IWC runs a successful programme to engage and support its employees in their efforts to be more environmentally responsible outside work. The programme provides positive incentives to encourage employees to take carbon reduction measures when travelling and at home.

Since 2008, IWC has subsidised 80 % of the cost of public transport for its employees and provided financial support to those who purchase low CO2 emission cars. IWC employees use public transport for business meetings within Switzerland, wherever possible.

Employees who invest in energy-saving or alternative energies in their homes, e.g. solar panels, are financially supported through IWC subsidies. Since 2008, the IWC intranet has included a feature to allow employees to calculate their personal carbon footprint and offset this by investing in environmental projects. IWC then matches 50 % of this contribution.

Following its review of packaging materials and suppliers, Chloé is working with a supplier that uses paper from sustainable and Forest Stewardship Council (FSC) -certified sources: over 80 % of Chloé’s printed material is manufactured from FSC-certified materials.

Chloé's new 'foldable' gift boxes have also been a success. These boxes use less packaging material than rigid boxes and also have a lower volume during transportation, thereby reducing transport-related impacts. They are also popular with boutiques as they are easier to store.

Finally, garment bags for ready-to-wear are in made in biodegradable material.

In 2009, Cartier announced that it had committed to purchase gold from Goldlake’s Eurocantera mine in Honduras. The integrated, responsible business model which Goldlake, a member of the RJC, implemented in Honduras is unique. Eurocantera extracts alluvial gold deposits using an innovative process which requires only closed circuit water – no cyanide or other harmful chemicals. Eurocantera also works in partnership with artisanal miners using traditional, environmentally-safe, mercury-free methods. The mine also undertakes reforestation, 100 % waste recycling and a number of other environmental protection measures.

Cartier’s commitment to the mine is for a minimum of three years, including the purchase of the mine’s entire production in its first year and at least the same amount in the following two years. The commitment represents an investment of at least USD 10 million, depending on the mine’s production output.

While this production is but a small part of Cartier’s annual sourcing of gold, it sends a signal to the mining industry that Cartier will favour innovative and forward thinking techniques in its sourcing and supplier strategy.

Chloé has focused on communicating its CSR strategy and achievements to employees. Looking for a novel way to engage employees, Chloé held training sessions for all Paris-based employees. The sessions included the ways Chloé is integrating good environmental practice into the business and gave employees more information on how to be environmentally responsible outside the workplace. The sessions raised awareness of the CSR agenda within Chloé and increased understanding of environmental issues in general.

Pleased with the overwhelming and positive reaction from its French employees and to reach a wider audience, Chloé will translate the training material into English and Japanese in 2011. It is communicated via Made in Chloé, the Maison’s intranet.  It will also be incorporated in the new Chloé induction program.

A range of other CSR-related topics are available on Chloé’s intranet, including the Group’s Codes of Conduct.

The Montblanc Academy serves as a ‘Think-Tank’ and knowledge centre within the Maison. It is responsible for developing content-specific training objectives and programmes in order to strengthen Montblanc’s product and sales performance. It operates on a worldwide basis through a ‘Train-the-Trainer’ network of over 40 trainers, who tailor and deliver training in local languages. The network is also supported by a group of independent experts and trainers, who focus on the more complex training issues.

As well as addressing marketing and sales issues, the Academy provides personnel development training for management and employees with high potential.

Since its opening more than 10 years ago, over 70 nationalities have visited and participated in its tailor-made training programmes and events.

Richemont supports The Creative Academy, the Milan based postgraduate school created by the Group in 2003. This offers students a Masters programme in Arts in Design. Each year, the Academy welcomes some 20 students.

The Academy’s course has openings for those who have already completed a course of studies in disciplines related to design. The Master of Arts in Design gives young designers specialised training in applied arts, in particular in the fields of jewellery, watchmaking and accessories. The degree offers seven months of studies in Milan, involving contributions from CEOs of Maisons and other experts, as well as three month internships across the Group’s businesses. A Masters Degree is awarded upon successful completion of the programme.

The school has close strategic ties with Poli.Design, a consortium of the Politecnico di Milano, which participates actively in the planning of the courses, and with the SDA Bocconi School of Management in Milan, a leading international management institution. Having successfully completed their Masters course, the majority of the alumni now work for Richemont’s Maisons. Many others work as freelancers or as employees in other branches of the luxury goods industry.

Managing creativity

Richemont also offers training for our senior management dedicated to fostering creativity in the workplace and effective management of creative people. Bespoke courses are developed specifically for our management population and are held at the Creative Academy in Milan. Further information on the Creative Academy can be obtained at www.creative-academy.com

Since 1997, A. Lange & Söhne’s in-house watchmaking school has offered five apprenticeships annually. Each apprentice embarks on a three-year programme during which they learn from experienced teachers and master craftsmen and women.

