Sustainability

HUGO BOSS acknowledges the economic, ecological and social impacts of its business activities. The guiding principle “We act responsibly” seeks to generate added value for the Company, its employees, shareholders, customers, business partners and society. The Company considers sustainability to be an interplay of quality, innovation and responsibility, and therefore an integral part of its business activities. Besides high-quality, innovative products, customers today increasingly demand compliance with high social and ecological standards. The variety of sustainability activities carried out by HUGO BOSS are intended to contribute to increased customer satisfaction and support the Company’s vision of being the most desirable fashion & lifestyle brand in the premium sector.

The six fields of action We, Environment, Employees, Partners, Products and Society provide the framework for the sustainability strategy of HUGO BOSS. The Group’s sustainability activities are managed strategically by the central department Global Sustainability, which reports directly to the Chief Executive Officer.

We – “Creating values together”: With its variety of sustainability activities, HUGO BOSS is oriented towards the United Nations Sustainable Development Goals (SDGs). In the implementation and development of its sustainability strategy, HUGO BOSS relies on regular dialog with its stakeholders and close collaboration with businesses and organizations alike. This, in turn, will help to drive forward sustainability in the textile supply chain. The findings gained are also incorporated into the Company’s risk and opportunity management and help HUGO BOSS to enhance its own ethical standards and Code of Conduct.

Environment – “Preserving natural resources”: The aim of environmental management at HUGO BOSS is to reduce the environmental impact of its own business activities as far as possible. This commitment begins at its own administration and production sites, and extends through logistics to the Company’s global store network. Through sustainable building concepts and technologies, electricity from renewable energy sources and a continuous optimization of transport routes, the Company is working to reduce its CO₂ emissions, making a direct contribution to protecting the environment. The Environmental Commitment of HUGO BOSS which is published on the Company’s website describes the principles of environmental protection in all the relevant parts of the Company.

Employees – “Fostering a fair and responsible culture”: HUGO BOSS aims at strengthening its position in international competition for the most qualified employees. To increase its attractiveness as an employer, the Company is focusing on a fair, value-based corporate structure, opportunities for individual development and a wide range of flexible working models to better combine work and family life. The corporate values and the Code of Conduct form the basis for everyday collaboration. The latter provides the basis for legally and ethically correct conduct in day-to-day business. This also entails the acknowledgment of diversity and the ensuring of equal opportunities, which is a high priority at HUGO BOSS. Employees

Partners – “Achieving joint responsibility”: Complying with social and environmental standards throughout its global supply chain is crucially important for HUGO BOSS and its partners and forms an integral part of contractual agreements. The standards are based on internationally acknowledged frameworks and include, among others, rules governing working hours, humane and safe working conditions, bans on child labor and forced labor, the payment of appropriate salaries and freedom of association. HUGO BOSS attaches great importance to the careful selection of its partners, on cooperation based on a spirit of mutual trust and on the maintenance of long-term strategic relationships. Sourcing and Production

Products – “Ideas for tomorrow”: HUGO BOSS puts strong focus on the design and quality of its products. The Company increasingly uses innovative materials and production techniques in their development. At the same time, HUGO BOSS takes care to observe strict standards on the safety and environmental compatibility of its products and their manufacture. The Company works closely together with its suppliers and other stakeholders on environmental and animal protection solutions. Through the growing selection of more sustainable materials, the continuous optimization of material efficiency and the responsible use of chemicals in production, the Company aims to make a significant contribution to protecting the environment.

Society – “Promoting perspectives”: The overarching aim of the HUGO BOSS corporate citizenship strategy is to unleash individual potential for success. It is based on three pillars: access to education, training and development and the promotion of creativity. In implementing projects and activities along the value chain, the Company also takes account of regional needs at the individual locations.

The Group aims continuously to improve in all six fields of action and, accordingly, has set itself corresponding targets. Sustainability ratings act as an objective indicator of the progress achieved. In 2019, HUGO BOSS was included in the Dow Jones Sustainability Index (DJSI) World for the third consecutive year. In the areas of brand management, environmental reporting, innovation management, data protection and product responsibility, the Company scored “best in class”. This makes HUGO BOSS one of the top five companies in the global apparel industry.

Details on the HUGO BOSS sustainability strategy and activities along the six fields of action can be found in the annual Sustainability Report and on the Company’s website. In addition, the Combined Non-Financial Statement provides an overview of key aspects of sustainability. Combined Non-Financial Statement