LA PLACE In 2016, after a year of consultation and design, our team in New York opened a new workplace model designed to encourage collaboration, and explore ways in which people in different areas of the business could connect, collaborate, and share ideas while increasing visibility and interaction with senior leadership. The new open space for gathering and interaction has enabled multiple forms of assembly as well as events that inspire our employees. The “La Place” model is being replicated in other offices, including the new London management offices. OUR WORKPLACES: SOCIAL WORKING ENVIRONMENTS SUPPORT NEW WAYS OF WORKING Our physical workspaces are increasingly a driver of transformation, inspiration, and collaboration. Understanding that the physical design of our workplaces plays a critical role in the performance and well-being of our employees and in our overall organizational culture, we are investing in workspace transformation programs across CHANEL. New styles and/or expanded workspaces designed in close consultation with CHANEL employees encourage people in different areas of the business to connect, socialize, collaborate, and share ideas. GENDER EQUALITY — A FIRST STEP WITH EDGE To further enhance our inclusion and diversity measures, in 2016–2017 we took an important step in focusing on gender equality. As a company employing a majority of women and as a brand primarily for women, we believe it is essential that we ensure that the principles of gender equality and women’s empowerment are embedded in our organization. We therefore engaged EDGE, the leading global assessment methodology and certification standard for gender equality, to provide an initial assessment and guidance on the gender balance across our organization and to advise on the steps, which we are now taking, that will help to ensure gender equality in our pipeline development, pay practices, and fair-employment policies. Enhancing inclusion and diversity is also an ongoing opportunity for CHANEL. We will continue to focus on new programs to demonstrate our appreciation for all aspects of diversity, including diversity of thought, and to further promote a more inclusive and diverse culture. ENSURING INCLUSION AND EQUALITY Fostering a culture of inclusion and diversity where individuals have the freedom to be themselves and equal opportunity to contribute and achieve is of essential value. We are committed to equal treatment in our organization and to continually enhancing our policies and practices that ensure safe environments free of discrimination and harassment, as well as equality of treatment and access to opportunities and promotions. We are improving in this area by incorporating inclusion and diversity in our HR talent processes, establishing management priorities, and conducting regular compliance committee reviews — all at global, regional, and market levels. A HUMAN-DRIVEN COMPANY