Interparfums carbon intensity is in the low end of its industry sector. Calculating this first carbon footprint across the board has given us a starting point and highlighted our need to ask our suppliers more about their climate strategy and encourage them to make their own calculations to refine ours. We will then be able to forecast our carbon trajectory more precisely.

Commitment to Create a More Diverse, Fair and Inclusive Culture, and Impact Our Community

Interparfums is a company serving many customers in different countries. To serve our customers well, we must attract and retain the best talent who bring with them different backgrounds, experiences and viewpoints. Fostering an inclusive culture is key to enabling our talents to work together effectively.

In United States based operations, as of December 31, 2022, women accounted for 67% of the workforce and black, indigenous, and people of color accounted for 58% of the workforce. Our workforce as of December 31, 2022 included 241 full time employees.

We strive to maintain an inclusive environment free from discrimination of any kind, including sexual or other discriminatory harassment, and all our US employees are trained once a year on Preventing Harassment at Work through on-line training.

At Interparfums, we strongly believe in fostering a diverse and inclusive workplace where everyone feels safe, valued, respected, and empowered to reveal their authentic selves. This approach to diversity includes diversity of gender, ethnicity, ability, background, gender identity, and sexual orientation and is recognized at the leadership level and throughout our whole organization.

Offer a Healthy and Environmental Conscious Workplace

Since September 2022 our New York office has been partnering with Fraîche, which provides smart fridges that are stocked every day with high-quality and on-trend items curated from their local partner restaurants and brands. Our New York based employees can have access to meals, drinks, and snacks and the Company gives each employee a daily credit to be used. We are very glad to be part of the Fraîche journey.

To ensure that all our employees play an active role in our environmental approach, we have carried out several initiatives aimed to reflect on how Interparfums impacts climate change, global warming, pollution, and other environmental challenges, and how we can promote sustainability.

To commemorate Earth Day, we encouraged all employees to participate in activities that promote sustainability, distributed info on the UN Sustainable Goals, tips on how to be more sustainable in the office and shared a QR code linked to a survey where employees were invited to share suggestions on how we can make Interparfums a more sustainable workplace.

In Interparfums’ offices we also launched our recycling initiative. For example, in New York, we have now color-coded bins as follows:

● green bins for paper/cardboard placed next to the copy-machines and in the kitchens.

● blue bins for metal, plastic, glass, and cartons placed in the kitchens.

● black bins for regular trash/non-recycling items.

Moreover, we shared good practices on “how to be more sustainable in the office” tips on printing, electricity management, and cyberlearning. This is a first but necessary step in promoting sustainability in our day-to-day work.

Caring Employer Committed to Everyone’s Success

With a management style that is very family oriented and close to employees, everyone is free to share their ideas while respecting the Company’s. Management attaches the utmost importance to ensuring that everyone understands and supports Interparfums’ strategy.

Regular briefings on business developments and monetary results keep employees up to date with management and market expectations. The flexibility of the organization, which is essentially made up of small teams, means that it can constantly adapt to any changes or developments in the external environment.

The Company cultivates a positive and inclusive culture through various initiatives including the following that were implemented during 2023 in our United States based operational locations:

Social- Positive Contribution Through Impactful Philanthropy

To start the new year off strong, we’re proud to announce that Interparfums partnered with I Support the Girls https://isupportthegirls.org/programs/our-impact/ to distribute 1,100 Interparfums products to various American and international shelters for the holiday season. Our products were distributed to 13 different shelters that donate hygiene and cosmetic products to domestic abuse survivors and low-income schools.

Commitment To Sustainable Fragrances Throughout Their Life Cycle

Compliance Policy - As a global distributor of fragrances under licenses, Interparfums, fragrance oils and ingredients must comply with relevant global legislation, including, but not limited to, the countries and jurisdictions where the products are sold. We do not support animal testing on any bulk, raw materials, or finished product. We encourage our suppliers and any testing laboratories to find alternative test methods to ensure the safety and stability of our products. We also encourage development, use, and regulatory acceptance of alternatives to animal testing to ensure health and safety of consumers. Fragrance oil compounds must not be tested on animals (any mixtures of blended raw materials supplied to Interparfums). Fragrance ingredients must also not be tested on animals by the fragrance manufacturer for cosmetic safety assessment purposes.

