Sustainability

HUGO BOSS considers its diverse sustainability initiatives along the entire value chain as both a crucial corporate responsibility and a prerequisite to inspire customers and thus further strengthen its position as a leading global premium fashion platform. With our constantly evolving business model, we are equally committed to protecting our environment, living up to social and societal expectations, and practicing responsible corporate governance. In doing so, our numerous environmental, social, and governance (ESG) activities aim to generate added value for our Company, employees, shareholders, customers, business partners, and society, ensuring long-term success for HUGO BOSS.

Sustainability strategy

HUGO BOSS regards sustainability as an important element of its “CLAIM 5” strategy and thus as an integral part of our business activities. Consequently, being “Sustainable Throughout” is firmly embedded in our daily business activities. In line with our bold commitment to strongly support creating a planet free of waste and pollution, we developed our new Sustainability Strategy in 2023, focusing on five key pillars and their corresponding targets: increase circularity, drive digitization and data analytics, leverage nature-positive materials, fight microplastic, and push zero emissions. By embracing these pillars, we are paving the way towards a better and more sustainable future.

Increase circularity

HUGO BOSS puts strong emphasis on developing products of highest quality that embody timeless design. As part of our strategic focus on increasing circularity, we aim to extend the longevity of our products, close material loops, and prioritize the use of recycled and renewable materials. By fostering the development of circular products, we are committed to conserving resources and further reducing waste. In this context, we have set ourselves the ambitious target of having 80% circular products by 2030 (2023: 17%). Our brands’ CIRCULAR styles adhere to three key principles: being recyclable, being made with renewable or recycled raw materials, and being designed for longevity.

To achieve this goal, we have launched various initiatives, including expanding our products’ recycling potential. On top of that, we are also exploring circular business models such as repair and resale. To ensure consistency and adherence to circular principles, we have developed a dedicated Circular Product Policy, setting the criteria for circularity in our design and development processes. We are also providing training for our employees in circular design and product development, with a focus on the shared creative potential of our Design and Product Development departments. In particular, we have introduced a mandatory digital Circularity training program, covering the use of recycled and renewable materials as well as making circular design choices. Combined Non-Financial Statement, Environmental Matters

Drive digitization and data analytics

In line with our vision of becoming the leading premium tech-driven fashion platform worldwide, we are fully committed to embracing digital innovation and exploiting our many digital opportunities. In order to "Lead in Digital,” we are digitalizing our business activities across the entire value chain and harnessing the power of data. We are convinced that the ongoing digitalization of our value chain will also contribute positively to our sustainability ambitions. As part of this, we have set ourselves the target to develop over 90% of our products digitally by 2025 (2023: around 65%).

HUGO BOSS is fully committed to digital design and product development, bringing prototypes to life through immersive 3D simulations, and captivating its customers through cutting-edge interactive product presentations. Having transformed all relevant physical development steps into digital processes, we have already made significant strides in reducing the need for physical samples in recent years. Going forward, we aim to exploit the full potential of advanced data analytics by gathering insights that drive our decision-making processes and empower us to further optimize our use of materials in production. By accurately forecasting trends and anticipating customer preferences, we aim to minimize waste and reduce our CO₂ emissions. Being at the heart of our digital journey, our Digital Campus will leverage our Company’s data end to end to make meaningful, data-driven decisions, while also exploiting the many advantages offered by AI. Product Development and Innovation

Leverage nature-positive materials

We recognize that our Company and its two brands BOSS and HUGO are highly connected to functioning ecosystems, from the materials used for our products to our impact on the environment. Going forward, therefore, we want to leverage the immense potential of regenerative farming by putting strong emphasis on sourcing materials that not only reduce our industry’s environmental footprint but also contribute to biodiversity preservation. While traditional agriculture has an adverse impact on soil health, the climate, and biodiversity, we firmly believe that it can be transformed into a powerful nature-based solution. To foster regenerative farming practices, we are closely collaborating with our partners and suppliers, pioneering resilient systems for the future. Our goal is to embrace nature-positive materials, sourcing 100% of our natural materials in alignment with regenerative farming principles or through closed-loop recycling by 2030. Closed-loop recycling also involves utilizing recycled pre- or post-consumer textile waste, thus further reducing our impact on the environment.

To reach this ambitious target, among other things, we are collaborating with Raddis Cotton, a non-governmental organization dedicated to regenerative agriculture and the empowerment of female farmers. As part of this, BOSS launched a limited capsule collection for Spring/Summer 2023, including t-shirts, sweatshirts, and tracksuit bottoms made entirely from cotton grown regeneratively in South India. While we plan to continue this collaboration in 2024, we also intend to establish similar partnerships in the future. At the same time, we are also encouraging our suppliers to do so as well.

