Kering

Kering's Board of Directors has 13 members, 11 appointed by shareholders at the Annual General Meeting and two representing employees. The Chair is Francois-Henri Pinault, Chairman and Chief Executive Officer, the only director with an executive role. As of December 31, 2024, 64% of members were independent (7 of 11) and 55% were women (6 of 11), excluding the two employee directors, with six nationalities represented. Eight of the 13 members had CSR skills, and the Board focuses on 10 key skills including social and environmental responsibility. The Board is assisted by four specialist committees: Audit, Sustainability, Remuneration, and Appointments and Governance, all involved in monitoring sustainability topics. Two specific positions, the Climate Change Lead and the Lead Independent Director, carry ESG responsibilities. Kering's Executive Committee implements strategy, and the Chief Sustainability and Institutional Affairs Officer, a member of that committee, reports directly to the Chairman and CEO.

Reporting to the Board on sustainability topics takes place across various channels as part of an ongoing process. Every quarter the Audit Committee examines the Group's map of financial and non-financial risks and associated action plans presented by the Chief Audit Executive, and each year it meets the Chief Compliance Officer and hears from the heads of cybersecurity and data privacy. In each meeting the Sustainability Committee hears from the Chief Sustainability and Institutional Relations Officer, and the Remuneration Committee holds discussions with the Chief People Officer. After each meeting, Committee Chairs present a detailed report to the Board. The Board is committed to increasing its expertise, with a climate training seminar held in 2023 and a session on the CSRD planned for 2025. The Lead Independent Director and Climate Change Lead report on sustainability, including through the annual ESG roadshow, and Directors receive a daily press review covering sustainability matters.

The Remuneration Committee makes sure that sustainability targets aligned with the Group's commitments are factored into the variable remuneration of the Company's executive corporate officers. It assesses the attainment of those targets in view of practical initiatives and achievements, and monitors the Group's general remuneration policies. Details of the sustainability targets used to determine the annual variable remuneration of the executive corporate officer with respect to 2024, and the level of achievement, are provided in chapter 3, section 5.3.1 of the Universal Registration Document, which also sets out the objectives of the long-term variable remuneration. The remuneration policy for the executive corporate officer and Directors for 2025 is presented in chapter 3 sections 5.1 and 5.2 of the same document.

Kering presents a mapping of the core elements of due diligence against the sections of its sustainability statements. Embedding due diligence in governance, strategy and the business model is covered in sections 1.1 and 1.3. Engaging with affected stakeholders in all key steps of the due diligence is addressed in section 1.1.2. Identifying and assessing adverse impacts is covered in section 1.2. Taking actions to address those adverse impacts is dealt with in all paragraphs providing details about actions and arrangements included in each themed section. Tracking the effectiveness of these efforts and communicating is covered in all paragraphs providing details about performance indicators and targets in each themed section. The Group's Duty of Care Plan, intended to identify, assess and monitor risks and prevent severe impacts on human rights, health and safety, and the environment, is presented in chapter 5 of the document.

The Group has reported annually on sustainability for more than 20 years, and has strengthened its risk management and internal control framework to meet CSRD requirements. The sustainability reporting process is overseen by Kering's Sustainability department and relies on the functional departments and all Group houses, based on qualitative information and several hundred indicators. HR data is reported monthly, certain environmental indicators half-yearly and other data annually. Each functional department identifies and prioritizes risks, the main ones being incomplete or inaccurate data given the diversity of sources, and risks relating to IT systems integration that may cause delays or inconsistencies. To address these, the Group uses harmonized collection tools, automated controls within IT systems to detect and correct anomalies, and specific ad-hoc checks. Roles are clearly attributed between contributors and checkers. The CSRD operational committee coordinates the process and keeps the CSRD Steering Committee regularly informed. The CSRD was presented to employee representative bodies during a consultation process in December 2024.

Kering is a global luxury group operating in 55 countries. In 2024 it generated revenue of 17,194 million euros and had 46,936 employees at year end. It generates nearly all of its revenue from fashion, leather goods, jewelry and eyewear, and in 2023 created Kering Beaute and acquired the fragrance House Creed, which had no material impact on 2024 revenues. The Group does not operate in fossil energy, controversial weapons or tobacco sectors and complies with bans on certain raw materials in certain markets. Sustainability lies at the heart of its strategy and business model, with a dedicated strategy for the period until 2025 built on three pillars: Care for the planet, Collaborate with people, and Create new business models. Objectives are aligned with the United Nations Sustainable Development Goals. The value chain is simplified into seven key steps reflecting interactions with stakeholders. The main materials used are leather, paper and cardboard, plastics, plant fibers such as cotton and linen, and metals.

To stay attuned to stakeholder priorities, Kering has adopted a consultation approach based on dialogue and analysis of stakeholder expectations at Group level, which regularly informs its Sustainability Strategy. This includes consultation to update policies such as the Biodiversity and Water strategies and the Kering Standards, and the signature of collective agreements. In 2024, Kering updated its stakeholder map as part of its double materiality assessment, covering the main categories of stakeholders that may be affected across the value chain, upstream and downstream. For each category, the frequency and depth of dialogue and its maturity were assessed. In the vast majority of categories the dialogue was found to have a satisfactory level of maturity, and the Group will strive to increase engagement where it could be improved, particularly with workers in the value chain and on-site contractors. The results were presented and validated by the CSRD Steering Committee and shared in a joint meeting of the Board's Audit Committee and Sustainability Committee. Stakeholder engagement methods are reviewed annually.

Through its double materiality assessment, Kering identified 79 material impacts, risks and opportunities (IROs) all along its value chain, in connection with the Group's strategy and business activities. These IROs are assigned to 29 material sustainability topics, split across environment, social and governance. Each sustainability topic identified as material is taken into account in Kering's decision-making and management processes to ensure the resilience of the business model and support responsible growth. Some topics are prioritized because of their importance for the Group's strategy, following the priorities of the 2025 Sustainability Strategy and the risk analysis. The assessment revealed topics that may become more material over time, including water scarcity, biodiversity loss, raw materials scarcity and quality, circularity, fair treatment of on-site contractors, rights of indigenous peoples, product footprint and traceability, whistleblower protection and responsible supplier relationships. In view of internal thresholds, the assessed risks do not represent amounts large enough to affect the financial statements, but they are factored into strategic decisions and reviewed annually.

Materiality has been at the core of Kering's approach since 2013, and in 2024 the Group carried out a double materiality assessment to identify material sustainability topics, working with an independent external consultancy to ensure the methodology met ESRS requirements. The process began with understanding the context, producing an exhaustive list of topics from an in-depth review of the business model, strategy, value chain mapping, dependency analysis using the EP&L and SBTN tools, Group risk mapping, stakeholder mapping, regulatory texts and international reporting frameworks. Topics were reformulated and grouped into 32 sustainability topics. ESG-themed workshops with Group departments and house representatives identified impacts, risks and opportunities for each topic, each assigned a timeframe (short, medium or long term) and scope. Each IRO was scored on impact materiality (severity and probability) and financial materiality (magnitude of financial effects and probability). The assessment was aligned with the Group risk map, though scoring is done on a gross basis for double materiality versus a net basis for risk analysis. Results will be reviewed annually.

The sustainability statements are structured according to ESRS standards in order to present relevant information reflecting the Group's strategy, ambitions, policies, action plans, indicators and targets for each material sustainability topic. Each item of information was selected in accordance with ESRS based on its materiality. The cross-reference table covering ESRS publication requirements, and the table referring to data points relating to other European Union regulations, are presented in chapter 8 section 5.4 of the document. To make the statements easier to read, incorporation by reference is used to define information once and avoid repetition, indicated in relation to the relevant chapter and section. For this first year implementing the CSRD and EFRAG standards, the Group strove to answer almost all data points relevant to its 29 material topics. Because of certain limitations, its decentralized organization, and emerging topics, some data points will be disclosed or supplemented in later years, including elements of the transition plan, certain performance indicators, and enhanced policies and targets where currently incomplete.

