Climate Change

In the global textile and apparel industry, CO₂ emissions primarily originate from the cultivation and production of fibers, as well as energy-intensive processes such as dyeing, washing, and bleaching. Additional emissions also stem from our own business activities and the value chain, where transportation, particularly air freight, contributes to our carbon footprint. Additionally, consumer practices like washing, drying, and disposing of textiles add to the environmental impact, intensifying global warming. At HUGO BOSS, we recognize our shared responsibility to protect the climate, prioritizing the implementation of less impactful processes both within our operations and throughout our supply chain.

Transition plan for climate change

HUGO BOSS is committed to reducing greenhouse gas emissions and aims to achieving net zero emissions by 2050, in alignment with the Paris Agreement’s 1.5 °C target. However, as methodologies and international regulations continue to evolve, the Company’s existing climate transition plan is currently under review. While our emission reduction targets for 2030 and 2050, remain unchanged and valid for now, we are actively working on an updated, comprehensive transition plan that incorporates recent advancements and better addresses today’s challenges. Scheduled for publication in 2025, our revised plan will provide a robust framework for future action and align with best practices. Moving forward, we will report on its progress and outcomes, reinforcing our commitment to meaningful climate action. Targets related to Climate Change

Policies related to climate change

Our Environmental Policy underscores our commitment to sustainability by setting strict standards to minimize environmental impact, conserve resources, reduce water consumption, and enhance energy efficiency across our operations and supply chain. The policy addresses significant environmental impacts, such as the reliance on non-renewable energy, high energy consumption, and energy-intensive manufacturing, while also requiring resource efficiency and the adoption of renewable energy. Monitoring involves tracking energy use, pollution levels, and compliance with ISO 14001 (environmental management system) and ISO 50001 (energy management system). Suppliers are also encouraged to adopt best practices, with the policy applying globally and in alignment with local regulations. As part of its Environmental Policy, HUGO BOSS actively collaborates with organizations such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Zero Discharge of Hazardous Chemicals (ZDHC) program.

Our Logistics Guideline, forming an integral part of our Environmental Policy, provides a strategic framework for planning and executing global transportation processes. It emphasizes low-emission transport options and aims to reduce carbon emissions throughout our logistics network, both at our own sites and at those of our partners along the supply chain. The guideline also promotes optimizing delivery routes and consolidating shipments to minimize environmental impact, reinforcing our commitment to sustainable logistics.

To accelerate climate protection within our supply chain, the HUGO BOSS Supplier Code of Conduct establishes clear standards and expectations for suppliers across various operational aspects, with a strong emphasis on environmental protection. The code provides comprehensive guidelines to ensure suppliers meet stringent environmental requirements, including the identification and monitoring of energy sources and tracking of greenhouse gas emissions. Suppliers are required to develop roadmaps to reduce energy consumption and emissions while responsibly managing natural resources. In addition to strict compliance with environmental regulations, suppliers are also encouraged to implement measures to avoid waste and pollution, and to use energy and water efficiently. By adhering to these principles, HUGO BOSS promotes a responsible and sustainable environmental culture in its supplier network and ensures that its business practices actively support global environmental protection efforts.

Targets related to climate change

HUGO BOSS has set the target to cut emissions by 50% (Scope 1–3) by 2030, based on a 2019 baseline (458,902 t CO₂). This mid-term goal aligns with the requirements of the Fashion Industry Charter for Climate Action, which aims to limit global warming to a maximum of 1.5 °C, governed by the UNFCCC. Moreover, we are dedicated to achieving net zero emissions (Scope 1–3) by 2050 in full alignment with the UNFCCC Charter. Scope 1 emissions refer to direct greenhouse gas emissions from sources owned or controlled by the Company, such as fuel combustion in Company facilities or vehicles. Scope 2 covers indirect emissions from the generation of purchased energy, like electricity or heating, while Scope 3 includes all other indirect emissions across the value chain, such as those from suppliers, product use, and waste disposal. As part of revising our transition plan, we are also reviewing our mid-term emission reduction targets to ensure they remain aligned with evolving standards.

