 %
671
775
824
928
979
1034
0.86 %
0.92 %
0.90 %
0.86 %
0.87 %
0,85 %
Global Compact – LVMH’s Communication On Progress 2015
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The share of disabled employees in the total workforce in France has largely increase over the period 2009-2014
from 3,2 to 4.1% (French AGEFIPH standards).
5. Raising awareness on Psychosocial Risks:
The prevention of psychosocial risks is a matter that captures the attention of all Group companies, which
particularly look out for stressful situations that could affect their employees. The Group makes every effort
to prevent and deal with phenomena such as harassment and stress in the workplace and tackle psychosocial
risks.
 See “Social Responsibility Report 2014” (p. 25).
 See “ Internal awareness-raising and training on the labour principles for management and
employees” in “Criterion 7” (pp. 43-47 in the COP 2015).
 Operational-level grievance mechanisms for those potentially impacted by the company’s activities
(BRE 4 +ARE 4):
 Any employee who notices a non-conformity to one of the principles stipulated within the LVMH Code
of Conduct should inform his or her hierarchy. « Responsibility for implementation: The Board of
Directors of LVMH, to which the Executive Management of the Group submits each year a report on the
implementation of the Code’s principles, will be the body which ensures its correct application. In
accordance with the principle of subsidiarity inherent to LVMH, the executive management team of each
operational and legal entity is responsible for compliance with the principles of this Code. Any employee
who notices a non-conformity to one of the principles stipulated within the Code should inform his or her
hierarchy. » [ See "LVMH Code of Conduct" (p. 19)].
 Whistleblowing is not allowed in France but several LVMH companies based abroad implemented
specific procedures such as whistleblowing policy. Different subsidiaries have developed initiatives and
tools contributing to grievance resolution :
o Grievance Policy, Grievance Policy Exit Interviews, Grievance procedures: Glenmorangie Company
Ltd, Thomas Pink USA, Louis Vuitton Hong Kong...
o HR business partner position dedicated: Parfums Givenchy...
o Non Harassment Policy: Moët Hennessy USA...
o HR Survey: Christian Dior Inc...
o HR Support Best Practice: Louis Vuitton UAE...
o Suggestion and complaints box: Sephora Romania.
 Allocation of responsibilities and accountability for addressing human rights impacts:
 International charters and agreements signed by LVMH provide the framework for the initiatives led by
the Group and its Maisons under the responsibility of the Board of Directors and the Executive
Committee.
o The Board of Directors of LVMH, to which the Executive Management of the Group submits each
year a report on the implementation of the LVMH Code’s principles, is the body which ensures its
correct application.
o In accordance with the principle of subsidiarity inherent to LVMH, the executive management team
of each operational and legal entity is responsible for compliance with the principles of this Code.
 The functional departments of the Group like RH Department and particularly Social Development
Department, will support the Brands (in the implementation of commitments and regulations about CSR
stakes linked to human rights impacts) with a view to a consistent and uniform application of commitments
and principles. The LVMH Holding relies on a network composed of 30 Correspondents belonging to
business groups and Maisons.
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 As a reminder, in March 2013, LVMH responded in great detail to the international questionnaire from
UNICEF / Global Compact / Save The Children on the topic of child labour (“Children's Rights and
Business Principle”). On October 9, 2013, Vigeo released the final report about the French CAC 40
companies explicitly mentioning LVMH among 7 companies appearing as the most advanced in terms of
concrete initiatives and communication about Business and the Right of Childrens.
 Process and programs in place to support human rights through: core business; strategic
philanthropic/social investment; public policy engagement/advocacy; partnerships and/or other forms
of collective action (BRE 6 + ARE 6) :
 See in the COP 2015 Criteria 16, 17 and 18.
Criterion 5: The COP describes effective monitoring and evaluation
mechanisms of human rights integration:
 System to monitor the effectiveness of human rights policies and implementation with quantitative
and qualitative metrics, including in the supply chain (BRE3 + ARE3) :
 See in the COP 2015 “Criterion 2 : The COP describes value chain implementation” :
 “Supplier’s commitments” and “Questionnaires and audits”: pp. 14-16 and 25-26.
 “Social and environmental audits”: pp. 17 and 50.
 See “9.1. Relations with suppliers” in "2014 Reference Document" (pp. 83-84).
 See “LVMH Supply Chain” in "2014 Annual Report" (pp. 30-31).
 Monitoring drawn from internal and external feedback, including affected stakeholders :
 Verification of compliance with the Code of Conduct is incorporated into the internal control
mechanism existing within LVMH and follows the procedures in force in the Group. [ See "LVMH Code
of Conduct" (p. 19).]
 LVMH reserve the right to check adherence to the Supplier's Code of Conduct's principles and to
conduct compliance audits at any time without notice. Suppliers supply the necessary information and
grant access to "XXX's" representatives who seek to verify compliance with the requirements of this code.
They agree to improve and correct any deficiency discovered. [ See "Supplier’s Code of Conduct" (p. 2)].
 Leadership review of monitoring and improvement results :
 Process to deal with incidents the company has caused or contributed to for internal and external
stakeholders (BRE 4 + ARE 4) :
 See :
 “Group governing bodies” and different lines of defense in “2014 Reference Document”
(pp. 111-112).
 “2.4. Formalization and management of the risk management and internal control systems” in
“2014 Reference Document” (pp. 114-115).
The “2014 Reference Document” summarized the different elements of this issue : organization of the
system, elements of the overall compliance framework and system stakeholders.
 See "2.2. Organization and stakeholders of the risk management and internal control systems" in
“2014 Reference Document” (pp. 109-112).
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 « The Board of Directors of LVMH, to which the Executive Management of the Group submits each year
a report on the implementation of the Code’s principles, will be the body which ensures its correct
application. In accordance with the principle of subsidiarity inherent to LVMH, the executive management
team of each operational and legal entity is responsible for compliance with the principles of this Code. Any
employee who notices a non-conformity to one of the principles stipulated within the Code should inform his
or her hierarchy. » [ See "LVMH Code of Conduct" (p. 19)].
 The following participants fulfil specific roles with respect to internal control : Board of Directors,
Executive Committee, Performance Audit Committee, Legal Department, Risk Management and Insurance
Department, Audit and Internal Control Department, Management Committees at subsidiary level.
 Outcomes of integration of the human rights principles :
No incidents to report.
 See in the COP 2015 “Criterion 2: The COP describes value chain implementation” :
 “Supplier’s commitments” and “Questionnaires and audits”: pp. 14-16 and 25-26.
 “Social and environmental audits”: pp. 17 and 50.
 See “9.1. Relations with suppliers” in "2014 Reference Document" (pp. 83-84).
 See “The LVMH Supply Chain” in "2014 Annual Report" (pp. 30-31).
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Robust Labour Management Policies & Procedures
Criterion 6: The COP describes robust commitments, strategies or policies in
the area of labour:
 Reference to principles of relevant international labour standards (ILO Conventions) and other
normative international instruments in company policies:
LVMH is very careful to promote the respect of ILO’s fundamental principles.
 This strong commitment is written in the “2014 Reference Document” [ See “10. Compliance with
international conventions” (p. 86)] : « Taking each individual, his or her freedom and dignity, personal
growth and health into consideration in each decision is the foundation of a doctrine of responsibility to
which all Group companies adhere. Accordingly, all Group companies have policies for equal opportunity
and treatment irrespective of gender, race, religion and political opinion, etc. as defined in the standards of
the International Labor Organization. This culture and these practices also generate respect for freedom of
association, respect for the individual, and the prohibition of child and forced labour. »
 The “LVMH Code of Conduct” reminds "International agreements supported by LVMH" (p. 21) and
particularly on "social stakes" :
o Universal Declaration of Human Rights.
o United Nations Global Compact.
o OECD Guidelines.
o International Labour Organization conventions.
o Millennium Development Objectives.
o Women’s Empowerment Principles.
 Reflection on the relevance of the labour principles for the company:
The relevance of the labour principles takes place in a global reflection about stakes and challenges for
business group:
 Social Responsibility Initiatives: Since 2011, Social Development Department of LVMH published a
specific report giving a very clear picture of the way in which the Group’s sense of responsibility is put into
practice and presenting all the social responsibility initiatives carried out over the year by its firms. The
fields were selected to cover – in a way that is relevant, global and exhaustive – the various areas usually
observed by credit rating agencies, investors and, more generally, all stakeholders involved in the problems
of sustainable development and social responsibility. In particular, this report enables us to meet Global
Compact requirements. It also aims to identify more clearly best practices in firms and to facilitate their
dissemination and reproducibility in-house [ See "Social Responsibility Report 2014"]
 Main societal impacts in the field of CSR :
o LVMH discloses the “Main Social Responsibility Issues” and business groups
particularly affected. [ See "Social Responsibility Report 2014" (p. 12).]
2014-15
o As a reminder, LVMH faces the following international challenges :
 Human Capital Management : training & development, compensation policies, expectations
from our employees (e.g. stress management, new services at work, compensation policy...),
 Working conditions : prevention of psychosocial risks, health & safety …
 Non-discrimination and human rights : diversity & equal opportunity, responsible
management of supply chain...
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 Internal strategic development : employment dynamics, retention of know-how and shortage
of skilled Human Capital, age pyramid and aging workforce...
 Local social impact : financing local programs, ratio of local employment, regional
development, and initiatives developing the employability of people...
 External context : changing demographics and development in the emerging markets, “low
cost” production approach, attention to the Corporate Governance (e.g. transparency,
dialogue,...),...
 Skills management is a significant aspect of internal control. LVMH pays special attention to
matching employees’ profiles with corresponding responsibilities, formalizing annual performance reviews
at individual and organizational level, ensuring the development of skills through training programs customdesigned for each level of seniority and encouraging internal mobility. In a Group that is essentially
decentralized, the human resources function’s remit includes promoting the sharing of knowledge and crossfunctionality in general.
 See :
 “2014 Reference Document” (p. 79)
 “Social Responsibility Report 2014” (p. 20).
o The annual review of organisations and talent, coordinated by the Human Resources department in
close conjunction with operational managers, is the lynchpin of LVMH Group’s human resources
policy. The annual review of organisations and talent, the OMR (Organisational Management
Review), coordinated by HR, is a Group-wide exercise involving all Group companies and
subsidiaries with the aim of unearthing in-house talent and securing the succession of key positions.
The OMR includes meetings on mobility between Group companies and regions, from which
several succession options may emerge. More than 70 mobility committee
meetings per job grade and geographical regions were held during 2014.
2014-15
Ultimately, 75% of senior executive positions are now filled internally.
Preparing for the future also entails supporting LVMH’s “High Potential” staff, through the
“FuturA” in-house talent development programme. These staff are selected first and foremost on the
basis of their potential, creative capacity, and the values that drive them.
o The annual review is an opportunity to prepare a range of training courses appropriate to current
market conditions and employee needs, and to build career mobility paths. Managers evidently play a
central role in this culture of organizational and career development. Skill in this area is now a
criterion that is always used during managers’ annual appraisals, performance reviews and career
reviews.
 Internal Mobility & Promotion : The Group has made internal mobility, whether geographical or
functional, a key aspect of its human resources policy. The LVMH ecosystem provides an environment that
is particularly conducive to career development, and its diversity of business lines and professional roles, the
number of brands operated, together with the Group’s geographical spread enable employees to build
individualised career paths and to gain new skills, expertise and experience.
 See :
 “2014 Reference Document” (p. 79).
 “Social Responsibility Report 2014” (p. 21).
o The human resources function makes every effort to support career development for the Group’s
talent through consistent practice and global initiatives. Human resources coordination is reaching
new frontiers with Latin America and Oceania, supplementing existing mobility committees in the
strongholds of Europe, the United States, Asia and Japan.
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o All employees can also feel they are playing an active role in their own
2014-15
development through the in-house job opportunities platform, called MOVe,
available all over the world via the Group intranet. MOVe saw growth of more than 50% in
internally advertised positions in 2014 compared with the previous year.
o In terms of results, 2,380 managers moved internally within the Group in
2014-15
2014. LVMH also looks favourably on mobility between different job roles
by encouraging employees to acquire new skills through courses that lead to qualifications or
diplomas. 7,271 employees (or 6.7% of the permanent workforce) were promoted in 2014.
 Written company policy to obey national labour law, respect principles of the relevant
international labour standards in company operations worldwide, and engage in dialogue with
representative organization of the workers (international, sectorial, national).
The system ensuring fair business practices is based on different measures and tools:
 The "LVMH Code of Conduct" and "Supplier’s Code of Conduct" are distributed to all Group
employees and serve as a basis for the drawing-up of codes of conduct at Brand and category business group
levels, adapted to their context and their sector.
o The LVMH Code of Conduct, adopted in May 2009, covers all brands and all employees of the
Group. This Code and its principles must be respected by each employee, each brand and each
business group of LVMH. The LVMH Code of Conduct serves as a basis for the drawing-up of
codes of conduct at brand and business group levels, adapted to their context and their sector. Thus
the principles of this Code can, when appropriate, be developed or specified in relation to local
regulations and legislation, and, when they exist, locally applied charters or codes.
o The LVMH Supplier’s Code of conduct deployed in March 2008 has been implemented at all Brands
and subsidiaries by the end of 2008. All of the Group’s brands have adopted and promulgated the
Supplier Code of Conduct which sets forth the Group’s requirements in terms of labour principles
(forced labour, discrimination, harassment, child labour, compensation, hours of work, freedom of
association and collective bargaining, health and safety, etc...).
 LVMH aims to serve as a model corporate citizen in terms of its human resources practices, especially
with regard to the recruitment of future staff members. LVMH’s recruitment practices must reflect the
Group’s values and the highest standards of responsibility and respect for all, on a daily basis everywhere in
the world. To this end, since 2009, the "LVMH Code of Conduct for Recruitment" has been widely
disseminated to all employees active in recruitment processes across the Group. It sets forth the ethical
principles to be observed in recruitment at LVMH and guarantees that fair hiring practices are followed at
all of the Group’s operations worldwide. This Code of Conduct is embodied in fourteen commitments,
which aim in particular to prevent any form of discrimination and to promote diversity. Across the Group,
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ethical principles to be applied in recruitment and the LVMH Code of Conduct for Recruitment are
reinforced by the training program “Recruitment without Discrimination”.
 In 2009, an intranet website (“LVMH Mind”) was launched to better communicate internally the
Group’s commitment to responsible corporate citizenship. On this website, specifically devoted to social and
environmental responsibility, employees can find the LVMH Code of Conduct, but also the Environmental
Charter first adopted in 2001 and the Supplier's Code of Conduct introduced in 2008 to ensure compliance
across the entire supply chain with strict guidelines.
 Inclusion of reference to the principles contained in the relevant international labour standards in
contracts with suppliers and other relevant business partners :
Relations with any partner necessitate the latter’s commitment to comply with all ethical principles
enunciated in the Supplier's Code of Conduct. Many initiatives by Group companies illustrate this
commitment.
 See “Criterion 4: The COP describes effective management systems to integrate the human rights
principles” : “Supplier’s commitments”, “Questionnaires and audits” and “Social and environmental
audits” (pp. 14-17, 25-26 and 50 in the COP 2015).
 See “9.1. Relations with suppliers” in "2014 Reference Document" (pp. 83-84).
 See “The LVMH Supply Chain” in "2014 Annual Report" (pp. 30-31).
Criterion 7: The COP describes effective management systems to integrate
the labour principles:
 Risk and impact assessments in the area of labour :
 Since 2004, the Group has used a risk mapping tool which systematically identifies its industrial,
environmental and operational risks on the basis of common standards. Ranking these risks clearly indicates
the cases that must be treated as a priority. This information and warning tool ensures early action to reduce
the probability that the dangers identified will occur. Finally, as a complement to these processes, and in
order to institute a single approach for all brands, the Group has pursued a project launched in 2010 that
seeks to create a formal framework for major risk management and internal control called
ERICA/“Enterprise Risk and Internal Control Assessment”. In 2010, a common supplier database has
been put in place by the Perfumes and Cosmetics business group and a common evaluation criteria
implemented for suppliers. These criteria facilitated exchange among the Group companies and follow-up
for social and environmental audits, their results, and any action plans established.
 See "Business risk factors and insurance policy" in “2014 Reference Document” (pp. 36-41).
 See "2. Implementation of risk management and internal control procedures" in “2014 Reference
Document” (pp. 109-115).
 Main social impacts in the field of CSR :
o The “2014 Social Responsibility Report” (p. 12) published a mapping of “main
2014-15
social responsibility issues” allowing to understand what are the main sources
of responsibility and at the same time the main drivers of performance and reputation. In particular,
this report enables us to meet Global Compact requirements. It also aims to identify more clearly
best practices in firms and to facilitate their dissemination and reproducibility in-house.
o As a reminder, LVMH also faces the following international challenges :
 Human Capital Management : training & development, compensation policies, expectations
from our employees (e.g. stress management, new services at work, compensation policy...).
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 Working conditions : prevention of psychosocial risks, health & safety …
 Non-discrimination and human rights : diversity & equal opportunity, responsible
management of supply chain...
 Internal strategic development : employment dynamics, retention of know-how and shortage
of skilled Human Capital, age pyramid and aging workforce...
 Local social impact : financing local programs, ratio of local employment, regional
development, and initiatives developing the employability of people...
 External context : changing demographics and development in the emerging markets, “low
cost” production approach, attention to the Corporate Governance (e.g. transparency,
dialogue,...),...