Kering's transition plan for climate change mitigation is built on two aspects: mitigation (reduce GHG emissions across the value chain toward net zero by 2050, aligned with a 1.5C trajectory, then neutralise residual emissions by permanent removal, plus positive contribution outside the value chain) and adaptation. Having announced in 2023 a 40% absolute reduction by 2035 versus 2021, the Group updated its trajectory in 2024 aligned with the SBTi Net-Zero Standard, validated by SBTi on October 31, 2024. It adopted 2022 as the new baseline year (instead of 2021) to meet CSRD requirements and set validated targets for 2033 (short-term) and 2050 (long-term), including a specific FLAG commitment. Kering has not yet defined 2030 targets. The Group is putting together the financing plan; taxonomy disclosures show it is investing 418 million euros in building renovation and high-standard sites. The plan is approved by the Executive Committee, integrated into Group and house planning, and the carbon trajectory is reviewed three times per year.

Through its Climate Strategy, published on Kering's website, the Group commits to achieve net zero carbon emissions across its value chain by 2050 via science-based targets validated by the SBTi, by reducing GHG emissions throughout the value chain and removing residual emissions by storing an equivalent quantity of carbon through mainly nature-based solutions. Kering also makes a positive contribution outside the value chain through voluntary offsetting of its scopes 1 and 2 emissions. The Climate Strategy covers the entire value chain of the Group and its houses, including all own business activities such as logistics and retail. For adaptation, the Group's policy rests on three pillars: protecting its most strategic assets from damage and destruction, securing its supply chains for raw materials and energy, and ensuring the resilience of its critical operations (production sites, warehouses, stores and logistics hubs). The adaptation policy applies to Kering and its houses and to all site types, prioritising the most strategic owned or managed sites, and is reviewed and updated every year.

Kering's Reduce & Remove decarbonisation roadmap covers scopes 1 and 2 through energy efficiency (Kering Standards for Stores updated in 2024; LED lighting saving up to 90%; 71 additional LEED Gold or Platinum certifications in 2024) and renewable energy (on-site solar, for example Gucci's 12 Italian sites at 2.3 MWh; power purchase agreements; 100% renewable electricity since 2022 where possible per RE100; a Fashion Pact CVPPA of 216 GWh per year, including 43 GWh for Kering, from a Spanish solar farm entering service in H2 2026). Scope 3 efforts focus on three levers covering 75% of scope 3: raw material sourcing and supplier support (48%), transportation (7%, with sea freight at 76% of relevant shipments in 2024) and other levers under development (20%). On the EU taxonomy, Taxonomy-eligible CapEx was 49% (2,494 million euros of 5,067 million), and Taxonomy-aligned CapEx was 8%, or 418 million euros, chiefly building acquisition (263 million) and renovation (146 million). OpEx of 588 million euros was assessed as not material, so aligned OpEx is treated as zero. Turnover has 0% eligibility.

Kering's absolute GHG reduction targets, validated by the SBTi on October 31, 2024 under the Net-Zero Standard with 2022 as baseline year and net zero by 2050, are: scopes 1 and 2, a 54.6% reduction by 2033 and 90% by 2050; scope 3 energy and industry excluding FLAG, a 54.6% reduction by 2033 and 90% by 2050; and scope 3 FLAG, a 39.4% reduction by 2033 and 72% by 2050. Category 11 (use of sold products) is optional and excluded from these targets. Kering has not yet defined 2030 targets. It also set operational sub-targets: 100% alignment with the Kering Standards by 2025 (83% in 2024); build a plan to cut strategic suppliers' energy consumption by 70% by 2035; 100% electricity from renewable sources as an annual target (100% in 2024, in 46 countries); 100% of stores and offices LEED-certified (Gold or Platinum) by 2035 (30% in 2024); and 100% of packaging transported by sea by 2035 from a 2022 baseline (76% in 2024).

Total energy consumption from Group direct operations in 2024 was 435,084 MWh, up 8% from 403,809 MWh in 2023 (393,838 MWh in 2022), the rise driven by the full-year impact of 2023 openings and new 2024 openings. Renewable energy was 324,403 MWh and non-renewable energy 110,681 MWh, so renewables reached 75% of consumption (71% in 2023, 69% in 2022). Non-renewable sources included natural gas of 84,594 MWh and purchased non-renewable electricity of 18,840 MWh. On a pro forma scope, total consumption was 361,202 MWh. Electricity remains the main energy source at 79% of consumption, and 95% of electricity is from renewable sources; about 75% of consumption relates to heating, lighting and air conditioning of stores, warehouses and offices. The store network and tanning activities, treated as high climate impact sectors under the ESRS, accounted for 54% of total energy consumption in 2024. Renewable energy production from direct operations was 19,771 MWh.

For 2024, gross Scope 1 GHG emissions were 31,052 tCO2e (down 2% from 31,622 in 2023; 32,190 in 2022). Gross Scope 2 was 131,097 tCO2e location-based and 12,428 tCO2e market-based. Total gross Scope 3 was 2,116,428 tCO2e, down 16% from 2,508,318 in 2023 (2,774,310 in 2022), led by category 1 purchased goods and services (1,500,905), category 2 capital goods (272,051) and category 4 upstream transportation (144,915); categories 8 and 10 are not applicable. Total GHG emissions were 2,278,577 tCO2e location-based (down 14%) and 2,159,908 tCO2e market-based (down 15%). Emissions intensity was 133 tCO2e per million euros of revenue location-based and 126 market-based. About 71% of emissions were calculated using primary data from suppliers or value chain partners, and the Group identified no biogenic emissions in 2024. Without its renewable electricity purchasing policy, scope 1 and 2 energy-related emissions would be 273% higher.

Kering prioritises reducing GHG emissions, including supporting strategic suppliers to decarbonise (scope 3), a practice called insetting. In 2024 the Group focused on financing these efforts rather than buying carbon credits to offset emissions (2,136,560 tCO2e of credits were cancelled in 2023 with respect to 2022, covering voluntary offsetting of scope 1, 2 and 3 emissions excluding use of sold products). In 2024, Kering purchased carbon credits to voluntarily offset, with respect to 2023, almost 42,000 tCO2e, around the level of its scope 1 and 2 emissions, through two nature-based projects: one avoidance project in Canada and one removal project in mainland China. As part of its net-zero strategy, Kering and L'Occitane set up the Climate Fund for Nature, targeting 300 million euros and managed by Mirova, focused on protecting and regenerating nature with a target of 70% removal and 30% avoidance projects. At the end of 2024, four projects were active (one avoidance and three removal).

Since 2012, Kering has measured its environmental impact across its value chain through its Environmental Profit & Loss account (EP&L). In 2015 it translated its GHG emissions into financial terms using the Social Cost of Carbon (SCC) concept, producing a price per tonne of CO2 equivalent that helped Kering and its houses assess the impact of materials used and steer decisions toward lower-impact materials. The Group is considering adopting an internal carbon price to guide future investment decisions and continue factoring climate risk into its business model; in 2025 these discussions will continue to determine the economic cost per tonne of CO2 equivalent once the financing of the decarbonisation trajectory is established. As part of its transition plan, Kering has introduced a carbon fee, each house's annual contribution to funding the Group's decarbonisation efforts in its value chain (Group operations and suppliers), determined by each house's share of the Group's total GHG emissions. It replaces the carbon offsets previously allocated to the houses.