Officine Panerai has supported six of its employees, with no previous background in watchmaking, to retrain as watchmakers. Having successfully completed a six-year diploma programme, these employees are now working within the Maison as qualified watchmakers.

We work closely with the Watchmakers of Switzerland Training and Education Programme (‘WOSTEP’) Foundation, a neutral and independent Swiss institution, which offers an internationally recognised training methodology and quality standard in the field of watchmaking. In 2008/09 Richemont, partnering with WOSTEP, opened its first training schools in Dallas, Texas– the North American Institute of Swiss Watchmaking (NAIOSW) and Hong Kong - the Hong Kong Institute of Swiss Watchmaking (HKIOSW). Both of these facilities offer the well-known WOSTEP 3 000 hour training programme.

The local training of watchmakers ensures a local pool of talent for the Group’s after-sales service centres established in the North American and Asian markets. The following is an update on developments:

• USA: The North American Institute of Swiss Watchmaking (NAIOSW) celebrated its first graduating class of the 3 000 hour program in March 2011. The second class of the 3 000 hour program will start in May 2011, and the first class of the Encasing Technician Course in June 2011, each with six students.
• Hong Kong: The Hong Kong Institute of Swiss Watchmaking (HKIOSW) will celebrate its first graduating class of the 3 000 hour program in September 2011. A second class has already started in January with six students and will end in December 2012. An Encasing Technician Course has started in April 2011 with three students.
• Japan: The winner of the Richemont Award of the Hiko Mizuno School will receive an additional two weeks training at Vacheron Constantin’s manufacture during the summer.
• UK: The third graduation at the British School of Watchmaking (BSOW) will take place in September 2011. Richemont UK will hire two students, one of which has been sponsored by Richemont. This year, Richemont UK has also provided a financial support to another school located in Birmingham in order to allow the latter to upgrade a classroom and purchase new equipment.

Richemont North America (RNA) is committed to the on-going training of its employees in respect of ethical behaviour. This is seen through its launch of an e-learning course on the Richemont Employees Code of Business Conduct for all employees in the region.

In 2009 RNA initiated an enterprise-wide Sexual Harassment Prevention training for all management level employees. The interactive training was conducted online by way of an e-learning platform. The training course explained what specifically constitutes a complaint of harassment; specified how and when a supervisor should work with Human Resources; and provided specific strategies for recognising, responding to and resolving complaints of sexual harassment and unlawful discrimination. RNA is planning an employee version of the online Harassment Prevention training for all employees in the year to come.

Piaget communicates regularly with its employees on a range of environmental, supply chain and related matters via its Corporate Social Responsibility Newsletter. The newsletter contains updates on special projects, such as the Maison’s RJC Certification or the installation of solar panels for water heating at the Geneva manufacture. Wider newsletter topics include year-on-year emissions reductions and sponsorship programmes. The newsletters also remind employees of the Maison’s ’10 CSR commandments’, which guide its performance improvements.

Employees of the Richemont support service platform in Hong Kong organised a variety of fund raising events for local charities. Among these events was a team participation in the ‘Rat Race Fund Raising’. The donations went to MINDSET, which supports mental health-related organizations and projects in Hong Kong and mainland China.

In addition to such to charitable contributions, Richemont Asia Pacific made a special award to a member of staff who had been particularly active in the company’s CSR activities, including Earth Hours by WWF and the Carbon Reduction Campaign.

For more than twenty years Montblanc has maintained an intense relationship with the world of arts and culture. One of the most intriguing things about the Maisons’ Headquarters in Hamburg is the unique art collection called the Montblanc Cutting Edge Art Collection. Each piece of art shows or interprets the Montblanc Star emblem in a way which is typical for the creating artist.
The collection of more than 140 pieces is on display all over the premises, in the CEO’s office as well as on the manufacturing floor, in the aisles of administration and at the distribution centre. Thus, Montblanc employees are surrounded by contemporary art.

As an extension of this contemporary art culture within the Maisons, the Montblanc Academy developed a series of After Hours Events called WE LOVE ART! In each event, employees learned something about specific pieces and artists. They then create some art of their own, including prints or three dimensional objects. Highlight of the event series was the visit to an artist’s workshop. Under the artist’s guidance, they could use the original machines and create something in the artist’s style. The events were a great success and the employees expressed their wish to continue this kind of activity.

The guarantee of safety, health and environment of its employees is an essential commitment of Montblanc. For some years, Montblanc has promoted these topics by implementing an annual ‘HSE day’, featuring workshops, health consultations and safety advise to improve the daily working and home environment for Montblanc’s employees. Also included was a lecture regarding 'Hazardous Substances in Manufacturing Companies'. The event raises awareness to improve safety, health compliance and environmental protection.

Other information events linked to the HSE day included health insurance-related topics, supported by a sport scientist who explained how to move more safely at work.

A. Lange and Söhne is based in Glashütte, in Saxony, and has played an important role in the economic and social regeneration of the town. Originally established in the 19^th century, Lange was re-launched following the reunification of Germany in the late 20^th century and the closure of the former state-owned watchmaking factory.

