With the adoption of the UN SDGs in 2015, we recognize that best practice means linking project-level impacts to material sustainable- development goals and local indicators. For Bhutan and other markets in Africa, Asia, and South America where we source our natural raw-materials, we have defined a method for devising relevant and appropriate projects at raw-material origin. Our ambition is to set the trend in terms of corporate accountability for sustainable development in these areas and to share our approach with others. PRESERVING GROWING TRADITIONS IN COSTA RICA In Cerro Azul, Costa Rica, our suppliers cultivate approximately three tons of green coffee a year, using traditional methods, for our skincare products. In 2015, we carried out a study that highlighted a number of issues — one being that due to cheaper production methods in other countries, coffee in the region became far less profitable. Local producers were abandoning coffee and even moving away. The population of Cerro Azul fell from 2,500 to around 1,000 in just over 25 years. To address this, and help preserve coffee-growing traditions in Cerro Azul, we set up a supply-chain resiliency plan. We financed a new coffee-roasting unit to encourage the production and sale of locally roasted coffee. This increased the coffee’s purchase price and helped restore profitability. Working with a local social-business company, we also developed an innovative social- entrepreneurship model for the sustainable development of vulnerable rural communities, using local resources and know-how in ingredient production. Due to this close alignment with our sustainable sourcing strategy, we signed a three-year renewable framework agreement for sustainably grown plant-based raw materials. This provides visibility and financial security for the business, while allowing CHANEL to benefit from their extensive agroecology and social expertise. NATURAL RAW MATERIALS OF EXTRAORDINARY QUALITY