Internal information sharing on ESG risks operates through various process and tools :
o balance sheet presentation of the sustainable development policy to the Board of Directors;
o monitoring of the action plan under the "CSR Steering Committee" ;
o specific control by the Audit and Internal Control Department ;
o review project by the "Environment Committee" and the network of "CSR Representatives";
o specialized collaborative working groups :
 "Annual Supply Chain meeting" ;
 “International Human Resources Convention” ;
 meetings of Human Resources and operational leaders in order to discuss the mapping of the
Group ;
 intranet community “EllesVMH” is now one of the biggest internal communities, with 500
members worldwide ;
 specific meetings and working groups on environmental and social issues with impact in the
area of labour : disability, REACh regulation, etc..
o sharing information via :
 Finance Intranet : Since the launch of the Group’s new approach to risk, all executive-level
personnel responsible for risk management procedures across the Group have had access via
the Finance Intranet to procedures and tools designed for the assessment, prevention and
coverage of risks, together with the information provided by the Risk Management and
Insurance Department.
 Discussion forums are organized by the Internal Control department for the main risk
categories selected by most of the participants. These forums bring together risk managers,
operational staff and internal control managers and have thus helped facilitate the sharing of
best practices across the Group.
 "LVMH Mind" extranet dedicated to the policy of social and environmental responsibilities.
In 2009, an Intranet website (“LVMH Mind”) was launched to better communicate
internally the Group’s commitment to responsible corporate citizenship. On this website,
specifically devoted to social and environmental responsibility, employees can find, the
Environmental Charter first adopted in 2001, the Supplier's Code of Conduct introduced in
March 2008 and the LVMH Code of Conduct (ethical and good governance principles)
adopted in May 2009.
 "Voices" collaborative intranet Group. Launched in March 2012, the new Voices intranet
links all the employees of the Group, its subsidiaries and Maisons worldwide. Voices offers
employees an efficient working environment by providing a range of practical resources:
news about LVMH and the Maisons, useful information about the Group including its HR
policy, streamlined work tools and collaborative sites.
 A dedicated Intranet site “LVMH Talents” also exists, which is for the use of Group Human
Resources. Skills management is a significant aspect of internal control. LVMH pays special
attention to matching employees’ profiles with corresponding responsibilities, formalizing
annual performance reviews at individual and organizational level, ensuring the development
of skills through training programs custom-designed for each level of seniority and
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encouraging internal mobility. Personnel reports are produced monthly by the Group’s
Human Resources Department, presenting changes in staff and related analyses as well as
vacancies and internal movements.
o LVMH has discrimination tests performed, by an independent and highly regarded firm, on job
offers published on its Web site. By means of this scrupulous self-assessment procedure using the
services of an independent, external provider on an on-going basis, the Group guarantees the
excellence of its recruitment practices.
o Skills management is a significant aspect of internal control. LVMH pays special attention to
matching employees’ profiles with corresponding responsibilities, formalizing annual performance
reviews at individual and organizational level, ensuring the development of skills through training
programs custom-designed for each level of seniority and encouraging internal mobility. Personnel
reports are produced monthly by the Group’s Human Resources Department, presenting changes in
staff and related analyses as well as vacancies and internal movements. The annual review of the
organizations and talent within LVMH is also a key component of the Group’s human resources
policy. Every year for the past five years, after each brand has established its upcoming strategy, all
of the Group’s brands define the human and organizational implications of their business targets.
o Work related risks: The management system of strategic and operational risks take into account the
work-related risks. In the context of its production and storage activities, the Group is exposed to the
occurrence of losses such as fires, water damage or natural catastrophes.
 LVMH pay particular attention to the risks associated with the storage and shipment of raw
materials with particularly 2 sites : Hennessy manufacture in Cognac and Parfums Christian
Dior manufacture in Saint Jean de Braye.
 As an example, in March 2011, after the earthquake and tsunami in Japan, a crisis committee
has been established in order to protect and support over 5,000 employees and implement a
business continuity plan.
 Concerning the global policies and initiatives linked to the risk and impact assessments in the area of
labour, see more generally “ Internal awareness-raising and training on human rights for management
and employees” in Criterion 4 (pp. 26-32 in the COP 2015).
 Dialogue mechanism with trade unions to regularly discuss and review company progress in
addressing labour standards :
 See :
 “8. Employee Relations” in “2014 Reference Document” (p. 82).
 “Employer-employee dialogue” in “Social Responsibility Report 2014” (p. 27).
2014-15
 With LVMH Group having latterly acquired a definite European dimension, the switch to the European
Company structure (or Societas Europaea or SE) was entirely in line with recent developments. This was the
backdrop to the formation of a European Works’ Council, the staff representative body for the 21
countries where the Group is present. This body is governed by procedures set down in an agreement signed
unanimously on 7 July 2014 by the elected employee representatives from these 21 countries and the
Group’s senior management. The first full meeting of the European Works’ Council (EWC) will be held on
26 March 2015.
The EWC will supplement the employee representation arrangements which therefore now comprise three
levels, i.e.
- the companies’ Works’ Councils which, in line with the Group’s decentralized culture, deal with
most labour issues ;
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-
-
the Group Works’ Council where employee representatives are given information and hold
discussions with the chief executives of all Group business lines on strategy direction, economic and
financial issues and Group human resources aspects ;
and lastly the European Works’ Council which deals with matters arising at the European level.
 In France, Group companies have Works’ Councils, staff union representatives, Occupational Health and
Safety Committee and working conditions committees. The Group Works’ Council was established in 1985.
Over the course of 2014, employee representatives attended 1,566 meetings, leading to the signing of 132
company agreements.
 At the same time, Group companies are making great efforts to encourage employee input and discussion
with management. To this end, they are using employee attitude surveys or other more direct means of
obtaining employee input.
 Allocation of responsibilities and accountability within the organization :
 Responsibility :
o International charters and agreements signed by LVMH provide the framework for the initiatives led
by the Group and its Maisons under the responsibility of the Board of Directors and the Executive
Committee. [ See “2.2.3. System stakeholders” in "2014 Reference Document" pp. 111-112.]
 See the missions of “Steering committee” and “Strategic Committee” in “Criterion 1: The
COP describes mainstreaming into corporate functions and business units” (pp. 6-7).
o The functional departments of the Group, like RH Department and particularly Social Development
Department, will support the Brands (in the implementation of commitments and regulations about
CSR stakes linked to labour conditions) with a view to a consistent and uniform application of
commitments and principles.
 The LVMH Holding relies on a network composed of 30 Correspondents belonging to
business groups and Maisons and a "Handicap Mission".
 Group companies, particularly in France, have works councils, employee representatives, as
well as health and safety committees.
 Generating even greater synergies between the Maisons, the LVMH ecosystem was set up in
2012 to provide a new, highly collaborative approach, with the creation of a global HR
community on the Group intranet, “Voices”.
o Working groups : Working groups and Annual Supply Chain Meeting comprising experts from
various Group Houses presented, as they have in 2013, a review of their accomplishments and
progress made during an annual meeting that provides an opportunity to exchange best practices, to
implement shared tools and reference guides, and to identify new areas meriting attention.
 In 2010, this work resulted in the creation of a shared supplier database for the Perfumes
and Cosmetics business group and the establishment of a common reference guide for
supplier assessment. This reference guide will facilitate exchanges between the various
Group companies and follow-ups on social and environmental audits, their findings, and any
action plans put in place.
 In 2012, the Purchasing Department has developed a risk assessment matrix that classifies
suppliers based on social and environmental criteria and economic interdependence risks.
 Integrity, constant vigilance to maintain a healthy environment, and respect at all levels are
the pillars of social responsibility at LVMH. This key message was reinforced at the Group’s
second international conference on social responsibility held in 2011. Bringing together
more than 200 executives and managers, this event highlighted the considerable progress
made since the first edition of this conference in 2007. In the intervening period, initiatives
have been undertaken in a number of areas, including efforts to promote non-discrimination,
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equal opportunities for men and women, well-being at work, access to employment for the
disadvantaged, the employment of disabled persons, children’s education, and the fight
against social exclusion.
 Verification of compliance with Code of Conduct is incorporated into the internal control mechanism
existing within LVMH and follows the procedures in force in the Group. [ See “2.3. Risk management
and internal control procedures” and “2.4. Formalization and management of the risk mananagement and
internal control systems” in “2014 Reference document” (pp. 112-115)]
 Context and implementation :
o LVMH is comprised of five main business groups : Wines and Spirits, Fashion and Leather Goods,
Perfumes and Cosmetics, Watches and Jewelry, and Selective Retailing. The business groups are
composed of companies of varying sizes owning prestigious brands and which act as the parent
companies of subsidiaries operating worldwide. This organizational structure ensures that the
different brands of the Group maintain their independence, while facilitating cohesion between the
companies with similar businesses. Decentralization and the responsibilities of senior executives
are among the fundamental principles underlying the Group’s organization.
o The risk management and internal control policy applied across the Group is based on the following
organizational principles:
 the parent company, LVMH SA, is responsible for its own risk management and internal
control systems and acts as leader and coordinator on behalf of all Group companies. It
makes available to all Group companies the single reference guide and methodology to be
applied as well as a computer platform that centralizes all risk and internal control data and
provides a framework for the structured coordination of these two fields ;
 the President of a brand is responsible for the risk management and internal control of all the
subsidiaries that contribute to developing the brand worldwide ;
 each subsidiary’s President is similarly responsible for their own operations.
o In line with European directives and the ordinance of December2008, the Group introduced changes
to its Enterprise Risk and Internal Control Assessment (ERICA) approach, a comprehensive
process for improving and integrating systems for managing major risks and internal control related
to our ordinary activities.
 The main brands and business groups acknowledge their responsibility in relation to this
process and the implemented systems each year by signing two letters of representation.
 Since 2013, and depending on circumstances, Presidents of Group companies have been
required to present to the Audit Committee the approach implemented to achieve progress
within their area of responsibility as well as their achievements, action plans in progress and
outlook.
 Finally, the Audit Committee decided in 2013 to implement the ERICA
2014-15
system within all Group entities by 2015 : recently acquired entities are
allowed two years to apply the approach, once the integration process is
complete. As of June 30, 2014, this self-appraisal system covered 80% of the Group’s
operating entities and 96% of revenue. It includes all Group companies. The assessment data
from controls and for major risks is input by each entity and centralized in a database
application, RVR-GRC, also used by other CAC 40 companies. To reinforce the system’s
effectiveness, each Group company includes in its risk map an assessment of the following
six risks: media risk, supplier risk, supply shortage risk, site accident risk, sensitive data loss
or theft risk, and property damage or theft of merchandise risk.
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[ See “2.4.1. The Enterprise Risk and Internal Control Assessment (ERICA) approach” in “2014
Reference Document” (pp. 114-115).]
o Risks relating to our brands and business activities are managed at the level of each of our business
groups and Group companies. As part of the budget cycle and in connection with the preparation of
the three-year plan, major risks affecting strategic, operational and financial objectives are
identified and evaluated, and formalized in specific chapters. Risk mitigation (in frequency and
severity) is achieved through preventive actions, internal control actions, or through the
implementation of business continuity plans or operational action plans. Depending on the types
of risk to which a particular brand or entity is exposed, the latter may decide, in collaboration with
the Group, to transfer residual risk to the insurance market or instead to assume this risk.
 Internal awareness-raising and training on the labour principles for management and employees:
LVMH is very careful that its employees work in the best conditions. Employees and managers are
sensitized during training about labour law and human rights. Besides, the topics of moral and sexual
harassment are specifically tackled during these prevention trainings. LVMH is committed to implementing
the appropriate means to prevent occupational hazards, ensure health and safety and improve working
conditions for all its employees, based on the hazards present at the company. The LVMH Group companies
have set up measures to prevent the various forms of wear at work and reduce hazards, in particular by
informing and training employees. LVMH companies are raising employee awareness and taking various
steps to promote well-being at the workplace, improving work environments, addressing strenuous working
conditions, preventing and treating psychosocial problems, and educating employees on health and
occupational safety issues.
 Just for new starters at managerial grades, more than 3,600 people were involved in training sessions
designed at Group level.
 In regards to senior executives, LVMH Group has stepped up its efforts by investing worldwide and
particularly by prioritising effective leadership, high-level performance, a managerial commitment to
increased team development, and enhancing the desirability of our brands. LVMH House, a real business
school for the luxury sector, has been organising forums bringing together senior executives from all four
corners of the Group for several years.
 A diverse range of training courses is also offered to non-managerial employees, whether in stores,
production sites or the various head offices, to support their career development within the Group.
1. Non-discrimination and Psychosocial Risks:
 See also “ Internal awareness-raising and training on human rights for management and employees”
in Criterion n° 4 (pp. 26-32 in the COP 2015).
 Older employees : Human Resources managers at all of the brands have received training in the
conduct of a mid-career interview, following a program established by the Group’s Human Resources
Department.
 Disabled employees :
2014-15
o In 2011-2012 and again since 2014, the Group’s actions in the area of disability this initiative
enjoyed the assistance and support of AGEFIPH, the French agency responsible for facilitating the
employment and retention of workers with disabilities. This partnership helped raise the Group’s
employment rate in France for disabled persons to 4.1% as of December 31, 2014, based on official
standards for the definition of disabilities.
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o Promoting employment opportunities for disabled people requires a focus on special training efforts
at the outset. LVMH chairs ARPEJEH, an association bringing together some sixty French
companies to offer advice and guidance to disabled junior and senior high school students.
 The prevention of psychosocial risks is a matter that captures the attention of all
2014-15
Group companies, which pay particular attention to stressful situations their employees
might encounter.
o LVMH Fragrance Brands accordingly prepared an action plan on the prevention of psychosocial
risks which was presented to the unions during meetings of local and European works’ councils and
the OHSC, and to managers.
o While LVMH Watches & Jewellery organised training sessions in China on managing workplace
stress, Moët & Chandon opted for coaching sessions on workplace well-being, training managers and
supervisors (management committees, heads of department and managers) in psychosocial risk
prevention.
o As regards stores, Sephora Italy ran some tests to assess its employees’ stress levels, while Tag
Heuer gave its staff safety training on “armed robbery awareness” to reduce in-store stress levels.
o More generally, in France, agreements or addenda to existing agreements about psychosocial risk
prevention have been signed in recent years with Group companies.
2. Health & Safety:
 Investments and training :
2014-15
o The total amount of expenditure and investments promoting health and safety in the workplace
and improvements in working conditions amounted to over 62 million euros in 2014, representing
1.5% of the Group’s gross payroll worldwide.
o 25,390 Group company employees received safety training worldwide.
o LVMH invested more specifically over 30.7 million euros in health and safety in 2014 (i.e. +49%
compared to 2013). This includes expenses for occupational medical services, protective equipment
as well as programs for improving personal safety and health, such as compliance, the posting of
warnings, replacement of protective devices, fire prevention training and noise reduction.
 Programs and best practices :
2014-15
o A posture and movement training program is implemented at all manufacturing sites to prevent
musculoskeletal disorders and accompany employees’ career path with a policy of improved working
conditions. Plans to avoid workplace discomfort are established. Administrative positions are also
covered : quality of life at work is promoted by the implementation of systems such as concierge
services, child care facilities and physiologically adapted equipment.
 Within Wines & Spirits, Krug and Veuve Clicquot are planning to set up a workshop adapted
for employees under medical restriction, with limited fitness for work or with disabilities.
 At Glenmorangie, Scotland, the “zero accident” policy continues to form the basis on which
the company's entire health and safety culture is built.
 Parfums Christian Dior is implementing an initiative to improve the ergonomics of
workstations used by head office staff, mobile employees and point-of-sale staff in
conjunction with staff representatives.
 At Guerlain, several ergonomics-related measures have been implemented both on production
sites and in stores.
 Similarly, Louis Vuitton is gradually rolling out a scheme combining a health policy,
organisation of work, the physical work environment and a training plan for its production
workshops and logistics warehouses. In France, Louis Vuitton ordered an audit of working
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conditions for the Galeries Lafayette and Printemps stores by an ergonomist. This audit
culminated in extra seats being provided in the sales area and the back office (folding chairs),
and the refurbishment of the Montaigne, Saint-Germain, Monaco and Printemps stores.
 Lastly, in 2014, Céline investigated the possible adaptation of two workstations for two
employees with health problems.
o Over and above protection against psychosocial risk, the objective of Group companies is to
improve occupational welfare.
 Work-life balance flexible and working time arrangements are a vital component of
quality of life in the workplace. Respect for the individual includes the consideration of a
number of separate factors. Flexible working hours and the provision of services enabling a
decent work-life balance to be accomplished deliver a response to employees’ growing
expectations in terms of physical well-being, time management, and dealing with family
responsibilities. Out of a total headcount of 121,289 employees at 31 December 2014, 23,438
staff were working part time, or some 20% of all personnel. Worldwide, 13% of employees
are on flexitime arrangements of some kind, and 47% are on an alternating schedule. (See
mode details in “2014 Social Responsibility Report” pp. 25-26.)
 Increasing numbers of them are offering services such as relaxation, message or gym
sessions. Berluti, for example, offers its employees weekly gym and yoga sessions at
preferential rates, while Céline has started School of Laughter Yoga and self-massaging
workshops. In Spain, Moët Hennessy introduced a “relaxing day” (sic), a 20-minute massage
break scheduled at the most stressful times of the year. In China, Louis Vuitton has set up a
company library and reader corner available to all employees, stocked with magazines and
tablet computers. Lastly, in Argentina, Moët & Chandon, working in tandem with the inhouse medical department, has created a more nutritionally balanced menu for the staff
canteen.
 More generally, regular Group-wide benchmarking of the welfare and medical expenses
policies is presented to the social partners on the Group Works’ Council to define a common
basis on which employees can be protected.
 Information and Communication:
2014-15
The LVMH Group is convinced that internal communication — listening, sharing, and dialogue — promotes
cohesion and efficiency and fosters commitment. This is why the companies make sure, through direct and
responsible communication, that the expectations and needs of individuals are being heard.
o Listening to employees opinion surveys :
 Moët Hennessy Diageo France, together with the wines and spirits companies (Veuve
Clicquot, Krug, Hennessy, Moët Hennessy Latin America Argentina, Moët Hennessy Asia
Pacific, etc.), launched a major satisfaction survey among its employees in May 2012. An
astounding 93 % participated. The results were distributed to all staff members. Following
this survey, six workshops were put in place to follow up on the recommendations. In 2011,
Glenmorangie, which had already conducted a similar study, was awarded the Investor in
People silver trophy. Moët Hennessy Latin America Argentina has also provided employees
with an ideas box in order to gather suggestions for improvement regarding new facilities.
 Louis Vuitton was the first company in the Group to conduct the À votre écoute (We listen)
survey — in 50 countries in 2011 — and it is now overseeing implementation of the resulting
action plans in its workshops and stores. In 2012, Loewe put together its own Loewe Listens
survey to gauge the satisfaction and commitment of employees at headquarters and at the
logistics centre. It has since been extended to include all employees on every site. De Beers
Diamond Jewellers also conducted a survey among the employees at its head offices. This
was followed by staff meetings to communicate the results, and has since led to approved
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action plans. Finally, Sephora US carries out a work environment survey in its stores once a
year.
o For inclusive communication :
 LVMH companies want to ensure that communication is accessible to all. Thus, in order to
integrate specific cultural and linguistic aspects successfully, internal communication media
at Louis Vuitton Switzerland are translated into three languages. A further example can be
found at Parfums Christian Dior, which displays internal information on screens set up in
all workshops of its production site. Moët Hennessy Asia Pacific has launched the e-spirit
site, an intranet accessible to all personnel.
 Communication also takes place through direct meetings between corporate players who
may work together without ever crossing paths. Illustration: Each month, Moët & Chandon
organizes "the President's lunches", while Glenmorangie holds forums every four months
where employees and the management teams of the various establishments can share ideas on
subjects of mutual interest. In its workshops, Louis Vuitton organises lunch meetings
between the leather workers and support services, special opportunities for exchange between
the members of the management committee and other company employees.
o A communicated effort: LVMH uses the “LVMH Mind intranet” site to raise employee
awareness about Group CSR policy, providing them with related information. It provides all
employees with the codes of conduct, internal rules and shared information regarding best practice.
Each company then relays the policy using its own tools.
 Loewe, for example, distributes a booklet, The Loewe Sustainability Programme, to all of its
employees and provides a dedicated email address for employees to leave suggestions and
comments.
 De Beers Diamond Jewellers formalises its policy in a booklet, addressing the issues of
harassment, equality of opportunity and disability.
 Veuve Clicquot communicates its actions in its in-house magazine Assemblage.
 Throughout the course of the sustainable development week, Make Up For Ever
communicated extensively on the topic of social responsibility.
 At Berluti, the company's social responsibility approach is presented during the orientation
seminar.
 Louis Vuitton communicates on the topic of social responsibility via its intranet. Furthermore,
Louis Vuitton Japan has appointed 10 CSR ambassadors (one for the office and nine for the
stores) responsible both for producing content for the intranet and the in-house magazine and
for suggesting and participating in regional campaigns.
 Risk management system and Business Continuity Plan : The management system of strategic and
operational risks take into account the work-related risks. In the context of its production and storage
activities, the Group is exposed to the occurrence of losses such as fires, water damage or natural
catastrophes.
o LVMH pay particular attention to the risks associated with the storage and shipment of raw materials
with particularly 2 sites : Hennessy manufacture in Cognac and Parfums Christian Dior manufacture
in Saint Jean de Braye.
o As an example, in March 2011, after the earthquake and tsunami in Japan, a crisis committee has
been established in order to protect and support over 5,000 employees and implement a business
continuity plan.
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 Grievance mechanisms, communication channels and other procedures (e.g., whistle-blower
mechanisms) available for workers to report concerns make suggestions or seek advice, designed and
operated in agreement with the representative organization of workers:
 Any employee who notices a non-conformity to one of the principles stipulated within the LVMH Code
of Conduct should inform his or her hierarchy. « Responsibility for implementation: The Board of
Directors of LVMH, to which the Executive Management of the Group submits each year a report on the
implementation of the Code’s principles, will be the body which ensures its correct application. In
accordance with the principle of subsidiarity inherent to LVMH, the executive management team of each
operational and legal entity is responsible for compliance with the principles of this Code. Any employee
who notices a non-conformity to one of the principles stipulated within the Code should inform his or her
hierarchy. » [ See “LVMH Code of Conduct” (p. 19)].
 As an example, Moët & Chandon has the stress levels of its employees assessed as part of their medical
examinations. The company has also put in place an alert procedure for identified emergency cases.
 Whistleblowing is not allowed in France but several LVMH companies based abroad implemented
specific procedures such as whistleblowing policy. Different subsidiaries have developed initiatives and
tools contributing to grievance resolution :
o Grievance Policy, Grievance Policy Exit Interviews, Grievance procedures: Glenmorangie Company
Ltd, Thomas Pink USA, Louis Vuitton Hong Kong...
o HR business partner position dedicated: Parfums Givenchy...
o Non Harassment Policy: Moët Hennessy USA...
o HR Survey: Christian Dior Inc...
o HR Support Best Practice: Louis Vuitton UAE...
o Suggestion and complaints box: Sephora Romania.
 At the same time, Group companies are making great efforts to encourage employee input and discussion
with management. To this end, they are using employee attitude surveys or other more direct means of
obtaining employee input. [ See “Social Responsibility Report 2014” (p. 27)]
Criterion 8: The COP describes effective monitoring and evaluation
mechanisms of labour principles integration:
 System to track and measure performance based on standardized performance metrics:
1. Main social responsibility issues :
 The relevance of the labor principles takes place in a global reflection about stakes
2014-15
and challenges for business group. The “2014 Social Responsibility Report” (p. 12)
published a mapping of “main social responsibility issues” allowing to understand what are the main
sources of responsibility and at the same time the main drivers of performance and reputation.
 The annual review of the organizations and talent within LVMH is a key component of the Group’s
human resources policy. Every year for the past five years, after each brand has established its upcoming
strategy, all of the Group’s brands define the human and organizational implications of their business
targets.
o It allows us to identify the main stakes that each Maison have to take into account (training &
development, diversity & equal opportunity, employment dynamics, compensation policies, etc.)
regarding the social issues in HR strategy and policy (retention of know-how and shortage of skilled
Human Capital, Expectations from our employees, Age pyramid and aging workforce, Changing
demographics, etc....).
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o The key positions in each organization are then analyzed so that succession plans can be drawn up.
In-house talent is identified and individual development plans are laid out, particularly in terms of
training and career planning. All of the Maisons comprising the Group carry out these reviews,
which are summarized to identify common priorities and create a specific road map for the
organizations and talent.
2. Examples of cost-saving and revenue generation :
2014-15
 The value created by a collaborative approach : In 2014, new programs were inaugurated in order to
give the Group’s future leaders the tools to function effectively in the industry’s increasingly international
and diversified environments. The aim of these programs is to help key managers develop authentic
leadership skills in harmony with their personal values.
o On Wednesday 16 April 2014, LVMH Group honoured the first graduating year from the RISE
programme (Results in Social Entrepreneurship).
 The principle behind this original programme is to put future LVMH talents in touch with
social entrepreneurs, thus giving our staff additional tools with which to advance. Founded
on a two-way enrichment that is beneficial to all parties, RISE makes it possible for social
entrepreneurs to receive ad-hoc and targeted help from an LVMH Group professional. The
latter benefits from the opportunity for bespoke personal development, and from exposure to
a different world and environment where creativity must be shown to deliver the best
solutions to his or her opposite number, the social entrepreneur. By offering the benefit of
their expertise in the fields of finance, retail or marketing, LVMH managers taking part in
this program give social entrepreneurs access to a high-level professional network, together
with an array of knowledge and skills. This experience reaffirms the social sensitivity of the
Group’s future leaders, while testing their ability to work in very different organizational
contexts.
 Meeting in Paris over two years, the eleven talents from the first RISE graduating year, from
Europe, the USA and Asia, were able to talk about their respective experiences. Women’s
empowerment, education and the environment are the three main areas involved.
 All those in the programme, through this working in pairs, have developed new skills that will
be useful in their daily work. This reciprocal benefit is wholeheartedly encouraged by the
Group, which is looking to train future senior executives who are creative, of an
entrepreneurial mindset, and connected with the company. Begun in 2013, LVMH’s RISE
programme continued with 20 new talents involved in 2014.
 See “2014 Social Responsibility Report” (p. 39).
o Through its EllesVMH program, a coaching program specifically designed for future female
executives, was launched with success. EllesVMH Coaching applies a bold and innovative approach
to coaching high-potential women to help them manage their career development. Women from
Asia, Europe and the United States have been coached individually by four outside experts to help
them find ways to overcome four career development obstacles they may encounter : work-life
balance, expressing ambition, self-promotion, and international assignments for dual-career couples.
This program has also provided a superb opportunity to begin building a multicultural women’s
network. In the area of online networking, EllesVMH is now one of the Group’s largest Intranet
communities, with over 850 members around the world, including both men and women, a true
forum for the sharing of information and best practices. [ See “2014 Social Responsibility Report”
(p. 32)]
 The value created by social internal best practices : All of the Group's social/societal initiatives
generate savings in the short, medium and long term. The sum of the savings generated, costs avoided and
intangible value added are not monetized today as positive externalities and are not subject to internal
consolidation for the 60 or so Group brands. The Human Resources Department nevertheless tracks and
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promotes the many social internal best practices which represent value created for Human Capital
Development. Many subsidiaries use different cross-cutting indicator allowing to manage and assess the
quality of policies : turnover rate, absenteeism, number of hours spent in training, training cost per
employee, recruitment cost, recruitment duration, succession plans for critical positions, assessment process,
number and decrease of work-related accident, productivity...
 The value of reputation as a top employer : LVMH’s intention to avail itself of the
means to strengthen the Group’s and individual brands’ image as a top employer is clearly
recognised.
2014-15
o LVMH tops Universum ranking for 10th year : For the 10th consecutive year, LVMH was named
in March 2015 the preferred future employer in a survey by Universum of students at management
and business schools. This position reflects LVMH’s attractiveness among young talents. Each year,
Universum France conducts a survey to gauge how students at business and engineering schools in
France perceive companies as potential employers. The 2015 survey covered 39,742 respondents at
126 establishments. LVMH was once again named the most attractive employer in 2015 for the 10th
consecutive year. As part of this year’s survey, Universum for the first time questioned 8,441
graduates of 126 establishments. The results confirmed the rankings by the students: LVMH was
rated No. 1 among graduates of management and business schools and fifth among graduates of
engineering schools.
o LVMH tops Trendence France 2015 preferred employer ranking : LVMH confirmed its position
as the most attractive employer among business school students, ranking No. 1 in April 2015 for the
seventh consecutive year in the Trendence France league table. The survey covered over 22,000
students and recent graduates from 158 different schools. The survey by the Trendence research
institute measures the attractiveness of employers in thirty plus countries. The survey is conducted in
France in partnership with the weekly magazine L’Express. The students are asked to rank future
employers against how they perceive a variety of criteria, including personal development
opportunities, attractiveness of assignments and a rich corporate culture. The Trendence survey has
ranked LVMH as the most attractive employer among business school students for seven consecutive
years. This latest result confirms LVMH’s leadership position among recent graduates. In March, the
Group topped the Universum France ranking of preferred future employers for the tenth year in a
row.
 Dialogues with the representative organization of workers to regularly review progress made and
jointly identify priorities for the future:
 See :
 “8. Employee Relations” in “2014 Reference Document” (p. 82).
 “Employer-employee dialogue” in “Social Responsibility Report 2014” (p. 27).
2014-15
With LVMH Group having latterly acquired a definite European dimension, the switch to the European
Company structure (or Societas Europaea or SE) was entirely in line with recent developments. This was the
backdrop to the formation of a European Works’ Council, the staff representative body for the 21
countries where the Group is present. This body is governed by procedures set down in an agreement signed
unanimously on 7 July 2014 by the elected employee representatives from these 21 countries and the
Group’s senior management. The first full meeting of the European Works’ Council (EWC) will be held on
26 March 2015.
The EWC will supplement the employee representation arrangements which therefore now comprise three
levels, i.e.
- the companies’ Works’ Councils which, in line with the Group’s decentralised culture, deal with
most labour issues ;
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-
-
the Group Works’ Council where employee representatives are given information and hold
discussions with the chief executives of all Group business lines on strategy direction, economic and
financial issues and Group human resources aspects ;
and lastly the European Works’ Council which deals with matters arising at the European level.
 In France, Group companies have Works’ Councils, staff union representatives, Occupational Health and
Safety Committee and working conditions committees. The Group Works’ Council was established in 1985.
Over the course of 2014, employee representatives attended 1,566 meetings, leading to the signing of 132
company agreements.
 At the same time, Group companies are making great efforts to encourage employee input and discussion
with management. To this end, they are using employee attitude surveys or other more direct means of
obtaining employee input.
 Audits or other steps to monitor and improve the working conditions of companies in the supply
chain, in line with principles of international labour standards:
2014-15
1. Social and environmental audits: The Supplier’s Code of Conduct sets forth the principle and
procedures for the control and audit of compliance with these guidelines. In the interest of continued
improvement in this area, the Group’s Houses have continued their supplier audit programs in 2014,
together with follow-ups on action plans. The Supplier Code of Conduct also sets forth the principle and
procedures for the control and audit of compliance with these guidelines.
 See also “Social and environmental audits” in “Criterion 2 : The COP describes value chain
implementation” (p. 17 in the COP 2015).
 See “9.1. Relations with suppliers” in "2014 Reference Document" (pp. 83-84).
 See “The LVMH Supply Chain” in "2014 Annual Report" (pp. 30-31).
2. Best practices for the year 2014 : The successful upstream integration of relationships with
suppliers is based on a three-pronged approach: awareness, regulation (whose ISO 14001) and audit.
Relations with any partner necessitate the latter’s commitment to comply with all ethical principles
enunciated in the Supplier's Code of Conduct. Many initiatives by Group companies illustrate this
commitment.
 See in the COP 2015 “Criterion 2 : The COP describes value chain implementation”: “Supplier’s
commitments” and “Questionnaires and audits” (pp. 14-16 and 25-26 in the COP 2015).
 See “9.1. Relations with suppliers” in "2014 Reference Document" (pp. 83-84).
 See “The LVMH Supply Chain” in "2014 Annual Report" (pp. 30-31).
 Outcomes of integration of the Labour principles
 Labour KPIs are available in the:
- "Human Resources" section in “2014 Reference Document” (pp. 69-86).
- “2014 Annual Report” (pp. 20-33).
- “Social Responsibility Report 2014”.
Since the 2007 fiscal year, the Group’s reporting of employee information has been audited each year by
the Environment and Sustainable Development department at Deloitte & Associés, the Group's
statutory auditors. The verification covered the "total Group" value of the following social indicators for
2014 : total headcount as of December 31 and breakdown per professional category, age and geographic
region; voluntary and involuntary staff turnover; hiring; lost time accidents; frequency rate; severity rate;
percentage of employees trained during the year; number of days of training per employee; absentee rate by
reason for absence; proportion of women hired and in the Group’s workforce; employee relations. For fiscal
year 2014, Deloitte & Associés issued a verification/attestation on those indicators.
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Robust Environmental Management Policies & Procedures:
Criterion 9: The COP describes robust commitments, strategies or policies in
the area of environmental stewardship:
 Reference to relevant international conventions and other international instruments (e.g. Rio
Declaration on Environment and Development):
Blueprint For Corporate Sustainability Leadership
CEO Commitment and Leadership
 CEO publicly delivers explicit statements and demonstrates personal leadership on sustainability and
commitment to the UN Global Compact.
 Bernard Arnault, Chairman and Executive Officer, has been involved in several explicit statements
(especially at the AGM).
o He also signed the Copenhagen Communique on Climate Change launched in June 2009 at the
initiative of the Prince of Wales and Cambridge University. This document called for an ambitious,
vigorous and equitable global agreement that would provide a credible response to the magnitude
and urgency of the crises facing the world.
o LVMH is notably a signatory of the United Nations Global Compact.
 Other international charters and agreements signed or supported by LVMH provide the
framework for the initiatives led by the Group and its Maisons :
o Universal Declaration of Human Rights
o United Nations Global Compact
o OECD Guidelines
o International Labour Organization conventions
o Caring for Climate (voluntary and complementary action platform for UN Global Compact)
o Gordon Brown’s “Millennium Development Goals” (2007).
o CITES Conventions (on International Trade in Endangered Species)
o Kimberley Process
o Women’s Empowerment Principles
 RJC Certification : LVMH’s Watches and Jewelry business group is a member of the “Responsible
Jewellery Council” (RJC), an organization bringing together more than 550 member companies committed
to promoting ethical behavior, human rights and social and environmental practices throughout the industry,
from mine to point of sale.
o The RJC has developed a certification system designed particularly to ensure that the diamonds used
in manufacturing do not come from conflict zones. An approach of this kind provides assurance that
all the stages of the extraction, processing, and marketing process comply with sustainable
development issues and criteria. The Watches and Jewelry companies have all been certified
according to the Code of Practices (2013 version) and Bulgari certified chain of custody.
o On working group and audits. All the gold is certified Dodd Franck Act.
o The Kimberley Process is applied to diamonds. Kimberley certification requires the input of
independent, accredited auditors.
 See "2014 Environmental Report" (p. 29).
 See "2014 Reference Document" (p. 89).
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 In the specific field of biodiversity: The LVMH group has a strategy in place for sourcing and
preserving raw materials. Choosing components for product manufacturing is an essential part of preserving
the environment, in particular rare resources that are vital for product manufacturing, especially leather and
natural plants.
o In 2013, LVMH launched a project to improve the impact of LVMH’s activities on biodiversity,
from upstream to downstream, in its capacity as a company recognized by the French government
within the National Strategy for Biodiversity. Several projects are currently being run by the
Perfumes and Cosmetics, Fashion and Leather Goods, and Watches and Jewellery business groups,
such as carrying out audits of procedures to examine whether our practices conform to the Nagoya
Protocol on Access and Benefit-sharing, or developing new sourcing procedures that are
responsible and fair, for example for gold and cashmere.
 The LVMH group has endorsed the “2011-2020 National Strategy for Biodiversity” which
was presented by the French government in May 2011. This strategy is the French rollout of
the “Strategic Plan for Biodiversity 2011-2020 for the planet”, adopted by the Convention on
Biological Diversity (CBD) in Nagoya in October 2010. When they use plants coming from
an emerging countries, the Perfumes and cosmetics Brands act under the “access and benefit
sharing” agreement on the Convention on Biological Diversity (CBD) opened for signature
at the Earth Summit in Rio de Janeiro on 5 June 1992 and entered into force on 29 December
1993. In October 2012, the French Ministry of Ecology, Sustainable Development and
Energy awarded LVMH “National Strategy for Biodiversity Recognition” for “improving,
from upstream to downstream, the footprint on biodiversity of LVMH activities, with the
goal of having an actual positive impact on biodiversity.” The SNB followed France’s
ratification of the United Nations Convention on Biological Diversity (CBD). The
commitment covers the period from 2012 to 2014.The first measures undertaken involve :
- identifying priority areas for diagnosis of the impact (known or potential) on
biodiversity;
- starting an audit of these areas involving the pilot Houses that use targeted raw
materials;
- promoting and disseminating effective initiatives already under way in these areas, if
they are having a positive impact on biodiversity or the population ;
- assessing the impact of the implementation of the Nagoya Protocol on Access to
Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their
Utilization (ABS) for the supply channels affected.
 Partnership with FRB : In November 2014, LVMH became the first
2014-15
private-sector entity to join the eight public research bodies on the Board
of Directors of the French Foundation for Research on Biodiversity (FRB). This event
emphasized the Group’s involvement alongside the FRB, which it has supported for more
than six years. Sylvie Bénard, LVMH’s Director of Environmental Affairs, has also served
as Vice President of the Foundation’s Strategic Orientation Committee for four years. Within
the framework of this committee, which brings together more than 160 stakeholders to
jointly design research programs that favor biodiversity, the Group has mainly focused on
accessing genetic resources and sharing the benefits resulting from their use. [ See “2014
Environmental Report” (p. 28).]
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 As a reminder, in 2012, the LVMH Environmental Department participated in a number of
international conferences and events, including :
- Global Compact Day, organized during the Rio+20 Earth Summit in Rio de Janeiro
from June 13 to 22 ;
- the Convention on Biological Diversity (COP11) in Hyderabad, India, from
October 8 to 19, in a side event co-organized by LVMH, the Foundation for
Biodiversity Research and Association Orée, and consisting of a presentation of the
goals, methodology and expected outcomes of the impact assessment conducted by
FBR researchers to analyse LVMH practices in respect of the Nagoya Protocol on
Access and Benefit Sharing (ABS) for the relevant supply chains.
o Fashion and Leather Goods, as well as Watches and Jewellery, implemented procedures to ensure
that all of their products comply with the terms of the requirements of international trade in
endangered species (CITES). Through a system of import-export permits, this convention was set up
to prevent certain species of endangered fauna and flora against overexploitation.
o Leather sourcing is a strategic priority, and Group companies mainly use European cowhide leather.
Group companies participate in working groups such as the Responsible Ecosystems Sourcing
Platform (RESP), the Leather Working Group (LWG) and Business for Social Responsibility (BSR).
They work with their suppliers to improve traceability, animal well-being and the preservation of
certain species. [ See “2014 Reference Document” (pp. 15-16 and 97-98)].
 Reflection on the relevance of environmental stewardship for the company:
Blueprint For Corporate Sustainability Leadership
Global and Local Working Groups
 Participate in relevant global or local working groups and share experiences, networks, tools and
good practices with other UN Global Compact participants.
 Take active part in defining scope and objectives of new working groups when relevant.
Value Chain Implementation
 Analyze each segment of the value chain carefully, both upstream and downstream, when mapping
risks, opportunities and impacts.
 Like any human activity, the businesses of the LVMH group have an impact on the environment that
varies in type and magnitude depending on the sector. The challenges faced by each business have been
clearly identified. [ For the main challenges of each business group, see “2014 Environmental report”
(pp. 8-9)].
 Set up in 1992, the Environmental Department defines the Group’s strategy and as such reports to
Antonio Belloni, Group Managing Director of the Executive Committee. The strategy is based on a clear
analysis of the issues involved. It is implemented through-out the Group by means of various commitments
and focuses on processes, programs, initiatives and internal environment audits that support the actions of
each Maison. It also assists the Companies in their various different processes, particularly in terms of ecobuilding, eco-design and preservation of biodiversity and water resources. The Group’s Environmental
Department supports the Maisons in their respective initiatives, ensuring that the Environmental Charter is
observed, and running the Environment Committee, which brings together a network of some 50
environmental correspondents from the Maisons several times a year. The Environmental Department also
runs a variety of specialist in Maison working groups which deal, for example, with the European REACH
regulation, eco-design and energy consumption in stores.
 One of the five commitments of the Environmental Charter adopted in 2001 : « Design luxury
products by integrating environmental innovation and creativity : Guided by its overriding concern for high
quality, LVMH is working to improve control and better anticipate the environmental aspects related to the
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life cycle of its products. LVMH encourages all processes that result in environmental innovations and
accepts its duty to exercise prudence and take precautions to ensure total safety for the consumer. »
 New corporate strategic program: The LIFE program (LVMH Initiatives For the
2014-15
Environment) was designed in 2011 to reinforce the inclusion of environmental concerns
in management processes, facilitate the development of new steering tools, and take into account the
changes and enhancements resulting from Group companies’ innovative practices. In 2014, Group
Managing Director Antonio Belloni decided that Group companies should include the LIFE program
in their strategic plan. The LIFE program was implemented by the Steering Committee of each Group
company and is based on nine key aspects of environmental performance whose two take into account
product stewardship (“Environmental design” and “Product life span and reparability”) :
- environmental design;
- securing access to strategic raw materials and supply channels;
- traceability and compliance of materials;
- environmental and social responsibility among suppliers;
- preserving critical savoir-faire;
- reducing greenhouse gas emissions;
- environmental excellence in manufacturing processes;
- product life span and reparability;
- customer and key stakeholder information.

