For Richemont, corporate social responsibility (‘CSR’) is about how we manage our impact on society and the environment. We strive to operate responsibly and to act with integrity and thus make a positive contribution to the economy, our people and our local communities. This is particularly the case in Switzerland and France, where Richemont continues to make significant investments in its manufacturing base. In the year under review, we invested € 201 million in our manufacturing base (2012: € 144 million). Throughout this report, the term CSR is predominantly used. There are other terms used for reporting by issuers, including ‘ESG’ (Environment, Social and Governance) and ‘SEE’ (Social, Economic and Environmental). Richemont considers these three terms to be broadly interchangeable.
We seek to eliminate or mitigate CSR risks where identified, in partnership with our employees and other stakeholders through the application of good practices. Equally, we seek ways to develop employees during their careers. The health and safety of our employees and customers remains a priority, despite the relatively low risks facing the majority of our employees who work in our boutiques.
More generally, Richemont has a risk management process which gives consideration to strategic and operational risks across all Group functions, including CSR risks. All identified risks are quantified according to their probability of occurrence and potential impact and are subsequently prioritised by Group management. A consolidated risk report, which includes action plans prepared by the Group executive directly responsible for addressing the risk, is reviewed annually by the Audit Committee and the Board of Directors.