HUGO BOSS : Sustainability Report 2023

SUSTAINABILITY REPORT

2023

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SUSTAINABILITY

AT A GLANCE

Targets and 2023 Achievements

HUGO BOSS regards sustainability as an important element of its "CLAIM 5" growth strategy and thus as an integral part of its business activities. Therefore, we believe that being "Sustainable Throughout" is essential for ensuring long-term growth and business success. Our new sustainability strategy "For A Bold & Better Future," introduced in 2023, aims at making a vital contribution to creating a planet free of waste and pollution. This strategy is based on five key pillars and their corresponding targets, aiming to initiate disruptive change towards more sustainability within the fashion industry. The pillars are built on a strong environment, social, and governance (ESG) foundation, that is deeply embedded in our Company and guides us in all of our business activities. In 2023, we already achieved first successes by focusing on effective initiatives and measures.

1 INCREASE CIRCULARITY

80% circular apparel products by 2030*

2023:	2030:
17%	80%

First Circular styles for BOSS and HUGO successfully launched in 2023

Introduction of internal Circularity training and workshops for design, product development, and sourcing

teams

Piloting of circular business models such as second-hand marketplaces and repair and rewear services

Circularity

* Measured by production volume, number of apparel products.

2 DRIVE DIGITIZATION & DATA ANALYTICS

>90% digitally developed products by 2025

2023: 2025:

63% >90%

Further progress in the evolution of immersive 3D simulations and the expansion of digital development to additional product groups

First achievements in developing our digital TWIN, a smart and tech-driven business operations platform, such as increasing transparency in our global procurement processes

First 3D User Summit organized at our headquarters to raise awareness among employees

Key Sustainability Initiatives

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3 LEVERAGE NATURE POSITIVE MATERIALS

100% natural materials from regenerative agriculture or closed- loop recycling by 2030

2023:	2030:
1%	100%

First BOSS products made of regenerative Raddis cotton launched in 2023

750 acres of land in India converted

into regenerative cotton farming together with Raddis

Establishment of new partnerships in the area of regenerative agriculture

Biodiversity and Ecosystems

5 PUSH ZERO EMISSIONS

-50% CO2 emissions (Scope 1-3) by 2030 (base year 2019)

4 FIGHT MICROPLASTICS

0% polyester and polyamide* by 2030

2030: 2023:

0% 18%

Successful launch of first BOSS polo shirts made of almost 90% circular, closed-loop cellulose yarn HeiQ AeoniQ

First BOSS outerwear styles launched based on 100% AeoniQ yarn for Fall/ Winter 2023

Intensive research and try-outs for alternative materials to synthetic fibers

Circularity

• In fabrics and linings; achieving this ambitious target depends, to a large extent, on the widespread availability of alternative raw materials.

As part of our decarbonization roadmap, we carried out a greenhouse gas assessment to identify further measures to reduce emissions, with a specific focus on the upstream value chain

Consistent reduction in air freight, which in 2023 led to a 22% reduction in inbound CO2 emissions for transportation compared to 2022

We commissioned new photovoltaic systems at four own production sites, while we also continued investing in LED lighting

Climate Change

TOTAL CO2 EMISSIONS IN 2023

-1%

compared to 2022

+42%

compared to 2019

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Sustainability Report 2023

CONTENTS

1. SUSTAINABILITY AT A GLANCE

1. FOREWORD

1. REPORTING PROFILE
2. COMPANY PROFILE

10 DRIVING SUSTAINABLE CHANGE

1. Our Approach to Sustainability

1. Key Sustainability Initiatives

1. ENVIRONMENT

1. SOCIAL

1. GOVERNANCE

74 APPENDIX

75 Materiality Assessment

1. ESG Targets & Achievements

1. Sustainability Data

1. ESG Ratings & Rankings

1. GRI Content Index

1. Independent Auditor's Report on a Limited Assurance Engagement

1. List of Abbreviations

1. Contacts & Legal Notice

LEARN

MORE

OUR DIGITAL SUSTAINABILITY REPORT

Highlights of our sustainability report are also published as an online version.sustainabilityreport-2023.hugoboss.com

Due to rounding, numbers presented in this Sustainability Report may not add up precisely to the totals provided.

