Addressing the impact of man-made climate change is one of the most urgent challenges facing the world, and a significant threat to all businesses. To counter this threat, our global economy must decarbonize rapidly and radically. We believe that we have a key role to play in showing how a luxury brand can strive to address the negative impacts of a changing climate. Indeed, we have high ambitions for the transition from a carbon-based economic model to one that is resilient and regenerative. We are convinced our long-term mind-set allows us to make decisions and put in place processes that will achieve positive outcomes. Similar to many companies, our approach to climate change has been to measure our carbon footprint and to set targets for reducing direct and indirect carbon emissions, in line with the Paris Agreement (United Nations Climate Change Conference, COP 21) of 2015. We aim to help limit mean global temperature increases to 2 ̊ and even strive for 1.5 ̊ against a preindustrial baseline by the middle of the century, and for emissions to be “net zero” by the end of the century. We also believe the influence of our brand can increase climate action, both within our company and beyond. We work with a number of the key partners of the We Mean Business coalition, including The B Team, BSR, the World Business Council for Sustainable Development, and the Business Renewables Center at the Rocky Mountain Institute to help make the changes needed to accelerate the transition to a low-carbon economy. CHANEL’S CLIMATE STRATEGY SCOPE 1 Direct Emissions 9,000 tCO 2 e SCOPE 2 Electricity 35,000 tCO 2 e SCOPE 3* Transport of People 19,000 tCO 2 e Transport of Goods 145,000 tCO 2 e Other Scope 3 — Purchased Goods and Services 1.7M tCO 2 e * Does not include categories for which we do not have estimates, such as use of sold products. OUR ESTIMATED GLOBAL CARBON FOOTPRINT (Scope 1, 2, and 3 Emissions) Estimate includes: ~ 1.9M tCO 2 e A COMMITTED LUXURY LEADER