Managing chemicals used in production is part of Kering's Water Strategy, the Kering Standards and the Group's Sustainability Principles. Kering has set the target of eliminating all hazardous chemicals from all houses' products and production processes, requirements that apply to all suppliers, which must implement a chemicals management system. The Group aims to reduce the quantity of pollutants discharged before treatment at all sites and is gradually ceasing use of tanning agents with major environmental impact. Two restriction lists are appended to supplier agreements: the Manufacturing Restricted Substances List (MRSL), focused on discontinuing hazardous chemicals in manufacturing, and the Product Restricted Substance List (PRSL). Since January 2020 suppliers must ensure MRSL chemicals are not used intentionally, complying with MRSL V.3.0 including ZDHC V.3.1, which forbids PFAs. Suppliers must comply with the ZDHC Wastewater Guide. A separate policy limits release of microfibers and microplastics, based on the Circularity Ambition, the Kering Standards and the Sustainability Principles.

At all Group tanneries wastewater is pretreated on site; Italian tanneries send pretreated wastewater to a shared plant that recovers chromium, while others use sedimentation and physicochemical and biological treatment. All Group-owned tanneries are ISO 14001-certified. Kering has been a ZDHC signatory since 2016 and in 2024 was assessed a Champion Brand under ZDHC Brands to Zero. On MRSL rollout, more than 250 strategic suppliers were assessed in 2024, representing 89% of spend; 86% by value assessed via the Vendor Portal received a good or excellent rating. In 2023-2024, 171 direct strategic suppliers were audited or certified, covering 72% of raw materials purchases and 65% of finished products. Kering assesses water pollution risk for all strategic production suppliers using frameworks such as Maplecroft, WRI Aqueduct and the WWF Risk Filter. On microfibers, Kering joined The Microfibre Consortium in 2021, runs fragmentation tests, funds a TMC online course, and developed two 2-year filtration pilots with suppliers. Chrome- and metal-free tanning reached 46% of leather goods volumes in 2024.

Kering reports six targets with 2024 performance. Having 100% of suppliers' contracts include a chemicals management system reached 94% (representing 98% of purchasing volumes), target year 2025. Level 2 of the ZDHC Supplier to Zero program for 100% of strategic suppliers using wet production processes reached 17%, target 2025. Assessment of 100% of strategic suppliers regarding chemicals management and MRSL compliance reached 74% (annual target). 100% of strategic suppliers using wet production processes carrying out wastewater testing reached 72% (annual target). 100% of leather tanned using chrome- and metal-free methods reached 42% overall and 46% for leather goods, target 2025. Zero use of PVC in products, packaging and visual tools reached 0% (annual target). Baseline years and values are marked N/A. Methodologies include the Kering MRSL, ZDHC guidelines and the EN15987:2015 standard, monitored via internal tools, the Kering Vendor Portal, the ZDHC portal and the EP&L.

Kering reports the quantity of pollutants emitted in 2024, in tonnes. Chlorides (Cl) totaled 398 tonnes, sulfates (SO4) 173 tonnes, organic carbon 4 tonnes, nitrogen (N) 3 tonnes, and other pollutants 0.1 tonnes, giving a total of 578 tonnes of pollutants emitted. The Group also monitors quantities of phosphorus, chromium and zinc. Since the Group's tanneries are all ISO 14001-certified, they ensure compliance with legislation and thresholds in force when using substances of concern in their activities. To prevent pollution of water, regular analyses are carried out at each tannery and results are continuously monitored; where anomalies are recorded, dedicated procedures and action plans are put in place and described in the ISO 14001 certified environmental management system.

Kering manages substances of concern through two restriction lists appended to supplier agreements: the Manufacturing Restricted Substances List (MRSL), focused on discontinuing hazardous chemicals in manufacturing so that workers are not exposed and toxic discharges into water are reduced, and the Product Restricted Substance List (PRSL). Suppliers must comply with the most recent MRSL V.3.0, including ZDHC MRSL V.3.1, which forbids the use of all chemicals containing PFAs (perfluoroalkyl and polyfluoroalkyl substances) at all production stages for textiles, leather, rubber, foams and adhesives. Kering aims to eliminate all hazardous chemicals from its production processes and to gradually cease using tanning agents with major environmental impact, working toward chrome-free and metal-free tanning (46% of leather goods volumes in 2024). Since all Group tanneries are ISO 14001-certified, they comply with legislation and thresholds when using substances of concern. The Group monitors pollutants including chlorides, sulfates, organic carbon, nitrogen, phosphorus, chromium and zinc.

In 2024 Kering drew up its Water Strategy, covering the entire value chain including all stakeholders and local communities, following the mitigation hierarchy of avoid, reduce, restore/regenerate and transform. The strategy addresses the Group's dependencies and impacts on water, water-related risks, and the opportunity of becoming Net Water Positive, and launches transformational projects for the 10 priority basins identified by the SBTN analysis. It complements the Kering Standards and the Biodiversity Strategy. The policy has four pillars: water management in direct operations (with Kering Standards for Buildings and Sites promoting recycling); helping suppliers via the Water-Positive Stewardship Programme; water supply management prioritizing organic, regenerative, alternative and recycled materials with EP&L measurement; and water management at the ecosystem scale through Water Resilience Labs for the 10 priority basins. The Group also applies WASH standards through its Sustainability Principles. The Water Strategy is supported by the Board and Executive Committee, with a 2025 commitment to the CEO Water Mandate.

Kering's actions cover the entire value chain, with special attention to the 10 priority water basins identified by SBTN. In direct operations the Kering Standards define water reduction requirements, including prohibiting drinking water for heating, air conditioning or irrigation, and extending LEED Gold or Platinum certifications. In 2024 a tannery piloted membrane filtration and reverse osmosis, lowering groundwater withdrawals; Kering Eyewear installed a closed-loop station in France reinjecting 100% of treated water and cut consumption by 13% from 2023 to 2024; and Balenciaga ran denim water-awareness workshops. The Materials Innovation Lab supports startups such as Sonovia for ultrasound-based denim dyeing. Suppliers are guided through the Kering Standards and the Clean by Design program, whose participants between 2013 and 2023 cut water consumption by 8% on average. Through the Regenerative Fund for Nature, managed by Conservation International, Kering supports seven regenerative agriculture projects covering a potential 844,100 hectares, and Kering supports over one million hectares under regeneration overall. A hydroponic cotton pilot is also supported.

Kering reports three water-withdrawal reduction targets, all focused on the Arno basin (Tuscany, Italy), one of the 10 priority basins. Reduce water withdrawals by 21% at sites operated by the Group in the Arno basin: baseline 252 million liters (average 2018-2022), target 200 million liters per year by 2030; 2024 performance was -2% versus baseline. Reduce water withdrawals by 35% at tanneries owned by the Group: baseline 293,236 m3 in 2022, target year 2035; 2024 performance was -15% versus 2022. Reduce water withdrawals of strategic suppliers in the Arno basin by 21% by 2030: baseline 596 million liters (average 2018-2022), target 471 million liters per year by 2030; 2024 performance N/A, as monitoring tools are still being determined. Methodologies use SBTN, monitored via the SBTN target tracker and EP&L. Targets will be supplemented as the Water Strategy is deployed and reflected in CDP Water, SBTN and TNFD.

In 2024, Kering withdrew 870,384 m3 of water, down 3% from 897,571 m3 in 2023 (992,894 m3 in 2022). Of this, 626,961 m3 came from the public network (521,120 m3 domestic and 105,841 m3 industrial), 243,398 m3 from groundwater (up 15%), 20 m3 rainwater and 5 m3 surface water. Water discharged was 794,621 m3 and water consumed was 75,763 m3, of which 54,687 m3 was consumed in water-risk zones including high water-stress zones. Water recycled and reused was 528 m3, and water use intensity was 4 m3 per million euros of revenue. Withdrawn water is used 65% for domestic purposes and 35% for industrial purposes, of which 65% comes from groundwater, primarily for tanneries. The methodology and scope were reviewed in 2024, aligning non-financial reporting with the financial scope and retroactively including newly acquired entities (Kering Beaute, Creed, Maui Jim); 2023 and 2022 were recalculated. Tanneries and industrial sites accounted for 50% of Group water consumption.