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FOREWORD

Daniel Grieder, Chief Executive Officer

Dear readers,

In 2023, HUGO BOSS experienced another year of remarkable success. The consistent execution of our "CLAIM 5" strategy led to significant accomplishments in all business areas and further strengthened the relevance of our two brands BOSS and HUGO. Our strong commitment to sustainability is firmly anchored in "CLAIM 5" and an integral part of all our strategic initiatives. Our clear intention is to make a positive contribution to the environment and the society.

As a leading global premium fashion and lifestyle company, we are conscious of our corporate responsibility. To take our sustainability ambitions to a new level, in 2023 we introduced our new sustainability strategy "For A Bold & Better Future." As such, we are actively addressing our industry's biggest challenges: increasing circularity, driving digitization & data analytics, leveraging nature-positive materials, fighting microplastics, and pushing towards zero emissions. Through various initiatives and important measures along these five pillars, we aim to contribute to a planet free of waste and pollution.

Climate change poses one of the major challenges of our time, and we are dedicated to tackling it head-on. We have set ourselves the ambitious goal of reducing our emissions along the entire value chain by at least 50% by 2030 and achieve "net zero" by 2050. We are fully convinced that sustainability and innovation must work hand in hand, and I am excited that in 2023, under our BOSS brand, we have successfully launched first products made from HeiQ AeoniQ, the world's first circular yarn. Examples like this demonstrate our commitment to sustainability and showcase our strong progress we are making on our way there.

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The outstanding motivation of our global HUGO BOSS team is key for the implementation of our numerous sustainability initiatives. To attract and retain top talent, we not only continue to foster a diverse and inclusive corporate culture but also offer a best-in-class workspace for our teams. We also expect the highest standards from all parties involved in our global supply chains: safeguarding human rights is and remains a top priority for HUGO BOSS globally. We are working closely with our suppliers to ensure that they comply with these standards and to continuously improve the social and environmental impact of the activities in our supply chains.

At HUGO BOSS, we are strongly convinced that sustainability is not a contradiction to our ambition of driving sustainable and profitable growth. Instead, we consider it to be an indispensable addition creating further opportunities. Our Company's backbone remains our resilient, diverse, and highly motivated workforce. I would like to thank all employees for their exceptional commitment and dedication to our Company and its two brands, BOSS and HUGO. Likewise, I would also like to thank our dedicated stakeholders, representing a reliable partner in achieving our ambitious sustainability goals and working with us to meet the challenges of our time. Together, we will lead HUGO BOSS into a successful and more sustainable future.

Thank you for your ongoing support!

Sincerely yours,

Daniel Grieder

Chief Executive Officer

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REPORTING PROFILE

This annual Sustainability Report, published by HUGO BOSS on April 26, 2024, is primarily aimed at business partners, institutional and retail investors, customers, employees, and non-governmental organizations as well as other stakeholders from the social advocacy, policy, business, and academic communities. The report provides comprehensive information on our Company's sustainability activities and targets and was prepared in accordance with the 2021 Global Reporting Initiative (GRI) standards. Its contents and their relative priority reflect the findings of our revised materiality analysis from 2022, which identified the Company's actual and potential positive and negative impacts on the economy, the environment, and people along its value chain. We reviewed the analysis in 2023 to ensure that it remained relevant and up to date. The reporting period is the 2023 fiscal year, with the reporting date being December 31, 2023. The report also includes significant subsequent activities until the editorial deadline on March 31, 2024. It was reviewed and approved by the Managing Board of HUGO BOSS and is available in German and English.

Quantitative information relates to the entire HUGO BOSS Group. Wherever possible, key performance indicators (KPIs) were calculated using actual data. Where this was not possible, KPIs were drawn from the subsidiaries listed below and extrapolated to the Group as a whole. These subsidiaries employed 89% of our total workforce at year-end 2023. The most commonly extrapolated KPIs were those relating to environmental protection and occupational safety.

EMEA (Europe, Middle East, Africa)

HUGO BOSS AG

HUGO BOSS (Schweiz) AG

HUGO BOSS Benelux B.V. y CIA, SC

HUGO BOSS France SAS

HUGO BOSS International Markets AG

HUGO BOSS Ireland Ltd.

HUGO BOSS Italia S.p.A.

HUGO BOSS Portugal & Companhia

HUGO BOSS Shoes & Accessories Italia S.p.A.

