Cie Financiere Richemont SA

Each year, we refine our governance processes to ensure they can fuel the level of change we need to become a truly sustainable business. Building on the successful establishment of our Board of Directors' Governance and Sustainability Committee under Clay Brendish in 2021, we were delighted to appoint Jasmine Whitbread as the Committee's new Chair. Ms Whitbread is a non-executive director with extensive experience in ESG initiatives. [...] In March 2021, the Board established a Governance and Sustainability Committee, to help establish and review ESG strategies, policies and guidelines. The Committee acts as an advisory to the Board on: • The oversight and approval of proposals regarding CO2 targets, climate change and biodiversity • The management proposals on diversity, equity and inclusion, human and workplace rights, and positive social impacts for supply chains and communities • ESG or sustainability-related amendments to strategic plans • Disclosures in the annual Sustainability Report regarding SBTs communication research and diversity, equity and inclusion.

Responsibility for CSR lies with the Group Chief Finance Officer (CFO), who is a member of the Board of Directors and the Senior Executive Committee. He regularly liaises with Maison Chief Executive Officers (CEOs), function and regional heads and reports directly on CSR matters to the Board of Directors. [...] The CFO is supported by the Director of CSR, the Group's CSR function and the Group's CSR Committee, comprising representatives from other Group functions and our Maisons. Committee membership is detailed below. The Committee has established terms of reference and meets at least four times per year to review progress of the Group's CSR Plans and Strategy, and to agree activities to support relevant programmes. [...] During the year the Board's Audit Committee established an Ethics Sub-Committee. The purpose of the Ethics Sub-Committee is to review and recommend in an advisory capacity to the Audit Committee objectives, policies and procedures designed to maintain a business environment committed to high standards of ethics and business integrity. The Committee met four times during its first year. [...] Richemont engages with organisations on key issues affecting the industry. Those engagements include: - Legislation related to the "Swiss made" label specific to watches and "Swissness" standards through the Federation Horlogère (FH); - Standards relating to the sourcing, processing and description of precious metals, diamonds and coloured gemstones through the Responsible Jewellery Council (RJC); - Animal welfare for alligators through the International Crocodilian Farmers Association (ICFA).

###### RESPONSIBLE SOURCING GOVERNANCE

The Senior Executive Committee is the highest management body of Richemont and is ultimately responsible for overseeing the management of ESG impact within Richemont's supply chain. The Senior Executive Committee receives regular updates from the Group Industry and Services Director on all supply chains. At the Group level, the day-to-day implementation of our policies lies within the Responsible Sourcing team which is working across all component supply chains. Dedicated experts are assigned to each strategic supply chain, with responsibility for carrying out ESG Risk Assessments in their area of work. Our Maisons have autonomy in their procurement process, however they have to apply the Group Supplier Code of Conduct (SCoC) procedure and the procurement policy. [...] ###### MANAGEMENT APPROACH AND DUE DILIGENCE

A dedicated committee facilitates the internal governance of our leather supply chain due diligence approach. A structured audit procedure including the capacity to conduct financial and social analysis contributes to our data collection and decision-making process. [...] ###### FOCUS ON SUSTAINABILITY GOVERNANCE

###### ESG GOVERNANCE

Sustainability is firmly embedded at the highest governance level of the Group through our Governance and Sustainability Committee, which reports its actions to the overall Board. Established in March 2021, it replaced the Ethics Sub-Committee, which was established in 2019. This committee reviews all management proposals regarding our sustainability roadmap and approves the annual ESG Report.

The Chief Sustainability Officer, member of the Senior Executive Committee, is responsible for our sustainability performance and reporting. Group Sustainability serves as a central hub, connecting a diverse network of approximately 100 Sustainability Leaders from various functions, regions and Maisons. These leaders convene twice a year and maintain regular online communication. Their role includes ensuring their entities meet the Group new standards and requirements.