Kering launched a dedicated Biodiversity Strategy in 2020 (updated in 2023) to reduce risks linked to the Group's dependence on biodiversity and to become Nature Positive by 2025. Because most raw materials come from farms, rangelands, forests and mines, protecting ecosystems is treated as essential and integrated into strategy. The Group committed to regenerate and protect an area equal to six times its total land footprint between 2020 and 2025, using the EP&L tool to estimate the hectares needed to produce the houses' items. Kering mapped physical and transitional climate and nature risks across its whole value chain to assess resilience. Through the Science Based Targets Network (SBTN) pilot, in 2024 Kering became the first company to validate its nature targets with the SBTN, and it is a TNFD early adopter.

Kering's Biodiversity Strategy (2020, updated 2023) is inspired by the Convention on Biological Diversity and the Post-2020 Global Biodiversity Framework, aiming to become Nature Positive by 2025 in line with GBF Target 15. It is built on the SBTN's A3RT framework: avoid, reduce, restore and regenerate, and transform. In 2024 Kering was the first company worldwide to have a science-based target for zero deforestation and zero ecosystem conversion validated by the SBTN, covering all ecosystems including Key Biodiversity Areas and high carbon stock areas. The Kering Standards define preferred low-impact supply sources and require traceability. Animal Welfare Standards and CITES compliance govern precious skins from crocodilians and reptiles, with no sourcing of Appendix I species. Kering also aligns with GBF Target 19 through the Climate Fund for Nature and encourages a move toward regenerative agriculture models.

To uphold zero deforestation and zero ecosystem conversion, Kering drew up a timetable per commodity and region, monitored in the SBTN Target Tracker, and works with CanopyStyle and FSC certification. In 2024 it financed the protection of 500,000 hectares of critical ecosystems outside its value chains, mainly through the Climate Fund for Nature. Since 2018 the Kering Precious Metal Fund has restored over 100 hectares around alluvial gold mines in French Guiana. Through the Regenerative Fund for Nature, seven regenerative agriculture projects in 2024 covered a total of 844,100 hectares under regeneration and involved 60,000 people. Gucci's program in Uruguay covers 100,000 hectares, and a Saint Laurent project in South Africa reached over 210,000 hectares regenerated or committed. Kering did not buy or sell biodiversity credits in 2024, but pays farmers in the Causses du Quercy region for biodiversity actions through the Regenerative Fund for Nature.

Kering set biodiversity targets with 2025 target years and 2021 baselines. The first target is to restore and/or protect 1 million hectares of critical ecosystems (sea or land) outside the value chain; 2024 performance was 500,000 hectares. The second is regenerative practices adopted for 1 million hectares of farmland in the value chain; 2024 performance was 1,055,000 hectares. The third is 100% alignment with the Kering Standards (83% achieved in 2024) and the fourth is 100% traceability of raw materials back to the country of origin (95% achieved in 2024), both monitored via the EP&L. In October 2024 Kering committed to uphold the SBTN-validated targets, including no conversion of natural ecosystems with gradual per-material compliance and a 3% reduction in land footprint between 2022 and 2030. Systems to assess and monitor these targets are still being established.

Kering reports traceability and Kering Standards alignment rates as its main biodiversity-related metrics. In 2024 total traceability across all raw materials was 95%, with a Standards alignment rate of 83%. By material, leather reached 99% traceability back to the country of origin (87% to the slaughterhouse) and 84% alignment; wool 99% traceability and 77% alignment; cashmere 100% and 61%; silk 100% and 44%; gold 99% and 99%; cotton 98% and 82%; paper/cardboard 86% and 94%; precious skins 100% and 96%; and cellulosic fibers 55% and 61%. Site exposure was assessed with the WWF Biodiversity Risk Filter, which found no activities in key biodiversity sensitive areas. For jewelry, the Precious Metals Platform achieved 99% sustainable gold (recycled and/or from certified mines) in 2024. The analysis showed no significant concerns regarding invasive alien species or endangered species.

Kering's circularity approach rests on three pillars: circular luxury, packaging and waste. For circular luxury, the Coming Full Circle roadmap is structured around luxury that lasts (durability by design, repair services and quality control), regenerative sourcing and clean production (chemical management and use of regenerative, recycled and certified materials via the Kering Standards), and more efficient production processes to reduce waste and eliminate single-use plastics, with a commitment not to destroy products or surplus materials. For packaging, the Circular Packaging policy is centered on four Rs (Reduce, Reuse, Recycle, Reintegrate) and commits to phasing out single-use plastic by 2025 for all BtoB and BtoC packaging. For waste, Kering follows the Waste Framework Directive hierarchy, prioritizing prevention, reuse and recycling, prohibiting destruction of unused products, and discouraging composting and biodegradation.

Kering promotes a circular luxury model through repair and reconditioning services such as Brioni's Suit for Life and Bottega Veneta's Certificate of Craft, specialized repair centers worldwide, and AI to improve sales forecasts and cut unsold inventory. Second-hand and rental models are pursued through Kering Ventures stakes in Vestiaire Collective and Cocoon, and a 2024 investment in SQIM. The Material Innovation Lab (2013) listed 8,000 component samples and 600 manufacturers, ran 150 research projects and launched 62 textile developments in 2024, alongside the Jewellery Innovation Lab. For packaging, Kering published an Ecodesign Tool in 2024 and expanded reusable logistics packaging (Gucci Take Back, Kering Eyewear). For waste, 71 stores were LEED Gold or Platinum certified, and Gucci's Gucci-Up program upcycled 79 tonnes of leather and 431 tonnes of fabric in 2024. External partnerships include Fashion for Good and Biofabricate.

Kering sets circularity targets across its three pillars. For circular luxury: 100% alignment with the Kering Standards by 2025 (83% in 2024) and incorporation of 40% recycled materials in textile products by 2035 (6% in 2024). For packaging: reduce total packaging weight by 30% versus a 2021 baseline of 34,504 tonnes (achieved a 47% reduction in 2024, partly through reclassification); eliminate single-use plastics by 2025 from a 2021 baseline of 1,136 tonnes (52% reduction in 2024); and 100% alignment of packaging materials with the Kering Standards (92% in 2024). For waste: zero destruction of unsold products each year (0 in 2024); a 10% reduction in total waste by 2025 from a 2021 baseline of 23,934 tonnes (-3% versus 2021 in 2024); and 100% of stores and offices LEED-certified Gold or Platinum by 2035 (30% in 2024). Most targets are monitored via the EP&L.

Kering reports resource inflows through materials data consolidated in the Group's EP&L tool. In 2024 total materials amounted to 62,733 tonnes. Of this, 61% was certified and/or recycled content (reported together to avoid double counting) and 86% was biological content, meaning natural materials such as leather, cotton, wool and cashmere. Kering works to reduce sourcing of virgin materials by making greater use of recycled materials and less resource-intensive practices. For jewelry, the Precious Metals Platform resulted in 99% sustainable gold (recycled and/or from certified mines) in 2024. Packaging inflows are reported separately: total packaging consumption for direct Kering operations reached 18,162 tonnes in 2024, up 27% year-on-year, of which 91% was certified and/or recycled content. Kering targets incorporating 40% recycled materials in textile products by 2035, standing at 6% in 2024.