Fight microplastic

The intensive use of synthetic fibers, such as polyester and nylon, is one of the main causes of microplastics, contributing to environmental pollution and potential harm to ecosystems. In particular when washing clothes, both in the production process and in the use phase, microplastics are released into the water. To reduce the amount of microplastics ending up in the oceans, we aim to completely phase out polyester and nylon in our products by 2030, by constantly exploring and leveraging true alternatives to synthetic fibers.

Achieving this ambitious target depends, to a large extent, on the widespread availability of alternative raw materials. Taking this into account, already in 2022, we entered into a long-term strategic partnership with Swiss innovator HeiQ to jointly develop and scale AeoniQ, the world’s first sustainable, circular, closed-loop cellulose yarn. It is aimed at substituting oil-based yarns, such as polyester and nylon, while also binding carbon from the atmosphere during growth. In 2023, BOSS successfully launched its first two polo shirts made of almost 90% AeoniQ, while also showcasing three respective outerwear styles at its Fall/Winter 2023 fashion event in Milan. Going forward, we will continue to grow this partnership by gradually increasing the use of AeoniQ yarn in our brands’ collections. Product Development and Innovation

Push zero emissions

At HUGO BOSS, we have set ourselves ambitious targets to reduce our CO₂ emissions and thus contribute to climate protection. In particular, together with other companies in the fashion industry, we are committed to reach net zero CO₂ emissions by 2050. As part of this commitment, we are pursuing the goal of effectively reducing our CO₂ emissions along the entire value chain (Scope 1, Scope 2, and Scope 3) by at least 50% by 2030 (base year: 2019), and thus without additional offsetting.

To achieve these goals, we are implementing numerous measures and initiatives both at our own sites and in the supply chain. Among other things, we are fostering regenerative farming to significantly reduce emissions in the procurement of raw materials. Additionally, we are collaborating closely with our suppliers to reduce energy consumption in production and are committed to limiting the use of airfreight throughout the supply chain. To further reduce CO₂ emissions at our own production sites, we keep investing primarily in energy-efficient technologies, the modernization and renewal of technical equipment, and increasing the share of renewable energies. Combined Non-Financial Statement, Environmental Matters

A solid ESG core

Our Sustainability Strategy and the corresponding five strategic pillars are built on a strong ESG fundament, which is deeply embedded in our Company and guides us in all of our business activities. We actively participate in numerous initiatives aimed at creating a greener planet while fostering social and governance cohesion. In addition to measures taken to protect the environment and ecosystems, we therefore consider sustainable production processes to be crucial. Consequently, HUGO BOSS puts strong emphasis on ensuring the safety and well-being of its own employees and those in the value chain. Above all, this includes attaching the upmost importance to compliance with international human and labor rights and fair pay practices. At the same time, HUGO BOSS is convinced that good and responsible corporate governance is a key factor for long-term business success. Combined Non-Financial Statement, Respect for Human Rights

ESG ratings and rankings

Our strong commitment to sustainability is regularly acknowledged and rewarded by various well-known ESG ratings and rankings. This reinforces our dedication to responsible business practices and our ongoing efforts to have a positive impact on the environment and society. With our approach of following transparent reporting and sustainable business practices, we remain committed to continuing to lead the way in our industry, in line with our bold mission statement “We Love Fashion, We Change Fashion.”

Due to our continuous efforts in the area of sustainability and our ongoing high level of transparency, HUGO BOSS has been included in the renowned Dow Jones Sustainability Index (DJSI) World for the seventh consecutive time. In addition, we also achieved inclusion in the DJSI Europe for the fourth time in a row. In the associated Corporate Sustainability Assessment (CSA), we once again secured a strong second place in the global textiles, apparel & luxury goods industry. We excelled in various key areas, such as Human Rights, Waste Management, Customer Relationship Management, Data Protection, and Innovation Management, achieving ”best in class” scores in these criteria. In 2023, we received further external recognition by being awarded with the Golden Planet Award for our active implementation of important sustainability measures. In addition, HUGO BOSS received the ESG Transparency Award, honoring our transparent and comprehensive reporting on sustainability matters.

Investment in sustainability

HUGO BOSS is also increasing its dedication to sustainability by investing in Collateral Good Ventures Fashion I, a venture capital fund focused on promoting sustainability in the fashion industry and along the textile value chain. The fund will use HUGO BOSS’ contribution to support startups and companies developing innovative solutions in areas such as raw material upcycling, microfiber prevention, and repair and care solutions. HUGO BOSS will contribute around 10% of the fund’s total target volume of EUR 100 million.