To address specific ESG topics, the Group established a range of specialised governance bodies, including Gold Sourcing, Gemstones, Human Rights, Research and Innovation and Safety committees. [...] ###### GOVERNANCE AND SUSTAINABILITY COMMITTEE

The Governance and Sustainability Committee supports the development and review of ESG strategies, policies and guidelines and convenes five times per year. The Group Sustainability team manages the agenda and meetings for the committee, following a comprehensive work programme that addresses all aspects of Richemont's ESG framework. External stakeholders are regularly invited to discuss critical matters requiring the committee's attention and as such contributing to the committee's decision process when relevant.

In addition to the Governance and Sustainability Committee's mandate, the Board's Audit Committee oversees the adequacy and effectiveness of risk management practices in the Group. These include risk management practices for ESG risks. The Audit Committee examines and reviews the adequacy, effectiveness and integrity of the processes to assure the Group's compliance with all applicable laws and regulations; and ensure compliance with the Group's Standards of Business Conduct.

Sustainability is firmly embedded at the highest governance level of the Group through the Governance and Sustainability Committee, which regularly updates and reports its actions to the Board of Directors. The Governance and Sustainability Committee supports the Board in establishing and reviewing strategy, policies and guidelines that address all aspects of Richemont's ESG framework. The Chief Sustainability Officer is a permanent attendee of this Committee and a member of the Senior Executive Committee, the executive management body of Richemont responsible for overseeing the management of ESG performance and reporting. Group Sustainability is integrated within the Finance division, with the Chief Sustainability Officer, reporting to the Chief Finance Officer. [...] In FY24, the Influencing Supply Chain Committee was established. It is chaired by Group Responsible Sourcing and includes representatives from Group Sustainability, Group Procurement and Group Legal. The Committee's objective is to prioritise and oversee the implementation of ESG programmes across the supply chain. [...] Governance of the Group's fine gold purchases is provided by the Gold Sourcing Committee, which oversees the definition of purchasing standards, the validation of Varinor's sourcing decisions, the control of the panel of existing suppliers, and the monitoring of purchases and due diligence reports. It is chaired by the Group Director of Operations, who reports to the Group CEO. Members of the GSC include representatives of our leading Watch and Jewellery Maisons, as well as the Group Chief Sustainability Officer, the Group Responsible Sourcing Director, the Managing Director of Varinor, and senior experts. [...] The Richemont Speak Up Platform was launched in June 2022, and forms an essential part of the Group's ethical framework. The Platform allows employees and any affected third party to report any concerns by telephone or an online form, with an option for anonymity. These reports are then escalated to the Richemont Speak Up Taskforce, a team of coordinators from relevant functions within the Group responsible for assessing concerns and forwarding them to an appropriate impartial issue owner for further investigation. All procedures are documented using the Navex EthicsPoint platform, which ensures an audit trail that meets regulatory requirements. Richemont launched a general employee awareness campaign and provided Group-wide training in order to promote the Speak Up Platform. To date, 32 505 employees completed the training on Speak Up relating to reporting concerns and how these concerns are dealt with. The Platform is available to all global operating entities, including all Maisons. Concerns are addressed confidentially and individuals who report issues are supported. Richemont has a zero-tolerance policy for any retaliation towards anyone who makes a report in good faith or who participates in an investigation. [...] Richemont's Board of Directors is responsible for defining Richemont's human rights strategy. The Group's Chief Sustainability Officer, who is also a member of the Senior Executive Committee (SEC), is responsible for overseeing the implementation of the strategy defined by the Board and making recommendations to the SEC for adopting the necessary regulations and policies and for setting up the appropriate bodies. The Group's commitment to upholding human rights is reinforced by a skilled and dedicated Human Rights Taskforce. This Taskforce comprises leaders from various departments such as Human Resources, Responsible Sourcing, Logistics, Security, Procurement, Legal, Finance, Corporate Affairs, and representatives of Regions, along with selected Maisons. The Human Rights Taskforce, animated by the Group ESG Legal Counsel, is chaired by the Chief Sustainability Officer, who is responsible for ensuring the implementation of an effective human rights management system across the Group. This includes regularly reviewing and updating policies and procedures, as well as identifying and addressing any areas for improvement.