Kering reports resource outflows through packaging consumption and its circular product initiatives. Total packaging for direct operations was 18,162 tonnes in 2024 (up 27% year-on-year), comprising paper and cardboard 16,304 tonnes (95% certified/recycled), textiles 1,156 tonnes (63%), plastic 544 tonnes (53% certified/recycled/biosourced), metal 98 tonnes (0%) and other materials 60 tonnes (26%). Of total packaging, 91% was certified and/or recycled content and 91% recyclable content. Paper and cardboard represent around 90% of packaging while plastic use is falling, replaced by recycled cotton and lyocell; glass is under 0.01%. Product circularity outflows include Gucci's Gucci-Up upcycling of 79 tonnes of leather and 431 tonnes of fabric, Balenciaga's use of 5.8 tonnes of scraps and 1.5 tonnes of fabric for insulation panels, and Kering Eyewear's ReAce, a 100% recycled acetate made from production scraps.

Waste produced by Kering direct operations (stores, offices, production sites and warehouses) totaled 23,331 tonnes in 2024, up 19% from 19,608 tonnes in 2023 (2023 recalculated for scope changes). Of 2024 waste, 813 tonnes were hazardous and 22,518 tonnes non-hazardous, so 97% was non-hazardous. Recovered waste reached 17,238 tonnes (411 hazardous, 16,827 non-hazardous), split into prepared for reuse 644 tonnes, recycled 12,427 tonnes and otherwise recovered 4,167 tonnes. Destroyed waste was 6,093 tonnes (402 hazardous, 5,691 non-hazardous), comprising incinerated 2,687 tonnes, landfill 2,650 tonnes and otherwise destroyed 756 tonnes. The proportion of recovered non-hazardous waste rose from 67% in 2023 to 75% in 2024. The increase mainly reflects better data-collection accuracy, with a 32% rise in actual data collection, plus new offices opened in 2023.

Kering describes a set of Group-wide human resources policies covering its own workforce. The Inclusion and Diversity policy was formalized in 2024 and applies to all employees of Kering's houses and entities, covering gender equality, equal opportunities, inclusion of people with disabilities and a multi-generational workforce. Working conditions, health and safety and well-being are governed by the Charter of Commitments on quality of life at work (2020), the European Agreements signed with the European Works Council in 2015 and 2023, a family and gender equality policy, the Baby Leave parental policy and a global domestic violence policy (2021). Kering committed to review its 2019 health and safety policy and reformulate it as a Health, Safety and Well-being at Work framework by 2026. A talent management and skills development policy and a craftsmanship preservation policy were both formalized in 2024. The Human Rights Policy underpins these commitments. The Group Chief People Officer is responsible for implementing the working conditions and social dialogue policies.

Kering engages its own workers mainly through the annual Kering Employee Listening survey, which gathers views on engagement, well-being, work-life balance, managerial practices, inclusion and diversity, harassment and discrimination, and professional development. In 2024, 39,666 employees participated, an 87% response rate (up 4 percentage points on 2023), with an engagement score of 74 out of 100 (73 in 2023). Results are analyzed at manager, department, function, house and Group levels and feed action plans monitored by Human Resources. Houses run additional local surveys, for example Gucci's three annual Pulse surveys reaching close to 22,000 employees with response rates above 80%. Kering also engages worker representatives through the European Works Council and the French Works Council, whose members are informed and consulted on strategy, economic challenges and HR policy, and receive training from external experts.

Kering's ethics and compliance whistleblowing mechanism is available to all Group employees under the French duty of care law, the Sapin II law and the Waserman Law No 2022-401 transposing EU Directive 2019/1937. The access channels are set out in the Code of Ethics and Human Rights Policy and in a dedicated procedure, with the handling of alerts described in section 4.1.2.2. Beyond formal whistleblowing, employees can raise concerns through the annual Kering Employee Listening survey, People Performance and Development Reviews with their manager, Talent Reviews and regular follow-up interviews. Other mobility, career, internal communication and performance policies also help to curb and mitigate potentially negative impacts. The Group analyzes survey results against the prior year to assess action plan effectiveness and build dedicated action plans around internal mobility, equal opportunity, team collaboration and well-being at work.

Kering takes action on material impacts through training, mobility, inclusion and well-being programs. In 2024 the Group allocated a budget of over 38 million euros to employee training (1.26% of total payroll) and provided 621,807 training hours excluding safety training, with 50,076 employees taking at least one course. More than 1,400 internal mobilities took place, and the AI-powered Talent Match platform was rolled out to 2,600 employees in Finance and HR. Inclusion and diversity actions include gender equality programs, the Women in Luxury network, disability initiatives and inclusive recruitment such as the Dare to Refer program, which referred close to 2,700 applicants in 2024 at a 16% recruitment rate. On health and safety Kering maintains a zero work-related-injury ambition with regular audits and training, and houses such as Gucci and Bottega Veneta use SA8000 and ISO45001 certifications. Effectiveness is monitored via survey results, training hours and participation.

Kering discloses several own-workforce targets, all set by the Human Resources department. On health and safety, it aims to cover 100% of employees with its new Health, Safety and Well-being at Work framework by the end of 2026. It targets continued progress toward gender parity and pay equity at all levels. On mobility, it aims to raise the internal mobility rate from 6% in 2024 to 7.5% in 2026 and to reach a 55% Talent Match adoption rate for relevant employees by year-end 2026 (pilot adoption already at 82%). On recruitment, 65% of HR employees involved in hiring should be certified through Recruiting@Kering by year-end 2025, with 40% of team managers trained during 2025 and 2026. Over 90% of eligible employees should complete the annual Ethics and Compliance e-learning. On remuneration, Kering set a maximum adjusted gender pay gap of 1.5% globally and a target of 100% of employees paid above the adequate wage.

As of December 31, 2024, Kering employed 46,936 people on a headcount basis (down from 47,850 in 2023), comprising 29,658 women and 17,278 men, so women represented about 63% of the workforce. The average number of employees was 47,967. By contract type, 45,069 employees were permanent and 1,867 temporary, while 44,627 were full-time and 2,309 part-time. The largest countries were Italy (13,728), the United States (5,389), mainland China (5,166) and France (4,731). By region, Asia accounted for 14,476 employees and Western Europe excluding France for 17,852. By area of activity, 53% worked in sales, 23% in production and 24% in other areas. By age, 10,875 permanent employees were under 30, 28,065 between 30 and 50, and 6,129 over 50. In 2024, 9,001 employees left the Group, giving an employee turnover rate of 19.7% (down from 22.0% in 2023). Non-guaranteed hours employees are excluded from social reporting.

Kering reports on collective bargaining coverage and social dialogue. The overall percentage of employees covered by collective bargaining agreements is 48.7%, with those employees mainly located in the European Economic Area. Within the EEA, 89.7% of employees are covered by collective bargaining agreements under the 2017 agreement renewing the European Works Council and the 2023 agreement on social dialogue and well-being at work. In the countries with significant workforces, 96.5% of employees in Italy and 94.1% in France are covered by collective agreements, and 100% of employees in France and Italy are covered by an employee representative body. All employees working in the EEA (51% of the total workforce, stable versus 2023) are represented through the Kering European Works Council. Employees outside the EEA are covered by the social dialogue and well-being at work agreement signed with the EWC. Creed, Castellani Confezioni and Futura were excluded from the 2024 social dialogue indicators.

Kering reports diversity metrics for its workforce and management. At top management level (bands F and above, the Leadership Group), women held 40.3% of positions and men 59.7% as of December 31, 2024, out of 263 people (106 women, 157 men), up from 38.6% women in 2023. More broadly, in 2024 women accounted for 58% of the Group's managers, 63% of the total workforce, 30% of the tech workforce, 46% of Executive Committee members and 55% of Directors (excluding Directors representing employees), making Kering one of the CAC 40 companies with the highest proportion of women in senior management. By age, the permanent workforce comprised 10,875 employees under 30, 28,065 between 30 and 50, and 6,129 over 50. Kering ranked 10th worldwide and 2nd in France in the FTSE Russell Diversity and Inclusion index and scored 89 out of 100 in the France 2024 gender equality index.

