figure does not include the numerous compliance controls that may be performed

Figure does not include the numerous compliance

This preview shows page 73 - 75 out of 122 pages.

figure does not include the numerous compliance controls that may be performed on a specific environmental regulation topic, e.g. a waste sorting inspection, performed periodically by the Group companies on their sites. In the context of its production and storage activities, the Group is exposed to the occurrence of losses such as fires , water damage or natural catastrophes . To identify, analyze and provide protection against industrial and environmental risks, the Group relies on a combination of independent experts and qualified professionals from various Group companies, and in particular safety, quality and environmental managers. They pay particular attention to the risks associated with the storage and shipment of raw materials. The Global Compact – LVMH’s Communication On Progress 2016 2015-16 2015-16
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- 74 / 122 - definition and implementation of the risk management policy are handled by the Finance Department. The protection of the Group’s assets is part of a policy on industrial risk prevention meeting the highest safety standards ( FM GLOBAL and NFPA fire safety standards ). Working with its insurers, LVMH has adopted HPR (Highly Protected Risk) standards , the objective of which is to significantly reduce fire risk and associated operating losses. This approach is combined with an industrial and environmental risk monitoring program. In 2015, engineering consultants audited about 52 sites . In addition, prevention and protection schemes include contingency planning to ensure business continuity. 3.3. Prevention of product-related risks : LVMH pays very close attention to the traceability and compliance of the materials and substances used to manufacture the products marketed by its Maisons, as part of its general risk management process. The HACCP (Hazard Analysis Critical Control Point) method is used in the Wines & Spirits and Perfumes & Cosmetics business groups. In addition to industrial safety, the Group’s companies also work to ensure greater product safety and traceability to reinforce the Group’s anticipation and responsiveness in the event of a product recall. A legal intelligence team has also been set up in order to better manage the heightened risk of liability litigation, notably that to which the Group’s brands are particularly exposed. Concerning REACH regulation, the Group has rolled out a comprehensive programme for its Maisons in the Fashion & Leather Goods and Watches business groups which is based on an internal standard, the LVMH RSL (Restricted Substances List) , which prohibits the use of hazardous substances in items brought to the market, as well as their use by suppliers. This standard includes the most stringent regulatory requirements, and anticipates future regulations. The LVMH Group also collaborates with our luxury brands on this issue, as part of a working group that deals with improving the management of chemicals in our supply chains. In order to boost the Maisons’ control systems, the Environment Department has also designed the LVMH Smart Testing programme in partnership with independent international laboratories.
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