Sustainability is firmly embedded at the highest governance level of the Group through the Governance and Sustainability Committee, which regularly updates and reports its actions to the Board of Directors. The Governance and Sustainability Committee supports the Board in establishing and reviewing strategy, policies and guidelines that address all aspects of Richemont's ESG framework. The Chief Sustainability Officer is a permanent attendee of this Committee and a member of the Senior Executive Committee, the executive management body of Richemont responsible for overseeing the management of ESG performance and reporting. Group Sustainability is integrated within the Finance division, with the Chief Sustainability Officer, reporting to the Chief Finance Officer. [...] In FY24, the Influencing Supply Chain Committee was established. It is chaired by Group Responsible Sourcing and includes representatives from Group Sustainability, Group Procurement and Group Legal. The Committee's objective is to prioritise and oversee the implementation of ESG programmes across the supply chain. [...] Governance of the Group's fine gold purchases is provided by the Gold Sourcing Committee, which oversees the definition of purchasing standards, the validation of Varinor's sourcing decisions, the control of the panel of existing suppliers, and the monitoring of purchases and due diligence reports. It is chaired by the Group Director of Operations, who reports to the Group CEO. Members of the GSC include representatives of our leading Watch and Jewellery Maisons, as well as the Group Chief Sustainability Officer, the Group Responsible Sourcing Director, the Managing Director of Varinor, and senior experts. [...] The Group Maisons are responsible for procuring their own diamonds while the sourcing governance is overseen by the Stone Supply Chain Committee (SSCC) at the Group level. The SSCC was established in April 2022 as the highest governing body that oversees risk assessments, focusing on reputational, environmental, social, and supplier sustainability dimensions. It sets the standards, procedures, and control rules for the Group and approves tools for mitigation and improvement. The SSCC conducts regular meetings during the year and the Group Director of Operations, who is a member of the SSCC, provides regular updates to the SEC and the Governance and Sustainability Committee of the Board. [...] The Richemont Speak Up Platform was launched in June 2022, and forms an essential part of the Group's ethical framework. The Platform allows employees and any affected third party to report any concerns by telephone or an online form, with an option for anonymity. These reports are then escalated to the Richemont Speak Up Taskforce, a team of coordinators from relevant functions within the Group responsible for assessing concerns and forwarding them to an appropriate impartial issue owner for further investigation. All procedures are documented using the Navex EthicsPoint platform, which ensures an audit trail that meets regulatory requirements. Richemont launched a general employee awareness campaign and provided Group-wide training in order to promote the Speak Up Platform. To date, 32 505 employees completed the training on Speak Up relating to reporting concerns and how these concerns are dealt with. The Platform is available to all global operating entities, including all Maisons. Concerns are addressed confidentially and individuals who report issues are supported. Richemont has a zero-tolerance policy for any retaliation towards anyone who makes a report in good faith or who participates in an investigation. [...] Richemont's Board of Directors is responsible for defining Richemont's human rights strategy. The Group's Chief Sustainability Officer, who is also a member of the Senior Executive Committee (SEC), is responsible for overseeing the implementation of the strategy defined by the Board and making recommendations to the SEC for adopting the necessary regulations and policies and for setting up the appropriate bodies. The Group's commitment to upholding human rights is reinforced by a skilled and dedicated Human Rights Taskforce. This Taskforce comprises leaders from various departments such as Human Resources, Responsible Sourcing, Logistics, Security, Procurement, Legal, Finance, Corporate Affairs, and representatives of Regions, along with selected Maisons. The Human Rights Taskforce, animated by the Group ESG Legal Counsel, is chaired by the Chief Sustainability Officer, who is responsible for ensuring the implementation of an effective human rights management system across the Group. This includes regularly reviewing and updating policies and procedures, as well as identifying and addressing any areas for improvement.