Kering reports on adequate wages. In 2024, 100% of Kering employees were paid more than the adequate wage, and no Kering employees were paid less than the adequate wage according to the ESRS definition. Since 2021 the Group has run a global study in each country in which it operates to define and update Kering standards guaranteeing a decent standard of living for all employees and their families, covering food, water, housing, education, healthcare and other essential needs. It initially drew on the Fair Wage Network methodology and has become a strategic partner of the WageIndicator Foundation, whose living wage thresholds it has incorporated into its studies. Every year the Group updates the comparison between actual wages and Kering standards, and each house is informed of any shortfalls so it can take action. This commitment is embodied in the 2023 agreement signed with the European Works Council.

Kering reports on persons with disabilities. As of December 31, 2024, the Group had 780 workers with disabilities, representing 1.7% of the workforce, with a coverage rate of 84.9% excluding the United Kingdom and the United States. Kering reaffirmed its commitment through the European Empowering Talent agreement signed in 2015, and in 2024 Kering Corporate France signed its first officially approved disability agreement with the CFDT and CFE/CGC unions, based on five priorities covering workplace integration, job retention, support for caregivers and awareness-raising, intended as a first step toward a Group framework at European level. Houses ran awareness workshops (Boucheron, Balenciaga, Qeelin), the Duo Day initiative and disability resource groups such as Gucci's Guccibility and Accessibility. Gucci was recognized as a Best Place to Work for Disability Inclusion by the Disability Equality Index for a third consecutive year, scoring 100 out of 100. Houses in France and Italy also outsource work to the protected sector.

Kering reports training and skills development metrics. In 2024 the Group delivered 691,031 training hours, an average of 14.7 hours per employee (down from 15.4 in 2023), with Creed and Castellani Fashion excluded and 2022 and 2023 data recalculated to align with ESRS S1 definitions. Kering allocated a budget of over 38 million euros to employee training in 2024, representing 1.26% of the Group's total payroll, and provided 621,807 training hours excluding safety training, with 50,076 employees (including leavers) taking at least one course. Regional training reached 576 employees in Europe, over 690 in Asia-Pacific and 170 in the Americas, while 345 employees took part in high-potential and executive programs. Every year all eligible employees have a People Performance and Development Annual Review with their manager, and functional academies trained thousands more, including over 2,300 participants in the Human Resources Academy.

Kering reports health and safety metrics. In 2024 there were zero fatalities as a result of work-related injuries and work-related ill health, consistent with 2023 and 2022. The Group recorded 318 recordable work-related injuries (up from 288 in 2023 and 252 in 2022), a recordable work-related injury rate of 3.95 per million hours worked (3.6 in 2023) and a severity rate of 0.15 days lost per million hours worked (0.12 in 2023). The overall absenteeism rate was 5.8% and the absenteeism rate due to illness was 2.9%. In terms of risk prevention, 69,224 hours of safety training were provided to 9,329 Group employees in 2024, and 318 lost-time accidents were recorded. Creed and Castellani Confezioni were excluded for 2024. Because a number of data are decentralized to the houses, Kering is unable to publish the number of employees covered by the health and safety management system.

Kering reports compensation metrics including the gender pay gap and total compensation ratios. In 2024 the unadjusted gender pay gap was 15.8% in favor of men, meaning women's average salary was 15.8% lower than men's before accounting for legitimate factors (14.2% in 2023). The adjusted gender pay gap, considering legitimate factors such as role, seniority and location, was 1.4% in favor of men (1.6% in 2023), confirming the effectiveness of remediation actions. The ratio between the highest remuneration and the average employee remuneration was 190.1, and the ratio between the highest remuneration and the median employee remuneration was 253.8, both on a worldwide scope covering close to 35,700 employees (about 80% of the workforce). The Fair Pay Innovation Lab awarded Kering and each of its houses Universal Fair Pay certification for a second consecutive year. Adequate wage and remuneration ratio indicators have been published since 2024.

Kering reports on incidents, complaints and serious human rights infringements. In 2024, no discrimination or harassment-related complaints were filed with the Group via the channels reporting to the national contact points for OECD multinational enterprises. The Group did not record any cases of non-respect of the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, or the OECD Guidelines for Multinational Enterprises. No alleged human rights incidents were brought to the Group via the whistleblowing mechanism. The number of complaints (alerts) filed and the number of discrimination incidents, including harassment, are reported via the ethics and compliance whistleblowing mechanism presented in section 4.1.2. Because of the decentralization of the Group and the non-consolidation of certain data from the houses, Kering is not in a position to publish for 2024 the total amount of fines, penalties and compensation resulting from incidents and complaints.

Kering's policies on value chain workers are set out in the Code of Ethics (which includes the Suppliers' Charter), the Human Rights Policy, and the Sustainability Principles updated in 2023. Through these, Kering commits to respect international reference texts including ILO conventions, the OECD Guidelines and the UN Guiding Principles on Business and Human Rights. It prohibits child labor, forced labor, human trafficking, debt bondage and slavery within its operations and supply chain, applying a zero tolerance policy that leads to automatic termination of the affected relationship. Suppliers must respect workers' right to unionize, provide a safe environment, reasonable working hours, a living wage and an inclusive workplace free of violence or discrimination. Kering falls within French Duty of Care Law No. 2017-399 and updates its Duty of Care Plan annually. Other documents include the Modern Slavery Statement, the Conflict Minerals Statement, and the 2017 Charter on Fashion Models' working conditions, which limits hiring to models aged 18 and over. All documents are accessible online to supply chain workers.

Because 81% of Kering's suppliers are based in Italy, upstream value chain workers are automatically covered by the relevant sector collective bargaining agreements, offering an established social dialogue structure managed by union representatives, with agreements reviewed roughly every three years. Kering pilots several processes to better understand workers' expectations and interests, including interviews and analyses conducted as part of the human rights and duty of care risk mapping that feeds the annual Duty of Care Plan, and interviews performed during the thousands of social audits carried out each year. The Group may conduct ad-hoc studies, surveys or interviews with value chain workers when they are in particularly vulnerable situations, such as certain geographies or activities. Kering does not use specific indicators to assess the effectiveness of this engagement but requires suppliers to sign the Code of Ethics, including the Suppliers' Charter. The Group General Counsel oversees human rights and working conditions matters, the Group Operations Director oversees social audits and on-site contractors, and the Compliance, Audit, Security and Sustainability departments handle day-to-day management.

Kering has four processes to control, measure and address negative impacts on value chain workers: a social audit process for direct suppliers and their subcontractors; a whistleblowing mechanism open to supplier and subcontractor employees; a human rights and duty of care risk mapping covering Tier 1 suppliers and raw material sourcing; and ad-hoc studies by a dedicated social impact team. Social audits run under the Hercules system, built on six pillars including central management, uniform procedures, a comprehensive 97-question methodology across 13 categories aligned with SA8000 and SMETA, and a four-tier anomaly classification (zero-tolerance, high non-conformity, non-conformity, observations) each with standardized response times. Audits include document reviews, site inspections and confidential worker interviews. The ethics and compliance whistleblowing mechanism operates in line with the French Duty of Care Law, Sapin II and Waserman laws, and is accessible to supply chain workers and on-site contractors. A communication campaign in 15 languages, via posters and flyers at supplier sites, reminds workers how to access the system and the protections provided.