Partnerships and collaborations :
o In November 2014, LVMH joined the eight public research bodies that are
2014-15
members of the Board of Directors of the Biodiversity Research Foundation
(FRB). This was the first time that it had welcomed a private company to its
Board of Directors, which until then had been made up of eight public research bodies (BRGM,
CIRAD, IFREMER, INRA, IRD, IRSTEA, CNRS and MNHN. The Group has acquired the status of
a founding member of the Foundation, and now contributes to its financing by providing it with a
grant every three years. As an example, in the scope of our partnership with Biodiversity Research
Foundation (FRB) the experts gathered by the Foundation met the LVMH Perfumes & Cosmetics
Research team, and carried out several assignments in order to gather information from operators in
two supply sectors (Aframomum Angustifolium from Madagascar, and Anogeissus Leiocarpus from
Burkina Faso). They were therefore able to make a series of recommendations regarding the use
of natural substances and accessing and sharing benefits in the cosmetics industry.
o LVMH continues its involvement with Business for Social Responsibility (BSR), in particular a
working group set up to establish best practices in the sourcing of exotic leathers. LVMH is also
continuing its involvement with the Responsible Ecosystems Sourcing Platform (RESP) by
participating in a sub working group that focuses on the traceability of exotic leathers, colored stones
and certain plant substances. Work was conducted under the auspices of the BSR on the application
of “Sourcing Principles” to cattle hides and ostrich leather with the goal of evaluating the supply
chain challenges for each type of skin. Since early 2012, LVMH has also been a member of the
Leather Working Group (LWG), a British trade association that has established an environmental
rating system for tanneries. A sub-group has been set up specifically for companies dealing in luxury
goods to introduce standards in tanneries that supply the luxury goods sector. The Group is also a
member of the non-profit organization Orée (which covers businesses, regions and the environment).
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o As part of a five-year partnership signed between LVMH and CIRAIG (Interuniversity Center for
Research on the Lifecycle of Products, Processes and Services), based at the École Polytechnique in
Montreal, Loewe has worked on a tool for assessing the environmental performance of leathers.
The goal is to identify the key criteria (water and energy consumption, use of chemical products) that
may be adopted by design and procurement teams when they make their selections. Using Life Cycle
Assessment methods, the CIRAIG analyzed the different sources of environmental impacts of these
suppliers and compared them with models issued from a literature review of the best available
techniques in leather industries. These analyses permitted to point out the key drivers of the
environmental footprint of leather and to build a simplified calculator that, with a limited quantity of
input data, provides an indication of the environmental performance of materials. The potential uses
of this tool are multiple. It allows identifying more easily which materials are more ecological and to
provide this information to the designers and the teams in charge of new products development. It is
also a tool to benchmark our panel of suppliers and exchange with them on the environmental
aspects on which they should progress in priority.
 Written company policy on environmental stewardship:
 The strategic LIFE program, implemented by the Steering Committee of each Group company, is
based on nine key aspects of environmental performance whose two take into account product
stewardship : “Environmental design” and “Product life span and reparability”. (See previous item.)
 The “Environmental Charter” signed by Bernard Arnault in 2001 defines the LVMH group’s goals
and dynamics and embodies the vision of the LVMH Group on integrating environmental protection into its
businesses. One of the five commitments of the Environmental Charter regards “design luxury products by
integrating environmental innovation and creativity”.
The five commitments of the environmental charter :

« Aim for a High Level of Environmental Performance : In developing its businesses internationally,
LVMH works to align its practices with those that offer the best level of environmental protection around
the world.

Foster a collective commitment : The environment is the responsibility of every individual and
LVMH believes that awareness, education and training of its employees are top priorities. To ensure a
continued high level of environmental performance, the Group believes it is vital for each company to set
precise environmental objectives and implement a management system dedicated to this process.

Control environmental risks : In addition to the most stringent compliance with environmental
regulations, which is an absolute duty, the Group intends to focus on risk prevention. As a result, it
allocates human and material resources to this goal.

Design luxury products by integrating environmental innovation and creativity : Guided by its
overriding concern for high quality, LVMH is working to improve control and better anticipate the
environmental aspects related to the life cycle of its products. LVMH encourages all processes that result
in environmental innovations and accepts its duty to exercise prudence and take precautions to ensure
total safety for the consumer.

Make commitments outside the company: LVMH intends to contribute to the protection of the
environment above and beyond just the aspects directly related to its own businesses. Because it considers
that promoting respect for the environment is essential, LVMH is developing an active partnership with
groups of businesses, local communities and the associations which contribute to this objective. »
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 Inclusion of minimum environmental standards in contracts with suppliers and other relevant
business partners :
Value Chain Implementation
 Communicate policies and expectations to suppliers and other relevant business partners.
 See in the COP 2015 “Criterion 2 : The COP describes value chain implementation” :
 “Supplier’s commitments” and “Questionnaires and audits”: pp. 14-16 and 25-26.
 “Social and environmental audits”: pp. 17 and 50.
 See “9.1. Relations with suppliers” in "2014 Reference Document" (pp. 83-84).
 See “LVMH Supply Chain” in "2014 Annual Report" (pp. 30-31).
 Different others internal commitments and initiatives allow LVMH to maintain and promote responsible
cooperation among its partners, suppliers, distributors, sub-contractors :
o For example, in the field of consumer safety, the LVMH group is in compliance with the REACH
Regulations and new legislation concerning consumer safety. All strict internal guidelines
imposed by the Group as criteria for their development requires that its suppliers adhere to these
same guidelines. With respect to this regulation, all LVMH entities have prepared and/or made the
necessary changes to contractual and commercial documents and have sent questionnaires to their
suppliers.
o "Supplier’s Code of Conduct" adopted in March 2008 (applied by all the Brands of the Group,
compliance with the Supplier’s Code of conduct is a requested condition for collaboration). Relations
with any partner necessitate the latter’s commitment to comply with all ethical principles enunciated
in this Code. This Code of Conduct also sets forth the principle and procedures for the control and
audit of compliance with these guidelines. The "LVMH Code of Conduct" indicates that « LVMH is
committed to maintaining equitable and loyal relationships with its partners (suppliers, distributors,
subcontractors, etc.). LVMH will inform all of its commercial partners of its ethical principles and
expectations. LVMH asks its suppliers to comply with the principles set out in the Suppliers’ Code of
Conduct. This code specifies the demands in the areas of (...) environmental and operational issues
(legality, custom tariffs, safety, subcontracting and corruption). »
 Specific commitments and goals for specified years:
Blueprint For Corporate Sustainability Leadership
Promotion and Support of the UN Global Compact
 Advocate the UN Global Compact to business partners, peers and the general public.
 Encourage suppliers and other business partners to join the UN Global Compact, and take on mentoring
role on issues related to the initiative.
 Participate in activities to further develop and strengthen the UN Global Compact.
Blueprint For Corporate Sustainability Leadership
Local Networks and Subsidiary Engagement
 Contribute to the building and operating of at least one UN Global Compact Local Network and help
elevate performance of other companies through training, mentoring, COP peer review, etc.
New corporate strategic program: The LIFE program “LVMH Indicators For the Environment” was
designed in 2011 to reinforce the inclusion of environmental concerns in management processes, facilitate
the development of new steering tools, and take into account the changes and enhancements resulting from
Group companies’ innovative practices.
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In 2014, Group Managing Director Antonio Belloni decided that Group companies
2014-15
should include the LIFE program in their strategic plan. The LIFE program was
implemented by the Steering Committee of each Group company and is based on nine key aspects of
environmental Performance whose two take into account product stewardship : Eco-design and Lifespan of
products.
Results and targets :
Along 2014, we plan to systematize the environmental assessment of our suppliers and
2014-15
of the materials we purchase from them. We will use this information to implement a
“green mark” that will point out for designers the more ecological leathers among those available in the
Leather Innovation Centre. We are also thinking about developing similar initiatives on other raw
materials like metallic parts or textile.
 Achievements for 2014 are :
 Development of a simplified Life Cycle Assessment tool for leather materials 10 of our main
leather materials analyzed.
 Implementation of a quality review process along the development phase of new product.
 72% of the elements of our 2013 windows displays in Europe have been reused and/or recycled.
 Target for 2015 are :
 Analyse the materials representing at least 75% of our annual leather purchase.
 Analyse 75% of our new products from a durability & reparability perspective.
 75% of the windows materials produced for Europe reused and/or recycled.
1. Eco-design luxury products : Eco-design involves reducing packaging weight and volume, choosing
specific components and raw materials, employing more energy-efficient production processes and
introducing initiatives to comply with REACH regulations. International and European regulations have led
to more stringent environmental requirements in packaging design and manufacture. In particular, the
volume and weight of packaging must not be what some regulations define as “excessive.”
1.1. Tools and processes: Over the past few years, the Group has gathered an array of tools in order to
promote its development.
 Thanks to the Simapro life cycle analysis software, its teams are able to rapidly identify the measures to
take in order to reduce the impact of their products on the natural environment. The Edibox tool has been
rolled out at the Parfums Christian Dior, Guerlain, LVMH Fragrance Brands, Make Up For Ever, Louis
Vuitton, Bulgari and Sephora Houses in order to incorporate environmental criteria into packaging
design right from the start. It enables the Environmental Performance Index (EPI) and the greenhouse
gas emissions generated by packaging materials to be calculated. The criteria factored in are weight, volume
and the separability of the materials, as well as the number of packaging layers. The launch of this new tool
provided an opportunity to raise awareness amongst all marketing and development teams. The Champagne
Houses, Hennessy, Belvedere and Glenmorangie have also rolled out the EPI.
 The “Eco-Material Handbook”, which is prepared every year, offers a selection of around 40
innovative materials that are environmentally friendly and appropriate for the luxury goods industry,
thereby helping the designers and the marketing teams to include protecting the environment in their
thinking.
o As a reminder, in 2012, Louis Vuitton created a Materials Reference Library listing materials
sourced by the Innovations & Environmental Department. In 2013, Louis Vuitton has made ecodesign a key area of focus, for example by introducing training modules for staff involved in design,
marketing, purchasing, development and after-sales service for rolling luggage staff. It has reduced
packaging weight and volume, distributed eco-designed overalls made from organic cotton and
recycled polyester to workshops, and introduced polystyrene coat hangers («L’Vision» session).
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o Meanwhile, the “Food for Thought” handbook (“Matières à penser” handbook), which is
prepared every year, offers a selection of around 40 innovative materials that are environmentally
friendly and appropriate for the luxury goods industry, thereby helping the designers and the
marketing teams to include protecting the environment in their thinking. Louis
2014-15
Vuitton distributed this handbook widely among the Accessory Manufacturing
teams in 2014, as well as to the members of its L’Vision Cross-Divisional
Innovation Committee, and to around 30 of the Maison’s key staff.
 As part of a five-year partnership signed between LVMH and CIRAIG (Interuniversity Center for
Research on the Lifecycle of Products, Processes and Services), based at the École Polytechnique in
Montreal, Loewe has worked on a tool for assessing the environmental performance of leathers. The
goal is to identify the key criteria (water and energy consumption, use of chemical products) that may be
adopted by design and procurement teams when they make their selections. To ensure it is able to source the
quality and quantity of leathers it wants, Loewe also collaborates with non-profit associations of farmers on
the variables that might impact the quality and traceability of leather throughout the supply chain. One such
supplier is Casa de Ganaderos, the oldest livestock operation in Europe, founded in 1218.
 The production of all new boxes and cases is based on reducing the weight of their packaging, using
materials made from renewable resources and recycling the products at the end of their lifecycles. The
champagne houses have thus reduced the weight of their bottles and development teams only select
materials sourced from FSC (Forest Stewardship Council) or PEFC (Programme for the Endorsement of
Forest Certification).
 Ethnobotany and sustainable viticulture :
o The Ethnobotanical Innovation Department of LVMH Perfumes & Cosmetics Research identifies
plant species from around the world that could be used specifically in cosmetics, and helps protect
these species and foster local social and economic development [ see “2014 Environmental
Report” (pp. 41-42).]
o Sustainable viticulture, another key aspect of LVMH’s responsible supply policy, ensures the
sustainability of vines while encouraging biodiversity. The Champagne Houses are very active in this
field. [ see “2014 Environmental Report” (p. 43).]
1.2. Training and awareness :
2014-15
 Training drive : LVMH began drawing up a training course on the Environmental Assessment of
Suppliers in 2014, working together with some of the Maisons. The course will be offered to environment
managers, as well as to any employees in contact with the Group’s partners, for example, buyers,
developers, quality assurance managers and so on.
o In 2014, Marc Jacobs held a responsible purchasing training program for 45 of its employees in
New York, which went over its environmental and social priorities with regard to industrial issues.
o Louis Vuitton’s buyers receive theoretical training to help guide them in their continuous
improvement approach.
o To this end, at the holding company level, a Suppliers Sustainability Meeting has been held each
year since 2005, bringing together the purchasing, sustainable development, legal and internal
control departments of the different Group companies. All of the Group’s business activities in
France and internationally are represented at the meeting. This annual meeting is a forum for Group
companies to present their plans, projects, actions and progress regarding sustainable, responsible
purchasing, and interact with one another on shared issues and best practices. Annual Supply Chain
Meetings comprising experts from various Group Houses presented, as they have in November
2014, a review of their accomplishments and progress made.
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 LVMH and its Houses also rely on employee training. Accordingly, in 2014 the Group’s Environmental
Department organized sessions to raise awareness of eco-design intended for the Loewe and Louis Vuitton
designers. In the case of Louis Vuitton, the year was also characterized by the launch of a training program
entitled “Designing in another way to innovate tomorrow”. The aim was to provide participants with
simple tools for reducing the environmental impact of products by implementing tangible initiatives that are
primarily based on identifying areas for improvement resulting from the analysis of life cycles. Following a
pilot campaign conducted with the teams responsible for wheeled luggage, an initial session was attended by
the Accessory Manufacturing industrial teams in Italy. This is how the Environmental Department is
developing its methodological capital via successive training courses.
 Louis Vuitton added a tailor-made introductory eco-design module to its 2015 training catalogue : the
principle of the module is to bring together the teams responsible for product development, from the
designers to the After-Sales Unit, including the industrial logistics teams.
Eco-design and weight reduction best practices for the year 2014 :
Eco-design is a constant source of innovation for LVMH. A large number of projects have been developed, of
a very diverse nature, ranging from changes to the substances or raw materials used to informing consumers
about the environmental impact of the products, including reducing the weight and volume of the
packaging. The year 2014 enabled LVMH and its Houses to make progress on eco-design :
 The Champagne Houses launched Naturally Clicquot 2, where the isothermal box made from potato
starch is the first 100% biodegradable champagne case. They also continued to seek FSC Forestry
Certification for all of their cardboard packaging (cases, boxes and shipment boxes). As the certified
cardboard ratio amounted to 100% in 2014, the approach was extended by the PEFC certification of the
wood cases and boxes used for the most prestigious products.
 Belvedere has also switched to FSC certified cardboard for its cases. The offset printing on the boxes
has been reduced with no loss of visual quality, which has enabled a saving of 20 grams of ink for each
box manufactured.
 Likewise, to mark the change in its packaging charter, Guerlain decided to purchase only FSC
certified cardboard for the manufacturing of its cases, and to have this logo printed on its cases. In
addition, the House has continued to roll out an exclusive refill service for its Orchidée Impériale range in
its Paris boutiques : customers bring back their empty cream containers to have them refilled, and benefit
from an exclusive moment at the boutique (tea, beauty advice and express make-up) while they wait.
 Thomas Pink has had messages for customers printed on some of its packaging aimed at encouraging
recycling.
 Loewe introduced an initiative that aims to replace the glues used in the manufacturing of its products
by a water-based adhesive.
 The Hennessy House has identified areas for improvement covering nine key aspects of
environmental performance: eco-design, strategic raw materials and supply sectors, traceability and
compliance of the materials, relations with suppliers, know-how, reducing greenhouse gases,
environmentally-friendly manufacturing processes, the lifespan of the products and customer information.
Hennessy has calculated the Environmental Performance Index for all its packaging projects in order to
optimize them; this approach enabled a 10% improvement in the EPI of its packaging in 2014. The House
has also defined an EPI for its electric and electronic advertising items with the help of external experts. A
costing program aimed at assessing, comparing, and improving the effectiveness of the environmental
policies of the House’s suppliers is now included in the specifications.
 In the Fashion & Leather Goods business group, Louis Vuitton strengthened its policy aimed at
purchasing sustainably sourced wood in order to meet the new requirements of the European Union Wood
regulations. The House now systematically chooses varieties that are FSC (Forest Stewardship Council) or
PEFC (Pan European Forest Certification) certified for its communication materials, packaging, and the
layout of its stores and store windows, and as far as possible pursues this goal for certain exceptional
products such as trunks or eyewear.
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 Eco-design furniture for Sephora : LVMH does not intend to restrict eco-design to products and
packaging. This was proved by the fact that, when Sephora’s make-up table was due for replacement in
2014, its Merchandising Division analyzed the life cycle of the prototype intended to replace it, in order to
identify ways of reducing the table’s environmental impact.

See “2014 Reference Document” (pp. 93-94).
See also “2014 Environmental Report” (pp. 37-40).
3. Partnerships and research :

Biodiversity Research Foundation (FRB) :
2014-15
In November 2014, LVMH joined the eight public research bodies that are members of the Board of
Directors of the Biodiversity Research Foundation (FRB). The admission of LVMH to the FRB Board of
Directors also reflects its involvement alongside the Foundation, which the company has been supporting for
over six years. The partnership between LVMH and FRB has resulted in a significant amount of research.
For instance, at the Group’s request, the FRB conducted a study aimed at gaining a better understanding of
the complexity of the issues relating to the application of the Nagoya Protocol. This Protocol, which was
adopted in 2010, establishes the principle of access to and sharing benefits, and aims to govern the
relationship between a supplier of genetic resources and a user during research and development activities.
The experts gathered by the Foundation met the LVMH Perfumes & Cosmetics Research Team, and carried
out several assignments in order to gather information from operators in two supply sectors (Aframomum
Angustifolium from Madagascar, and Anogeissus Leiocarpus from Burkina Faso). They were therefore able
to make a series of recommendations regarding the use of natural substances and accessing and sharing
benefits in the cosmetics industry.