Our energy targets play a crucial role in achieving our emission reduction goals by decreasing overall energy consumption and further enhancing efficiency across our own operations. In line with our UNFCCC target, we are committed to switching to 100% electricity used from renewable sources by 2030 in our own operations. In 2024, a total of 73%, corresponding to 73,794 MWh of our consumed electricity, was renewable (2023: 60%; 57,086 MWh). HUGO BOSS is committed to reducing its direct and indirect energy consumption per square meter by 20% by 2030 compared to the 2019 base year. The direct and indirect energy consumption in relation to the gross size (kWh/m²) decreased by 5% in 2024 compared to 2019.

Actions related to climate change

Own operations

The climate impact of our own operations is relatively low compared to those along our upstream and downstream value chain, with Scope 1 and 2 emissions accounting for only 5% of our total emissions. This is because the upstream stages of the value chain, in particular, involve CO₂-intensive processes. Nevertheless, further reducing energy consumption and CO₂ emissions at our own sites is crucial for achieving our overall targets. Our own production site in Izmir (Turkey) – by far the largest of our own production sites globally – has been certified in accordance with both ISO 14001 and ISO 50001 since 2014.

To further reduce CO₂ emissions at our own production sites, we are primarily investing in energy-efficient technologies and modernizing technical facilities. At its own production sites, HUGO BOSS has been purchasing electricity exclusively from renewable energy sources since 2020. In 2024, we also installed LED lighting and heat pumps at one of our key logistics hubs near our headquarters in Metzingen (Germany). Additionally, we installed temperature control steam traps to ensure an energy-efficient process and insulated steam pipelines with valve jackets to reduce heat loss at our production site in Izmir (Turkey).

In addition, we are enhancing the procurement and use of electricity from renewable sources also on a group-wide basis, including the installation of an additional photovoltaic system at our headquarters in 2024. To further reduce emissions, we plan to expand our photovoltaic system at one of our key distribution centers in Germany in 2025. Other measures in 2024 included the installation of hybrid cooling systems and compressed air leakage detectors at our Izmir (Turkey) site, alongside the procurement of green electricity for all our locations in Canada, Mexico, Spain, and Poland as well as for our own retail points of sale in the U.S. market.

Supply chain

To meet our overall emission reduction targets, we are actively addressing Scope 3 emissions, which represent approximately 95% of HUGO BOSS’ total emissions. Our approach includes close collaboration with suppliers, particularly those involved in energy-intensive processes such as dyeing, coating, steaming, ironing, and hot water usage, aimed at supporting them in decarbonizing their operations.

As part of regular environmental audits conducted by external auditors, we monitor our suppliers’ energy consumption and CO₂ emissions. Our ambition is that, as of 2026, all resource-intensive suppliers will fully comply with the environmental requirements defined by HUGO BOSS, verified through audits. We aim to report on our progress towards this target in 2025. Suppliers are classified as resource-intensive if they discharge an average of more than 15 m³ of industrial water per day, use coal as an energy source in manufacturing, or both. Based on previous assessments’ results, these audits are conducted every one to three years. If any violations of environmental standards are identified, we collaborate with the respective suppliers to develop and implement action plans, which are subsequently reviewed in follow-up audits. To support continuous improvement, we also provide regular training sessions to keep our suppliers informed about environmental and climate protection measures, aiming to establish standardized energy and environmental management systems. This training includes guidance on best practices for carbon accounting.

To further enhance transparency and the measurability of our partners’ environmental impacts, we co-developed the “Climate Action Training for the Fashion Industry” in 2021. This voluntary training course, created by the Fashion Industry Charter for Climate Action and selected signatories, is available online and therefore publicly available, free of charge, and offered in multiple languages. It is specifically designed for Tier 1 and Tier 2 suppliers equipping garment, textile, and footwear manufacturers with essential knowledge on climate change, our industry’s environmental impact, energy efficiency, renewable energy, and practical carbon accounting techniques.

In 2024, HUGO BOSS joined Cascale, a collaborative platform which aims to strengthen industry partnerships, enhance supplier engagement, and improve data management insights. To build on this initiative, we have implemented the Cascale-developed Higg Facility Environmental Module (Higg FEM) 4.0 on the Worldly platform, one of the most widely used sustainability measurement tools in the apparel and footwear industry. This implementation is designed to help us accurately capture and manage our Scope 3 emissions. To ensure that our internal stakeholders are well equipped, we have conducted training sessions for key teams, including those in our brands’ product divisions. These sessions focused on the functionality of Higg FEM, utilizing benchmarking opportunities for optimized order placements, and carrying out country-specific analyses.