The fragrance suppliers share with Interparfums an analysis report with physiochemical data (color, pH, density, organoleptic profile, etc.). We rely on these reports shared by our partners.

Measurements are taken after receipt to check the ingredients before formulation. Compliance with the specifications is verified for each batch, and at each renewal. If compliance is not obtained, then the product is not launched. In other words, 100% of the products launched are compliant. As there is no claim regarding our products, there is no further investigation made on them (unlike cosmetic products for instance).

Vegan-Friendly Fragrances Policy - We support a shift toward a vegan consciousness. As vegan products are becoming a standard request on the part of many of Interparfums’ licensors and clients, all fragrance oils developed for Interparfums are vegan in accordance with the definition provided below:

Vegan products do not contain any animal products, animal by-products, or animal derivatives. Animal products are anything obtained from living or killed animals. Animal by-products are anything obtained from living animals, including, but not limited to, beeswax, honey, shellac (including Ambretollide), and lanolin. Animal derivatives are anything derived from animals, animal products, or animal products, such as casein derived from milk.

Responsible Ingredients - As consumer interest continues to grow toward sustainable products and sustainably sourced ingredients, we understand our responsibility to ensure that we can speak about sustainably sourced ingredients within our products. Of course, all claims are compliant with the new French claims guide preparing the future European Commission regulation on explicit environmental claims (Green Claims Directive), as our products are also sold in Europe. All fragrances developed for Interparfums should provide an environmentally added value ingredient storyline, such as use of responsibly sourced lavender. Of course, the exact storyline or ingredient requested may vary depending on the brand or project.

While we understand some of these may be safe-as-used and well proven as solvents, all fragrance oils developed for Interparfums are formulated without phthalates and without gluten. This restriction also applies to ingredients that contain gluten such as wheat, barley, oats and rye, as well as raw materials that may be derived from gluten containing ingredients (e.g., Tocopherol derived from wheat germ oil).

To complete our approach, we have formalized a list of ingredients prohibited in our fragrances, which is shared by our development teams. In addition, we strictly adhere to the requirements of our licensors.

It is important to specify that most of our alcohol is of plant origin, mainly corn.

MCM Ultra - We have MCM Ultra fragrance, a bold new scent that fuses expert craftsmanship with cutting-edge technologies. Inspired by the brand’s signature backpack in eye-catching Berlin Gold, MCM Ultra features a rich scent profile in a show-stopping packaging that meets the opulence of this exquisite fragrance. MCM Ultra is 100% vegan, made with 74% biodegradable ingredients, and contains 79% responsibly sourced ingredients from Firmenich Naturals Together™ program that make a positive social impact to local communities all over the world.

Created in collaboration with our amazing partners at MCM, the ULTRA campaign foreshadows MCM Worldwide AW22’s campaign, “The Movement”. The campaign takes place in a seemingly infinite room made of entirely gold-tinted mirrors, reminiscent of a Berlin discotheque. The MCM tribe moves through the warm, ultra-luxurious light to reveal the ULTRA bottle emerging from liquid gold, capturing the feeling of upscale, sensual glitz and glamour that encapsulates ULTRA.

Contractors

Interparfums does not tolerate child labor or any form of involuntary labor and demands that its business Contractors (including its contractors, consultants, fillers, vendors and suppliers) conduct themselves with the utmost fairness, honesty and responsibility in all aspects of their business. As a general principle, our business Contractors are required to comply fully with all legal requirements applicable to the conduct of their business. We also demand that they comply with rigorous standards with respect to the manner in which they treat their employees and accept Interparfums’ Supplier Code of Conduct, which reflects our principles and values.

Governance

Inter Parfums, Inc. adheres to corporate governance codes including but not limited to anti-hedging, bribery, fraud, and prohibition against insider trading. The Company’s management is responsible for the development and implementation of its ESG strategies and programs. Ultimate oversite by the Company’s Board of Directors is included in its committee charters and practices. Inter Parfums, Inc. is a publicly traded company (Nasdaq GS: IPAR), and files reports with the Securities and Exchange Commission (“SEC”). Our largest subsidiary, 72% owned Interparfums SA, is also a publicly traded company as 28% of Interparfums SA shares trade on the Euronext and is subject to the reporting requirements of the Euronext. Interparfums SA also maintains a governance policy that relates to its status as a French publicly held company, in addition to complying with this governance policy, where applicable.

Interparfums SA CSR/ESG

Introduction

Interparfums SA has identified its Corporate Social Responsibility (“CSR”) challenges based on the expectations of its stakeholders and the market. The first step was to identify them. A materiality analysis was then carried out to list the CSR challenges and highlight the priorities to be addressed in the coming years to ensure the model’s sustainability. Stakeholders and priorities consist of the following:

Interparfums SA is committed to a global approach to social, environmental and corporate responsibility and transparency. Year after year, it develops a CSR policy implemented by its operational and functional divisions and involving all staff. It identifies its main challenges based on several key areas: its responsibilities to consumers, the environment, operational stakeholders and society, and employees. To support this approach, a CSR Executive Committee was set up at the beginning of 2021 at the initiative of management. Comprising the Operations & Supply Chain, Human Resources, Finance, Legal and Communications departments, it has formalized the Company’s CSR strategy, with goals to:

●        Consolidate its status as a responsible employer with, in particular, the formalization of a "Responsible Employer Charter" and reinforcement of the employee training plan

●        Reduce its ecological footprint and involve suppliers in the process, thanks to the introduction of optimized eco-design specifications, including the reduction of packaging and the introduction of recycled and recyclable materials on each product developed

●        Measure its carbon footprint according to the GHG protocol methodology (Scopes 1, 2 and 3) to initiate a low- carbon trajectory compatible with the Paris Agreements

●        Strengthen its sustainable development approach by formalizing a business ethics charter that can be enforced against operational stakeholders

ESG Targets

In line with the Interparfums SA’s Corporate Social Responsibility strategy, the following table presents Interparfums SA’s main objectives and compares them to market benchmarks such as the Sustainable Development Goals (“SDGs”). In January 2024, as part of its continuing improvement in ESG performance, Interparfums SA announced that it had increased its rating with Sustainalytics, a leading ESG rating firm, and now ranks 26^th out of 104 companies.

Ensure the Health and Safety of Consumers

Interparfums SA is responsible for marketing the cosmetic products it sells and for assessing their safety. It also relies on information provided by perfumers, who assess the safety of the raw materials used to make fragrances. Interparfums SA carries out skin and eye safety tests on the products it markets. In accordance with EC regulation 1223/2009, none of these tests are carried out on animals. Dermal safety tests are carried out on healthy adult volunteers and ocular safety tests on cultured cells. Interparfums SA has taken account of the REACH regulation (EC Directive No. 1907/2006 of 18 December 2006) on the registration, evaluation and authorization of chemicals with all its suppliers, and has taken the initiative of contacting its various subcontractors and suppliers to ensure that they effectively comply with the necessary registrations, notifications and requests for authorization from those upstream in their supply chain. Interparfums SA has proactively communicated with all its suppliers to commit to supplying items that do not contain any substance listed in Appendix XIV (substances of very high concern). To date, no supplier has declared the presence of substances subject to authorization in items supplied to Interparfums SA.

High Priority for High Levels of Natural Ingredients

Interparfums SA uses only plant-based alcohol in all its fragrance lines, essentially beet alcohol, 99.5% of which is natural. The remainder is made up, depending on the line, of a variable proportion of natural ingredients. All the perfumers we work with have concentrates with a proportion of ingredients certified to ISO 9235 or ISO 16128. The proportion of natural fragrances is therefore over 80%. For its other products (aftershave balm, hand cream, shower gel and body lotion), Interparfums SA uses between 79% and 88% natural ingredients.

Rochas Girl Franchise

The launch of Rochas’ first low environmental impact line in 2021 was the first eco-design initiative to be led by Interparfums SA teams. This proposal allowed us to test with Rochas Girl the possibilities available to us in this area, taking our thinking as far as possible. The aim was to offer consumers a fragrance that met their expectations in terms of environmental engagement. This project combined the codes of luxury perfumery with a new awareness by modernizing the Rochas portfolio, in an inclusive and eco-responsible approach. Rochas Girl is made from 90% natural ingredients, with neroli extract with relaxing properties, and is vegan. Its glass bottle contains 40% post-consumer recycled glass (“PCR”), which is the maximum level currently proposed by glassmakers, and its cap is made from recycled plastic. Its cardboard case is FSC-certified, printed with water-based ink and without unnecessary decoration. It is made in France. Its formula contains no colorants, stabilizers, controversial additives or UV filters. It contains a reduced number of allergens. In the same vein, a refill is now available for even less impact on the environment.

The multi-channel advertising was consistent with the product, with an advertisement filmed in the Paris region, with pictures of unretouched models conveying an authentic image. FSC certified cardboards point-of-sale advertising was also used. With Rochas Girl, Rochas also wanted to join the "1% for the planet" initiative, redistributing 1% of turnover generated to various charities.

The new version of Rochas Girl, Rochas Girl Life, launched in spring 2023, offers a direct refill and its bottle is made from 40% PCR glass.

Environmental Responsibilities

Interparfums SA does not directly manage industrial sites but is involved in developing an environmental policy in collaboration with its subcontracting partners and suppliers throughout its value chain, particularly in the following areas:

● choice of ingredients;

● choice of techniques and materials;

● recycling and waste disposal measures; and

● reducing CO₂ emissions.

Interparfums SA has no manufacturing activity and entrusts the manufacturing process to partners, each offering the best expertise and commitment in their respective fields: fragrance, glassmaking and packaging. Interparfums SA asks them about their CSR strategies, in addition to the EcoVadis assessment, and works with them to incorporate the environmental issues identified at each stage, in particular the choice of materials used in components, waste treatment and reducing the carbon footprint.

An optimized eco-design charter was formalized in 2022 and shared both internally and externally to ensure that the possible options in this area are clear to all stakeholders. The aim of this charter is to highlight the best practices of Interparfums SA for optimizing the eco-design of the products it develops. The objectives for each product category are clearly stated: glass, decoration, covers, wedges and cases.

Promotional products are not forgotten either with boxes, tubes and point-of-sale advertising. This is a global approach that will enable Interparfums SA to prepare for the regulatory obligations of the French AGEC law (anti-waste law for a circular economy).

Manage the Environmental Impact of Our Operations

Interparfums SA uses an HQE (High Environmental Quality) certified warehouse located in Normandy France, for its logistics and storage needs. This certification covers improved insulation, lighting using presence detectors, Ecolabel finishing materials, centralized technical management for energy control, rainwater recovery and efficient waste sorting.

Interparfums SA constantly monitors energy and water consumption indicators to identify opportunities for improving energy efficiency in lighting, heating and ventilation throughout the logistics site, such as modulating ventilation flow rates and programming weekend heating/ventilation slowdowns.

To this end, the warehouse lighting is switched off automatically when employees are on a break outside and the temperature in the warehouse is kept at 11°C. This energy management also includes measures to manage the recharging schedules of the electric forklift trucks during off-peak hours at night, with a low consumption of 280 kW maximum instead of 600 kW during the day. Monthly electricity consumption reports are drawn up and in the event of significant peaks in consumption, the Company analyses the causes of this over-consumption in order to remedy the situation where necessary. Finally, to help preserve the environment, Interparfums SA has installed dedicated parking spaces for bicycles and electric terminals for cars on the logistics site.

Waste

Interparfums SA closely monitors its waste production at warehouse level. In 2023, 27 tons of waste were recycled through various channels (plastic, pallets, paper and cardboard). In addition, 3 tons of non-hazardous waste were incinerated with heat recovery. There was no dangerous waste elimination in 2023.

Logistics

Actions undertaken in collaboration with the warehouse and goods dispatch manager as part of the improvement and optimization of inter-plant transport and the logistics platform have contributed to a reduction in the number of trucking turnarounds.

As regards transport to distributors, Interparfums SA uses road transport for shipments in France and Europe and sea transport for America, Asia and the Middle East. Interparfums SA makes very limited use of air transport, reserving it for unavoidable emergencies. Some promotional products manufactured in Asia are sent directly to American distributors without being imported and stored in France.

Measure the Carbon Footprint Of Our Activities

The carbon footprint has been calculated for scopes 1 and 2 since 2020. Scope 1 covers direct greenhouse gas emissions (gas and fuel consumption by Interparfums SA vehicles), while Scope 2 covers indirect emissions associated with energy (electricity consumption). The sites studied were the warehouse and offices of the Paris head office. On rue de Solférino, the premises are connected to the City of Paris heating network and to a district cooling network that uses the cool temperature of the River Seine to cool the water in the distribution network. The emission factors for these two networks are very favorable in terms of carbon footprint. Gas consumption is now reduced to that of the warehouse. In addition, the solar panels on the roof have produced 4.9 MWh of renewable energy.

The variations between 2023 and 2022 are linked to the periods of lockdown relating to the pandemic in 2020. In 2022, Interparfums SA moved its head office to BREEAM and HQE-certified premises, which are expected to reduce energy consumption by around 30%. In addition, the use of renewable energies and the Paris heating network help improve these results.

Since 2021, a full scope 1, 2 and 3 carbon footprint has been calculated using the GHG protocol method and either emission factors available in databases, monetary ratios, or data shared by suppliers. Therefore, 2021 is the reference year chosen by Interparfums SA for its carbon trajectory.

We are convinced that it is by involving our suppliers in our approach that we will be able to make progress on a low-carbon trajectory. For the moment, only 53% of suppliers within the EcoVadis scope are tracking their carbon footprint. However, 86% of purchases of goods and services for production are made from suppliers located in Europe, who will be subject to the CSRD regulations (with a deadline depending on their size) and will therefore initiate the process of measuring their carbon footprint. If they wish, we will support them in terms of methodology so that they can make progress on these crucial issues.

The variations observed between the two years can be explained by changes in suppliers, some of whom are more advanced in terms of carbon strategy and disclose their new scope 3, which we integrated in our measurements. More assets were tied up over the period and more business trips were made.

Interparfums carbon intensity is at the low end of its sector. The significant change between 2021 and 2022 is also linked to the increase in sales.

Once the carbon footprint measurement had been completed, it was found only some of production purchases were made from suppliers with targets for reducing their carbon footprint by 2030 (often in line with the European fit for 55). We will be continuing our dialogue with them to increase the number of partners involved and thus avoid carbon emissions.

Interparfums SA wants to ensure that its climate trajectory is in line with the most recognized standards. A first step is to align its reporting with the principles of the TCFD (Task Force on Climate- Related Financial Disclosures).

Commitment to Carbon Sequestration Programs

At the end of 2022, Interparfums teamed up with TerraTerre, a young French Company with a mission to connect farmers committed to the ecological transition and companies wishing to contribute to the global goal of climate neutrality by 2050.

Improve the Environmental Impact of Products

Action to prevent environmental risks and pollution begins with the choice of techniques and materials, which must be optimized.

To reduce the impact of its activities, some of the bottles produced by Interparfums SA are colored by applying a water-soluble solution, making it possible to obtain a partly biodegradable color with no harmful impact on the natural environment. For the rest of its product ranges, Interparfums SA is pursuing its objective of gradually phasing out the use of "solvent-based" lacquers, with a view to using "water-based" lacquers for all its product ranges.

In addition, Interparfums SA is committed to reducing the volume of packaging and selecting appropriate materials at every stage of product development, to ensure that they can be recycled or disposed of under optimum conditions. Recyclable glass bottles are manufactured using a system that recovers, crushes and remelts the waste. Interparfums SA has revised boxes and secondary packaging (perfume cases and boxes) to optimize pallet filling, reduce cardboard purchases and cut transport volumes by reducing empty space. Tester boxes are entirely recyclable. Interparfums SA is now imposing a minimum number of pallets per truckload.

Promotional Products Integrated Into the CSR Initiative

Packaging for our boxes and cases has long been made from FSC-certified cardboard and paper. The transport crates have also been FSC-certified since 2022.

The design of the boxes also takes environmental concerns into account, with a choice of two formats, each with 3 recipient heights to match the volume of perfume. In addition, because of new specifications from certain distributors, the boxes will be subject to further developments. The new configuration will enable us to reduce our use of PS (polystyrene) plastic by more than 200 tons and our use of 100% recycled APET plastic by 40 tons.

Thanks to an innovative proposal from a supplier, in 2022 the new capsules helped reduce the amount of virgin PP plastic used by 3.6 tons. The replacement of virgin plastic in the boxes has begun, with the essential steps of testing compatibility with the formulas. In 2022, 60% of tube have been made from PE PCR, saving 16 tons of virgin PE plastic. PVC has definitively been banned for perfumery items.

Further, more than 50% of tubes are recyclable, and more than 2 million of them contain no or no more carbon black (making them difficult, if not impossible, to recycle). Another action aimed at reducing the consumption of unnecessary packaging is to discourage its use and replace it, particularly polybags. We progressively suppress the carbon black in the plastic tubes to make them recyclable in an easier way.

Gifts with Purchase (GWPs) are a major driver of consumer decisions. The CSR initiative extends to their selection. Our five suppliers are already assessed by EcoVadis, and their average score is 77.6 (4 are Platinum and 1 Gold according to the 2022 ranking), which is well above the average score for their sector (which is either 39 or 47, depending on the company). We are therefore exercising our duty of care in this area and, in addition, will be sharing our ethics charter with them in 2023. The search for eco-labelled products is also a priority.

In 2024, except for fragile items, promotional products will be wrapped in Kraft paper rather than plastic.

Help Consumers Recycle Their Packaging

Cardboard packaging for perfumes sold by Interparfums SA can be recycled if the correct procedure is followed. The optimized eco- design charter recommends using traditional glass (i.e., soda-lime glass), which is recyclable, and avoiding technical glass (i.e., boro-silicate glass), which is not.

Since January 2022, European regulations have made it compulsory to display the Triman logo with instructions on how to recycle waste. This has been done for all products sold by Interparfums SA.

We are taking part in the Selective Perfumery working group run by the Institut du Commerce, which aims to mobilize brands and distributors around the issue of collecting and recycling plastic in-store advertising in France. This collective approach also brings together in-store advertising manufacturers already committed to eco-design and potential dismantling.

All these actions reflect Interparfums SA’s determination to integrate circular economy initiatives into its business model.

Responsibilities to Operational Stakeholders and Society

As it carries out and develops its activities, Interparfums SA has identified the following challenges:

●             Maintain a high level of relationship with its licensors through synergy, mutual involvement and the sharing of common values;

●             Develop long-term partnerships with its suppliers and subcontractors through close collaboration in information exchange, in particular about their CSR approach, their carbon footprint and their trajectory; and

●             Develop long-term, trust-based relationships with its distributor customers.

Build Trusting Relationships with Licensors and Distributors

Since signing its first license agreement in 1988, Interparfums has developed a significant portfolio of luxury brands under license. Contact with luxury houses is systematically initiated by managers who develop and maintain a close relationship with the licensors. Through the close collaboration between the marketing departments and the brands, which has increased over the years, products are developed according to the desires and collections of each brand, to offer a unique fragrance that represents shared values.