Life Cycle Research Projects :
2014-15
o As part of a five-year partnership signed between LVMH and CIRAIG (Interuniversity Center for
Research on the Lifecycle of Products, Processes and Services), based at the École Polytechnique in
Montreal, Loewe has worked on a tool for assessing the environmental performance of leathers. The
goal is to identify the key criteria (water and energy consumption, use of chemical products) that
may be adopted by design and procurement teams when they make their selections. Using Life Cycle
Assessment methods, the CIRAIG analysed the different sources of environmental impacts of these
suppliers and compared them with models issued from a literature review of the best available
techniques in leather industries. These analyses permitted to point out the key drivers of the
environmental footprint of leather and to build a simplified calculator that, with a limited quantity of
input data, provides an indication of the environmental performance of materials. The potential uses
of this tool are multiple. It allows identifying more easily which materials are more ecological and to
provide this information to the designers and the teams in charge of new products development. It is
also a tool to benchmark our panel of suppliers and exchange with them on the environmental
aspects on which they should progress in priority.
o Leather sourcing is a strategic priority, and Group companies mainly use European cowhide leather
[ see § 2.4. Supply sources and subcontracting in “2014 Reference Document” (p. 15)]. Since
2011, LVMH has been a member of Business for Social Responsibility (BSR), through which it is
involved in working groups that aim to establish best practices in the sourcing of leathers. The Group
is also continuing its commitment with the Responsible Ecosystems Sourcing work subgroups
dealing with the traceability of exotic leathers, colored stones and certain plant species. Since early
2012, LVMH has also been a member of the Leather Working Group (LWG), a British trade
association that has established an environmental rating system for tanneries and an appraisal system
for traceability of skins. A sub-group has been set up specifically for companies dealing in luxury
goods to introduce standards in tanneries that supply the luxury goods sector. They work with their
suppliers to improve traceability, animal well-being and the preservation of certain species. LVMH
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is also active in Orée, a non-profit organization which covers businesses, regions and the
environment, in several working groups including Eco-design, Environmental risks and Expertise.

Use of recycled components :
2014-15
o The CEDRE platform is used by the Perfumes & Cosmetics Maisons, Sephora (since 2010), and
Louis Vuitton (since 2011). CEDRE stands for Centre environnemental de déconditionnement,
recyclage écologique and is dedicated to the sorting, recycling and recovery of all waste generated
from the manufacture, packaging, distribution and sale of cosmetics products. This recycling
platform accepts several types of waste : obsolete packaging items, obsolete alcohol products,
advertising materials, store testers, and empty packaging returned to the store by customers. The
platform extended its scope of operations in 2014. In addition to perfumes and cosmetics that are
past their sell by date and promotional materials, the platform will handle the textile waste from the
Berluti, Christian Dior Couture, Kenzo Mode, Louis Vuitton and Sephora Houses. The agreement
covers uniforms as well as scrap material and obsolete rolls. Sephora has already offered its advisors
the opportunity to recycle their old uniforms via the platform. Around 15 pallets of material were
recovered, and were used to create an environmentally-friendly insulation material for homes.
o In 2014, the platform processed around 1,600 metric tons of waste and resold various materials,
such as glass, cardboard, wood, metal, plastic, alcohol and cellophane, to a network of specialist
recyclers.
o Four years after CEDRE’s inauguration, a genuine partnership-based relationship has been
established with the Houses, in terms of both reducing the volume of waste to be treated at source,
and encouraging recovery.
 For instance, Guerlain has set up 30 selective waste sorting points on the platform, in order
to recover its waste, including tester or obsolete bottles. As a result, 72% of the waste
generated by its industrial facilities is recovered via recycling, re-use or composting.
 Meanwhile, Sephora is now offering a 20% reduction on the purchase price of a new box if
the empty bottle is returned.
 This campaign has doubled the number of the House’s perfume bottles recycled via CEDRE,
while resulting in a significant rise in the number of new customers.
 Lifespan of products : A product’s lifespan is one of nine key aspects of environmental performance
listed in the LVMH “LIFE” program. Very high quality standards, directly related to the Group’s
environmental performance, are a key aspect of LVMH’s activities. By manufacturing products with a very
long lifespan, offering customers after-sales services, and holding downstream reviews of the ability to
repair their products, the Houses reduce the use of natural resources, and promote the development of
sustainable consumption.
o For example, Loewe has introduced a maintenance and cleaning service for ready-to-wear and
leather products.
o Meanwhile, Louis Vuitton has committed to designing sustainable products for its customers that
defy time, and to provide them with an effective after-sales service. The House has prioritized a
global approach, strengthening the collaboration between the Louis Vuitton teams responsible for
product development, quality assurance and after-sales service.
Over 50% of its after-sales operations every year are performed in Louis
2014-15
Vuitton repair workshops spread throughout the world. The others are
performed in-store or entrusted to local partners.
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 Environmental labelling: Informing the public about a product’s environmental impact is also a
growing challenge that has led the French Government and Europe, for example, to embark on an
environmental labelling trial. As a reminder, in 2011-2013, LVMH has participated, with Sephora, in the
French Government’s trial of environmental labelling. Informing the public about a product’s environmental
impact is also a growing challenge that has led the French Government and Europe, for example, to embark
on an environmental labelling trial. LVMH and Group Houses (particularly Sephora) are supporting the
work being done in France and around the world regarding environmental labelling, particularly for the
Perfumes & Cosmetics, Fashion & Leather Goods, Watches & Jewellery and Wines & Spirits business
groups.
o For instance, to better inform and educate consumers, Sephora and LVMH participated in an
environmental labelling trial in France conducted between July 2011 and July 2012 using two of
Sephora's flagship products: Shower Gel and Shower Cream. Information on greenhouse gas
emissions and water consumption throughout the products' life cycle was posted on Sephora's
website. Labelling was based on the template defined by the French Consumer Industries' Liaison
and Studies Institute (ILEC) and used by many companies.
o LVMH is also very involved in work currently being performed in France on environmental labelling
guidelines for different sectors. It is a member of the working groups focusing on food/wines and
spirits, beauty, textiles and leather, jewellery/watchmaking and hotels.
Criterion 10: The COP describes effective management systems to integrate
the environmental principles:
 Environmental risk and impact assessments :
Blueprint For Corporate Sustainability Leadership
Robust Management Policies and Procedures:
 †Assess risks and opportunities on an on-going basis at both enterprise and product level and
undertake due diligence to ensure that the company identifies any negative impacts caused by its
operations and activities.
1. Strategy and responsibility:

The principal missions of the Board of Directors are especially to :
- review the essential characteristics of the internal control and risk management systems adopted and
implemented by the Company ;
- disseminate the collective values that guide the Company and its employees and that govern
relationships with consumers and with partners and suppliers of the Company and the Group ;
- promote a policy of economic development consistent with a social and citizenship policy based on
concepts that include respect for human beings and the preservation of the environment in which it
operates.

KPIs "LIFE" program (LVMH Indicators for Environnement) : The LIFE program was
designed in 2011 to reinforce the inclusion of environmental concerns in management processes, facilitate
the development of new steering tools, and take into account the changes and enhancements resulting from
Group companies’ innovative practices.
In 2014, Group Managing Director Antonio Belloni decided that Group
2014-15
companies should include the LIFE program in their strategic plan. The LIFE
program is implemented by the Steering Committee of each Group company.
[ See “2014 Reference Document” (p. 89) and “2014 Environmental report” (pp. 14-18).]
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
In addition, Group companies are committed in different initiatives.
o As an example, Louis Vuitton has a department which is responsible for managing its environmental
strategy, primarily via setting up steering groups on specific issues, such as the recycling of materials
or ISO 14001 environmental certification. The Environment Manager also attends the Ethics and
Risk Management Committee, which brings together around 10 key employees, including three
members of the Management Committee.
o Loewe has adopted a “Vision 2020” road map that covers multiple areas related to risk prevention
and mitigation, cost savings, innovation, value creation, image protection and image promotion.
More than 150 people were involved in working groups and various reviews that led to the definition
of a program to take account of all of the company’s operations. It is based on seven key business
aspects: employee commitment, product durability, sustainable leather, responsible selling,
stakeholder dialogue, responsible and energy-efficient operations, and a responsible supply chain.
 The “2014 Reference Document” (pp. 113-114) describes upon an updated
2014-15
redaction the “System stakeholders” :
o Risks relating to our brands and business activities are managed at the level of each of our business
groups and Group companies. As part of the budget cycle and in connection with the preparation of
the three-year plan, major risks affecting strategic, operational and financial objectives are
identified and evaluated, and formalized in specific chapters. Risk mitigation (in frequency and
severity) is achieved through preventive actions, internal control actions, or through the
implementation of business continuity plans or operational action plans. Depending on the types
of risk to which a particular brand or entity is exposed, the latter may decide, in collaboration with
the Group, to transfer residual risk to the insurance market or instead to assume this risk.
o The implementation of risk management and internal control procedures fully applies to the respect
of ethical and good governance principles and the Group’s commitment to CSR. The activities
relating to the control and remediation of internal control weaknesses are reflected, documented and
tracked as part of the management process that guides all of the Group’s core entities. The Group’s
Guidelines may also be found on the Finance Intranet, together with specially designed tools for the
evaluation, prevention and coverage of risks. These materials may be accessed by all personnel
involved in the application of the Group’s risk management procedures.
 See also "2014 Reference Document" (pp. 109-115).
2. Context and organization:
Managing risks is fully embedded in our corporate strategy : risks are identified, then monitored and treated
with specific tools. Insurable risks are assessed on a regular basis, so as to determine the most efficient
combination of mitigation, retention and transfer to third parties.
 LVMH is comprised of five main business groups: Wines and Spirits, Fashion and Leather Goods,
Perfumes and Cosmetics, Watches and Jewellery, and Selective Retailing. The business groups are
composed of companies of varying sizes owning prestigious brands and which act as the parent companies
of subsidiaries operating worldwide. This organizational structure ensures that the different brands of the
Group maintain their independence, while facilitating cohesion between the companies with similar
businesses. Decentralization and the responsibilities of senior executives are among the fundamental
principles underlying the Group’s organization.
 The risk management and internal control policy applied across the Group is based on the following
organizational principles:
o the parent company, LVMH SA, is responsible for its own risk management and internal control
systems and acts as leader and coordinator on behalf of all Group companies. It makes available to
all Group companies the single reference guide and methodology to be applied as well as a computer
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platform that centralizes all risk and internal control data and provides a framework for the structured
coordination of these two fields ;
o the President of a brand is responsible for the risk management and internal control of all the
subsidiaries that contribute to developing the brand worldwide ;
o each subsidiary’s President is similarly responsible for their own operations.
 In line with European directives and the ordinance of December2008, the Group introduced changes to its
Enterprise Risk and Internal Control Assessment (ERICA) approach, a comprehensive process for
improving and integrating systems for managing major risks and internal control related to our ordinary
activities. [ See “2.4.1. The Enterprise Risk and Internal Control Assessment (ERICA) approach” in
« 2014 Reference Document » (pp. 114-115).]
o The main brands and business groups acknowledge their responsibility in relation to this process and
the implemented systems each year by signing two letters of representation.
o Since 2013, and depending on circumstances, Presidents of Group companies have been required to
present to the Audit Committee the approach implemented to achieve progress within their area of
responsibility as well as their achievements, action plans in progress and outlook.
o Finally, the Audit Committee decided in 2013 to implement the ERICA system
within all Group entities by 2015 : recently acquired entities are allowed two years
to apply the approach, once the integration process is complete.
2014-15
o As of June 30, 2014, this self-appraisal system covered 80% of the Group’s
2014-15
operating entities and 96% of revenue. It includes all Group companies. The
assessment data from controls and for major risks is input by each entity and
centralized in a database application, RVR-GRC, also used by other CAC 40 companies. To
reinforce the system’s effectiveness, each Group company includes in its risk map an assessment of
the following six risks: media risk, supplier risk, supply shortage risk, site accident risk, sensitive
data loss or theft risk, and property damage or theft of merchandise risk.
3. Tools and information shared:
 Centralized inventory databases for environmental impact of materials, components and
processes:
o IPE (Environmental Performance Index) and Edibox software. This webtool is linked to the
existing business management software (SAP…) in order to facilitate the calculation/ analysis which
is implemented for every new product or redevelopment. Results and data are confidential but each
brand defines objectives (annual average, minimum performance…).
o In 2012, LVMH updated the Packaging and Environment Handbook, which is distributed to all
Group Houses. The handbook recaps the questions, methodologies and technical tools relating to
packaging design and management, eco-design processes, international regulations, and the
environmental impact of materials.
o Designed as an operational tool, the Eco-Material Handbook entitled “Materials to Consider” is
distributed internally and identifies about forty materials that offer the kind of environmental
performance required for the Group’s products, with an explanation of how each business can use
them. The materials are classified for each application: paper, packaging, textiles and leathers,
communication and equipment for stores.
o The ability to answer questions from customers and other stakeholders about the environment
is one of the key aspects of environmental performance included in the LVMH “LIFE” program. The
Maisons and their sales associates must be able to provide customers with full technical
environmental data on a product or process :
 At Bulgari, a multi-disciplinary team was set up in 2013 to centralize in-house information
and manage all customer queries. The official procedure is communicated in compliance with
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the Group-defined procedure when addressing any queries regarding the REACH regulation
Bulgari also has an intranet page and tools dedicated to environmental data. In May 2013,
Louis Vuitton also posted new editorial content on its website along with additional
information about the challenges of “Information on environmental initiatives” aimed at
customers.
 In May 2013, Louis Vuitton updated the environmental section of its website shortly after the
official publication of its report on greenhouse gases. The REACH Regulation, and the
Responsible Jewellery Council certification of the Watches & Jewellery business, are
presented in the guides distributed to sales associates in stores; these handbooks set out the
procedure for responding to customer queries. The “CSR ambassadors” and the
“environmental ambassadors” appointed in stores, notably in Japan and Italy – pass on
information and are ready to answer customers’ questions on our social responsibility
commitments. This effort is helped with data sheets on specific topics which are prepared for
customers to read.

Other internal information sharing on ESG risks operates through various process and tools :
o balance sheet presentation of the sustainable development policy to the Board of Directors;
o monitoring of the action plan under the "CSR Steering Committee" ;
o specific control by the Audit and Internal Control Department ;
o review project by the "Environment Committee" and the network of "CSR Representatives";
o specialized collaborative working groups :
 "Annual Supply Chain meeting" ;
 meetings of operational leaders in order to discuss the mapping of the Group ;
 specific meetings and working groups on environmental issues : REACh regulation, etc.. As
an example, the LVMH Environmental Department has set up a network of 150 REACH
officers at the Houses. It brings those officers together on a regular basis, in order to
exchange information and best practices, anticipate future regulatory deadlines and foster the
emergence of substitution or innovation projects.
o sharing information via :
 Finance Intranet : Since the launch of the Group’s new approach to risk, all executive-level
personnel responsible for risk management procedures across the Group have had access via
the Finance Intranet to procedures and tools designed for the assessment, prevention and
coverage of risks, together with the information provided by the Risk Management and
Insurance Department.
 Discussion forums are organized by the Internal Control department for the main risk
categories selected by most of the participants. These forums bring together risk managers,
operational staff and internal control managers and have thus helped facilitate the sharing of
best practices across the Group.
 "LVMH Mind" extranet dedicated to the policy of social and environmental responsibilities.
In 2009, an Intranet website (“LVMH Mind”) was launched to better communicate
internally the Group’s commitment to responsible corporate citizenship. On this website,
specifically devoted to social and environmental responsibility, employees can find, the
Environmental Charter first adopted in 2001, the Supplier's Code of Conduct introduced in
March 2008 and the LVMH Code of Conduct (ethical and good governance principles)
adopted in May 2009.
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4. Analysis of risks:
 A very broad sense :
o According to the definition provided by the AMF’s Reference Framework, risk represents the
possibility of an event occurring that could affect the Company’s personnel, assets, environment,
objectives or reputation. The Group has defined a “major” risk as a risk with the potential to
jeopardize either the continuity of operations or the attainment of its strategic objectives.
o Risk management is understood to apply in this very broad sense, not solely to the financial realm,
but also to the support of the longevity and excellence of our brands. It is a powerful management
tool requiring the involvement of all Group senior executives, in accordance with the principle of
delegation and organization presented above. The objectives of risk management are to:
 protect the value, assets and reputation of the Group and its brands ;
 enhance the security of decision-making and operational processes, by way of a
comprehensive perspective on the Group’s potential threats and opportunities ;
 promote consistency between the actions and the values of the brands ;
 ensure that all employees embrace a shared vision of the main risks and challenges faced by
our business activities.
 Specific monitoring procedures apply to some of the risks associated with the Group’s businesses (i.e.
damage to image or reputation, counterfeit goods and parallel markets, industrial and environmental risks,
foreign currency and interest rate risk…). [ See “2. Business risk factors and insurance policy” in “2014
Reference Document” (pp. 36-41).]
 Geographical exposure : The Group's production activities are mainly located in France, Spain and
Italy, and the majority of its subcontractors are in Europe.
o However, the Group conducts business internationally and as a result is subject to various types of
risks and uncertainties. In order to protect itself against the risks associated with an inadvertent
failure to comply with a change in regulations, the Group has established a regulatory monitoring
system in each of the regions where it operates. The Group maintains very few operations in
politically unstable regions. The legal and regulatory frameworks governing the countries where the
Group operates are well established. Furthermore, it is important to note that the Group’s activity is
spread for the most part between three geographical and monetary regions : Asia, Western Europe
and the United States. This geographic balance helps to offset the risk of exposure to any one area.
o Lastly, the Group takes an active part in discussions worldwide on negotiations regarding access to
markets as well as agreements on easing access to the European Union for non-European tourists.

Main environmental challenges and impacts :
o Like any human activity, the businesses of the LVMH group have an impact on the environment that
varies in type and magnitude depending on the sector. The challenges faced by each business have
been clearly identified. [ See “2014 Environmental Report” (pp 8-9)].
o The strategic LIFE program, implemented by the Steering Committee of each Group company, is
based on nine key aspects of environmental performance [ See “2014 Reference Document”
(p. 89) and “2014 Environmental report” (pp. 14-18).] :
 environmental design
 securing access to strategic raw materials and supply channels
 traceability and compliance of materials
 environmental and social responsibility among suppliers [see below]
 preserving critical savoir-faire
 reducing greenhouse gas emissions
 environmental excellence in manufacturing processes
 product life span and reparability
 customer and key stakeholder information.
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o Since 2013, the Group also takes into account the different issues with regard to adapting to climate
change. In the medium term, developing viticulture practices is the main component of the Group’s
adaptation strategy. [ See « 4.2. Adapting to climate change » in "2014 Reference Document"
(p. 97).]

Supplier’s risks and issues : Examples of major risks to address :
o Common :
 The attractiveness of the Group’s products depends, from a quantitative and qualitative
standpoint, on being able to ensure adequate supplies of certain raw materials :
- In order to guarantee sources of supply corresponding to its demands, the Group sets
up preferred partnerships with the suppliers in question. This mainly involves the
supply of grapes and eaux-de-vie in connection with the activities of the Wines and
Spirits business group, of leathers, canvases and furs in connection with the activities
of the Fashion and Leather Goods business group, as well as watchmaking
components, gemstones and precious metals in connection with the activities of the
Watches and Jewelry business group.
- By way of illustration, an assessment of the risk that a vendor may fail has been
carried out and good practices have been exchanged, leading notably to implementing
the policy of splitting supplies for strategic Perfumes and Cosmetics products.
- In addition, for some rarer materials, or those whose preparation requires very specific
expertise, such as certain precious leathers or high-end watchmaking components, the
Group pursues a vertical integration strategy on an ad hoc basis..
 Reputation/adverse media campaign, damage to image or reputation, industrial and
environmental risks resulting of suppliers, etc...
o Watches and Jewelry : parallel market, product launch failure / excess cost,... Watches and Jewelry
has implemented industrial coordination through the use of shared resources, such as prototype
design capacities, and by sharing the best methods for preparing investment plans, improving
productivity and negotiating purchasing terms with suppliers.
o Fashion and Leather Goods : counterfeited goods, failure of key suppliers,...
o Wines and Spirits : product recall, counterfeited goods and parallel markets,... In Wines and Spirits,
production activities depend upon weather conditions before the grape harvest. Champagne growers
and merchants have set up a mechanism in order to cope with variable harvests, which involves
stockpiling wines in a qualitative reserve. For a description of this mechanism [ See § 1.1.4 Grape
supply sources and subcontracting in the Business description section of the “2014 Reference
Document” (p. 11).]
o Perfumes and Cosmetics : failure of key suppliers, credit risk,...
 For more information on the different risk categories (contractual constraints, supply sources and
strategic competencies…), see the "2014 Reference Document" (pp. 36-41) :
 "2. Business risk factors and insurance policy"
 and more particularly “2.1.8. Supply sources and strategic competencies”.
5. Audits and assessments of environmental risks:
The Environmental protection strategy within the Group is based upon a clear and strong organization,
evaluation and certification programs, measures to ensure compliance with applicable laws and regulations,
and a consumer policy safety. LVMH is particularly proactive in managing environmental risks: systematic
identification of risks, prevention, protection of people and property, and a crisis management procedure are
the four components of its risk management policy.
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5.1. Key management and external certification processes:
2014-15
At the end of 2014, 42 % of manufacturing, logistics or administrative sites were ISO 14001 certified. All
of the Cognac, Champagne and Vodka Houses have now obtained ISO 14001 certification. [ See “2014
Reference Document (p. 89)]
 The Champagne Maisons launched an ISO 50001 certification initiative in 2015 (which relies on the
introduction of an energy management system). [ See “2014 Environmental Report (p. 50)]
 Most of the construction or renovation programs performed at LVMH include environmental criteria,
regardless of whether they involve industrial facilities, warehouses, boutiques, or administrative buildings.
To make the buildings compliant with the new environmental protection requirements, the Group and its
Maisons rely on methods such as the BBCR (Batiment Basse Consommation, or Low Energy Building)
label ; certification in accordance with the French HQE standard ; the British BREEAMR (Building
Research Establishment’s Environmental Assessment Method), and the US LEEDR (Leadership in Energy
and Environmental Design) system. [ See “2014 Environmental Report (pp. 25-27)]

RJC Certification :  See “2014 Reference Document (p. 29).
5.2. Audits and controls concerning industrial, environmental and meteorological risks:
 Group companies are audited on a regular basis by third parties, insurers or internal
2014-15
auditors, which enables them to keep their compliance monitoring plan up to date. In
2014, 34% of the 264 manufacturing, logistics and administrative sites, as well as certain large stores,
were audited, for a total of 90 external audits and 124 internal audits, with some sites being audited
several times during the year. These audits correspond to an inspection of one or more sites of the same
company based on all relevant environmental issues – waste, water, energy, and environmental management
– and are documented in a written report including recommendations. This figure does not include the
numerous compliance controls that may be performed on a specific environmental regulation topic, e.g. a
waste sorting inspection, performed periodically by the Group companies on their sites.
 In the context of its production and storage activities, the Group is exposed to the occurrence of losses
such as fires, water damage or natural catastrophes. To identify, analyze and provide protection against
industrial and environmental risks, the Group relies on a combination of independent experts and qualified
professionals from various Group companies, and in particular safety, quality and environmental managers.
They pay particular attention to the risks associated with the storage and shipment of raw materials. The
definition and implementation of the risk management policy are handled by the Finance Department. The
protection of the Group’s assets is part of a policy on industrial risk prevention meeting the highest safety
standards (NFPA fire safety standards). Working with its insurers, LVMH has adopted HPR (Highly
Protected Risk) standards, the objective of which is to significantly reduce fire risk and associated
operating losses.
 This approach is combined with an industrial and environmental risk monitoring
program. In 2014, engineering consultants audited about 80 sites.
2014-15
5.3. Prevention of product-related risks:

The Group’s companies work to ensure greater product safety and traceability.
o The HACCP (Hazard Analysis Critical Control Point) method – which aims to assess critical
danger-points in order to control them – is used in the Wines & Spirits and Perfumes & Cosmetics
business groups.
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o Certifications :
 In the area of food safety management, the entire Champagne-Cognac-Vodka group is ISO
22000 certified.
 In Poland, the Belvedere Distillery has developed a comprehensive certification system,
which is based not only on the ISO 14001 and ISO 22000 standards, but also on the
OHSAS 18001 standard (guidelines for managing health in the workplace) and the HACCP
(Hazard Analysis Critical Control Point) method.
 In California, Chandon California and Newton adopted a new environmental policy for
managing their vineyards in 2011, enabling them to obtain Napa Green Winery
certification. Both vineyards obtained a second certification the following year, namely
Napa Green Land.
 See “2014 Environmental Report (p. 24)
o In addition to industrial safety, the Group’s companies also work to ensure greater product safety and
traceability to reinforce the Group’s anticipation and responsiveness in the event of a product recall.
o A legal intelligence team has also been set up in order to better manage the heightened risk of
liability litigation, notably that to which the Group’s brands are particularly exposed.
 Concerning security and health related to Perfumes and Cosmetics products, he LVMH Group has
already been working for several months on establishing procedures so that it is ready when the new
european regulation n° 1223/2009 on cosmetic products adopted on November 30, 2009 took effect on July
2013. Finally, the LVMH Group is in compliance with the Globally Harmonized System Regulation,
intended to harmonize the classification and labeling of chemicals. [ See “6. Consumer Health and
Safety” in "2014 Reference Document" (p. 98).]
5.4. Suppliers-related risks:
 Prevention of suppliers-related risks. The Supplier’s Code of Conduct sets forth the principle and
procedures for the control and audit of compliance with these guidelines. In the interest of continued
improvement in this area, the Group’s Houses have continued their supplier audit programs in 2013,
together with follow-ups on action plans. The Supplier Code of Conduct also sets forth the principle and
procedures for the control and audit of compliance with these guidelines.
 See “Social and environmental audits” pp. 17 and 50 in the COP 2015.

