LVMH 2018  .  Environmental Report

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consumption with available resources locally. This analysis showed that four wine-growing Houses, which consume significant amounts of water at Group level (Cheval des Andes, Terrazas de Los Andes, Domaine Chandon California and Newton), are located in regions with severe water stress. These Houses therefore made saving water a pri- ority, developing rain water recovery and recycling, eliminating irrigation or opting for drop irrigation, and rethinking their production processes. In addi- tion to local challenges related to water stress, attention to water management is found in all Houses of the LVMH Group. It is accompanied by initiatives to treat waste water and prevent water pollution, as demonstrated by the plan launched by Bodega Numanthia to treat its waste water and eliminate any trace of chemicals and bacteria. In 2018, LVMH water management improved again thanks to a number of initiatives. In late June, for example, Louis Vuitton started up the CLIMESPACE connection for the main building of its Paris head- quarters to replace air-cooled towers. At the end of the third quarter, this new facility had resulted in a 53% decrease in water consumption. For its part, Loewe invested in specific equipment to clean ink spots staining the metal components of some of its machines. The equipment operates in a closed circuit with an eco-friendly aqueous solution. In particular, it has the advantage of generating significant water savings. Previously, cleaning was performed by hand

by around thirty people at the rate of five minutes per component, twice a day.

Reduce waste and give it new life With LIFE 2020, LVMH is also stepping up its efforts toward exemplary waste management. For a long time, the Group has worked to limit the production of waste, encourage sorting and recycling, and develop the circular economy. In 2018, the Group generated 102,184 tons of waste, 93% of which was recycled, transformed into energy or reused. The CEDRE platform alone treated 2,174 tons of various waste products ranging from bio-waste to product testers, and gave them a new life through several selective sorting streams (glass, cardboard, wood, metal, plastic, alcohol, cellophane, etc.). Since it opened in 2010 in Pithiviers, CEDRE has continued to expand. In 2018, it established a stream to recover metal parts and invested in a new machine to process textile waste. In addition, after a first audit conducted in 2017, a second audit was con- ducted on the platform to verify the improvements made and evaluate the service provider responsible for recycling alcohol. The results were very positive, which confirmed LVMH s decision: set up a similar platform in Italy to treat and recycle waste products from the Perfumes & Cosmetics activities. A first test was organized with Bvlgari for the collection and decontamination of 20,000 pieces coming from three products, before new experiments planned in 2019 with other brands. In same spirit of pooling, LVMH launched a pilot project to collect waste pre- viously sorted in 7 Paris boutiques. The project ended in the spring of 2018, opening the way for a second phase: the selection of a service provider to collect waste from 13 corporate headquarters and 8 boutiques of 5 Houses (Berluti, Fendi, Givenchy, Loewe and Louis Vuitton) in Paris. The mobilization of the Houses is essential for LVMH to make progress in reducing and managing its waste. Their mobilization did not disappoint in 2018. By using new shipping packaging boxes with pre- glued tape, Louis Vuitton for example reduced the quantity of adhesive tape used at the source and encouraged re-use of the boxes. The House also continued its partnership with the Réserve des Arts and ArtStock associations, which recover the com- pany waste for the cultural sector. As a result, over 80% of the decor elements from our 2018 Men s and Women s fashion shows were donated and found a second life. In addition, during the year it created several local streams to recycle leather scraps. Hennessy initiated a study to improve the management of plastic film and glass waste at its

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0

2016 2017 2018

5, 09

2, 60

5

4, 81

3, 15

4

5, 0

87 ,0

86

GROUP WATER CONSUMPTION (in m3)

Consumption

Of which estimated