Social audits under the Hercules system are a main lever for ensuring suppliers comply with human rights and working conditions standards; 4,550 audits were performed in 2024, of which 52% (excluding activation audits) were unannounced. By December 31, 2024, 12,811 anomalies were recorded, 75.5% observations, 22.4% non-conformity, 1.8% high non-conformity and 0.3% zero tolerance; the top themes were wage and working conditions, health and safety and environment. Following audits, 63.8% of suppliers were rated compliant, 30.3% partially compliant, 5.1% progress expected and 0.8% non-compliant, and 89 suppliers had their relationship terminated in 2024 due to unsatisfactory results. Corrective action plans and follow-up audits verified resolution, supported by more than 429 committee meetings with the houses. The Compliance department updated the human rights and duty of care risk mapping between 2023 and 2024, expanding it beyond Corporate, Gucci and Boucheron to other houses. The social impact team ran living wage analyses across around 100 suppliers using the Fair Wage Network benchmark. No alleged human rights incidents were reported via the whistleblowing mechanism in 2024.

Kering has set a target to audit 75% of Group suppliers annually, with a scope covering active suppliers across production, materials and services, applying from 2025. The methodologies and assumptions used to define the target rely on three types of audits, activation, comprehensive and follow-up, with the frequency of audits depending on the results of previous audits. In 2024, performance reached 70%. Social audit monitoring metrics show 4,550 audits were conducted in 2024, compared with 4,559 in 2023, 4,118 in 2022 and 3,420 in 2021. These included 877 activation audits due to the extension of the audit scope, 1,588 comprehensive audits and 2,085 follow-up audits. A total of 44% of these audits were carried out by Kering's internal team of auditors and 56% by external auditors, with the Group audit protocol consistently applied to all audits. The Group aims to audit its compliant suppliers once every two years, while partially compliant suppliers or those where progress is expected undergo follow-up audits to confirm remedial measures are effectively implemented.

Kering's commitments toward local communities and indigenous peoples are described in four documents: the Code of Ethics, the Human Rights Policy, the Climate Strategy and Biodiversity Strategy, and the Sustainability Principles. The Code of Ethics reiterates the commitment to contribute actively to the economic and social development of local communities. With its suppliers, Kering commits to respect the rights of workers, farmers and smallholders in compliance with the Universal Declaration of Human Rights, the UNGP and ILO Fundamental Conventions; not to contribute to the disappearance of artisanal traditions; to refrain from supporting any economy fueled by conflict or war; and not to hinder the activities of human and environmental rights defenders. In its Human Rights Policy, Kering pledges to respect the right to own property, combat forced evictions and population displacement, and enforce zero tolerance against human trafficking within local communities. The Biodiversity Strategy and Sustainability Principles commit Kering to respecting the rights of indigenous peoples, specifically on consent, in line with the Nagoya Protocol. Kering expects its direct suppliers to respect indigenous peoples' rights and to require the same from subcontractors.

Kering seeks constructive dialogue with stakeholders and their government or community representatives in the regions where it operates. This dialogue has three aims: to gather the opinions and concerns of local actors so they can be taken into account in Group and house operations; to prevent, detect and remediate any negative impact resulting directly or indirectly from its activities; and to act as a responsible local player contributing sustainably to territorial development. Operational responsibility for dialogue with local and indigenous populations lies with each house, and where contacts involve government authorities the Institutional Affairs department, under the Chief Sustainability and Institutional Affairs Officer, is involved. Kering recognizes indigenous peoples' rights including rights to land, resources and cultural heritage. Engagement with indigenous people has so far been carried out mainly through organizations with thorough knowledge of local issues, and the Group is considering developing a more structured engagement process. For women in society, Kering engages directly with women involved in its activities and their representatives, such as international organizations and NGOs specializing in women's rights, with responsibility split between the Chief Sustainability and Institutional Affairs Officer and the Group Chief Brand Officer.

Kering is committed to preventing and remediating negative impacts identified by affected communities, in compliance with its human rights and social responsibility commitments as set out in the Code of Ethics and the Human Rights Policy. Feedback on concerns is communicated via informal processes on a case-by-case basis. The potential negative impacts identified for indigenous peoples are medium to long-term and are mainly linked to the new Kering Beaute division launched in 2024. In 2024, Kering co-financed the study "Indigenous Partnership Principles for the Fashion, Apparel and Textile Industries," carried out by the NGOs Conservation International and Textile Exchange, to identify and better understand how the fashion industry impacts indigenous peoples worldwide. Having deployed an initial level of standards, namely via its Biodiversity Strategy, the Group will be required to reinforce this system in the coming years by establishing clear processes for gathering the interests and concerns of indigenous peoples and suitable remediation measures. In 2024, no serious human rights incidents involving affected communities were identified by the whistleblowing mechanism.

Kering takes action to promote economic and social development and to protect human, cultural and environmental rights of local communities. Projects from the Regenerative Fund for Nature and the Precious Metal Fund benefit both the environment and communities, with improving living standards being one of the five pillars of regenerative agriculture, evaluated using indicators such as revenue levels, persons trained and microcredit amounts. House programs, whose effectiveness is regularly assessed, include Gucci's collaboration with the Indian social enterprise "I was a Sari" and Balenciaga's work with the NGO Up2Green Reforestation, which in 2024 supported a coconut production process in Cameroon benefiting around 210 people. Gucci and Bottega Veneta received the UNHCR "Welcome" refugee integration award. Kering works with local authorities, for example its tanneries in the Arno basin in Italy engage with local consortia and communities. The Compliance department carried out risk mapping in 2023 and 2024 covering human rights and duty of care toward local communities, particularly rights to land and cultural heritage. Inclusion projects include Alexander McQueen's support of "A Team Arts Education," Kering Eyewear's work with CAUTO, and Boucheron sourcing from a Namibian diamond workshop employing people with disabilities.

The Group has not yet set targets and performance indicators regarding local communities and indigenous peoples. However, within the framework of the Regenerative Fund for Nature, monitoring indicators have been defined for each project supported. The five pillars of regenerative agriculture, including improving living standards for communities, are evaluated using indicators such as levels of revenue, the number of persons trained and made aware of these practices, and the amounts of microcredits. In 2024, no serious human rights incidents involving affected communities were identified by the whistleblowing mechanism. Regarding women's rights in society, the Group has likewise not yet set targets on its performance, though Kering Foundation's targets are defined in a five-year strategic plan approved by its Board of Directors, detailing its roadmap for the period and setting the pace for its commitments. The Foundation, an endowment fund with a budget of 5 million euros in 2024, has developed a Theory of Change and a new monitoring and evaluation process to assess the impact of its support on the organizations and people it helps.

Kering's policies for consumers and end-users span product quality and safety, personal data protection, responsible marketing, and product traceability. The Code of Ethics commits the Group to designing and selling products meeting current quality, safety and intellectual property standards, and to providing transparent, reliable information. Quality and compliance control procedures align with strict international standards such as REACH, US CPSIA, China GB Standards and Japan Industrial Standards. For data protection, measures rest on two texts: the internal Privacy Framework signed in 2021 (Governance, Accountability, Personal Data Breach Management, Training and Awareness policies and others, due for update in 2025), and an external policy on each house's website. A cybersecurity strategy follows five principles based on the NIST CSF 2.0 framework. Commitments reference the UN Guiding Principles on Business and Human Rights and the ILO Declaration. A responsible marketing policy and internal guidelines set key principles and golden rules applied across every house and the Group.

The Houses build close relationships with their customer base through multiple channels to adapt to customer preferences: direct interaction in stores and points of sale; one-to-one contact by advisors via telephone, SMS, email, WhatsApp or WeChat; one-to-many mass communications such as email, SMS/MMS/VMS, WeChat, KakaoTalk or Line tailored to each market; and engagement through customer service and social media. On average one customer receives 42 communications per year, varying by house and purchasing frequency. Information is collected at registration or first purchase, during store or website visits, through interaction with communications sent, and via satisfaction surveys such as the Net Promoter Score. The stakeholder mapping in section 1.1.2 identifies how customers' opinions, interests and rights are taken into account. "Customer" covers end customers, consumer associations, influencers and retailers. The Houses assess effectiveness by measuring customer satisfaction and analyzing feedback, allowing them to adjust practices continuously and maintain a relationship of trust.

