WHAT IS LEED CERTIFICATION? LEED is a is an internationally recognized rating system and certification standard devised by the USGBC for evaluating the environmental, health, and safety performance of building design and construction projects, and encouraging market transformation toward sustainable design. Projects pursuing LEED certification earn points across several categories, including, but not limited to, energy use and air quality. Based on the number of points achieved, a project then earns one of four LEED rating levels: Certified, Silver, Gold, or Platinum. approaches and guidelines most relevant to our small-scope luxury boutiques. We hope these standards will be able to support other luxury brands seeking LEED certification. MOVING TOWARD CIRCULAR SALES PROMOTION MATERIALS While we work to improve our retail spaces, we are also finding ways to reduce the impacts of our product displays and other sales and promotional materials (SPM) that appear within them. We are investing in the circular economy, the end goal being to phase out waste by regenerating materials and products at the end of their life cycle. To this end, we are progressively improving the eco-design of our SPM, increasing use of recycled raw materials and ensuring they can be recycled easily at the end of their lives. The whole idea of the circular economy is restorative and regenerative by design. Relying on system-wide innovation, it aims to redefine products and services to phase out waste, while minimizing negative impacts. Underpinned by a transition to renewable- energy sources, the circular model builds economic, natural, and social capital. REDUCING PMMA IMPACTS Since 2014, our FRAGRANCES & BEAUTY activity has taken a number of significant steps to reducing the environmental impact of PMMA plastic in its SPM displays. In 2014, we began using a recycled PMMA known as Green Cast in our cosmetic display cases — an innovation by our supplier Madreperla. This increased the amount of recycled raw materials in our SPM by almost one-third, and according to life cycle analysis conducted by EVEA, decreased its carbon footprint by 66 percent. In 2017, the activity launched the Pearl Project, working with our suppliers Madreperla and Arkema to produce recycled PMMA granules for manufacturing injection-molded SPM components. This project will at least double the amount of recycled plastic in our SPM.