Each year, we refine our governance processes to ensure they can fuel the level of change we need to become a truly sustainable business. Building on the successful establishment of our Board of Directors' Governance and Sustainability Committee under Clay Brendish in 2021, we were delighted to appoint Jasmine Whitbread as the Committee's new Chair. Ms Whitbread is a non-executive director with extensive experience in ESG initiatives. [...] In March 2021, the Board established a Governance and Sustainability Committee, to help establish and review ESG strategies, policies and guidelines. The Committee acts as an advisory to the Board on: • The oversight and approval of proposals regarding CO2 targets, climate change and biodiversity • The management proposals on diversity, equity and inclusion, human and workplace rights, and positive social impacts for supply chains and communities • ESG or sustainability-related amendments to strategic plans • Disclosures in the annual Sustainability Report regarding SBTs communication research and diversity, equity and inclusion.

Responsibility for CSR lies with the Group Chief Finance Officer (CFO), who is a member of the Board of Directors and the Senior Executive Committee. He regularly liaises with Maison Chief Executive Officers (CEOs), function and regional heads and reports directly on CSR matters to the Board of Directors. The CFO is supported by the Director of CSR, the Group's CSR function and the Group's CSR Committee, comprising representatives from other Group functions and our Maisons. Committee membership is detailed below. The Committee has established terms of reference and meets at least four times per year to review progress of the Group's CSR Plans and Strategy, and to agree activities to support relevant programmes. Each of the four strategic focus areas of the strategy – People, Communities, Sourcing and Environment - is led by a director within the business. [...] During the year the Board's Audit Committee established an Ethics Sub-Committee. The purpose of the Ethics Sub-Committee is to review and recommend in an advisory capacity to the Audit Committee objectives, policies and procedures designed to maintain a business environment committed to high standards of ethics and business integrity. The Committee met four times during its first year. [...] Richemont engages with organisations on key issues affecting the industry. Those engagements include: - Legislation related to the "Swiss made" label specific to watches and "Swissness" standards through the Federation Horlogère (FH); - Standards relating to the sourcing, processing and description of precious metals, diamonds and coloured gemstones through the Responsible Jewellery Council (RJC); - Animal welfare for alligators through the International Crocodilian Farmers Association (ICFA).

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]At Richemont, we conduct regular materiality assessment. This comprehensive review identifies the key ESG issues that matter most to our business and stakeholders. In 2021/22, we updated our materiality matrix, which forms the basis of our third materiality assessment. The principle of 'double materiality' has been integrated into the exercise to take a more proactive approach for upcoming reporting requirements (from, for example, the EU Corporate Sustainability Reporting Directive (CSRD) and their Value Reporting Foundation). In March 2022, the Materiality Matrix was approved by the CSR Committee and shared with the Board's Governance and Sustainability Committee, to make them aware of important risks and opportunities affecting our value creation.

In 2021, we have strengthened our sustainability governance through the creation of a Governance and Sustainability Committee of the Board, which is made up of non-executive Directors. Its purpose is to assist the Board in reviewing and approving management proposals regarding strategy, policies, and guidelines on ESG. It will also provide direction on best practices and ensure compliance with all relevant regulatory requirements. Regarding environmental matters, it shall review and approve management proposals regarding CO2 targets, climate change and biodiversity. 

Richemont Environmental Code of Conduct is built on national and international norms and standards for environmental management. As well as universal environmental issues such as climate and the use of energy, water and other natural resources, the Code addresses the negative environmental impacts of key raw materials including precious metals, gemstones and leather. The Code sets a minimum operating standard for all of the Group's businesses. Each business is expected to implement its own Environmental Management System, tailored to suit its size and type of activity.

Finally, Richemont also gains external recognition by engaging with ESG/CSR/Climate rating agencies. We review the CSR ratings landscape to determine the adoption of rating agencies' reports. From those reviews, we have established a short list of institutions with which we engage, including responding to questionnaires and similar information requests. The following institutions are currently included: CDP, Ethos, Glass Lewis, ISS ESG, MSCI ESG Indices, S&P Global (SAM), Sustainalytics and Vigeo Eiris.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes