Directive (EU) 2022/2464 on sustainability reporting (Corporate Sustainability Reporting Directive, CSRD) came into force on January 5, 2023, with a deadline for transposition into national law by July 2024. By December 31, 2025, several member states, including Germany, had not completed this process. As a result, for fiscal year 2025 reporting, the legal framework applicable to listed German companies remains unchanged. Consequently, HUGO BOSS continues to prepare a combined non-financial statement in accordance with the Non-Financial Reporting Directive (NFRD), consistent with previous years. In line with Sec. 315b and 315c of the German Commercial Code (HGB), in conjunction with Sec. 289b to 289e HGB, this combined non-financial statement for HUGO BOSS AG and the HUGO BOSS Group provides information on our sustainability activities for fiscal year 2025. It covers the material HGB topics environmental matters, employee matters, social matters, respect for human rights, anti-corruption and bribery matters, and the EU Taxonomy.
This statement applies Set 1 of the European Sustainability Reporting Standards (ESRS) on a partial basis as permitted by Sec. 289d HGB. A full application of the ESRS was not undertaken since the CSRD has not yet been transposed into German law. The statement draws on the results of the double materiality assessment (DMA) conducted in accordance with ESRS 1. The DMA concluded that nine of the ten ESRS topics are generally material for HUGO BOSS. The scope of disclosures presented does not fully reflect the extent indicated by the DMA, partly because HUGO BOSS makes use of applicable proportionality and phase-in provisions under the ESRS framework. This includes proportionality provisions introduced through the EU quick fix delegated act in the areas of Biodiversity and Ecosystems” (E4), Workers in the Value Chain (S2), and Consumers and End-Users (S4) as well as the use of phase-in provisions and other permitted limitations in the area of Own Workforce (S1). The chapter “Overview of ESRS Disclosure Requirements” within the section “Additional Disclosures on the Combined Non-financial Statement” provides transparency on the presence, scope, and limitations of the ESRS disclosures included in this report. Additional Disclosures on the Combined Non-financial Statement
This combined non-financial statement has been prepared on a consolidated basis, with the scope of consolidation consistent with our 2025 financial statements. Accordingly, the quantitative ESG data covers HUGO BOSS AG and all subsidiaries under its control. Unless stated otherwise, the disclosures presented apply equally to HUGO BOSS AG and to the Group. Notes to the Consolidated Financial Statements, Basis of Consolidation
Any references to information outside this statement – except for references to the chapter “Business Activities and Group Structure” as part of the combined management report – are information going beyond the mandatory disclosures under HGB and do not form part of the statement. In accordance with the applicable legal framework, the combined non-financial statement was subject to a voluntary review with limited assurance according to ISAE 3000 (Revised). Assurance Report of the Independent German Public Auditor on a Limited Assurance Engagement in relation to the Combined Non-financial Statement
Governance
HUGO BOSS is managed by its parent company HUGO BOSS AG, which as a German stock corporation, operates under a dual management and control structure. Accordingly, the Managing Board is responsible for steering the Group and successfully executing its strategy, while the Supervisory Board oversees and advises the Managing Board. The two boards are strictly separate in terms of both composition and responsibilities yet work together closely in the best interests of the Company. More information on the boards’ composition and governance structure can be found in the Corporate Governance section of this Annual Report. Corporate Governance and the Corporate Governance Statement
The overall responsibility for the sustainable development of HUGO BOSS lies with the Managing Board. This also includes monitoring, managing, and overseeing ESG impacts, risks, and opportunities (IROs) along the Company’s value chain. Strategic responsibility is assigned to the Group Strategy and Corporate Development division, which reports directly to the Chief Executive Officer (CEO). This division is also responsible for the setting of ESG targets relating to material IROs and for monitoring progress towards them. The Managing Board and Supervisory Board monitor the objectives set and are regularly informed of the progress achieved. Operational responsibility along the supply chain as well as responsibility for central risk management and internal controls lies with Business Operations. Group Finance & Tax is responsible for Group-wide ESG data collection, consolidation, and validation, while Investor Relations manages ESG reporting and ESG-related capital-market communication with investors and analysts. Compliance and human rights issues are addressed by our Compliance & Human Rights department as part of our central Legal division. All four divisions report to the Chief Financial Officer (CFO)/Chief Operating Officer (COO).
The CFO/COO also assumes responsibility for our central Sustainability Committee, which consists of representatives of key business areas involved in sustainability topics. It oversees the implementation of our sustainability strategy and serves as a dialog forum for current developments and best practices. The committee dealt with a variety of topics in 2025, including progress on our sustainability strategy, ESG reporting, and regulatory requirements. To further strengthen our cross-functional ESG governance, HUGO BOSS established an internal ESG Decision Forum in 2025. This body convenes on a quarterly basis and brings together key decision-makers, with the CFO/COO joining upon request. The forum aims to foster a holistic approach to sustainability management by ensuring transparency on ESG projects, prioritizing strategic initiatives, aligning capacity and resource planning, and promoting unified decision-making across the Company.
