Annual Report 2024

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Pollution is a critical issue in the apparel and textile industry, particularly in the upstream and downstream stages of the value chain. During raw material extraction, pesticides and fertilizers contaminate water sources, particularly in regions with less-developed agricultural practices. Soil degradation is caused by overgrazing, poor farming practices, and excessive chemical use, while improper disposal of textile waste pollutes soil and groundwater. Textile production significantly affects water and soil quality due to the use of chemical substances, such as fertilizers in cotton farming and various processing agents. These substances are predominantly applied in wet processes such as dyeing, washing, bleaching, and tanning, which are major contributors to water pollution through the discharge of untreated wastewater. Additionally, synthetic textiles release microplastics during wear and washing, polluting rivers and oceans, and harming marine life and human health. HUGO BOSS recognizes these challenges and is committed to minimizing pollution across its value chain.

Policies related to pollution

To effectively address pollution prevention and control, we have implemented an Environmental Policy and a Chemical Management Policy. Our Environmental Policy sets the framework for reducing environmental pollution overall and caring for the environment. More information on the HUGO BOSS Environmental Policy can be found in the “Climate Change” section. Climate Change

HUGO BOSS is dedicated to the conscious and safe use of chemicals, prioritizing both environmental and health considerations through its Chemical Management Policy. This policy outlines clear guidelines for the storage, use, and disposal of hazardous substances, aiming to minimize environmental impact and actively promote safer alternatives. It addresses key concerns such as preventing water pollution and reducing air and soil contamination by adhering to internationally recognized standards, including the Zero Discharge of Hazardous Chemicals (ZDHC) initiative, which HUGO BOSS joined in 2017. This initiative provides standardized tools to assess and enhance suppliers’ chemical management practices.

A core element of this initiative is the ZDHC Manufacturing Restricted Substances List (MRSL), which identifies harmful chemical formulations that need to be phased out. The MRSL sets strict limits for critical process chemicals and supports efforts to monitor and mitigate water pollution. It forms an integral part of HUGO BOSS’ supplier contracts, requiring all suppliers, including our own production facilities, to verify their chemical inventories against the MRSL.

To ensure that our products are free from harmful substances, we have established a Restricted Substances List (RSL) and Product Compliance Guideline. These comprehensive documents define product safety and marketability requirements, setting a clear framework for compliance throughout our supply chain. Our suppliers are required to adhere to our RSL, which strictly regulates substances in our products to ensure they meet the highest safety standards. It aligns with the recommendations of the Apparel and Footwear International RSL Management (AFIRM) Group, incorporating their substance lists, thresholds, and test methods for a structured approach to managing restricted substances.

HUGO BOSS extends the obligations of the MRSL and the RSL beyond its Tier 1 suppliers, mandating that upstream suppliers also comply with its standards, fostering collective commitment to product safety and sustainability.

Targets related to pollution

HUGO BOSS is committed to ensuring that all Tier 1 and direct Tier 2 suppliers using wet processes meet the ZDHC MRSL reporting or an equivalent standard by 2030. We have set an interim target for all strategic Tier 1 suppliers using wet processes to meet the requirements by 2025. In 2024, 42% of the production sites in scope met the chemical inventory requirements (2023: 47%), including 65% of our strategic suppliers (2023: 67%). For wastewater tests, 62% of the production sites in scope complied with the specifications (2023: 58%), including 85% of our strategic suppliers (2023: 78%).

To enhance water and soil quality, we aim to source 100% of the natural materials used in our products’ fabrics and linings according to regenerative principles or through closed-loop recycling by 2030, excluding license products. As of 2024, 12% of our natural materials already met these criteria (2023: 1%). This goal is designed to prevent soil and water pollution by promoting better cultivation practices that minimize excessive fertilizer and pesticide use. In doing so, we aim to combat soil degradation, improve soil quality, and protect water ecosystems from harmful contamination caused by conventional agricultural methods, such as traditional cotton farming. Additional information on this target can be found in the “Biodiversity and Ecosystems” section. Biodiversity and Ecosystems

HUGO BOSS also aims to systematically reduce its reliance on non-renewable synthetic fibers to actively contribute to the reduction of microplastics. In this context, we are committed to eliminating the use of polyester and polyamide in all our products’ fabrics and linings by 2030. In 2024, polyester and polyamide accounted for 18% of all fabrics and linings (2023: 18%). This target underscores our commitment to reducing environmental pollution and safeguarding ecosystems.

Actions related to pollution

To reduce environmental impacts in production, we are collaborating closely with our suppliers and other businesses in the global apparel industry, including through initiatives such as the ZDHC. By adopting the ZDHC “Roadmap to Zero” framework, we have enhanced our ability to monitor and improve chemical management across the supply chain. Additionally, as a member of the AFIRM Group, we leverage their tools to maintain high standards of chemical compliance and product safety at every stage of production.

Recognizing the environmental risks posed by chemicals in products, HUGO BOSS eliminated the use of harmful per- and polyfluoroalkyl substances (PFAS) in production processes as early as 2018. This ban is now an integral part of our RSL and we remain committed to phasing out additional harmful substances and materials in the future.

To ensure our products are free from substances of very high concern (SVHC), we conduct regular monitoring through rigorous testing. Our Product Risk Database integrates third-party test reports for products, fabrics, and trimmings, enabling us to effectively track restricted substances and particularly focus on identifying and managing SVHCs. This proactive approach aims to ensure compliance with regulatory requirements while minimizing risks to consumers and the environment.

To combat microplastic pollution, we are focusing on reducing our reliance on non-renewable synthetic fibers and minimizing their environmental impact. Therefore, “Fight Microplastics” is a key pillar of our sustainability strategy. Our strategic partnership with Swiss innovator HeiQ, established in 2022, is an important step in this direction. Together, we developed AeoniQ, a cellulose yarn that offers similar properties to polyester and polyamide. Having successfully launched its first AeoniQ polo shirts in 2023, BOSS introduced its first sneakers made with AeoniQ in 2024. Moving forward, we will continue to strengthen this partnership by gradually increasing the use of AeoniQ yarn in our brands’ collections. Resource Use and Circular Economy