In May 2011, Alfred Dunhill held its second Community Day. A team of 40 volunteers from the Maison’s UK head office, local manufacturing facility and boutique staff joined together to work once again with the charity ‘KIDS’; this time transforming the children’s play area at the Hydrotherapy Pool in Hackney, London.

The Hydrotherapy Pool is a valuable resource for disabled children, young people and adults from across the London Borough of Hackney.  The Alfred Dunhill team transformed the area outside the pool, creating a fantastic outdoor space for the siblings and families of those being treated in the pool to relax and play.

Montblanc shares many of John Lennon’s convictions about the responsibility of art and culture to society. For more than 20 years, Montblanc has actively been involved in nurturing, preserving and developing artistic talent through its numerous initiatives across the world. With such a history, Montblanc, also known as the ‘culture brand’, will honor John Lennon’s life, his music and his dreams by donating proceeds of the John Lennon Edition writing instrument to selected cultural projects supporting music education around the world, such as the John Lennon Educational Tour Bus, a US non-profit organization providing young people with the means to learn how to compose, play, perform, record and produce songs and music videos.

More information about the John Lennon Educational Tour Bus can be found at www.lennonbus.org

In November 2010, Cartier has reached certification against the ethical, social, human rights and environmental standards as established by the RJC’s Certification System. Cartier is a founding member of the RJC – Cartier is the RJC’s first certified founding member and first certified retailer. In line with its commitment to improving the standards of practice in the jewellery and watch industry, Cartier was one of the 14 founding members of the RJC in 2005.

Cartier’s RJC Member Certification results from a successful verification assessment conducted by SGS, a highly regarded and international auditing company accredited by RJC in July 2010. Cartier now occupies a unique position to act as a role model within the international jewellery industry.

All Commercial Members of the RJC have committed to be audited by accredited, third party auditors to verify the company’s conformance with the RJC’s Code of Practices and become certified within two years of joining the RJC. The RJC Member Certification System is unmatched in any other industry for the quality and breadth of its scope and standards and the integrity and transparency of its developmental process.

In 2008, Alfred Dunhill commissioned an independent audit company to train senior managers and help identify and prioritise their main social, ethical and environmental impacts in order to enable them to develop a CSR strategy. The training raised awareness of corporate responsibility issues and the importance of audit procedures and had several benefits for the organisation:

• Clarity on the scope and parameters of CSR;
• An understanding of how to analyse CSR performance;
• Measurement of the Maison’s performance against the key aspects of CSR good practice;
• A recognition of CSR as something that adds value to the business;
• Enabled a discussion about CSR impacts and future strategy with the Maison’s Executive Committee.

As a result of the audit, the Maison’s CSR Committee has developed and implemented a strategy.

2008 - Suppliers were asked to complete a self assessment and submit their Supplier Code of Conduct.

2009 – No third party audit activity.

2010 – three trial audits on suppliers of finished products.

2011 – nine audits have been completed and two of the initial factories have been revisited. Eleven further audits are planned. Suppliers include finished products, packaging and store furniture manufacturers.

Consumers are increasingly aware of sourcing issues. It is vital that all front-line sales staff understand Richemont’s stance on the sourcing of raw materials and are able to confidently respond to customers’ questions on these issues. Alfred Dunhill has incorporated specific training on sourcing into its training brochures, one of which is available for each category of product sold. Training brochures cover the key issues associated with the supply of raw materials particular to that product, for example exotic leather, conflict-free diamonds and responsible gold sourcing.

Cartier has continued with its programme of supplier audits, using an independent specialist to audit suppliers against its Corporate Responsibility Policy which covers ethical, social, and environmental performance. Some thirty external audits were performed during the year ended 31 March 2011 and some 140 audits have now been performed in total. The comprehensive programme covers suppliers from all product lines and areas of the business, ranging from raw materials to manufacturing as well as packaging and boutique furnishings. Importantly, the programme has been developed in the spirit of partnership with suppliers and to this end Cartier has invested significant time and resources to communicate the programme to its suppliers.

Suppliers who have taken part in the programme have responded positively, justifying the investment.

Another notable feature of the programme is that Cartier ensured that its own manufacturing sites were audited using the same methodology, before extending to external suppliers.

Since 2007, Lancel has implemented a social audit programme, conducted by an independent specialist. The programme involves detailed checking of supplier performance in the ethical and employment areas outlined in the Supplier Code of Conduct. Initially applied to the existing supplier portfolio, the audit programme is now systematically conducted before working with a potential new supplier. In the year ended 31 March 2011, eight audits were performed.

Audit results are always shared with suppliers so that they are able to take action to improve their performance where this is required.

The programme demonstrates that compliance with the Code is essential when working with new suppliers and a key element of Lancel’s sourcing strategy.