Interparfums SA has developed long-standing relationships with its distributors in each of the countries or regions in which it operates. More than 60 employees use their expertise in France and over 100 countries to distribute its fragrances. As each continent and region of the world has its own tastes, identity and olfactory culture, as well as its own sensitivities and attachment to a brand, there is no single destination, and it is crucial to develop close commercial relationships with our distributors, to provide optimum service to the consumer.

Every two or three years, Interparfums SA organizes a seminar lasting several days, bringing together all its distributors from around the world. This seminar, scheduled for 2024, will be an opportunity to present all the brands and products on offer, to meet all the distributors and involve them closely in our development, and for the distributors to meet the employees with whom they work closely on a daily basis.

Forge Lasting Industrial Partnerships

Most of the subcontractors' factories and the warehouse for storing finished products are in Haute Normandie (France). The activity generated by Interparfums SA thus contributes to the development of the local economy.

All of the perfumers we work with answer the CDP Climate Change questionnaire. Their grades are above B, which is a reassuring performance for our relationship with them. This means that they are dealing with climate change and biodiversity at the right level. Ratings of this level reflect a mature analysis of climate risks and opportunities.

The Forests questionnaire is also important for Interparfums SA, which pays close attention to the management of natural areas and considers it essential not to introduce raw materials responsible for deforestation in any country.

Of our suppliers assessed by EcoVadis, 45% are ISO 14001 certified, and 28% are ISO 45001/ OHSAS 18001 certified.

Run a Quality Management System with Confidence

Interparfums SA has introduced specifications for purchasing, logistics, and best manufacturing practice standards for its subcontractors. In addition, Interparfums SA has drawn up a business ethics charter that will be binding for its partners, to ensure that they comply with the rules of ethics, morality and law that we are committed to respecting. Its roll-out can thus be measured and improvement plans can be requested from partners.

Since 2013, all our suppliers have been implementing the ISO 22716 international standard on Best Manufacturing Practices, which sets out guidelines for the production, checks, packaging, storage and dispatch of cosmetic products. It is the practical development of the quality assurance concept, through the description of the plant's activities. Against this regulatory backdrop, regular audit campaigns of all packaging plants carried out by the Quality department in accordance with the ISO 22716 standard have been introduced. The purpose of these audits is to ensure that packagers maintain a good level of traceability. All plant activities have been reviewed, including the processes for receiving raw materials and packaging items, manufacturing, packaging and quality control. These reports have demonstrated that our subcontractors comply with ISO 22716 Best Manufacturing Practices and in particular the traceability required for all fragrance production.

Assess the CSR Performance of Suppliers

As part of its CSR strategy, Interparfums SA has teamed up with EcoVadis to assess the CSR performance of its supply chain and suppliers. EcoVadis operates a global platform for assessing and sharing CSR performance, and their assessment method is based on international CSR standards.

In 2023, 110 suppliers were assessed or in the process of being assessed, representing 92% of Interparfums SA’s purchasing activity. As part of a continuous improvement approach, Interparfums SA’ s objective is to monitor and encourage the CSR performance of its suppliers in 4 major areas: Environment, Social and Human Rights, Business Ethics and Responsible Purchasing.

Social- Positive Contribution Through Impactful Philanthropy

Plastic pollution is a major issue. The oceans are its first victims and taking concrete action to protect them is a cause that Interparfums SA defends. With this in mind, we have decided to support The Sea Cleaners, a charity founded by yachtsman Yvan Bourgnon. The charity's mission is to help clean up the oceans by deploying boats to collect and recycle plastic waste. Awareness-raising campaigns are also run for the general public to bring about lasting changes in behavior.

Since 2018, through the Givaudan Foundation, Interparfums SA has helped seven schools manage their libraries. In 2022, the school library installation program continued in Sulawesi with the opening of 2 new libraries in Mamuju (West Sulawesi). A total of more than 5,000 books were delivered to 1,163 children and 95 schoolteachers. Interparfums SA renewed this partnership for 2023.

Caring Employer Committed to Everyone's Success

With a management style that is very family oriented and close to employees, everyone is free to share their ideas while respecting Interparfums SA’s values. Management attaches the utmost importance to ensuring that everyone understands and supports Interparfums SA’s strategy.