Responsible jewellery and RJC certification :
 See pp. 17-18, 25-26 and 51-52 in the COP 2015.
5.5. Expenses and provisions [ See "2014 Reference Document" (p. 90)] :

2014-15
Environmental protection expenses in 2014 broke down as follows :
o operating expenses : 10.2 million euros in 2014 (10.6 million euros in 2013)
o investments : 6.4 million euros in 2014 (6.7 million euros in 2013).
 Provisions and guarantees given for environmental risks, and compensation paid during the year
pursuant to a court decision : The amount of EUR 13 million as of December 31, 2014 (13 million euros
indicated for 2013) corresponds to the financial guarantees required by law for Seveso upper-tier
establishments.
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 Assessments of lifecycle impact of products, ensuring environmentally sound management policies:
 See “Criterion 9 : The COP describes robust commitments, strategies or policies in the area of
environmental stewardship”, with different informations concerning “lifecycle impact of products” (pp. 54
and 57-60).
 Allocation of responsibilities and accountability within the organization:
Blueprint For Corporate Sustainability Leadership
Board Adoption and Oversight
 Board of Directors (or equivalent) assumes responsibility and oversight for long term corporate
sustainability strategy and performance.
 Board establishes, where permissible, a committee or assigns an individual Board member with
responsibility for corporate sustainability.
 Board (or committee), where permissible, approves formal reporting on corporate sustainability
(Communication on Progress).
Full Coverage and Integration Across Principles
 Design corporate sustainability strategy to leverage synergies between and among issue areas and to
deal adequately with trade-offs.
 Ensure that different corporate functions coordinate closely to maximize performance and avoid
unintended negative impacts.
Mainstreaming into Corporate Functions and Business Units
 Assign responsibility for corporate sustainability implementation to an individual or group within each
business unit and subsidiary
 According to the "Charter of the Board of Directors" [ see “2014 Reference Document” p. 236],
the mission of the Board of Directors is especially to :
- disseminate the collective values that guide the Company and its employees and that govern
relationships with consumers and with partners and suppliers of the Company and the Group;
- promote a policy of economic development consistent with a social and citizenship policy based on
concepts that include respect for human beings and the preservation of the environment in which it
operates ;
- to approve formal reporting on corporate sustainability and especially "Environmental Report".
 The "LVMH Code of Conduct" distributed to all Group employees specifies LVMH Contacts (always
available in 2014) for environmental issues : Sylvie Bénard, Environmental Affairs Department. [ See
“LVMH Code of Conduct” (p. 21).]
 Consistent with our history, our size as a major international group, and the very specific nature of our
businesses, LVMH is both decentralized and unified.
o And the driving force behind our shared vision since 1992 has been the Group’s Environmental
Department. Its tasks consist of supporting the Maisons in their respective initiatives, ensuring that
the Environmental Charter is applied, rolling out the strategic LIFE program, and running the
Environment Committee, which arranges meetings several times a year for a network of some
fifty environmental representatives from the Maisons. The Environmental Department also steers a
variety of specialist in-house working groups that deal, for example, with the European REACH
regulation, eco-design and stores’ energy consumption.
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o The Maisons are not only represented in the network of correspondents from the Group’s
Environmental Committee, they also have their own organizations in order to successfully
implement their initiatives aimed at protecting the environment. Each Maison has its own additional
resources depending on local conditions and the type of its in-house projects.

Accordingly, Guerlain has set up a Sustainable Development Department and Steering
Committee. This Committee, which includes around fifteen employees from all the Maison’s
management teams, determines targets to be achieved by each facility and Department every
year, as well as an action plan to implement.
In 2014, for instance, Guerlain decided to set up a new body : a
2014-15
Sustainable Innovation Committee, which each quarter brings together
the employees responsible for marketing and packaging in order to
approve major decisions relating to eco-design.
 Louis Vuitton has a similar department, which is responsible for managing its
environmental strategy, primarily via setting up steering groups on specific issues, such as
the recycling of materials or ISO 14001 environmental certification. The Environment
Manager also attends the Ethics and Risk Management Committee, which brings together
around ten key employees, including three members of the Management Committee. These
central organizations are supplemented by around a hundred CSR officers or ambassadors,
who convey the Head Office’s approach at workshops and in the geographical regions. In
several countries, like Italy and China for example, this network is combined with in-store
supervisors, the “Green Advisors”.
 External verification of environmental reporting: The LVMH Group has been consolidating
environmental indicators since 1999, and they have been published since 2001. They have been verified by
one of the Auditor’s specialized teams since 2002. These indicators are published in the Registration
Document and in the Group’s environmental report.
All the consolidation and calculation rules are defined in the LVMH environmental reporting protocol,
which is updated annually, and is available for public consultation from the Environmental Department
[ See “Methodology for the LVMH Group’s Environmental Reporting” in "2014 Environmental Report"
(pp. 65-67)]. Any request to read the document may be made by writing to: environnement@lvmh.fr
External verification of the environmental data and practices :
Since 2003, the LVMH Group has had its environmental reporting voluntarily and independently audited
by Ernst & Young, one of the Group’s auditors, in accordance with ISAE 3000 (the International Standard
on Assurance Engagements 3000 of the International Federation of Accountants). For fiscal 2014, the
work focused on :
o a limited degree of assurance concerning some selected environmental indicators :



general environmental policy
preventive, reduction and compensatory measures for discharges into the air
water and soil having a serious environmental impact
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





waste prevention, recycling and elimination measures
water consumption and water supply considering local constraints
raw material consumption and measures undertaken to enhance resource efficiency
energy consumption, measures undertaken to improve energy efficiency and to promote the use of
renewable energy
release of greenhouse gases
measures undertaken to develop biodiversity.
o a reasonable degree of assurance concerning others selected environmental indicators (the
sample selected represents on average 56% of the Selected Environmental Information) :









percentage of sites audited for environmental purposes (%)
total water consumption for process needs (m3)
total waste produced (metric tons)
total hazardous waste produced (metric tons)
percentage waste recovery (%)
total energy consumption (MWh)
total greenhouse gas emissions (metric tons of CO2 equivalent)
total packaging placed on the market (metric tons)
Chemical Oxygen Demand (COD) after treatment (metric tons / year).
[ See “2014 Environmental Report” pp. 99-101.]
 Internal awareness-raising and training on environmental stewardship for management and
employees:
1. Intranet : In 2009, an Intranet website (“LVMH Mind”), specifically devoted to social and
environmental responsibility, was launched to better communicate internally the Group’s commitment to
responsible corporate citizenship. This internal portal provides details of the issues involved in safeguarding
and improving the environment for each function in the company. More generally, it describes the Group’s
principles and initiatives with regard to environmental and corporate social responsibility: diversity,
equality, ethics, environmental protection, responsible procurement, etc. The site is available to all Group
employees. It is both an information resource and a collaborative working tool for Environmental
representatives. Employees can also receive newsletters from the site and subscribe to newsflashes.
2. Training : A training tool, dedicated to the environment correspondents in the Houses, was developed.
The Group’s Maisons continue to provide staff with training and education about the environment.
In 2014, these programs comprised 21,489 training hours, a 7 % increase compared to
2014-15
2013 (20,004 hours). The latest initiatives under way vary widely. [ See “2014
Environmental Report” (p. 21)]
 Following the initiatives of 2012, which were devoted to the issues of biodiversity and
implementation of the Nagoya Protocol, the Group instituted an in-house training module on January 31,
2013 on the topic of “Biodiversity: from theory to company case-studies”. The LVMH Group and Houses
also holds specific training courses on REACH implementation.
 The Maison provided ISO 14001 certification training to the management staff
at its industrial sites and to all those involved in the project groups.
2014-15
o LVMH also put 2014 to good use, by strengthening the network of ISO 14001 accredited internal
auditors at its Maisons, through the training of eight Louis Vuitton employees and six Hennessy
employees.
o An ISO 14001 internal audit training course that leads to a qualification : In 2014, four
environmental management system managers from the Guerlain, Hennessy, Louis Vuitton, and Make
Up For Ever Maisons, together with one employee from the LVMH Environmental Department
completed an internal ISO 14001 audit manager training course leading to a qualification. This
initiative will continue in 2015, providing training to around 10 additional individuals. It will enable
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the Group to develop joint audits with the Maisons’ environmental auditors, to exchange best
practices, and to increase the overall effectiveness of the audits.
 Others : A large number of initiatives illustrated LVMH’s efforts in terms of
information, awareness-raising and training of its employees on the environment in
2014, together with the diversity of initiatives in this area developed within the Group.
2014-15
o Accordingly, Belvedere launched the “Ongoing Improvement Academy” in March, which gathered
311 suggestions from employees aimed at improving the Maison’s performance, including from an
environmental standpoint.
o On a different note, Parfums Christian Dior chose to raise its staff’s awareness by including an
environmental indicator in the mandatory and voluntary profit-sharing agreement.
o Over the past few years, Guerlain has organized a monthly training session for its new employees at
all of its certified facilities. Quarterly events dedicated to sustainable development have helped the
boutiques’ beauty advisors to answer any questions that customers may have on this issue. In
addition, the Maison has continued to train Sustainable Development Advisors, who are responsible
for helping to raise the awareness of all the employees. Topical meetings have enabled more detailed
presentation of the environmental initiatives implemented by Guerlain to the employees, and more
widely, to review all of the issues relating to protecting the natural environment, such as managing
waste, or regulations on substances and raw materials.
o Meanwhile, Marc Jacobs invited around 40 employees from the production and development teams
to attend a training course on sustainable procurement.
o Louis Vuitton added a tailor-made introductory eco-design module to its 2015 training catalogue :
the principle of the module is to bring together the teams responsible for product development, from
the designers to the after-sales unit, including the industrial logistics teams.
3. Internal and external events : Major events provide LVMH and its Maisons with a privileged
framework for demonstrating their commitment to the environment. This is particularly the case with
“European Sustainable Development Week” (in April), “European Mobility Week” (in September) and
“European Week for Waste Reduction” (in November).
The Group’s twenty year environmental commitment :
As a reminder, on October 17, 2013, the LVMH Group celebrated twenty years of environmental
initiatives in the presence of 250 sustainable development experts from within and outside the Group.
During this event, the Group reported on the progress made over the last two decades and set challenges
for the coming years. Antonio Belloni, Group Managing Director, noted that “the luxury sector is
inherently aware of the environment and LVMH takes this environmental concern to heart”. Among the
Maisons represented in the three round table discussions, Laurent Boillot (Chairman of Guerlain), and
Jacques Mantz (Chief Financial Officer of Moët Hennessy) shared their views concerning the topic of
sustainable supply chains. The subject of innovation and environmental creativity was then addressed by
Claude Martinez (Chairman of Parfums Christian Dior) and Chris de Lapuente (Chairman of Sephora).
At the final round-table discussion, Lisa Montague (Chairwoman of Loewe) and Éric Pradon (Chief
Financial Officer of Louis Vuitton) shared their vision of how sustainable development can drive
management and corporate culture. Outside guests included Eva Herzigova, Parfums Christian Dior
ambassador, who talked about her commitment to sustainable development and collective awareness of
the issue, and, bringing the discussions to a close, Gilles Boeuf, chairman of France’s Museum of
Natural History and holder of the sustainable development chair at the Collège de France.
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 Participation in “Green Week” for the fourth year running :
2014-15
Just like every year since 2010, in 2014 LVMH took part in Green Week, the largest
annual conference on Europe’s environmental policy. To mark the 2014 event, which
focused on the circular economy and the efficient use of resources and waste, the Environmental
Department designed three factsheets, which it sent to all Group employees. The first factsheet introduced
the circular economy. The second provided details of the best practices that have already been introduced in
this area by LVMH. The third factsheet was dedicated to CEDRE, LVMH’s waste recycling platform.
Several Maisons also rebroadcast the event, like Louis Vuitton, which celebrated Green Week at its Barberà
workshop.
 The Annual “Supply Chain Meeting”, comprising experts from various Group
2014-15
Houses, presented in November 2014 a review of their accomplishments and progress.
This annual meeting provides an opportunity to exchange best practices, to implement
shared tools and reference guides, and to identify new areas meriting attention. In 2010, this work resulted
in the creation of a shared supplier database for the Perfumes and Cosmetics business group and the
establishment of a common reference guide for supplier assessment. This reference guide will facilitate
exchanges between the various Group companies and follow-ups on social and environmental audits, their
findings, and any action plans put in place.
 Grievance mechanisms, communication channels and other procedures (e.g. whistle-blower
mechanisms) for reporting concerns or seeking advice regarding environmental impacts:
 Whistleblowing is not allowed in France but several LVMH companies based abroad implemented
specific procedures such as whistleblowing policy. There is a public mail address that anyone can use to
report about environmental issue or ask any question. Any request may be made by writing to:
environnement@lvmh.fr.
 In 2009, an Intranet website (“LVMH Mind”) was launched to better communicate internally the
Group’s commitment to responsible corporate citizenship.
o The site is available to all Group employees and is both an information resource and a collaborative
working tool for the environmental correspondents. It is also a means for employees to receive
newsletters and subscribe to newsflashes.
o On this website, specifically devoted to social and environmental responsibility, employees can find
the LVMH Code of Conduct, but also the Environmental Charter first adopted in 2001 and the
Supplier Charter introduced in 2008, which ensure compliance across the entire supply chain with
strict guidelines.

Dialogues, partnerships and communication about environment :
 See many examples in "2014 Environmental Report" (pp. 28-35) according the
following typology :
- professional exchanges
- project and research partnerships (government authorities, regional authorities,
voluntary organizations and research bodies)
- environmental corporate sponsorship
- communication (efforts to inform all stakeholders, participation in major
sustainable development events…).
2014-15
The Group LVMH is involved in several dialogues and partnerships with different categories of
stakeholders from civil society. LVMH is a holding company which has over 65 luxury brands covering 5
activities (perfumes and cosmetics; wines and spirits; fashion and leather goods; watches and jewellery;
selective retailing). Due to the diversified and decentralized nature of its activities, the Group has defined
general principles as regards stakeholder engagement that are circulated to the management of its Brands
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and subsidiaries. Each LVMH brand, depending on its priorities, will determine its key stakeholders and
implement its own stakeholder engagement. Each company is in charge of the management of its brand,
according to its own processes, according to the Group's mission and values. Thus, each brand has its own
method of brand strategic management, aimed at enhancing its financial value and reputation.
Criterion 11: The COP describes effective monitoring and evaluation
mechanisms for environmental stewardship :
 System to track and measure performance based on standardized performance metrics :
Blueprint For Corporate Sustainability Leadership
Strategic Social Investments and Philanthropy
 † Implement a system to track and measure performance based on standardized
performance metrics.
 KPIs "LIFE" program (LVMH Indicators for Environnement) : The strategic LIFE program was
designed in 2011 to reinforce the inclusion of environmental concerns in management processes, facilitate
the development of new steering tools, and take into account the changes and enhancements resulting from
Group companies’ innovative practices.
In 2014, Group Managing Director Antonio Belloni decided that Group
2014-15
companies should include the LIFE program in their strategic plan. The LIFE
program is implemented by the Steering Committee of each Group company.
The LIFE program is based on nine key aspects of environmental performance :
- environmental design
- securing access to strategic raw materials and supply channels
- traceability and compliance of materials
- environmental and social responsibility among suppliers
- preserving critical savoir-faire
- reducing greenhouse gas emissions
- environmental excellence in manufacturing processes
- product life span and reparability
- customer and key stakeholder information.
 See :
 “2014 Reference Document” (p. 89)
 “2014 Environmental report” (pp. 14-18).

 Sustainable construction and renovation : All of the Group’s environmental
2014-15
initiatives generate savings or revenue in the short, medium and long term. The sum of
the savings generated, costs avoided and gains made, which are not monetized today as positive externalities
for the 65 or so Group brands are not subject to internal consolidation. The Environmental Department
nevertheless tracks and promotes the many internal best practices which represent value created from site
operations and product design and manufacturing processes.
 See :
 “Sustainable construction and renovation” in “2014 Environmental Report” (pp. 25-27).
 “2014 Environmental Report” :
- many examples of initiatives in the field of CO2, energy, water and waste reduction (pp. 2527)
- “LVMH Lighting program” (p. 52).
 See also :
 “saving energy and water resources” in “Business groups’s main concerns” in “2014
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Environmental Report” (pp. 8-9)
 expenses incurred to prevent an activity from impacting the environment in “2014 Environmental
Report” (p. 11)
 the large number of benefits expected in “2014 Environmental Report” (p. 17).
Among examples or case studies about cost-saving or revenue generation :
o In France, for instance, a program has been rolled out at the Moët et Chandon facilities, with a view
to reducing water consumption by 25% between 2013 and 2018, which would enable around
60,000 m² of water to be saved over a five-year period. The methodology used is the Lean
Management methodology: after drawing up a map of the consumption points, an action plan was
drawn up jointly by the technical teams and the line operators. The implementation of the solutions is
combined with the introduction of a specific monitoring process for each line’s consumption. Since
April 2013, the measures have essentially covered two discharge lines. The savings achieved at the
end of 2014 already amounted to 23,000 m³ of water.
o Pending the launch of an ISO 50001 certification initiative in 2015 (which relies on the introduction
of an energy management system), the Champagne Houses continued their ongoing eco-lighting,
building insulation and heat recovery initiatives. An Energy Committee was also set up in order to
monitor energy consumption and incorporate the “energy savings” aspect into any new investment.
Meanwhile, after measuring the energy consumption according to use at its stores, Sephora decided
to trial an air curtain technology in Spain, which uses less energy in a Mediterranean climate.
o In September 2013, LVMH therefore launched the “LVMH Lighting” program, whose aim is to
secure and optimize the sourcing of energy-efficient lighting equipment for stores, production and
storage sites, and for office areas.
 Accordingly, the Group set up a steering committee known as the “Store Lighting Working
Group” in 2012, in order to deal with three issues : assessing the stores’ energy consumption,
lighting and the carrying out of energy audits.
 In 2014, the Committee decided to launch a pilot operation in order to assess the energy
consumption in 13 stores belonging to four Maisons. The sample included stores of different
sizes, in different climatic regions, and of different kinds. The operation will help LVMH to
prioritize its issues, draw up a list of recommendations that are appropriate for each case, and
invest in the right equipment to monitor and optimize its consumption. In addition to
promoting LED technology, the program aims to ensure that lighting meets the Maisons’
exceptionally high standards.
 Training sessions are organized in order to raise employee awareness of the benefits
of LED technology, and to progressively share any useful information regarding lighting.
Innovative projects are also emerging. This is the case, for instance, with the study on the
“Taste of Light” launched with the Champagne Maisons in 2014 in order to identify the
color spectrums that do not damage the wine while providing better lighting in the cellars.
 This work was extended in 2014 by the signing of a collaboration agreement with
around 20 lighting equipment suppliers, and the publication of a catalogue including 500
items. The catalogue was presented at the Group Head Office in Avenue Montaigne on
June 20, along with product samples, during the “LED Expo2014” event. To mark that
event, a “speed-dating” process was also organized between the Maisons and the
suppliers, while four conferences were offered on topics such as “light and architecture”,
and “light and marketing”.
 An e-commerce website (lvmhlighting.com) intended for the Group and its lighting
installers was set up during the summer, in order to optimize the supply chain. The website
has been trialed by three pilot Maisons (Christian Dior, Louis Vuitton and Sephora) since
November, while its general rollout is scheduled for 2015.
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o Guerlain’s new HQE-certified production facility : La Ruche plant in Chartres, a genuine
sustainable development fl agship for Guerlain, began operating in September 2014. The site itself
was the subject of stringent environmental measures, enabling it to be awarded “Excellent” HQE
(Haute Qualité Environnementale or High Environmental Quality) certification. These efforts are all
aimed towards the same goal, namely, to reduce Guerlain’s carbon footprint by 20% between 2007
and 2017.
o The Louis Vuitton Foundation project’s characteristic features enabled it to be selected as a pilot
project for drawing up new HQE® (HEQ) guidelines dedicated to cultural buildings. The innovation
in terms of HQE® (HEQ) was not limited solely to energy savings or recycling, but also affected, for
example, the choice of materials. The protection of natural resources was also a constant concern in
the operation of the building, as demonstrated by the installation of a rain water recovery and re-use
system, as well as by the use of geothermal power to heat and cool the premises.
The impact of high-profile projects : the example of the Louis Vuitton Foundation.
The Louis Vuitton Foundation officially opened its doors to the public on Monday 27 October
2014. The building housing it, designed at Bernard Arnault’s instigation by the American architect
Frank Gehry, is an outstanding venue for French and international contemporary artistic creativity
and the influence of the French capital. Truly a “cloud of glass”, the Foundation stands in the
Jardin d’Acclimatation, in the northern part of the Bois de Boulogne, Paris. The aim of the Louis
Vuitton Foundation is to support and promote contemporary artistic creation in Paris and
internationally. Its collection and exhibition schedule are in line with the historical artistic and
creative movements of the 20th and 21st centuries. The Louis Vuitton Foundation building
includes galleries holding permanent exhibitions, temporary exhibitions and art orders. The last
feature is a 350-seat (but variable) auditorium designed to host events in a range of fields. As part
of its opening art programme, the Louis Vuitton Foundation presented an exhibition on Frank
Gehry’s architectural plans for the Foundation. The exhibition was thus linked to the first European
retrospective mounted by the Pompidou Centre on Frank Gehry’s work from October 2014.
 Transport : To combat climate change, LVMH and its Maisons are also focusing on transportation,
whether this involves the shipment of their main components and raw materials to their production facilities
or the delivery of their finished products to the retail platforms. Even though this transportation is not
directly performed by the Group, it is nonetheless subject to specific measures, such as the preference
granted to local procurement or the choice of more environmentally-friendly transport modes.
o In 2014, for instance, Sephora signed a partnership agreement with the TK Blue extra-financial
rating agency, which will help it to develop a more effective and prudent transportation approach
that will generate fewer greenhouse gas emissions.
o Loewe has introduced an in-house tool in order to map and manage the carbon footprint of
international transport routes from its production plant in Madrid to international destinations.
o Likewise, Louis Vuitton has been using a tool to record CO2 emissions since 2013, which enables a
report on the transport emissions relating to the shipping of leather goods and accessories that transit
through the Cergy Eole central warehouse in real time, for each trip made. Hennessy has certainly
not neglected its sustainable transportation efforts. Over 90% of the Maison’s shipments are now
made via sea and rail transport.
o As part of the MH Green Supply Chain Initiative, Hennessy has included environmental
requirements in its transportation agreements for finished products, including a combination of rail
and road modes in Europe, and has conducted audits in order to ensure that these requirements were
complied with. An environmental section has also been added to the specifications of it warehouses
in ports.
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o Meanwhile, Make Up For Ever transported its components by river between the ports of Le Havre
and Gennevilliers for the first time, with a view to achieving a target of transporting 50% of its
components by river on this route by 2017. Furthermore, many Maisons improved their
employees’ carbon footprint in 2014 by increasing the percentage of electric vehicles in their
corporate fl eets, developing the use of video-conferencing and encouraging car-pooling and cycling.

Environmental concerns into design :
 See “Criterion 9: The COP describes robust commitments, strategies or policies in the area of
environmental stewardship”.
 Leadership review of monitoring and improvement results :

Reporting :
o The main challenges of each business group are managed by the “LIFE” (LVMH Indicators for
Environment) program structured around nine key aspects of environmental performance under the
control of the Executive Committee.
o Each year, the reporting on corporate sustainability and particularly “environment” is approved by
the Board of Directors.
o Environmental Department, which was set up in 1992, reports directly to a member of the Executive
Committee, namely Antonio Belloni, the Group’s Chief Executive Officer.
o Even before rolling out the LIFE program, and as early as 1998, LVMH therefore designed a
reporting tool that covers the main issues relating to the environment.
 The Group companies can use the tool’s questionnaires to monitor and steer their own
indicators, while every company is free to adjust them in accordance with its environmental
impact, and the frequency of the measurements gathered.
 The data gathered are checked by the Statutory Auditors, and supplemented by audits,
which have been consolidated in LVMH’s management report since 2004.
 They may also be disclosed, upon request, to stakeholders such as environmental and social
rating agencies, shareholders, investors and customers.
 See :
 “2014 Reference Document” (pp. 87-98)
 “2014 Environmental Report”.
 Process to deal with incidents :

Environmental protection policies and methods :
 See :
 “2014 Environmental Report” :
- “The framework for action” (pp. 6-19)
- “Preventing and managing risk” (pp. 22-23)
 “2014 Reference Document” :
- “2.1.10. Industrial, environmental and meteorological risks” (p. 38)
- “1. General environmental policy” (pp. 89-90)
- “1.3. Preventing environmental risks and pollution” (p. 90).
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
Product Safety and Customer Health :
 See :
 “Traceability and compliance of materials and products” in “2014 Environmental Report” (pp. 4345)
 “6. Consumer health and safety” in “2014 Reference Document” (p. 98).

No incidents to report in 2014.
o The amount of provisions for environmental risks is 13 million euros as of December 31, 2014.
This amount corresponds to the financial guarantees required by law for Seveso upper-tier
establishments. Thus this amount relates only to set standards and not to “compensation paid during
the year pursuant to a court decision”. [ See “2014 Reference Document” (p. 90)]
 Audits or other steps to monitor and improve the environmental performance of companies in the
supply chain :
 Auditing/monitoring the suppliers : As part of its supplier relationships, LVMH requires its partners
to subscribe to its Supplier Code of Conduct by virtue of which it reserves the right to conduct compliance
audits at any time and without notice.
 See in the COP 2015 “Criterion 2 : The COP describes value chain implementation” :
 “Supplier’s commitments” and “Questionnaires and audits”: pp. 14-16 and 25-26.
 “Social and environmental audits”: pp. 17 and 50.
 See “9.1. Relations with suppliers” in "2014 Reference Document" (pp. 83-84).
 See “LVMH Supply Chain” in "2014 Annual Report" (pp. 30-31).