The Managing Board of HUGO BOSS has overall responsibility for an effective risk and opportunity management system (RMS), which also encompasses a Compliance Management System (CMS). On its behalf, the central Risk Management and Internal Controls department coordinates the execution and continuous development of the RMS. Monitoring its effectiveness is the responsibility of the Supervisory Board. This task is exercised by the Audit Committee of the Supervisory Board with the involvement of the Internal Audit department. As part of the reporting process, HUGO BOSS has not identified any risks that are associated with its own business activities, its business relationships, as well as its products or services, and that very likely have or could have serious adverse impacts on the five mandatory aspects as set forth in Sec. 289c HGB. Report on Risks and Opportunities, Corporate Governance and the Corporate Governance Statement
Business model, strategy, and value chain
HUGO BOSS is a leading fashion and lifestyle company in the premium segment of the global apparel market. Our business model is described in the chapter “Business Activities and Group Structure” of this Annual Report, while details on our Group strategy, including our sustainability strategy, are provided in the chapter “Group Strategy.” Business Activities and Group Structure, Group Strategy
This combined non-financial statement covers both our own operations and material stages of the upstream and downstream value chain. The following overview outlines the material features of our value chain.
Material features of our value chain
Interests and views of stakeholders
We actively engage with our stakeholders, valuing their input as essential to shaping both our Group and sustainability strategies. By fostering open dialog and collaboration, we aim to meet expectations, address concerns, and develop mutually beneficial solutions. Stakeholder engagement not only supports our business objectives but also serves as an opportunity to create value for HUGO BOSS, the environment, and society. HUGO BOSS maintains a systematic dialog with key stakeholders, including employees, shareholders, customers, business partners, employee representatives, and society. Guided by a stakeholder analysis conducted in accordance with the AA 1000 SES standard, we employ standardized formats and approaches for effective communication, such as our corporate website, Annual Report, social media channels, and dedicated stakeholder events. Further information on our stakeholder engagement and partnerships can be found on our corporate website. group.hugoboss.com
Double materiality assessment
Already in 2024, HUGO BOSS conducted a comprehensive double materiality assessment (DMA) in preparation for compliance with the ESRS, which was subsequently reviewed and updated in 2025 as scheduled. We have engaged with numerous internal stakeholders to identify our Company’s material sustainability IROs. This engagement was largely conducted through interviews and desk research, while it also considered the outcomes of previous materiality assessments. In addition, we incorporated the perspectives of external stakeholders through internal experts who, as part of their roles, regularly engage with relevant interest groups. Parallel to this, we have also assessed the financial risks and opportunities for sustainability-related matters as part of our risk management process. To ensure proper compliance, external ESG consultants have closely monitored and reviewed our DMA process in 2024. Oversight of the process was assumed by the CFO/COO, ensuring close alignment with the Company’s strategic priorities.
Our DMA’s scoring method and criteria were developed following ESRS 1 requirements, addressing both impact materiality and financial materiality. This approach also satisfies the materiality assessment requirements set forth in Sec. 289c HGB. Our impact materiality assessment considered the scale, scope, irremediability, and likelihood of impacts being positive or negative as well as actual or potential. Severity took precedence over likelihood for human-rights-related impacts. As part of our financial materiality assessment, we assessed the financial materiality of ESG risks and opportunities, their likelihood, and the nature of financial impacts. As part of these processes, HUGO BOSS has considered the connections of its impacts and dependencies with the risks and opportunities that may arise from those impacts and dependencies by ensuring close collaboration and constant exchange between all parties involved. The process for identifying material IROSs adhered to a consistent approach across all ESG topics by systematically considering specific activities, business relationships, geographies, and other factors that may increase the risk of adverse impacts, while also considering the specific characteristics of our value chain and key business activities, assets, sites, and regions.
Impact materiality (inside-out perspective)
Our ESG impact assessment, led by Investor Relations and conducted in close collaboration with our Corporate Sustainability as well as Risk Management and Internal Controls departments, started with the development of a comprehensive catalog of ESG impacts. Leveraging our previous materiality analysis based on GRI Standards, this catalog served as the foundation for mapping existing impacts to the ESRS methodology. To ensure a thorough assessment, HUGO BOSS expanded the catalog by conducting additional desk research, drawing on frameworks such as the Sustainability Accounting Standards Board (SASB) standards for the textile and apparel industry. The assessment covered potential and actual impacts on the environment and people across the value chain, from our own operations to upstream and downstream stages. Corresponding impact descriptions were enriched through desk research and internal expert insights.