Regular briefings on business developments keep employees up to date with management and market expectations. The flexibility of the organization, which is essentially made up of small teams, means that it can constantly adapt to any changes or developments in the external environment.

Sharing the "Interparfums SA spirit" also means that all employees adhere to and are aware of the Company's ethical values, as well as ensuring that employees feel fulfilled at work and respect good working conditions. This ethical commitment has been formalized in a charter called the "Code of Conduct," to which each employee adheres, and which particularly focuses on health, safety, discipline, risk prevention, harassment, respect for individual freedoms, sensitive transactions, fraud and business confidentiality. Diversity of profiles, cultures, ages and genders is a source of strength for our teams, the Company's greatest asset.

Since 2019, Interparfums SA has organized an annual disability awareness campaign. In 2022, employees had the opportunity to take part in a conference organized in partnership with the Café Joyeux Company, which employs people with disabilities, mainly with Down's syndrome or autism. Thanks to these discussions and testimonials, employees were able to talk about any obstacles they might face and share their visions and experiences.

Thanks to these awareness-raising campaigns and local support from the Human Resources teams, three employees have been recognized as disabled workers via the RQTH (Recognition as a Worker with a Disability).

The quality of the work carried out by the teams is enhanced throughout the careers of our employees through training courses in order to maintain a high level of competence in all business categories. To this end, Interparfums SA offers all its employees development plans enabling them to broaden their technical, managerial and personal skills.

Our employees, who work mainly in the offices at our Paris headquarters, enjoy excellent working conditions. In 2022, the premises were transferred to a single site on rue de Solférino, in a building renovated to the latest standards in terms of user comfort. Smart systems mean everyone can manage their own lighting and ventilation. The site is easily accessible by public transport, and its car park has bicycle spaces and two vehicle charging points.

In addition, as part of the drive to prevent psychosocial risks, a counseling and psychological support service is available to employees via a dedicated toll-free number, in partnership with the Institut d'Accompagnement Permanent Psychologique et de Ressources (“IAPR”).

The CSR Executive Committee has therefore decided to set up a dedicated internal interactive platform: Work for Good. Work for Good is a socially responsible platform which, with just a few clicks of the mouse, aims to raise awareness among employees and encourage them to think about their consumption habits, both at work and at home and also think about how our professions need to change.

The platform also provides year-round information on Interparfums’ strategy. A number of modules will also be dedicated to understanding climate change. And for those who want it, turnkey training courses on environmental and social issues along with simple solutions that are easy to integrate into everyday life.

Governance

Interparfums SA adheres to the Middlenext corporate governance code and in this context is developing its governance in line with the ESG issues identified in its materiality matrix above. Since its listing on the Paris stock exchange, Interparfums SA has made every effort to be as transparent as possible by regularly explaining its strategy, outlook and concerns, and by answering all its shareholders' questions to the best of its ability.

In 2022, we set up an Individual Shareholders’ Consultative Committee to strengthen our communication and respond more effectively to the legitimate expectations of our shareholders. In 2023, the members of the Board of Directors attended information-sharing sessions designed to help them anticipate future regulations, particularly in terms of climate change, business ethics and the fight against corruption and forced labor. At the 2023 Annual General Meeting, new Directors were appointed to achieve double parity, with the Board of Directors now made up of 50% independent directors and 50% women.

Interparfums SA does not engage in any lobbying activities. Interparfums SA is a member of Middlenext to ensure that management is informed and trained in new regulations.

Ethics

The business ethics charter formalized in 2022 was sent in the second half-year to supply chain suppliers via the Provigis platform. This will enable us to guarantee suppliers' regulatory compliance and monitor the electronic signature system that will be put in place for the ethics charter. Other suppliers and partners will also be involved. In addition to distributing the ethics charter, we have decided to provide anti-corruption training for all our employees. Employees who are most exposed to risk will benefit from a special, tailor-made training day led by an expert.