Examples of collaboration/information with suppliers :
 See “Support of suppliers” (pp. 19-21 in the COP 2015).
o REACH regulation : All Maisons have incorporated the European REACH regulatory requirements
in their contractual documents to involve suppliers in this effort. They are requested to ensure that
the substances used are registered under REACH, or regulations similar to REACH for nonEuropean suppliers. They are also requested not to use any substances listed in the Group’s
monitoring tool. The tool, which suppliers can access online, includes a list of 286 substances,
particularly substances subject to restriction or authorization by REACH, and substances of very
high concern (SVHC). The tool aims to help Maison suppliers better identify the potential use of
these substances and the materials in which they may be found. The Maisons also conduct tests by
independent laboratories to certify that products placed on the market contain no SVHC. Experts
from the various Maisons meet regularly as part of a REACH working group to anticipate future
phase-outs and share best practices. An individual specially appointed at the Group level coordinates
the network and supports the Maisons in their plans to replace substances and innovate.

Management of suppliers across the Carbon Footprint® :
o Since 2002 the Group has assessed the Carbon Footprint® of many of its Maisons: Louis Vuitton,
Moët & Chandon, Veuve Clicquot, Hennessy, Parfums Christian Dior, Guerlain, Parfums Kenzo,
Parfums Givenchy, Givenchy Couture, Make Up For Ever, DFS, Sephora and Le Bon Marché. To
date, all of the Group’s major Maisons have completed their reports and are working to implement
priority initiatives taken into account suppliers.
o Upstream transport : transport of raw materials and components from suppliers to our production.
 See :
 “2014 Environmental Report” (p. 54)
 “2014 Reference Document” (p. 96).
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 Outcomes of integration of the environmental principles :

No incidents to report in the recent years.
 The amount of provisions for environmental risks is 13 million euros as of December 31, 2014. This
amount corresponds to the financial guarantees required by law for Seveso upper-tier establishments. Thus
this amount relates only to set standards and not to “compensation paid during the year pursuant to a court
decision”. [ See “2014 Reference Document” (p. 90).]
 LVMH is assessed on its environmental policy by its external stakeholders. The Group is included in
the main indices based on responsible investment criteria, i.e., FTSE4Good Global 100, Euronext Vigo
Eurozone 120, and ESI (Ethibel Sustainability Indices) Europe.
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Robust Anti-Corruption Management Policies & Procedures
Criterion 12: The COP describes robust commitments, strategies or policies
in the area of anti-corruption:
 Publicly stated formal policy of zero-tolerance of corruption (D1):
 Policy on anti-corruption regarding business partners (D5):
 Commitment to be in compliance with all relevant anti-corruption laws, including the
implementation of procedures to know the law and monitor changes (B2):
 One of the six principles of the LVMH Code of Conduct ("Implementing and promoting a responsible
approach") includes the purpose to fight against corruption. The anti-corruption and bribery policy covers
the following aspects :
« Responsible behaviour towards partners: LVMH is committed to maintaining equitable and loyal
relationships with its partners (suppliers, distributors, subcontractors, etc.). LVMH will inform all of its
commercial partners of its ethical principles and expectations. LVMH asks its suppliers to comply with the
principles set out in the Suppliers’ Code of Conduct. This code specifies the demands in the areas of social
issues (forced labour, child labour, harassment, discrimination, and pay, working time, freedom of unions,
and health and safety), environmental and operational issues (legality, custom tariffs, safety, subcontracting
and corruption).
« Fighting against corruption: LVMH prohibits any form of corruption. Any payment must reflect a service
and legitimate price as described in the contracts and agreements. LVMH only authorises gifts and
invitations in the usual social and commercial situations. LVMH is committed to operating independently in
public life. LVMH prohibits the payment of money to political parties, trade unions or cultural organisations
in an attempt to promote a particular interest or obtain or maintain an advantage. » [ See “LVMH Code
of Conduct” (p. 13).]
This Code has been adopted at the Board meeting following the AGM on May 14th 2009 and distributed
since May 2009 to all Group employees.
 The specific policy regarding "transparency and integrity of influence strategies and practices" is
taken into account by the "LVMH Code of Conduct" (preamble and §4 "preventing conflicts of interest”):
« As actors in economic and social life, we are called to the highest standards of integrity, respect and
engagement in our behaviours, every day, everywhere. (...) All employees can find themselves confronted
with situations in which their personal interest or that of private individuals or corporations with whom they
are linked or close to, can come into conflict with the interests of the Group. Employees must, when taking
stakes in other companies and in their activities outside the Group, do everything possible to avoid finding
themselves in situations of conflicting interests with LVMH or any other linked company. In this matter, it
will be the employee’s responsibility to determine a course of action in all honesty and taking into account
their duty of loyalty towards. LVMH and if in doubt to consult their line manager. The employee must notify
all conflicts of interest in writing. » In particular, the Group recommends and oversees the implementation
of codes of conduct, supplier charters, formalized procedures for declaring and monitoring conflicts of
interest, and the implementation of delegation matrices that outline the responsibilities and powers of each
employee.
 All the Group’s brands have adopted and implemented the Supplier’s Code of Conduct (deployed in
March 2008 and implemented at all Brands and subsidiaries by the end of 2008) which lays down the
Group’s guidelines for Social Responsibility and the fight against corruption. Any collaboration with a
partner requires their commitment to all the ethical principles in this code. [ See "Working methods" in
Supplier’s Code of Conduct (p. 2) : « Anti-Corruption: Our suppliers shall agree to condemn and act
against corruption in all its forms, including extortion and kickbacks. »]
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 The Group conducts business internationally and as a result is subject to various types of risks and
uncertainties. In order to protect itself against the risks associated with an inadvertent failure to comply with
a change in regulations, the Group has established a regulatory monitoring system in each of the regions
where it operates. The Group maintains very few operations in politically unstable regions. The legal and
regulatory frameworks governing the countries where the Group operates are well established. Furthermore,
it is important to note that the Group’s activity is spread for the most part between three geographical and
monetary regions: Asia, Western Europe and the United States. This geographic balance helps to offset the
risk of exposure to any one area. Lastly, the Group takes an active part in discussions worldwide on
negotiations regarding access to markets as well as agreements on easing access to the European Union for
non-European tourists.
Criterion 13: The COP describes effective management systems to integrate
the anti-corruption principle:
 Support by the organization’s leadership for anti-corruption (B4):
The principal missions of the Board of Directors are especially to :
- review the essential characteristics of the internal control and risk management systems adopted and
implemented by the Company ;
- disseminate the collective values that guide the Company and its employees and that govern
relationships with consumers and with partners and suppliers of the Company and the Group ;
- promote a policy of economic development consistent with a social and citizenship policy based on
concepts that include respect for human beings and the preservation of the environment in which it
operates.
Criterion 14: The COP describes effective monitoring and evaluation
mechanisms for the integration of anti-corruption:
 Process to deal with incidents (D13):
 The “2014 Reference Document” (pp. 113-114) describes (redaction updated) the
2014-15
“system stakeholders” according to the three-lines-of-defense model, with the control
and supervision of systems provided by governing bodies.
o The implementation of risk management and internal control procedures fully applies to the respect
of ethical and good governance principles and the Group’s commitment to CSR. The activities
relating to the control and remediation of internal control weaknesses are reflected, documented and
tracked as part of the management process that guides all of the Group’s core entities.
o The Group’s Guidelines may also be found on the Finance Intranet, together with specially designed
tools for the evaluation, prevention and coverage of risks. These materials may be accessed by all
personnel involved in the application of the Group’s risk management procedures. Risk mitigation
(in frequency and severity) is achieved through preventive actions (industrial risks), internal control
(risks associated with processes), or through the implementation of business continuity plans or
operational action plans. Depending on the types of risk to which a particular brand or entity is
exposed, the latter may decide, in collaboration with the Group, to transfer residual risk to the
insurance market or instead to assume this risk.
 See more generally “2. Implementation of risk management and internal control procedures” in
"2014 Reference Document" (pp. 109-115).
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 As a reminder, in 2011, strengthening the Group’s business continuity plans (BCPs) was a focus of
particular attention. Progress made in 2012 was assessed by way of a questionnaire disseminated to all of the
Group’s significant entities. Sustained efforts will be required to further develop and improve these
procedures and ensure that they continue to meet the Group’s requirements. Furthermore, sessions for the
sharing of best practices were organized on a range of issues : delegations of authority, payment processes
(approval of payments, segregation of duties, signatures and banking delegations), and the system for
managing and controlling staff arrivals and departures. Discussions were also organized with a view to
developing an anti-corruption program. [ See "2.3. General internal control principles" in “2012
Reference Document” (pp. 106-107).]
Public legal cases regarding corruption (D14):
No incidents to report.
Taking Action in Support of Broader UN Goals and Issues
Criterion 15: The COP describes core business contributions to UN
goals and issues:
 Align core business strategy with one or more relevant UN goals/issues:
 The LVMH Group has its own strategy for sourcing and safeguarding raw materials. The choice of
components used in product manufacture is in fact key to safeguarding the environment, particularly natural
resources that are crucial to product manufacture. LVMH adheres to the Convention on International
Trade in Endangered Species of Wild Fauna and Flora (CITES) and the EU Timber Regulation
(EUTR). LVMH is fully involved in the implementation of the Nagoya Protocol on Access and Benefit
Sharing (ABS) for the relevant supply chains. Under the international regulations stemming from the 1992
Convention on Biological Diversity, a number of projects are being discussed or examined in further depth
for the Perfumes & Cosmetics, Fashion & Leather Goods, and Watches & Jewellery business groups. These
include conducting audits of supply chains aimed at assessing compliance of our practices with the Nagoya
Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their
Utilization (ABS), and developing new fair and responsible supply chains in categories such as gold and
cashmere.
 Since October 2012, the French Ministry of Ecology, Sustainable Development and Energy awarded
LVMH “National Strategy for Biodiversity Recognition” for “improving, from upstream to downstream, the
footprint on biodiversity of LVMH activities, with the goal of having an actual positive impact on
biodiversity” for the period from 2012 to 2014. The NSB followed France’s ratification of the United
Nations Convention on Biological Diversity (CBD). The first corporate initiatives taken relate to:
o identifying priority areas for diagnosis of the impact (known or potential) on biodiversity ;
o starting an audit of these areas involving the pilot Maisons that use targeted raw materials ;
o promoting and disseminating effective initiatives already under way in these areas, if they are having
a positive impact on biodiversity or the population ;
o assessing the impact of the implementation of the Nagoya Protocol on Access to Genetic
Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization (ABS) for
the supply channels affected.
 Partnership with FRB : In November 2014, LVMH became the first private2014-15
sector entity to join the eight public research bodies on the Board of Directors
of the French Foundation for Research on Biodiversity (FRB). This event emphasized the Group’s
involvement alongside the FRB, which it has supported for more than six years. Sylvie Bénard, LVMH’s
Director of Environmental Affairs, has also served as Vice President of the Foundation’s Strategic
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Orientation Committee for four years. Within the framework of this committee, which brings together more
than 160 stakeholders to jointly design research programs that favor biodiversity, the Group has mainly
focused on accessing genetic resources and sharing the benefits resulting from their use. [ See “2014
Environmental Report” (p. 28).]
 As a reminder, in 2013, a review of the ethnobotanical supply chains was begun by the Foundation for
Biodiversity Research (FRB). This study entailed a critical appraisal of the sustainable development
initiatives implemented by LVMH Perfumes & Cosmetics Research based on the commitments made
pursuant to the Nagoya Protocol. The practical analysis resulted in recommendations concerning two
suppliers in Madagascar and Burkina Faso. A summary published by the FBR will be published for the
general public. The Ethnobotanical Innovation Department of LVMH Recherche, Perfumes & Cosmetics
has focused on ethnobotany for many years. The Department identifies plant species from around the world
that could be used in cosmetics, and helps protect these species and develop local economies. In 2012, it coorganized with the faculty of sciences at the University of Antananarivo in Madagascar a “Forum on
sustainable development and greater collaboration between partners”. This forum brought together
stakeholders from LVMH Recherche supply chains in Madagascar and researchers from the Antananarivo
Laboratory of General Pharmacology, Pharmacokinetics and Cosmetology (LPGPC). The goal was to share
stories from the field, study the contribution of ethno-pharmacology to conservation and sustainable
development efforts, and discuss the implementation of the Nagoya Protocol and Access to Genetic
Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization (ABS) in
Madagascar.
 As a reminder, LVMH participated in the Convention on Biological Diversity (COP11) in
Hyderabad, India, from October 8 to 19, in a side event co-organized by LVMH, the Foundation for
Biodiversity Research and Association Orée, and consisting of a presentation of the goals, methodology and
expected outcomes of the impact assessment conducted by FBR researchers to analyse LVMH practices in
respect.
Blueprint For Corporate Sustainability Leadership
Core Business Contributions to UN Goals and Issues:
 Develop relevant products and services or design business models that contribute to UN
goals/issues :
 Adopt and modify operating procedures to maximize contribution to UN goals/issues :

Increasing the employment of people with disabilities :
o In March 2011, Moët & Chandon, a pioneer in this field, created MHEA, a company adapted to
the needs of disabled employees: at least 80% of the company's employees are disabled. MHEA
welcomes employees from Moët & Chandon sites whose disabilities no longer let them work in an
ordinary environment. When joining MHEA, they retain all of their previous employment
conditions, including their original salary and seniority benefits. In order to grow, the company has
also recruited outside of Moët & Chandon. MHEA is intended as a gateway, enabling its employees
to return to the so-called normal sector. Other companies have decided to develop assembly lines
adapted to people with medical conditions (Guerlain, Parfums Christian Dior, among others).
o In 2014, LVMH started the EXCELLhanCE initiative, an original training
2014-15
programme to improve the employment prospects of people with disabilities. It
had the support and trust of AGEFIPH (French agency to promote private sector
employment of those with disabilities). The initiative enabled individuals with disabilities to
simultaneously gain a qualification, meaningful experience in LVMH Group companies, and
specific expertise in the luxury goods sector. It is based on extended course lasting from 12 to 24
months in three fields, i.e. sales, logistics and human resources management. Candidates are
selected by means of the “Handi-Talents” processes, based on work-related simulation exercises
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adapted to candidates with disabilities. These innovative recruitment sessions make recruitment
objective and allow skills that are transferable to a professional environment to be identified. In
2014, 24 people joined the EXCELLhanCE initiative. Various Group companies are stakeholders in
the initiative, namely Veuve Clicquot, Louis Vuitton France, Berluti, Parfums Christian Dior,
LVMH Fragrance Brand, Make Up For Ever, Sephora, Le Bon Marché, Les Echos and Christian
Dior Couture.
o LVMH favours the use of the “protected and adapted sector”. This sector enables a person who is
seriously disabled, whether permanently or temporarily, to work in an environment that is adapted to
his or her circumstances. Following the LVMH Disability and responsible purchasing seminar in
2012, companies such as Louis Vuitton, Bulgari, Guerlain and Parfums Christian Dior
reviewed their purchasing policy to develop their relationship with companies
2014-15
operating in this sector. Services outsourced to the protected and adapted sector
were worth EUR 4.9 million in 2014.
o As a result of these efforts, the employment rate of people with disabilities has
increased year on year since 2007 and reached 4.1% in France in 2014 (compared
to 1.6% in 2007).

2014-15
Involvement in societal issues, among many other initiatives :
o On Wednesday 16 April 2014, LVMH Group honoured the first graduating year
2014-15
from the RISE programme (Results in Social Entrepreneurship). The principle
behind this original programme is to put future LVMH talents in touch with social
entrepreneurs, thus giving our staff additional tools with which to advance. Founded on a two-way
enrichment that is beneficial to all parties, RISE makes it possible for social entrepreneurs to receive
ad-hoc and targeted help from an LVMH Group professional. The latter benefits from the
opportunity for bespoke personal development, and from exposure to a different world and
environment where creativity must be shown to deliver the best solutions to his or her opposite
number, the social entrepreneur.
Meeting in Paris over two years, the eleven talents from the first RISE graduating year, from Europe,
the USA and Asia, were able to talk about their respective experiences. Women’s empowerment,
education and the environment are the three main areas involved.
All those in the programme, through this working in pairs, have developed new skills that will be
useful in their daily work. This reciprocal benefit is wholeheartedly encouraged by the Group, which
is looking to train future senior executives who are creative, of an entrepreneurial mindset, and
connected with the company. Begun in 2013, LVMH’s RISE programme continued with 20 new
talents involved in 2014. [ See “Social Responsibility Report 2014” (p. 40)].
o EllesVMH program : LVMH particularly tracks the development of its female
2014-15
talents during the annual review of organisations, with a set of key objectives and
metrics. The Group provides annual coaching for the most promising of its female
talents, to smooth their move into executive roles. In 2014, 50 individuals received this full coaching
programme. Launched in 2007, the purpose of the EllesVMH initiative is to develop female talent
and help them to realise their potential within LVMH Group. In 2014, the measures taken in this
regard involved more than 850 people, both men and women, around the world. In September 2014,
the first international meeting of EllesVMH coordinators took place.Regional EllesVMH networks
bringing together female talent from all Group companies and business lines present on the various
markets organised ten development and networking events. With regards to online communication,
the EllesVMH Intranet community is already one of the largest in-house communities.
[ See “Social Responsibility Report 2014” (p. 32)].
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o Employment and regional development : LVMH applies a policy of employment
2014-15
conservation and development. Thanks to the sustained development of its brands,
many commercial jobs have been created in every country where the Group is present, especially as
part of the extension of the self-managed store network. Net permanent job creation consequently
amounts to more than 5,000 people.

As signatory to France’s Apprenticeship Charter, the Group has consequently substantially
expanded its apprenticeships allowing young people to gain a qualification more easily. On
31 December 2014, there were more than 964 young people on apprenticeship or workand-training contracts in all of the Group's French companies. [ See “Social
Responsibility Report 2014” (p. 21)]

A new initiative launched in 2014 testifies to the Group’s desire to better meet Group
companies’ current and future needs and demands. The Institut des Métiers d’Excellence
(IME) crafts and design vocational training institute provides professional training leading to
qualifications and certificates, enabling the Group to transfer craft and design skills to the
younger generation. [ See “Social Responsibility Report 2014” (p. 22)]
Criterion 16: The COP describes strategic social investments and
philanthropy:
Blueprint For Corporate Sustainability Leadership
Strategic Social Investments and Philanthropy:
 Pursue social investments and philanthropic contributions that tie in with the core competencies or
operating context of the company as an integrated part of its sustainability strategy:
 Coordinate efforts with other organizations and initiatives to amplify—and not negate or
unnecessarily duplicate—the efforts of other contributors:
 Take responsibility for the intentional and unintentional effects of funding and have due regard for
local customs, traditions, religions, and priorities of pertinent individuals and groups:
 See :
 "2014 Annual Report" :
- “Fondation Louis Vuitton” (pp. 8-9)
- “Supporting culture, young people and humanitarian action (pp. 42-45).
 "2014 Reference Document" :
- "9. Relations with third parties", particularly 9.3. and 9.4. (pp. 85-86).
 "2014 Environmental Report" (pp. 30-34) :
- “Project and research partnerships”
- “Environmental corporate sponsorship”.
 “2014 Social Responsibility Report” :
- “Supporting local communities and local area development” (pp. 37-43).
The breakdown of philanthropic activities by country and activity is not detailed and disclosed externally :
Type of Contribution
Cash contributions
Time : employee volunteering during paid working hours
In-kind giving: product or services donations, projects/partnerships or similar
Amount (thousand of euros)
2012
2013
2014
83 567
89 482 122 891
690
170
185
520
673
661
The LVMH Reports (as reminded above) present different initiatives which can be valued
in the field of philanthropic activities. The LVMH best practices for the year 2014 are
presented according to the following typology :
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1. Culture, Heritage and Contemporary Design :
 The first component of the LVMH corporate sponsorship program focuses on preserving artistic
heritage in France and worldwide through the restoration of historic monuments, the expansion of the
collections of leading museums, our contribution to major national exhibits and our support of the work of
contemporary artists.
o 2014 was highlighted by the opening of the Fondation Louis Vuitton on Monday, October 20,
2014, by French President François Hollande. The building housing it, designed at Bernard Arnault’s
instigation by the American architect Frank Gehry, is an outstanding venue for French and
international contemporary artistic creativity and the influence of the French capital. Truly a “cloud
of glass”, the Foundation stands in the Jardin d’Acclimatation, in the northern part of the Bois de
Boulogne, Paris. The aim of the Louis Vuitton Foundation is to support and promote contemporary
artistic creation in Paris and internationally. Its collection and exhibition schedule are in line with the
historical artistic and creative movements of the 20th and 21st centuries. The Louis Vuitton
Foundation building includes galleries holding permanent exhibitions, temporary exhibitions and art
orders. The last feature is a 350-seat (but variable) auditorium designed to host events in a range of
fields. As part of its opening art programme, the Louis Vuitton Foundation presented an exhibition
on Frank Gehry’s architectural plans for the Foundation. The exhibition was thus linked to the first
European retrospective mounted by the Pompidou Centre on Frank Gehry’s work from October
2014. From autumn 2014 to spring 2015, the opening of the Fondation Louis Vuitton will take place
in several stages, each one designed around an exhibition and a specific selection from within the
Collection, and a varied array of cross-disciplinary events.
o Drawing on its successful first edition in 2014, with over 1,200 applicants of which three very
promising winners were rewarded – designer, Thomas Tait, the brand Miuniku and the collective
Hood by Air – LVMH has launched the 2015 edition of the LVMH Prize for Young Fashion
Designers. It rewards a particularly remarkable designer for his or her talent. The winner receives a
grant of 300,000 euros, as well as a personalized mentorship from a dedicated LVMH team in
developing their company for a period of twelve months. This support includes all crucial areas of
expertise that are critical to successfully building a nascent fashion brand (including advisement on
intellectual property, sourcing, production and distribution, image and advertising, marketing). Its
jury is composed of nine creative directors of the LVMH fashion houses : Nicolas Ghesquière (Louis
Vuitton), Marc Jacobs (Marc Jacobs), Karl Lagerfeld (Fendi), Humberto Leon and Carol Lim
(Kenzo), Phoebe Philo (Céline), Raf Simons (Dior), Riccardo Tisci (Givenchy) who will be joined
this year by J.W. Anderson (Loewe). Delphine Arnault, Jean-Paul Claverie (Advisor to Bernard
Arnault and Head of Corporate Philanthropy for LVMH) and Pierre-Yves Roussel (Chairman and
CEO of the LVMH Fashion Group) will also be part of it. In the words of Delphine Arnault: “With
this second edition of the LVMH Prize for Young Designers, the Group confi rms its ongoing
dedication to young talent. It is our responsibility as leader of our industry to identify tomorrow’s
talents and help them grow.” In 2015, LVMH will continue to support the artists and other talents of
tomorrow, in particular with its second-ever LVMH Prize for Young Fashion Designers, open to
young designers the world over.
o LVMH’s primary sponsorship focus is artistic heritage in France and around the world :
restoring historical monuments, enriching the collections of major museums, contributing to highprofile national exhibits and supporting the work of contemporary artists.
 The support we have provided to more than 45 major exhibits in France and abroad has
enabled millions of museum-goers to discover great artists, both historic and present-day. In
2014, LVMH continued to be a committed patron of current artists. First it renewed its
support for two iconic contemporary installations: in spring, Monumenta, featuring Russian
artists Ilya and Emilia Kabakov; and in autumn, Nuit Blanche. .
 Moreover, in the area of live events, since backing the production of Marivaux’s Fausses
Confidences in 2013, LVMH renewed its support in autumn 2014 for the Théâtre de l’Odéon
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and its director, Luc Bondy, for the production of Jean Genet’s play Les Nègres with Robert
Wilson directing.
 Initiatives for young people : Primary and secondary school pupils as well as art students participate in
educational programs designed and started by the Group to enable them to take advantage of the richest
possible cultural experiences, particularly in the visual arts and music..
o In 2014, LVMH notably helped create a master class for young Moroccan musicians taught by
violinist Renaud Capuçon at the Arab World Institute in Paris as part of its exhibition on
contemporary Morocco.
o In 2014, LVMH renewed its support for the International Music Academy founded by conductor
Seiji Ozawa and continued the “1,000 seats for young people” initiative. Lastly, the loan of
Stradivarius instruments from LVMH’s collection year after year has helped musicians such as
Tedi Papavrami and Henri Demarquette to express their full virtuosity on the international stage.
In the field of education and youth-centered initiatives, LVMH designs and sets up educational
programs for children in elementary and middle schools as well as art students to give them greater
access to the best that culture has to offer.
2. Health and Research :
 For the last 20 years, in France and around the world, our Group has supported numerous institutions
recognized for their work for children, particularly the Paris Hospitals Foundation (Fondation des
Hôpitaux de Paris – Hôpitaux de France), the “Le Pont-Neuf ” association, “Save the Children” in Japan, the
“Robin Hood Foundation” in New York, and the Claude Pompidou Foundation, which helps elderly and
disabled people, and for which a gala benefit evening was held at the Fondation Louis Vuitton in December
2014.
 Every year, LVMH celebrates its commitment to social responsibility by holding its “Committed
Companies Dinner”. This event involves the Chief Executives of Group companies as guests at a dinner
attended by the in-house stakeholders and external service providers driving the Group’s social
responsibility measures. The second such dinner was held on 20 November 2014, with ten Group company
CEOS and more than 250 other people taking up the invitation of Antonio Belloni, Group Managing
Director, and Chantal Gaemperle, Group Executive VP Human Resources and Synergies. The dinner raised
a total of €130,000, which was passed on to the sickle-cell anaemia unit at Robert Debré Hospital in
Paris and the K d’Urgences charity helping vulnerable single-parent families.
3. Impact of the business on local communities in terms of employment and regional
development and awareness on business group’s activities :
 LVMH follows a policy of maintaining and developing employment. Thanks to the strong and
consistent growth achieved by its brands, many sales positions are created in all countries where the Group
is present, particularly as a result of the expansion of the brands’ retail networks. Net permanent job creation
consequently amounts to more than 5,000 people. [ See “9.2.” in “2014 Reference Document” (p. 84) and
“2014 Social Responsibility Report” (pp. 37-39).]
 Supporting social entrepreneurship : On Wednesday 16 April 2014, LVMH Group honoured the first
graduating year from the RISE programme (Results in Social Entrepreneurship). The principle behind
this original programme is to put future LVMH talents in touch with social entrepreneurs, thus giving our
staff additional tools with which to advance. Founded on a two-way enrichment that is beneficial to all
parties, RISE makes it possible for social entrepreneurs to receive ad-hoc and targeted help from an LVMH
Group professional. The latter benefits from the opportunity for bespoke personal development, and from
exposure to a different world and environment where creativity must be shown to deliver the best solutions
to his or her opposite number, the social entrepreneur.
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 Locally, in all countries, LVMH continues to nurture many partnerships and develop its multiple ties
with educational institutions to raise the profile of the Group’s professions. These partnerships often result in
scholarships and funding for schools training young people in the fashion and leather goods professions. As
a signatory of the Apprenticeship Charter, the Group devotes considerable efforts to the development of
apprenticeship opportunities, which facilitate young people’s access to qualifications. As of December 31,
2014, there were more than 964 young people working under apprenticeship or professionalization contracts
in all of the Group’s French companies.
 In May 2013, Parfums Christian Dior was one of the organisers of the first “2,000 jobs, 2,000 smiles”
forum. Held in Cosmetic Valley, this forum aims to make it easier for 16-25 year-olds to get their first job
by offering human contact and putting jobseekers into direct contact with recruiters from local firms. Held
first in 2013, it was repeated in May 2014 and is scheduled again for April 2015.
4. Social and professional insertion :
 Initiatives to held social cohesion and underprivileged job-seekers : The Group's companies have
developed partnerships with non-profit organisations and NGOs to support the social inclusion and
workforce integration of the most disadvantaged people. LVMH is accordingly aware of education’s role in
improving living conditions, social inclusion and workplace integration, for which the values of excellence
and skills transfer promoted by the Group act as an appropriate catalyst.
o In France, the Group has forged a lasting partnership with the charity Nos Quartiers ont des Talents
(meaning “Our neighbourhoods have talent”, after the TV programme) and joined its board. The tiein provides an opportunity for young graduates from disadvantaged backgrounds to be mentored by
working Group manager. In 2014, 92 experienced managers mentored more than 100 young people.
At the end of 2014, 95 young people were still being helped. Since 2007, 297 young people have
found work after being mentored by an LVMH Group employee. Every year, LVMH attends the
national gatherings of Nos Quartiers ont des Talents to introduce its business lines and enable direct
interaction between the company and young job-seekers.
o In 2010 LVMH formed a partnership with Montfermeil, then an extended partnership in Clichysous-Bois in 2014, two adjoining cosmopolitan towns in the suburbs of Paris. Driven by a common
desire for excellence, this partnership helps facilitate the social cohesion and inclusion of young
people from underprivileged areas. A wide range of actions are taken on behalf of young people:
“company discovery” internships offered to 50 secondary school students, tours of Group companies,
preparation of pupils attending vocational colleges, and help with job hunting. The Group helps
Montfermeil raise awareness of its cultural wealth and the talent of its inhabitants, as expressed
during the “Cultures and creation” fashion show. LVMH’s involvement entails training young
people in master classes led by Princess Esther Kamatari. Forums are held with the Group’s
designers and craftsmen (Givenchy in 2014) and Guerlain beauticians make up models on the day of
the fashion show. LVMH awards a “Young Talent” trophy, thereby giving young people who are
passionate about, but remote from, the world of fashion, the chance to become known. The 2014
“Young Talent” fashion show winner went on to exhibit his work in the Green Showroom, dedicated
to environmentally-friendly fashion, which takes place during Berlin Fashion Week. Three
individuals were spotted during the “Cultures and creation” fashion show and have joined the École
de la Chambre Syndicale de la Couture Parisienne fashion design school in Paris under an
apprenticeship contract with Group companies.
o To improve access to employment, LVMH leads Jobstyle (employment coaching) sessions
involving recruiters from Group companies and beauticians from Make Up For Ever and Sephora.
The objective is to give job-seekers the wherewithal and self-confidence to help them best prepare
for job interviews. The initiative is aimed at the disadvantaged in the job market. In 2014, twelve
sessions were held to the benefit of partners working in the fields of education, disability and social
& workplace integration. A total of 313 people attended these sessions in 2014.
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o Always with the aim of furthering access to employment based only on merit and commitment,
LVMH is a participating member of the “Réseau national des entreprises pour l’égalité des
chances dans l’éducation”, a network of French companies promoting equal opportunities in
education and training. This association arranges actions by companies in schools located in
underprivileged areas and welcomes their graduates as interns.
o The Group firmly believes that education plays a major role in insertion and that excellence is a
vector for self-improvement, and it therefore organizes and supports numerous initiatives aimed at
educating young people. In order to promote the integration of young people through education
regardless of their background or origin, LVMH supports the priority education program
(Convention d’Education Prioritaire) run by the Institut d’Études Politiques (Institute for political
studies, or Sciences Po), which offers grants to students from disadvantaged backgrounds and gives
young Sciences Po graduates the chance of being mentored by managers.
 Employment of people with disabilities: The very broad range of this commitment is illustrated in the
following different actions and results. [ See also “5.3. Employment of disabled persons” in "2014
Reference Document" (p. 79) and “2014 Social Responsibility Report” (pp. 33-34)] The employment of
individuals with disabilities also depends on prior training. LVMH chairs the ARPEJEH charity
(supporting the study aims of pupils and students with disabilities), an organisation with some 60 member
companies involved in training young people with disabilities. Group employees have spent time and energy
working on five specific actions led by the ARPEJEH to benefit these young people.
5. Disadvantaged local communities and traumatic events :
Around the world, Group companies are taking action to facilitate the population’s access to education in
countries that are underprivileged or hit by natural disasters.
 Communities in natural/environmental disaster-stricken regions : The Group regularly
demonstrates its solidarity and compassion when a natural disaster occurs.
o De Beers Diamond Jewellers is a partner of Women for Women International, which provides help
to women in war zones in Afghanistan, Kosovo and Nigeria, helping out with education and training
in women’s value and rights and entrepreneurial support.
o The “Hand in Hand for Haiti” initiative, launched by DFS after the January 2010 earthquake and
now also supported by Starboard Cruise Services, is supporting a school for the most disadvantaged
children in the region of Saint-Marc.
o Following the the earthquake and tsunami in Japan on March 11, 2011 and quite separately from
the donations made to the Japanese Red Cross for populations affected by disasters, Louis Vuitton
has decided to support various projects in Japan :
 Since 1989, Shigeastsu Hatakeyama, an oyster farmer from the prefecture of Miyagi, and his
non-profit association have been helping to improve the water in the rivers. This initiative
was an effort to purify the sea water in the region where his oysters are farmed by deciduous
trees. Following the destruction of Mr. Hatakeyama’s operation, Louis Vuitton is helping to
rebuild the oyster beds destroyed by the tsunami and is providing another two years of
assistance for the project.
 As part of the “Shigeru Ban” project known as the “Louis Vuitton Forest” project, Louis
Vuitton has financed the purchase of a forest located in Japan’s Nagano region.
 As well as assisting the oyster farmers of the city of Kesennuma (in the Miyagi prefecture),
and helping in the construction of the “LVMH Kodomo Art Maison” in Soma (Fukushima
prefecture), the Group has also been involved in rebuilding the community center in Yamadamachi (Iwate prefecture), which was completely destroyed in the 2011 earthquake. On April
18, 2013, after seven months of work, the center, the very heart of local community life, was
officially opened.
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 On March 28, 2013, Louis Vuitton Japan hosted six young women from Kamaishi at its
offices and store in Omotesando. The city of Kamaishi, located in the Iwate Prefecture, was
partially destroyed by the tsunami triggered by the massive earthquake that struck the east
coast of Japan in 2011.