At the beginning of 2025, we have also introduced a “Decarbonization Commitment,” a contractual obligation for Tier 1 suppliers to phase out coal, report mandatory data through the Higg FEM, and transition to renewable energy alternatives. This commitment is designed to ensure that our supply chain activities align with our sustainability goals, including the transition to renewable energy sources.

HUGO BOSS aims to progressively reduce its transport-related greenhouse gas emissions (GHG) (Scope 3.4 upstream transportation and distribution) by consistently reducing air freight and improving transport planning. Together with our global logistics partners, we are also exploring alternatives such as biofuels.

Energy consumption and mix

In 2024, the total energy consumption related to our own operations amounted to 137,155 MWh (2023: 132,353 MWh). This reflects a slight increase in energy consumption compared to the previous year, primarily driven by higher production volumes and a further expansion of office buildings, retail spaces, and warehouse facilities. In 2024, a total of 54%, corresponding to 73,794 MWh of our consumed energy was renewable (2023: 43%; 57,086 MWh). This signifies that 46% (63,361 MWh) of our total energy consumption is derived from fossil sources and therefore non-renewable (2023: 57%; 75,267 MWh).

The energy intensity, measured as the total energy consumption across all our own production facilities, warehouses, offices, and brick-and-mortar retail stores and outlets relative to Group sales, amounted to 32 MWh per million EUR in 2024 (2023: 32 MWh per million EUR).

Greenhouse gas emissions

In 2024, our global business activities resulted in a total of 550,788 metric tons (tons, t) of greenhouse gas (GHG) emissions across Scope 1, 2, and 3 (2023: 487,252 t), calculated in accordance with the Greenhouse Gas Protocol. Total emissions increased by 13% year over year, indicating that our emission intensity – defined as total GHG emissions relative to net revenue of EUR 4,307 million – was 128 t CO₂e/ EUR million in 2024 (2023: 116 t CO₂e/ EUR million). Compared to the 2019 baseline, total emissions have increased by 20%, mainly due to a strong increase of production volumes since 2019.

HUGO BOSS emitted 25,520 t of Scope 1 and 2 emissions (2023: 28,844 t) in 2024, reflecting an 12% reduction compared to 2023 and an 18% reduction compared to the 2019 base year (2019: 30,998 t). This development mainly reflects an increased share of green electricity and the implementation of energy efficiency projects relative to the previous as well as to the base year.

In 2024, Scope 3 emissions amounted to 525,268 t, marking a 15% increase from the previous year (2023: 458,409 t) and an increase of 23% compared to the 2019 base year (2019: 427,903 t). The increase in Scope 3 emissions, in line with the rise in total emissions, is primarily due to the significantly higher production volume. Despite an increase in production volume, we successfully reduced GHG emission intensity per piece by 8% compared to the previous year, and by 39% compared to the base year of 2019. This calculation is based on emissions from Scope 3.1 purchased goods and services, that do not include emissions from own production sites.

In 2024, HUGO BOSS refined its methodology for calculating Scope 3 emissions to further enhance accuracy and credibility, aligning fully with the methodology outlined by the GHG Protocol. For determining Scope 3.1 emissions from purchased goods and services, we have now implemented the Higg Materials Sustainability Index (MSI) and the Facility Environmental Module (FEM) tools. These tools are regularly maintained by Cascale, ensuring that our data and methodology continues to meet high standards of credibility. To ensure comparability, prior-year as well as base-year figures, as outlined in the table below, have also been recalculated.

Starting in 2024, HUGO BOSS expanded its reporting to include 11 Scope 3 categories (up from eight in 2023), as outlined in the table below. This enhancement aligns with both GHG Protocol and Science Based Targets initiative (SBTi) guidelines, underscoring our commitment to comprehensive reporting across all relevant Scope 3 emission sources. Accordingly, we have also adjusted the baseline of our emissions reduction target to ensure accurate comparison, applying only to Scope 3 categories with updated methodologies.