HUGO BOSS Shoes & Accessories

Poland Sp. z o.o.

HUGO BOSS Textile Industry Ltd.

HUGO BOSS Ticino S.A.

HUGO BOSS UK Ltd.

Americas

HUGO BOSS Canada, Inc. HUGO BOSS Fashions, Inc. HUGO BOSS México S.A. de C.V. HUGO BOSS Retail, Inc.

Asia/Pacific

HUGO BOSS Australia Pty. Ltd.

HUGO BOSS China Retail Co. Ltd.

HUGO BOSS Guangdong Trading Co. Ltd.

HUGO BOSS Hong Kong Ltd.

HUGO BOSS Japan K.K.

Lotus (Shenzhen) Commerce Ltd.

HUGO BOSS (Macau) Company Ltd.

The sections and the information of the report marked or as well as those shown in grey font were audited by Deloitte GmbH Wirtschaftsprüfungsgesellschaft for limited assurance engagement on the basis of the International Standard on Assurance Engagements (ISAE) 3000 (Revised). Data audited to the same standards in 2022 is marked and/or highlighted in camel font.

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COMPANY PROFILE

HUGO BOSS, headquartered in Metzingen (Germany), is a leading global fashion and lifestyle company in the premium segment, offering a comprehensive range of high-quality women's and men's apparel, shoes, and accessories. The Company pursues a portfolio strategy, with the HUGO BOSS platform currently consisting of two globally renowned brands - BOSS and HUGO. Both brands are clearly distinguished by individual characteristics. At the same time, they share equally high standards in terms of quality, innovation, and sustainability, while ensuring that consumers are perfectly dressed 24/7 and for every occasion. Our 2025 growth strategy "CLAIM 5" is closely linked to our vision of being the leading premium tech-driven fashion platform worldwide and our ambition of becoming one of the top 100 global brands.

HUGO BOSS AT A GLANCE

4.2	~22,000
Sales (EUR billion)	Employees1

131

Countries

1 The reported figure relates to headcounts as of December 31, 2023. The figure published in the Annual Report (around 19,000), however, is based on a full-time equivalent (FTE) calculation.

Key to the successful execution of "CLAIM 5" is the passion and commitment of our around 22,000 employees worldwide (2022: around 20,000). In fiscal year 2023, HUGO BOSS generated record sales of EUR 4.2 billion (2022: EUR 3.7 billion), thus surpassing the EUR 4 billion threshold for the first time in the Company's history.

The product offering of BOSS and HUGO is distributed across a total of 131 countries (2022: 132 countries). Our distribution activities are split into three sales regions. EMEA, which includes Europe, the Middle East, and Africa, represents by far the largest region in terms of sales with a share of 61% in 2023 (2022: 63%). The Americas and Asia/Pacific account for 23% and 14% of Group sales (2022: 22% and 13%), respectively, while the remaining 2% are generated within our licensing business (2022: 3%).

The textile supply chain of HUGO BOSS is characterized by complex processes that take part to a large extent beyond the Company's boundaries. To ensure the excellent craftsmanship and optimum availability of its products, the Company therefore works with a stable network of experienced and specialized suppliers.

Workers in the Value Chain

Further information on the business activities and Group structure of HUGO BOSS can be found in the Annual Report 2023. Annual Report 2023, Group Profile

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Our sustainability strategy aims at making a vital contribution to a planet free of waste and pollution. At the same time, we aim at maintaining the high quality and durability of our products, while ensuring that they are produced with social and environmental responsibility at all times. Our ambitious sustainability targets thus represent an integral part of our business and are firmly anchored in our "CLAIM 5" strategy. Our new sustainability strategy, which was developed in 2023, and the underlying five strategic pillars form the basis of this report and are explained in detail in the corresponding chapter. Our Approach to Sustainability

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DRIVING SUSTAINABLE CHANGE

11		17
OUR APPROACH TO	KEY SUSTAINABILITY
SUSTAINABILITY	INITIATIVES
11	Sustainability Strategy	17	Alternative Materials
13	Organizational Structure	17	Digital TWIN
	and Responsibilities	18	Regenerative Farming
13	Own Operations	18	Diversity, Equity, and Inclusion

14 Risk Management

1. Sustainable Supply Chain

1. ESG Ratings and Rankings

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