Disadvantaged populations :
o Bulgari is supporting young children’s education worldwide through Save The Children.
o Meanwhile, Louis Vuitton is forging partnerships in various countries. In Brazil, for example, the
company is supporting “Spectaculu”, a programme offering disadvantaged children in Rio de
Janeiro an extra-curricular education involving artistic, cultural and vocational initiatives.
o The Sephora chain of stores supports a non-profit organisation called Toutes à l’école raising money
to educate young girls in Cambodia through the sale of a stuffed toy in its stores heading up to
Christmas. Founded in 2005 by Tina Kieffer, the charity Toutes à l’Ecole (meaning “all girls at
school”) provides top quality education for young girls in emerging countries, to turn them into
educated women. Sephora’s help meant 100 girls could be given an education in 2011.
o The initiatives undertaken by Parfums Christian Dior in recent years include the support given to
Free The Children, an international charity for which Natalie Portman is an ambassador, the aim of
which is to free children from poverty and exploitative labour and to set up education programmes.
o Look Good, Feel Better : Guerlain has been a “belle & bien” board member since 2004. This
charity, originally formed in the United States in 1989 under the auspices of the “Look Good, Feel
Better” programme, organises skincare and make-up workshops for women undergoing cancer
treatment. In 2014, Guerlain organised the event with a partnership around the launch of its
Mademoiselle Guerlain scent. A part of the profits raised from the sale of the scent, and during
World Cancer Day 2015 will be donated to the charity. Guerlain sales advisors are taking up the
baton in sales outlets. As trained beauticians, they provide support to Look Good Feel Better by
promoting its work to customers. This year, some Guerlain sales staff, aware of the charity’s efforts,
decided to join the belle et bien team as volunteers, independently of the company. This personal
commitment comes in addition to the skincare and make-up products already donated for the beauty
workshops organised by the charity in 23 French hospitals, eight outside Paris. Parfums Christian
Dior, meanwhile, attends skincare and make-up workshops organised for women cancer sufferers to
help them regain self-confidence and self-respect by looking after their appearance. The charity has
been receiving donated make-up products since 2011.

Fair Trade :
o Conservation Cotton Initiative Uganda (CCIU) : As an example in the field of Community
Engagement, in 2009, LVMH bought a 49% stake in Edun a pioneer in ethical fashion. LVMH
provides essential support, investment and infrastructure to help Edun grow the business into a
global fashion brand and support its vision to grow trade in Africa. Together with the Wildlife
Conservation Society and Invisible Children, Edun set up the Conservation Cotton Initiative Uganda
(CCIU) in 2008. Based in Gulu in the northwest of Uganda, an area which until recently was
devastated by civil war, the CCIU programme currently supports 5,000 farmers and their families.
The CCIU programme is managed by TechnoServe and enables Edun to affect change at the start of
the supply chain. This year Edun is proud to introduce CCIU cotton into the production of its Kenya
Kids Tees and Edun Basics for its fashion collection. Also, the Edun T-shirt line, Edun Live,
primarily uses CCIU cotton.
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6. Environmental commitment :
In the field of environment and conservation of biodiversity, LVMH is involved in different partnerships
with national and international organizations, local authorities and training institutions.
 Project partnerships and professional collaboration : LVMH makes a point of forming a variety of
partnerships with national and international non-profit organizations, local authorities and educational
institutions. The Group and its Maisons are involved in a number of technical projects that contribute to their
local authority expertise and to environmental discussions with other business leaders.
o LVMH partnered with the European Commission for the 14th edition of Green Week, which was
held in Brussels between June 3 and 5, 2014. To mark the 2014 event, which focused on the circular
economy and the efficient use of resources and waste, the Environmental Department designed
three factsheets, which it sent to all Group employees. The first factsheet introduced the circular
economy. The second provided details of the best practices that have already been introduced in this
area by LVMH. The third factsheet was dedicated to CEDRE, LVMH’s waste recycling platform.
Several Houses also rebroadcast the event, like Louis Vuitton, which celebrated Green Week at its
Barbera Workshop.
o In November 2014, LVMH joined the eight public research bodies that are members of the Board of
Directors of the Biodiversity Research Foundation (FRB). The Group has acquired the status of a
founding member of the Foundation, and now contributes to its financing by providing it with a grant
every three years.
o The LVMH Group is also a member of the non-profit association Orée (Entreprises, territoires et
environnement). The Group is involved on an ongoing basis in Business for Social Responsibility
(BSR), in the Responsible Ecosystems Sourcing Platform (RESP) and in the Leather Working
Group (LWG).
o As part of a five-year partnership signed between LVMH and CIRAIG (Interuniversity Center for
Research on the Lifecycle of Products, Processes and Services), based at the École Polytechnique in
Montreal, Loewe took part in the design of a tool for assessing the environmental performance of
leathers, with a view to identifying key criteria (water and energy consumption, and use of
chemicals) as a basis for developing eco-design.. The Group’s Houses also form their own academic
partnerships. For instance, Belvedere signed an agreement with the Lodz Technological University in
2005, which enables it to reward the best theses in the biotechnology field every year.
o LVMH continues to make regular presentations to major business schools (ESSEC and HEC) and
universities about the environmental challenges faced by its business groups and operations.
o Over the past few years, the Group Houses that are historically linked to the bee via the symbols on
their emblems have committed to protecting this crucial link in the pollination chain and the longterm survival of certain plants.
 Louis Vuitton was the first House in the Group to install hives at some of its facilities (the
Head Office building at the Pont Neuf in Paris, the Cergy-Pontoise logistics facilities and the
Hong Kong warehouse). But rather than corporate sponsorship, the House chose a four-year
study and research partnership with the CNRS (French National Scientific Research Centre)
on the theme of “Bees in cities – Bees in fields” which aims to understand why bees are
healthier in urban environments than in rural ones.
 When the Abeille Royale franchise was created, Guerlain signed a corporate sponsorship
agreement with the ACANB/Association Conservatoire de l’Abeille Noire Bretonne de l’Ile
d’Ouessant (the Organization for the protection of the Ouessant Island Black Brittany Bee),
which manages 150 hives. The House provides financial support to the organization, helps it
showcase the initiatives implemented, and provides it with legal support. Accordingly, the
organization was able to purchase an electric vehicle in 2014, so as to move around the island
without generating any pollution. Guerlain’s commitment earned it the 2013 “Coup de
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Coeur” Sustainable Development Sponsorship Trophy awarded by the French Ministry for
the Environment, Sustainable Development and Energy.
 Chaumet launched the “Save the Bees” campaign with the Terre d’Abeilles Organization,
which it has been supporting since 2002. Each bee jewelry item in its “Catch me… if you
love me” collection helps to support the program to protect bees and initiatives to forefront
the value of bees, aimed at their inclusion in the UNESCO World Heritage list.
 The Group’s Maisons form flagship partnerships whose primary goal is to support the environmental
messages carried by the brands.
o TAG Heuer put the year to good use in strengthening its ties with the environment; these ties have
become increasingly strong over the past 10 years. As a historical partner for Formula One, the
House currently supports the FIA Formula E (the new 100% electric racing championship in the
automobile world), the first race of which took place in Beijing on September 13, 2014.
o

This approach notably resulted in fund-raising campaigns organized with Leonardo DiCaprio, the
American actor, for the benefit of the Natural Resources Defense Council (NRDC) and Green Cross
International, two international NGOs that are very active in the environmental protection field.
Sponsorship with a high local environmental impact :
o Guerlain has dedicated the Orchidarium, a research center like no other in the world to orchids,
which are one of its emblematic raw materials. The Orchidarium consists of three units: a
fundamental research laboratory in Strasbourg, France; an experimental garden in Geneva,
Switzerland and an exploratory reserve in Tianzi, in China’s Yunan Region. Guerlain signed a 10year corporate sponsorship agreement with the Tianzi Reserve in 2009. The agreement allows
Guerlain to take action in four areas: re-establishing and protecting the tropical forest, introducing
and growing orchids of all kinds (aside from those required to supply the House), transmitting knowhow to the people who work in the Reserve, and protecting the Region’s animal and plant species.
Since the beginning of the partnership, the number of orchids replanted in Tianzi has reached 10,000,
and they were awarded the BIO certification issued by Ecocert in 2014.
o Furthermore, over the past few years, Guerlain has been setting up a sustainable vetiver supply
channel in Southern India, enabling it to ensure the availability of a raw material with significant
olfactory properties. Together with the local population, the House is developing a controlled and
environmentally-friendly cultivation of vetiver on the high plateaus overlooking the city of
Coimbatore. All of the plant is used, in order to produce perfume, as well as to plant new cuttings
and feed cattle. Its roots limit soil erosion, and increase the soil’s moisture content and fertility. In
addition, this industry has enabled the creation of a new economy for the region. In 2014, Guerlain
launched a study that will enable an irrigation program to be designed in order to help to grow crops.
o In February 2012, the French National Forests Office (ONF) and Moët Hennessy, LVMH’s Wines
& Spirits business group, signed a three-year environmental sponsorship agreement to promote
biodiversity protection and the sustainable development of the Montagne de Reims state forests in
France’s Marne region. The program is being conducted near two of Moët Hennessy's iconic heritage
sites: the Manoir de Verzy and the Abbaye d’Hautvillers. The sponsorship agreement will enable the
ONF to undertake original restoration and development programs.
o In 2014 Louis Vuitton renew its partnership with La Réserve des Arts®, a platform that retrieves
and recovers waste from companies for professionals in the creative arts. As part of this partnership,
collections are organized on a regular basis at the House’ Head Office business units, its Asnières
Workshop, and its Cultural Facility, for the benefit of costume designers, architects, young artists,
choreographers, and sculptors. In 2013, a partnership was signed between its New York equivalent,
Material for the Arts, and the Louis Vuitton headquarters in New York. The partnership included a
collection and education initiative during Earth Day on April 22, 2013.
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o Glenmorangie making a commitment to the Dornoch Estuary : To draw attention to the
importance of the Scottish seas, coastline and animal species, Glenmorangie launched a limited
edition named after Dornoch, a Scottish estuary, an area of outstanding natural beauty which is now
protected. A percentage of the sales has been passed onto the Marine Conservation Society (MCS),
which is in charge of maintaining and protecting the estuary.
Criterion 17: The COP describes advocacy and public policy engagement:
Blueprint For Corporate Sustainability Leadership
Advocacy and Public Policy Engagement:
 Publicly advocate the importance of action in relation to one or more UN goals/issues:
 Commit company leaders to participate in key summits, conferences, and other important public
policy interactions in relation to one or more UN goals/issues:

International agreements supported by LVMH :
o Universal Declaration of Human Rights
o United Nations Global Compact
o OECD Guidelines
o International Labour Organization conventions
o Caring for Climate (voluntary and complementary action platform for UN Global Compact)
o Millennium Development Objectives
o CITES Conventions (on International Trade in Endangered Species)
o Kimberley Process
o LVMH is notably a signatory, in France, of the Diversity Charter and the Enterprise Charter for
Equal Opportunity in Education.
o After the chief executives of Group companies in Europe signed the UN’s
Women’s Empowerment Principles (WEP) in November 2013, all the Group
2014-15
companies in the USA signed on 7 October 2014. By the end of 2014, a total
of 41 Group companies were therefore committed to adhering to the seven principles in the WEP.
Demonstrating the Group’s culture of male-female equality, the principles concern education,
training and professional development of women as well as a commitment towards gender equality
at the highest level within a company.
 In 2014, the LVMH Environmental Department participated in a number of international conferences
and events. Maisons are also involved in a number of technical projects that contribute to their local
authority expertise and to environmental discussions with other business leaders. [ See “2014
Environmental Report” (p. 35).]
o Concerning Nagoya protocol see pp. 52-53 and pp. 83-84 in the COP 2015.
o LVMH partnered with the European Commission for the 14th edition of Green Week, which was
held in Brussels in June 2014 which focused on the circular economy and the efficient use of
resources and waste.
o
“French Sustainable Development Week” held between April 1 and 7, 2014, is a major annual
meeting and an opportunity for a large number of the Group’s Maisons to showcase their
commitment to sustainable development.
o As an extension of the World Water Day, a number of initiatives were rolled out by Maisons from
Wines & Spirits.
 See “Project and Research Partnerships” and “Environmental Corporate Sponsorship”. [ “2014
Environmental Report” (pp. 30-34).]
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Criterion 18: The COP describes partnerships and collective action :
Blueprint For Corporate Sustainability Leadership
Partnerships and Collective Action:
 Develop and implement partnership projects with public or private organizations (UN entities,
government, NGOs, or other groups) on core business, social investments and/or advocacy:
 Join industry peers, UN entities and/or other stakeholders in initiatives contributing to solving
common challenges and dilemmas at the global and/or local levels with an emphasis on initiatives
extending the company’s positive impact on its value chain:
 See :
 "2014 Reference Document" :
- “9. Relations with third parties” (pp. 83-86)
- “1. General Environmental Policy” (pp. 89-90)
- “5. Protecting Biodiversity” (p. 97).
 "2014 Environmental Report" :
- “FRB”, “professional exchanges” and “project and research partnerships” (pp. 28-31)
- “Environmental corporate sponsorship” (pp. 32-33).
 "2014 Social Responsibility Report" :
- “Relationship with stakeholders” (p. 11)
- “Relationship styles with stakeholders” (p. 13)
- “Main LVMH Group partnerships” (p. 14)
- “Supporting local communities and local area development” (pp. 38-44).
The Group LVMH is involved in several dialogue and partnerships with different categories of stakeholders
from civil society. Due to the diversified and decentralized nature of its activities, the Group has defined
general principles as regards stakeholder engagement that are circulated to the management of its Brands
and subsidiaries. Each company is in charge of the management of its brand, according to its own processes,
according to the Group's mission and values. Thus, each brand has its own method of brand strategic
management, aimed at enhancing its financial value and reputation. Consequently, the relations with
global or international stakeholders is taken into account by the different members of the CSR
Steering Committee while each LVMH brand, depending on its priorities and local challenges,
determines its key stakeholders and implement it’s own stakeholder engagement.
Many consultations and partnerships are implemented by LVMH with its main
stakeholders. The LVMH initiatives for the year 2014 are presented according to
the following typology.
2014-15
1. Governments and international institutions :
 LVMH partnered with the European Commission for the 14th edition of Green Week, which was held
in Brussels in June 2014. To mark the 2014 event, which focused on the circular economy and the efficient
use of resources and waste, the Environmental Department designed three factsheets, which it sent to all
Group employees. The first factsheet introduced the circular economy. The second provided details of the
best practices that have already been introduced in this area by LVMH. The third factsheet was dedicated to
CEDRE, LVMH’s waste recycling platform. Several Houses also rebroadcast the event, like Louis Vuitton,
which celebrated Green Week at its Barbera Workshop.
 After committing in 2011 to France’s National Strategy for Biodiversity (SNB) 2011-2020, presented
by the French government on the eve of International Biodiversity Day on May 22, 2011, the LVMH Group
was awarded “National Strategy for Biodiversity Recognition” in October 2012 by the French Ministry of
Ecology, Sustainable Development and Energy for its project entitled “Improving, from upstream to
downstream, the footprint on biodiversity of LVMH activities”.
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 In the Wines and Spirits business group :
o Since January 2011, several plots in the Hennessy vineyard have been included in the “StandardSetting Farms”, a network that was formed as part of the Ecophyto 2018 Program. This program
was launched by the French Ministry of Agriculture in 2008 following the Grenelle Environmental
Round Table, and aims to gradually reduce the use of plant health products in France, while
maintaining a high level of agricultural production, in terms of both quantity and quality.
 The action plan implemented at the standard-setting Hennessy farm provides for efforts to
reduce the doses of products used, the use of sprayers with recovery panels, and the use of
natural plant-based products in order to prevent mildew, among other measures.
 At the same time, Hennessy has taken measures to promote biodiversity, by rolling out
several agro-environmental measures at its La Bataille and Le Peu domains. 11 hectares of
experimental fallow land, including a mix of nectar-rich plants and nematicides, have been
sown on plots where the vines were pulled up in early 2014. This mix, which was designed in
partnership with the French Vineyard and Wine Sciences Institute, Vitinnov, Bordeaux
Science Agro, and a seed supplier, will enable the soil to be prepared before replanting, while
flowering and enhancing the area.
o Bodegas Chandon is also part of the “clean production” program, supported by the Mendoza
Environment Secretary and the Inter-American Development Bank (IADB). The program’s aim
is to foster synergies between the government and wine-production businesses in order to train and
educate suppliers, provide information to the general public and increase the percentage of material
that is recovered and recycled.
 As a reminder, between 2011 and 2013, LVMH has participated, with Sephora, in the French
government’s trial of environmental labeling. [ See "2013 Environmental Report" (p. 22).]
2. Local authorities and regions :
 Impact of the business on local communities in terms of employment and regional development : A
number of the Group’s companies have been established for many years in specific regions of France and
play a major role in creating jobs in their respective regions :
o Parfums Christian Dior in Saint-Jean de Braye (near Orléans), Veuve Clicquot Ponsardin and Moët
& Chandon in the Champagne region, and Hennessy in the Cognac region have developed longstanding relationships with local authorities, covering cultural and educational aspects as well as
employment.
o Sephora, which has stores throughout France (two-thirds of its workforce is employed outside the
Paris region), regularly carries out a range of measures encouraging the development of job
opportunities at the local level.
 Open innovation :
o With Hélios (the new research center at the Saint-Jean de Braye site inaugurated in November 2013),
LVMH Research is further strengthening its presence in Cosmetic Valley, the area a short distance
from Paris where fragrance and cosmetics expertise is concentrated.
 Alongside public and private sector players, LVMH’s R&D division is contributing to the
area’s long-standing record of innovation. A prime example of this is Cosmet’up, a project
which encourages sharing via a process of “open innovation”. Hélios is already establishing
itself as a major technological platform in fragrance and cosmetics. In six separate buildings
covering 18,000 m², the center houses 280 researchers and more than 20 areas of
specialist expertise in an open working environment, designed to encourage the exchange of
information.
 Its state-of-the-art equipment and ultra-modern connector technology are open, not merely to
LVMH Research personnel, but also to their various partners, notably via the Cosmet’up
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initiative, which has been implemented in 2014. Initiated by LVMH Research and promoted
by Cosmetic Valley, Cosmet’up is based on the establishment of two “technological mirror
entities”: one at the University of Orléans for fundamental research, the other at Hélios for
individual support in concept validation. The objective is to further strengthen the longstanding ties between LVMH Research and its partners in Cosmetic Valley, from university
researchers to micro-businesses and SMEs, in order to nurture exchanges of information and
ideas that will benefit all the sector’s key players. With Cosmet’up, both individuals and
start-ups can, for a symbolic contribution, gain access to office and laboratory space within
Hélios, enabling them to validate cosmetic-related concepts.
 In addition, selected micro-businesses and SMEs can also benefit from access to state-ofthe-art materials and equipment that they are not in a position to acquire, on the basis of time
billing. This represents a valuable boost for fragile structures, which can thus complete their
experiments in optimum conditions, with access to expert scientific back-up and advice.
 The center also receives assistance from research facilities in Japan and China that help
support the pursuit of partnerships on strategic projects. The research done in 2014 has made
it possible to improve the knowledge regarding Asian skin types in connection with lifestyle
and environmental factors.
 In cosmetics safety testing, LVMH Recherche completed the development of alternative
methods based on contact allergy specific biological mechanisms identified over the course
of multiple university contracts in the past ten years.
o In France, for example, Louis Vuitton attends local committees on issues involving waste and energy
organized by the Cergy Urban District. The House is also involved in facilitating the PLATO SME
network with the Val d’Oise Chamber of Trade and Industry. In 2012 a pilot agreement was signed
to collect and recycle waste from the business parks in this urban center. Teams from the Cergy
warehouses promoted their logistics site's best practices at meetings of the Versailles Chamber of
Commerce and Industry (energy efficiency), the Val-d'Oise Prefecture and DRIEE [Regional and
Inter-department Environment and Energy Department] (energy efficiency), and the University of
Cergy-Pontoise (sustainable logistics).
3. Research and professional exchanges with organizations :
 Responsible Jewellery Council (RJC) : LVMH’s Watches and Jewelry business group is a member of
the Responsible Jewellery Council (RJC), an organization bringing together more than 550 member
companies committed to promoting ethical behavior, human rights and social and environmental practices
throughout the industry, from mine to point of sale. The RJC has developed a certification system designed
particularly to ensure that the diamonds used in manufacturing do not come from conflict zones. The
Kimberley Process requirements are applied to diamonds. Kimberley certification requires the input of
independent, accredited auditors. The Watches and Jewelry companies have all been certified according to
the Code of Practices (2013 version).
 Biodiversity and sourcing : In order to strengthen the methodological discussion of the environment and
biodiversity, the LVMH Group is a member of the non-profit association Orée and the institute Inspire, and
is vice-chair of the Strategic Policy Committee of the Foundation for Biodiversity Research (FBR).
o In November 2014, LVMH joined the eight public research bodies that are members of the Board of
Directors of the Biodiversity Research Foundation (FRB). The admission of LVMH to the FRB
Board of Directors also reflects its involvement alongside the Foundation, which the company has
been supporting for over six years. The partnership between LVMH and FRB has resulted in a
significant amount of research. For instance, at the Group’s request, the FRB conducted a study
aimed at gaining a better understanding of the complexity of the issues relating to the application of
the Nagoya Protocol. This Protocol, which was adopted in 2010, establishes the principle of access to
and sharing benefits, and aims to govern the relationship between a supplier of genetic resources and
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a user during research and development activities. The experts gathered by the Foundation met the
LVMH Perfumes & Cosmetics Research Team, and carried out several assignments in order to
gather information from operators in two supply sectors (Aframomum Angustifolium from
Madagascar, and Anogeissus Leiocarpus from Burkina Faso). They were therefore able to make a
series of recommendations regarding the use of natural substances and accessing and sharing benefits
in the cosmetics industry.
o In order to promote more responsible practices among its suppliers in leather, LVMH is involved on
an ongoing basis in Business for Social Responsibility (BSR) and in the Responsible Ecosystems
Sourcing Platform (RESP) by participating in the working subgroups dealing with the tracability of
exotic leathers, colored stones, wool and certain plant species. Since 2012 LVMH has also been a
member of the Leather Working Group (LWG), a British industry association which has a system
that gives environmental ratings to tanneries and assesses the traceability of hides. LVMH is also a
member of Orée association (Organisation pour le Respect de l’Environnement or the Organization
for the Protection of the Environment), which brings together companies, regional authorities,
professional and environmental organizations, and institutions, in order to review environmental best
practices and ways of encouraging integrated management of the environment at a regional level.
o As part of a five-year partnership between LVMH and CIRAIG (Interuniversity Research Center for
the Life Cycle of Products, Processes and Services, based at the École Polytechnique de Montréal),
Loewe is working on a project to assess the environmental performance of leather. The goal is to
systematically include environmental criteria in the choice of supplier, classify leathers according to
performance, and educate designers to encourage the use of the most environmentally friendly
leathers. In this context, Loewe took part in the design of a tool for assessing the environmental
performance of leathers, with a view to identifying key criteria (water and energy consumption, and
use of chemicals) as a basis for developing eco-design. The Group’s Houses also form their own
academic partnerships. For instance, Belvedere signed an agreement with the Lodz Technological
University in 2005, which enables it to reward the best theses in the biotechnology field every year.
 Other Maisons are also active, such as Bodegas Chandon, which is a member of the Sustainable
Development Commission of "Argentina Wineries", a trade association whose main goal is to define and
set the parameters for the wine industry's key sustainability indicators when it comes to water and energy
consumption.
 Partnerships for bees : For several years, the Group’s Maisons – particularly Chaumet, Guerlain and
Louis Vuitton – have been supporting bee protection initiatives in partnership with the Terre d'abeilles nonprofit association, the Ouessant Black Bee Conservatory (ACANB), the Ile-de-France Black Bee
Conservatory (CANIF) and the CNRS. In 2011, Louis Vuitton also signed a three-year sponsorship
agreement with the CNRS (France’s National Center for Scientific Research) for a project entitled “City
bees - Country bees,” the goal of which is to understand why bees fair better today in urban areas than rural
ones. A study released in 2012 addressed biodiversity at Louis Vuitton’s Cergy 1 and Cergy 3 sites (flora,
birds, butterflies).
4. NGOs : By supporting FIA Formula E, TAG Heuer is also following an environmental corporate
sponsorship approach that it began around 10 years ago. This approach notably resulted in fund-raising
campaigns organized with Leonardo DiCaprio, the American actor, for the benefit of the Natural Resources
Defense Council (NRDC) and Green Cross International, two international NGOs that are very active in
the environmental protection field.
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5. Consumers and public :
 Responsible consumption : In the field of responsible consumption, the Group’s Wines & Spirits
Maisons are committed to responsible alcohol consumption. Moët Hennessy pursued its commitment to
responsible alcohol consumption in 2014 supported a large number of responsible drinking programs
throughout the world in 2013 (“Wine in Moderation”, ICAP programs,…).
 Stakeholders’ requests : The ability to answer questions from stakeholders, including customers, about
the environment is a key aspect of LVMH’s environmental performance.
o Any member of the public should be able to find contact persons at the Group’s Houses and
stores and obtain valuable information on its environmental initiatives. Most Houses focus on
making all their employees ambassadors for their environmental protection policy. They draw up
training courses and talking points for them, and even distribute handbooks in order to help the store
personnel to answer certain questions, such as those relating to the REACH Regulations, or to
Responsible Jewellery Council certification. At the same time, the Houses anticipate questions from
stakeholders by communicating their environmental initiatives and by placing significant emphasis
on the information available to the general public on their websites, often under headings dedicated
to the environment.
 At Bulgari, a multi-disciplinary team was set up in 2013 to centralize in-house information
and manage all customer queries. The official procedure is communicated in compliance with
the Group-defined procedure when addressing any queries regarding the REACH regulation
Bulgari also has an intranet page and tools dedicated to environmental data.
 In May 2013, Louis Vuitton also posted new editorial content on its website along with
additional information about the challenges of “Information on environmental initiatives”
aimed at customers. Louis Vuitton updated the environmental section of its website shortly
after the official publication of its report on greenhouse gases. The REACH Regulation, and
the Responsible Jewellery Council certification of the Watches & Jewelry business, are
presented in the guides distributed to sales associates in stores; these handbooks set out the
procedure for responding to customer queries. The “CSR ambassadors” and the
“environmental ambassadors” appointed in stores, notably in Japan and Italy – pass on
information and are ready to answer customers’ questions on our social responsibility
commitments. This effort is helped with data sheets on specific topics which are prepared for
customers to read.
o The very stringent requirement on cosmetic products guarantees the safety of our cosmetics,
not just at the time they are placed on the market, but also while they are being marketed. A
customer relations network has been set up so that we can review all complaints from our customers
and carry out cosmetic vigilance of our products. Any complaint, whether an intolerance or a severe
irritation, is reviewed by a specialized team and assessed by a professional, and may result in the
consumer being offered a consultation with a dermatologist. Lastly, by analyzing these complaints
and exercising cosmetic vigilance, we can explore new avenues of research and improve the quality
of our products.
 See “2014 Environmental Report” (pp. 43-45).
 Public : Many Houses organized internal and external events involving public, partners or suppliers as
part of different Sustainable Development events as the : “European Sustainable Development Week” (in
April), “European Mobility Week” (in September) and “European Week for Waste Reduction” (in
November). Major events provide LVMH and its Houses with a privileged framework for demonstrating
their commitment to the environment.
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o This is particularly the case with National Sustainable Development Week, which is organized
once a year by the French Ministry for the Environment and Sustainable Development, in order to
raise the French public’s awareness of sustainable development issues and to encourage everyone to
adopt responsible behaviors. The 2014 event, which was held between April 1 and 7 on the theme of
the transition to a low-carbon economy, was no exception to the rule.
 To mark the occasion, Make Up For Ever for the third year running organized the “For Ever
Week”, enabling it to raise employees’ awareness of sustainable development over the course
of a week. Several initiatives were implemented, such as increasing awareness of the
environmental impact of transport, and of the best practices to adopt in this area. These were
relayed by the blog launched by the House in 2013 for employees at all its French sites to
share their environmental information and experiences.
 The Houses in the “Wines & Spirits” business group presented examples every day of
initiatives implemented by their teams to reduce energy consumption as part of the energy
performance plans launched several years ago at their various facilities. They also raised the
general public’s awareness of positive gestures for the environment, primarily by organizing
a conference on responsible consumption, and giving drivers an opportunity to try out the
Zoe electric car. The Hennessy House is heavily involved in sorting and recovering the waste
that it generates, from the waste generated by its production activities to the plastic bottles
and paper used in its offices. Over a period of five years, thanks to the efforts made by all of
the House’s employees, the percentage of waste recovered increased from 87% to 92% in
2013, making the House an example to follow in terms of recovering waste.
 International Sustainable Development Week provided an opportunity to assess the scope of
the initiatives implemented, and to highlight this topic via a film broadcast on the Intranet,
and a quiz distributed to all employees. Louis Vuitton showcased its international EOLE
Logistics Center, the first warehouse to be awarded High Environmental Quality (HEQ)
certification in France. The House also broadcast a film presenting the approach that enabled
the facility to become a standard-setter in the sustainable construction field.
o The next Group’s “Journées particulières de LVMH” will be organized in 2016. June 15 and 16,
2013 saw the second edition of the Group’s “Journées particulières de LVMH”. Over 120,000
visitors had the opportunity to go behind the scenes at 42 flagship locations of the LVMH Group
companies and meet hundreds of artisans.
 Local residents : For the renovation of La Samaritaine, various informational meetings were held before
and during the clearing and asbestos removal work, as well as during the project’s development phase. A
"model house" containing all the appropriate presentation media was opened to the public and provided
information about the site's history and specific features of the project's architecture. Local residents and the
town hall of the 1st arrondissement were fully involved in the information and consulting process,
particularly with regard to how the project would impact the Rue Baillet, which is adjacent to the La
Samaritaine building. [ As a reminder see "2013 Environmental Report" (p. 16).]
6. Suppliers : LVMH places a priority on maintaining and promoting stable relations with responsible
partners (suppliers, distributors, subcontractors, etc.).
 See more particularly “Support of suppliers” (pp. 19-21 in the COP 2015).
7. Universities and Business Schools : Many events were organized along these lines, together with
schools and universities across various professions, regions, and levels of qualification.
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 Partnerships and multiple ties with educational institutions to raise the profile of the Group’s
professions : Over the course of 2014, LVMH strengthened its appeal to leading colleges and universities,
organizing partnerships and events worldwide to promote the Group’s image and Group companies to upand-coming talents while reaffirming its commitment to be a fully-fledged partner.
o These ties include the Chair in luxury brand marketing at the ESSEC business school, which will be
25 years old in 2015; the Luxury Business Management Track with SDA Bocconi in Italy; the
awarding of study grants to students at the Central Saint Martins College of Art and Design; and the
Luxury Track at Singapore Management University.
o In January 2015, LVMH celebrated the 25th anniversary of its ESSEC chair. For the 25th year
running, LVMH is supporting 20 ESSEC business school students with a chair whose teaching is
dedicated to luxury and its specific challenges. This ambitious program trains talented individuals
with the ambition to join the luxury industry (http://www.lvmh.com/news-documents/news/lvmhcelebrates-the-25th-anniversary-of-its-essec-chair/). ESSEC (the LVMH Chair in Luxury
Marketing), HEC (integration seminar for foreign students) and Sciences Po (grants for students
from the French Antilles), are partner in the CEMS network (a global alliance between international
corporations and leading business and management schools).
o A special effort was made in 2014 to increase the Group’s appeal to engineers, and it began a new
strategic partnership with the Supply Chain Chair and the École Centrale Paris engineering-focused
university, and was the official sponsor of the annual business forum, the X-Forum, at the prestigious
engineering school École Polytechnique in November 2014.
o A new initiative launched in 2014 testifies to the Group’s desire to better meet Group companies’
current and future needs and demands. The Institut des Métiers d’Excellence (IME) crafts and
design vocational training institute provides professional training leading to qualifications and
certificates, enabling the Group to transfer craft and design skills to the younger generation. The first
partnership agreements have been signed with the École de la Bijouterie et Joaillerie jewellery
school, the École de la Chambre Syndicale de la Couture Parisienne fashion design school in
Paris (CSCP) and the “flexible materials” (leather, fabric, etc.) branch of the École des
Compagnons du Devoir et du Tour de France association of craftsmen. The Institut des Métiers
d’Excellence is the only training programme that partners leading schools to deliver a staterecognised qualification and that encourages young people into employment by promoting use of
courses in the areas of crafts and design. Its objective is thus to showcase the key role played by
apprentice masters and mentors in passing knowledge and skills on to younger generations. LVMH
is planning to seal other partnerships in the areas of leather goods, visual merchandising and client
advisors.
o In May 2014, Business of Fashion launched BoF Careers, the “global marketplace for fashion
talent”. LVMH Group was involved in the launch as one of the main partners. The only talent pool of
its kind, BoF Careers has positioned itself as a crossroads where talent and the leaders of the luxury
and fashion industries can meet. In this regard, LVMH Group has launched its own careers page
(http://www.businessoffashion.com/lvmh). A true portal into the Group, the first stop for serious
jobseekers, it includes a large number of vacant positions, covering the whole product lifecycle, from
design to distribution.
o In Poland, Belvedere has been partnered since 2005 with the University of Technology in Lodz
with the goal of rewarding the best dissertations in the field of biotechnology and conducting
collaborative scientific research leading to training and employment contracts.
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Corporate Sustainability Governance and Leadership
Criterion 19: The COP describes CEO commitment and leadership :
Blueprint For Corporate Sustainability Leadership
CEO Commitment and Leadership :
 CEO publicly delivers explicit statements and demonstrates personal leadership on sustainability
and commitment to the UN Global Compact :
 CEO promotes initiatives to enhance sustainability of the company’s sector and leads development
of industry standards :
 CEO leads executive management team in development of corporate sustainability strategy,
defining goals and overseeing implementation :
As a reminder, on October 17, 2013, the LVMH Group celebrated twenty years of environmental
initiatives in the presence of 250 sustainable development experts from within and outside the Group.
During this event, the Group reported on the progress made over the last two decades and set challenges for
the coming years. Antonio Belloni, Group Managing Director, noted that “the luxury sector is inherently
aware of the environment and LVMH takes this environmental concern to heart”.
1. Commitment and involvement at the highest level :
The long-term corporate sustainability strategy is led by the Group and its Maisons under the responsibility
of the Board of Directors and the Executive Committee.
 The declarations and commitments in the field of CSR and sustainable development have been approved
by Bernard Arnault, Chairman and Chief Executive Officer.
 Responsibility for implementation : « The Board of Directors of LVMH, to which the Executive
Management of the Group submits each year a report on the implementation of the Code’s principles, will
be the body which ensures its correct application. In accordance with the principle of subsidiarity inherent
to LVMH, the executive management team of each operational and legal entity is responsible for compliance
with the principles of this Code. Any employee who notices a non-conformity to one of the principles
stipulated within the Code should inform his or her hierarchy. » [ See "LVMH Code of Conduct" p. 19].
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According to the "Charter of the Board of Directors", the mission of the Board of Directors is especially
to :
- disseminate the collective values that guide the Company and its employees and that govern
relationships with consumers and with partners and suppliers of the Company and the Group ;
- promote a policy of economic development consistent with a social and citizenship policy based on
concepts that include respect for human beings and the preservation of the environment in which it
operates.
 See "2014 Reference Document" (p. 236).
2. Corporate Committees :
 See more details in “Criterion 1: The COP describes mainstreaming into corporate functions and
business units” (pp. 6-7 in the COP 2015).
2.1. Steering Committee : The "LVMH Code of Conduct", adopted in May 2009, summarizes the contacts
responsible for ensuring CSR implementation and compliance within a dedicated Steering Committee:
Sylvie Bénard (Environmental Affairs Department), Chris Hollis (Financial Communications Department)
and Christian Sanchez (Social Development Department). The collaboration developed between LVMH and
the Houses allow discussing the stakes concerning sustainable development and CSR through different tools
and meetings : committees and specific international networks (social, environment, supply chain,
communication...), local committees, annual conventions, working groups, collaborative tools, events, etc.
2.2. Strategic Committee : A Strategic Committee was set up in 2014 with the mission
2014-15
of providing proactive analysis of matters related to the Group’s social and environmental
responsibility; this mission is carried out in close collaboration with the operational
departments in the business groups and Group companies. These studies and decisions, made well in
advance, must make it possible to prevent media crises harmful to the reputation of LVMH’s brands.
Criterion 20: The COP describes Board adoption and oversight :
Blueprint For Corporate Sustainability Leadership
Board Adoption and Oversight :
 Board of Directors (or equivalent) assumes responsibility and oversight for long-term corporate
sustainability strategy and performance :
 Board establishes, where permissible, a committee or assigns an individual board member with
responsibility for corporate sustainability :
 Board (or committee), where permissible, approves formal reporting on corporate sustainability
(Communication on Progress) :
 According to the "Charter of the Board of Directors" [ see "2014 Reference Document" (p. 236)], the
mission of the Board of Directors is particularly to :
- disseminate the collective values that guide the Company and its employees and that govern
relationships with consumers and with partners and suppliers of the Company and the Group ;
- promote a policy of economic development consistent with a social and citizenship policy based on
concepts that include respect for human beings and the preservation of the environment in which it
operates.
o Set up in 1992, the Environmental Department defines the Group’s strategy and as such reports to
Antonio BELLONI, Group Managing Director of the Executive Committee and member of
Board of Directors.
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o The Social Development Department defines the Group’s strategy in the field of Social
Responsibility and as such reports to Mrs Chantal GAEMPERLE, Director of Group Human
Resources and Synergies and member of the Executive Committee.
 The reporting on corporate sustainability is approved by the Board of Directors.
Criterion 21: The COP describes stakeholder engagement :
Blueprint For Corporate Sustainability Leadership
Stakeholder Engagement :
 Publicly recognize responsibility for the company’s impacts on internal and external stakeholders :
 The "LVMH Code of Conduct", adopted in May 2009, summarizes the contacts responsible for ensuring
CSR implementation and compliance within a dedicated CSR Steering Committee and since 2014 a
Strategic Committee.
 See more details in “Criterion 1 : The COP describes mainstreaming into corporate functions and
business units” (p. 6-7 in the COP 2015).
 The Group LVMH and Maisons are involved in several dialogue and partnerships with different
categories of stakeholders from civil society.
 See “Criterion 18: The COP describes partnerships and collective action” (pp. 95-101 in the COP
2015).
o Due to the diversified and decentralized nature of its activities, the Group has defined general
principles as regards stakeholder engagement that are circulated to the management of its Brands
and subsidiaries.
 Each company is in charge of the management of its brand, according to its own processes,
according to the Group’s mission and values. Thus, each brand has its own method of brand
strategic management, aimed at enhancing its financial value and reputation.
 The collaboration developed between LVMH and the Houses allow discussing the stakes
concerning sustainable development and CSR through different tools and meetings :
committees and specific international networks (social, environment, supply chain,
communication...), local committees, annual conventions, working groups, collaborative
tools, events, etc.
o Consequently, the relations with global or international stakeholders is taken into account by
the different members of the CSR Steering Committee while each LVMH brand, depending on its
priorities and local challenges, determines its key stakeholders and implement its own stakeholder
engagement.
Blueprint For Corporate Sustainability Leadership
Stakeholder Engagement :
 Define sustainability strategies, goals and policies in consultation with key stakeholders :
 Consult stakeholders in dealing with implementation dilemmas and challenges and invite them to
take active part in reviewing performance :
 See “Criterion 18 : The COP describes partnerships and collective action” (pp. 95-101 in the COP
2015).
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ANNEX: Women’s empowerment principles
______________________________________________________________________________________
Women's Empowerment :
The COP describes policies and practices related to
supporting women's empowerment and advancing
gender equality in the workplace
 Achieving and maintaining gender equality in senior management and board positions
 Achieving and maintaining gender equality in middle management positions
 Equal pay for work of equal value
 Access to child and dependent care
 Support for pregnant women and those returning from maternity leave
 Recruitment and retention, including training and development, of female employees
 Education and training opportunities for women workers
 Creating and maintaining workplace awareness of gender equality and, inclusion and nondiscrimination for all workers
 Mentoring and sponsorship opportunities for women workers
 Other established or emerging best practices
 Any relevant policies, procedures, and activities that the company plans to undertake by its next COP
to address this area, including goals, timelines, metrics, and responsible staff
 Flexible work options
 Gender-specific health and safety issues
 Gender-based violence and harassment
 The COP describes policies and practices related to supporting women’s empowerment
and advancing gender equality in the marketplace
 Support for women business owners and women entrepreneurs
 Gender-sensitive marketing
 Gender-sensitive product and service development
 Supplier diversity programme
 Composition of supplier base by sex
 Supplier monitoring and engagement on women’s empowerment and gender equality
including promotion of the Women’s Empowerment Principles to suppliersOther established
or emerging best practices
 Any relevant policies, procedures, and activities that the company plans to undertake by its
next COP to address this area, including goals, timelines, metrics, and responsible staff
The COP describes policies and practices related to supporting women’s empowerment
and advancing gender equality in the community
 Ensuring female beneficiaries of community programmes
 Community initiatives specifically targeted at the empowerment of women and girls
 Strategies to ensure that community investment projects and programmes (including economic,
social and environmental) positively impact women and girls
 Designing community stakeholder engagements that are free of gender
discrimination/stereotyping and sensitive to gender issues
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 Gender impact assessments or consideration of gender-related impacts as part of its social
and/or human rights impact assessments
 Strategies to ensure that community investment projects and programmes (including
economic, social and environmental) include the full participation of women and girls
 Other established or emerging best practices
 Any relevant policies, procedures, and activities that the company plans to undertake by its
next COP to address this area, including goals, timelines, metrics, and responsible staff
The COP contains or refers to sex-disaggregated data
 Achieving and maintaining gender equality in senior management and board positions
 Achieving and maintaining gender equality in middle management positions
 Recruitment and retention, including training and development, of female employees
 Equal pay for work of equal value
 Flexible work options
 Access to child and dependent care
 Support for pregnant women and those returning from maternity leave
 Gender-specific health and safety issues
 Gender-based violence and harassment
 Education and training opportunities for women workers
 Creating and maintaining workplace awareness of gender equality and, inclusion and nondiscrimination for all workers
 Mentoring and sponsorship opportunities for women workers
 Other established or emerging best practices
 Any relevant policies, procedures, and activities that the company plans to undertake by its
next COP to address this area, including goals, timelines, metrics, and responsible staff
 See more particularly in the COP 2015 :
- Commitments : pp. 22-23 and 94.
- Initiatives, processes, tools and best practices : pp. 26-28 and 85.
- Value Creation : pp. 48.
- Verification : p. 50.
-
Strategic social investments and philanthropy : pp. 90-91.
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 See also LVMH’ Reports :
 "2014 Reference Document" :
-
“5.1. Equality pf opportunity for men and women” (pp. 77-78)
 "Social Responsibility Report 2014" :
-
“Develop appropriate Group-wide processes” (pp. 30-31) :
 The 14 undertakings in the “LVMH Recruitment Code” adopted in December 2009.
 Training course on “Recruiting without discriminating”.
 Recruitment practices monitored by an independent firm to conduct discrimination tests on
its own job vacancies.
 The cross cutting issue of job maintenance.
-
“Encouraging male/female workplace equality” (pp. 31-32) :
 The Group’s commitments (whose Women’s Empowerment Principles).
 Drivers :
 Annual coaching.
 “EllesVMH” initiative and “Regional EllesVMH networks”.
 Initiatives from companies.
% women in 2014
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Joiners
Group employees
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ANNEX: Business & Peace
The COP describes policies and practices related to the company's core business
operations in high-risk or conflict-affected areas :
 Management of the supply chain to avoid contributing to conflict through purchasing decisions
and practices :
 See “Criterion 2 : The COP describes value chain implementation” (pp. 8-21 in the COP 2015).
The COP describes local stakeholder engagement and strategic social investment
activities of the company in high-risk or conflict-affected areas :
 Approaches to stakeholder engagement involving civil society, international organizations, etc. :
 See “Criterion 18 : The COP describes partnerships and collective action” (pp. 95-101 in the COP
2015).
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Global Compact – LVMH’s Communication On Progress 2015
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