Figure does not include the numerous compliance

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
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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.