We are aware of the actual and potential human-rights impacts generated throughout our value chain. We are engaged in an ongoing process of human-rights due diligence, progressively taking steps to identify, prioritize, and address salient issues. In our supply base, we recognize our responsibility to make investment and purchasing decisions that support the highest standards in conformity with our corporate policies, and choose to work only with those suppliers who engage with us in this. Our supply base consists of more than 3,000 suppliers around the world, split between what we term “direct procurement” (i.e., finished goods, components, and raw materials) and “indirect procurement” (i.e., sales, promotional and marketing materials, such as shopping bags and displays). Our FASHION activity has over 1,400 supply- chain partners, 69 percent of which supply finished goods, and the majority of which are based in Europe (France and Italy). Our FRAGRANCES & BEAUTY activity has over 900 suppliers, 69 percent of which provide raw materials. 27 percent supply natural raw materials of strategic importance for the brand, and we have direct access to the origin of such materials. Our WATCHES & FINE JEWELRY activity has 34 suppliers, supplying gold, diamonds, and other precious stones. For indirect procurement of customer-related items, we have over 670 suppliers. HUMAN RIGHTS IN OUR SUPPLY CHAIN A HUMAN-DRIVEN COMPANY