Each house has its own customer service department to receive, escalate and deal with customer concerns or incidents, and Kering pays attention to customer feedback valuable for improving products and experience. Kering commits to upholding customers' human rights under the UN Guiding Principles and the ILO Declaration, incorporated in its Code of Ethics. In line with the Accountability Policy, the Group takes a proactive remediation approach using ongoing monitoring, stakeholder consultations and routine assessments; when a negative impact is detected, teams conduct in-depth analysis to define corrective or preventive responses. For data rights, a centralized team handles requests submitted through a dedicated email, a website form, by letter, or via store staff, telephone support or social media. In 2024, 4,424 requests were recorded (3,376 in 2023), with an average response time of four days. All houses also have a "product" crisis management unit that provides transparent information and recalls defective products, backed by civil liability insurance and their own quality control and customer feedback channels.

Kering acts across data protection, product compliance, marketing and traceability. Under the Accountability Policy an assessment checklist of 5 to 120 questions guides impact analysis: 611 analyses were performed in 2024 (546 in 2023), 202 leading to protective measures and 39 undergoing Data Protection Impact Assessments. A Privacy and Cybersecurity training program reached 93.3% of employees in 2024. Contractual obligations on suppliers include a model Data Processing Agreement, with 330 DPAs finalized in 2024. Cybersecurity is overseen by the Group CISO with quarterly committees. The Product Compliance Advisory department ran audits at warehouses, stores and e-commerce, strengthened training (around 15 sessions for over 350 employees), and the Test and Innovation Lab in Prato performed 250,000 tests. A Brand Trust function, created in 2023, reviews content and marketing activities and must be consulted for sensitive campaigns and all fashion shows. Traceability initiatives use RFID/NFC chips, blockchain and platforms such as TextileGenesis, identifying 547 leather slaughterhouses.

Kering reports targets across several consumer topics. For personal data protection and cybersecurity, two internal targets are set: a minimum of 85% of employees taking part in the annual e-learning program (scope: Group employees, excluding those without access to personal data at production sites, monitored via PowerBI; 2024 performance 93.3%), and an average response time of four days to customer requests to delete their data (scope: Group employees, customers and third parties, monitored via OneTrust; 2024 performance four days). Both are annual targets. For product footprint and transparency, Kering targets 100% traceability of raw materials back to the country of origin, covering raw materials under the Kering Standards, with a 2025 target year, monitored via the EP&L tool; 2024 performance was 95% (traceability up to the slaughterhouse for leather). For responsible marketing and communication, the Group has not yet set targets and performance indicators.

Kering places ethics and compliance at the center of its business conduct, a commitment conveyed at the highest level by the Chairman and Chief Executive Officer, Francois-Henri Pinault. The Code of Ethics is the cornerstone of the Group's commitments. It formally sets out a zero tolerance policy toward corruption and influence peddling, requires employees to avoid conflicts of interest, and affirms their duty to act with integrity, loyalty and responsibility toward all stakeholders. It reasserts commitments to human rights across operations and supply chains and to the environment. The Code applies to all employees at all houses in all countries, with more specific policies and procedures addressing local requirements. A compliance program built on three priorities (a network of compliance officers, policies and procedures, and training) supports these principles. All compliance policies are accessible to employees on the internal network. Governance is centered on the Group Chief Compliance Officer, who reports to the Audit Committee.

Kering's approach to sustainable sourcing rests on the Suppliers' Charter (in the Code of Ethics), the Sustainability Principles for suppliers, and the Kering Standards. Direct purchases of materials, finished products and equipment are managed contractually by the houses, which identify, assess and monitor suppliers and ensure they adhere to the Code of Ethics, Sustainability Principles and Kering Standards. For indirect purchases, an Indirect Procurement Policy, under the Group Operations Director, aims to guarantee transparent, fair and long-term supplier relationships. Bids are analyzed on compliance and financial health, technical and operational capabilities, financial offering, a CSR criteria checklist and contractual response. Since 2020 a Vendor Portal collects social and environmental performance data from strategic suppliers (84% of purchase volumes in 2024). Kering supports suppliers through training and capacity-building programs such as the Material Innovation Lab and Clean by Design. It has signed the French Responsible Supplier Relations and Responsible Purchasing Charter since 2014.

In line with France's Sapin II law, corruption and influence-peddling risks were mapped in 2019 and updated regularly to reassess risks. The map objectively analyzes corruption risks across relevant activities and departments (Real estate, Institutional relations, Human resources and Purchasing), rating and ranking scenarios by severity, frequency and aggravating factors. The resulting action plan defines prevention and detection measures, and second-tier compliance checks are performed on and off site by the Compliance department. The Anti-Corruption Policy, updated in 2019, identifies prohibited behavior and helps employees detect and report corruption. The program meets international standards, notably the eight pillars under Article 17 of Sapin II. Targeted training covers the most exposed jobs: in 2024 more than 3,374 employees received in-person Anti-Corruption Policy training, alongside an annual e-learning program taken by 98% of employees. Kering set a target of reminding over 90% of employees about the whistleblowing mechanism each year. An external hotline operates 24/7 in around 40 languages.

Kering was not subject to any convictions or fines for corruption in 2024. In the event of a confirmed instance of corruption, any breach of the Group's anti-corruption procedures would result in disciplinary measures and appropriate remedial action. Regarding wider ethics reporting, the Kering Ethics and Compliance Committees (Group and Europe, APAC and Americas) received 116 reports in 2024, of which 98 met the legal criteria for whistleblowing alerts. Of those 98 alerts, 93 were from Group employees and 74% had been investigated or were still under investigation as of December 31, 2024, with 18 violations identified. Of the 98 alerts, 76% were received by email and 24% through the ethics hotline, and 41% were submitted anonymously. By category, alerts related mainly to Human Resources and Management (54%), harassment (21%), fraud (11%) and discrimination (7%), with corruption and other compliance matters at 3%. Following investigations, corrective or remediation measures such as training, warnings, dismissals or policy updates are taken.

Kering's influence activities center on contributing to professional and sector-specific associations (including representation of interests) and participating in sector coalitions such as the Fashion Pact and the Watch & Jewellery Initiative. Activities must align with the Sustainability Strategy, Code of Ethics and compliance procedures, supported by an internal declaration procedure requiring employees to inform the Compliance department of new memberships or concerns. On lobbying, Kering complies fully with the rules of the High Authority for Transparency in Public Life (HATVP) in France, the European Union transparency register (No. 465818716727-39) and applicable laws in all countries where it operates. In 2024, Kering and its houses allocated a total of 5,294,047 euros to influence activities: 3,314,944 euros (63%) to sustainability partnerships or coalitions and 1,979,103 euros (37%) to professional or industry associations. In line with the Code of Ethics, no contributions were made to political organizations (0 euros), and no Board members held public office in the two years before their appointment.

The Indirect Procurement Policy and supplier contracts include specific clauses to guarantee payment times in accordance with local regulations. In France, Kering complies with Article L. 441-10-I of the French Commercial Code: 60 days from the date the invoice is sent; 45 days after the end of the month the invoice is sent, provided this is expressly stipulated in the contract and does not constitute a clear abuse of the creditor's rights; and 45 days after the invoice is sent for periodical invoices where a supplier makes several deliveries in a month and issues one invoice. Payment times are monitored by the finance departments of each house and the Group through financial reporting tools, at a frequency each finance department determines. Kering has not yet set specific targets on supplier relationships but remains committed to adhering to statutory payment times in each country. Owing to the decentralization of certain data to the houses, Kering is unable to publish data on payment terms.