Resource Use and Circular Economy

As a global fashion company, HUGO BOSS recognizes its responsibility to protect natural resources and actively contribute to the transition toward a circular economy. Consequently, we identified circularity as a strategic priority at an early stage and anchored it as a key pillar of our sustainability strategy. Group Strategy, “Sustainable Throughout”

The fashion industry’s production processes require large quantities of virgin raw materials, such as cotton and wool, as well as synthetic fibers like polyester, which necessitate ongoing resource extraction. This reliance contributes to significant environmental challenges, including deforestation, excessive water use, and pollution. Additionally, substantial waste is generated during garment production and at the post-consumer stage when clothing is disposed of rather than being reused or resold. This exacerbates environmental burdens and also depletes valuable raw materials. Packaging, particularly single-use plastic, further adds to the environmental impact, contributing to resource depletion, large volumes of non-biodegradable waste, and pollution that enters ecosystems, threatening wildlife and disrupting habitats. The lack of efficient systems for reusing and recycling packaging materials compounds the problem, depleting valuable resources and further contributing to pollution. More information on how these challenges threaten biodiversity and ecosystems can be found in the “Biodiversity and Ecosystems” section. Biodiversity and Ecosystems

Policies related to resource use and circular economy

Our Material Strategy underscores our commitment to more responsible resource use and circular economy principles. This guideline emphasizes our approach to increasing the use of recycled and certified materials, outlining our standards for the selection and usage of materials in our products. Its key elements include the classification of raw materials, an overview of our regenerative farming principles, and our “WE CARE” initiative, as well as details on our brands’ circular styles. Our “WE CARE” initiative aims to increasingly use better raw materials in our collections, meaning these materials are either recycled, sourced from regenerative farming, supporting circular design practices or certified by external standards. An overview of key standards and certifications for the respective materials can be found in our Material Strategy, available on our corporate website. With regard to our brands’ circular styles, we adhere closely to circular.fashion’s Circular Design Criteria, offering a comprehensive framework for circular textile products. At HUGO BOSS, circular products must meet three criteria: using renewable or recycled raw materials, being long-lasting, and being designed for recycling, for example by reducing the use of material mixes. We are continuously working on increasing the use of recycled post-consumer textile waste in our collections.

To ensure that our circular products are developed and produced in alignment with our circularity goals, we have established an internal Circular Product Policy. This policy provides detailed information on internal organizational responsibilities, our circular design criteria, a list of materials that can be used in circular styles, and guidelines on how to design products to be recyclable.

FOCUS ON SUSTAINABILITY

To reduce our environmental footprint and drive sustainable change, we focus on better materials and embrace circularity.

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Targets related to resource use and circular economy

HUGO BOSS aims for 80% of its apparel products to be circular by 2030 (measured by production volume, number of apparel items). In 2024, we increased this share to 33%, thus making further progress toward our 2030 goal (2023: 17%). We have also set a target for our most used raw material, aiming to source 100% of our cotton used in fabrics and linings sustainably by the end of 2025 in accordance with the criteria of our Material Strategy. Materials classified as more sustainable must either be certified by an external standard such as the Organic Content Standard (OCS), be recycled, or sourced through mass balance systems like Cotton made in Africa (CmiA). Cotton, in particular, is also considered more sustainable when sourced from verified regenerative farming practices. In 2024, we already achieved our 2025 target by reaching a 100% share of sustainable cotton (2023: 98%). As regenerative farming is a key lever for sourcing more sustainable cotton, we have also set the goal of sourcing 100% of the natural materials used in the fabrics and linings of our products according to regenerative principles or through closed-loop recycling by 2030. Licensed products are excluded from this target. To ensure transparency and foster collaboration, we actively engage with external stakeholders, including textile sustainability experts and partners like Raddis, a cooperative based in India promoting regenerative farming and empowering farmers directly. Further information on regenerative farming and the corresponding target can be found in the “Biodiversity and Ecosystems” section. Biodiversity and Ecosystems

At HUGO BOSS, we are committed to reducing packaging and continuously improving its environmental impact through responsible material choices and more innovative solutions. In 2024, we successfully reduced packaging weight per item by 15% compared to 2023. At the same time, we aim to achieve a 30% reduction in single-use plastic packaging per item by 2030 (excluding hangers and suit bags), also compared to 2023 levels. This target encompasses product, transport, e-commerce, and service packaging. In 2024, single-use plastic packaging slightly increased by 4%.

Actions related to resource use and circular economy

In 2024, we reinforced our commitment to innovative and circular designed products. To increase awareness, particularly among our design and development teams, we conducted specialized training courses on circular design principles and their practical application. Additionally, we introduced a mandatory annual training program to align our teams with our sustainability targets and material standards, fostering a unified approach to the use of better materials. To increase the use of materials with a lower environmental impact compared to conventional alternatives such as polyester and polyamide, we further strengthened our strategic partnership with Swiss innovator HeiQ. For more information on this initiative, please refer to the “Pollution” section. Pollution

As part of our ongoing innovation efforts, we also collaborated with one of our suppliers to develop NovaPoly, a trademarked yarn made from pre- and post-consumer recycled polyester textile waste, reflecting our continued effort to reduce textile waste.

In 2024, we revised our packaging targets and standards, further committing to reducing packaging waste and promoting circularity, placing particular emphasis on minimizing plastic waste. As part of this initiative, we established new targets and standards for all aspects of our upstream and downstream operations, including product, transport, e-commerce, and service packaging. This new target, outlined further above, form the cornerstone of our approach to less impactful packaging.

Resource inflows

HUGO BOSS relies on a variety of resources to support its operations and value chain activities. These include both natural and synthetic materials, as outlined in the following tables. Biological materials such as cotton, wool, and leather constitute a significant share of our input materials and are carefully selected to meet our sustainability standards, prioritizing certified and consciously managed supply chains. Synthetic materials, such as polyester and polyamide, also form an integral part of our input materials. To reduce our reliance on virgin resources, we are increasingly focusing on recycled alternatives. We are fully committed to continuously expanding the use of better and recycled materials across our brands’ collections.

Packaging is essential for protecting our products during transport and shipping, while reinforcing our brands’ premium positioning in the global apparel market. In 2024, 84% of our product packaging was made from renewable materials (2023: 85%). As part of our commitment to resource conservation, we are transitioning to more sustainable raw materials, including certified and recycled sources. In 2024, 92% of our paper packaging was certified (2023: 93%), and 59% was made from recycled material (2023: 70%), reflecting our dedication to sourcing from consciously managed forests and reducing the use of virgin materials. We are also focused on increasing the circularity of our packaging. In 2024, 100% of our packaging materials were recyclable (2023: 100%), further demonstrating our efforts to conserve resources and reduce waste.

Circular business models

A primary objective of circularity is to minimize waste at all critical stages of the product life cycle. To achieve this goal, we focus on reusing surplus materials from production and extending the product life cycle through reuse, repair and resale initiatives.

In 2024, we successfully launched Eightyards, a subsidiary dedicated to the reuse and recycling of our surplus materials. Its concept is strategically aligned with our commitment to accelerate resource-efficient production processes and the reduction of post-production waste. Officially starting operations in early 2025, Eightyards aims to become a leading player in recycling and repurposing surplus materials across various industries, including fashion.

Additionally, in early 2025, we initiated a strategic partnership with Sellpy, a European re-commerce platform specializing in fashion. This collaboration offers customers a convenient way to extend the life of pre-owned fashion items. As part of the service, they can send in their items – including BOSS, HUGO, or other brands – for resale and receive a credit once the items are sold. This offer is initially available in selected European markets and highlights our commitment to circular economy.