HUGO BOSS followed a systematic approach to assess the materiality of all positive and negative impacts identified, using the ESRS criteria to ensure clarity and consistency in the evaluation process. In line with EFRAG guidance, the assessment was conducted on a gross basis, thus excluding the influence of implemented mitigation measures. To determine the materiality for all impacts identified, HUGO BOSS assessed their severity and likelihood and defined uniform thresholds, classifying a negative impact as material if it fell in the upper half of the combined assessment scale and classifying a positive impact as material if it fell in the upper quarter. To validate and ensure accuracy and completeness of its impact materiality assessment, HUGO BOSS engaged both internal experts across important sustainability areas as well as external ESG consultants.
Financial materiality (outside-in perspective)
The ESG risk and opportunity assessment was led by our central Risk Management and Internal Controls department, in close collaboration with relevant business areas and designated internal risk and opportunity experts. To ensure a thorough assessment, structured interviews were conducted, providing critical insights and detailed input. HUGO BOSS followed a systematic approach to assess the materiality of all ESG risks and opportunities identified, analyzing them in accordance with the relevant ESRS criteria to ensure clarity and consistency in the evaluation process. The assessment started with the establishment of a clear framework and guidelines for the risk and opportunity assessment, applying the ESRS methodology.
Risk Management and Internal Controls analyzed all gathered data, including a detailed review of critical factors such as the likelihood of risks occurring and their potential consequences on our business. In addition, it assessed the financial materiality of all ESG risks and opportunities identified on a qualitative basis. The likelihood and magnitude thresholds used in this context were in line with the methodology applied by HUGO BOSS in its general risk assessment, which is presented in the Report on Risks and Opportunities of this Annual Report. Based on this, all those risks were assessed as material for which the combined classification of likelihood and magnitude was rated as either high or critical. Report on Risks and Opportunities, Risk and Opportunity Management System
In line with EFRAG guidance, also this assessment was conducted on a gross basis, thus excluding the influence of implemented mitigation measures. As part of a cross-functional exchange, we also examined the extent to which correlations exist between the identified impacts and dependencies and the risks and opportunities that may arise from these impacts and dependencies. This mapping was done systematically at the individual impact level to ensure that each identified ESG risk and opportunity was assigned to the corresponding impact. To validate and ensure accuracy and completeness of the financial materiality assessment, we engaged with both internal experts across all important sustainability areas as well as external ESG consultants.
The process ensured that the procedure for identifying, evaluating and managing ESG risks was integrated into the overarching risk management system and can now be used to evaluate the Company’s overall risk profile and risk management processes. Similarly, the processes for identifying, evaluating, and managing ESG opportunities were closely integrated into the existing management processes to exploit their potential strategically and operationally in the future. Consequently, the results of the ESG risk and opportunity assessment were integrated into the Company’s existing risk management system to streamline the risk management process while ensuring that all relevant ESG matters will be systematically analyzed also going forward, allowing for more effective decision-making by systematically evaluating our Company’s overall risk profile.
DMA consolidation, validation, and update
The results of both assessments were consolidated accordingly, jointly reviewed by Investor Relations, Corporate Sustainability, as well as Risk Management and Internal Controls, and shared for final validation with all internal stakeholders involved in the assessment process as well as relevant senior management. The outcome of the DMA was summarized both in a detailed matrix and in a heat map. The results were shared, discussed, and approved by both the Managing Board and the Audit Committee of the Supervisory Board.
In 2025, the DMA was revisited as scheduled. To ensure efficiency, the update was conducted centrally and focused on validating the ongoing relevance of the 2024 assessment. The process drew on peer benchmarking, financial assessment, and strategic evaluation, confirming the continued validity of our DMA, with only minor adjustments. One additional sub-topic, Management of Relationships with Suppliers (G1-2), including Payment Practices (G1-6), was identified as material, while other adjustments did not affect the overall results. HUGO BOSS plans to continue revisiting its DMA on an annual basis. As part of this, we are committed to continuously developing our DMA approach to ensure ongoing alignment with evolving best practices and legal requirements.
For a detailed overview of the ESG-related impacts, risks and opportunities that we have identified as material in our DMA, please refer to section “Material ESG-related Impacts, Risks and Opportunities.” Additional Disclosures on the Combined Non-financial Statement
Mapping of the material ESRS topics to the five HGB topics
The subsequent structure of this combined non-financial statement follows the thematic organization of ESRS Set 1. Consequently, environmental matters, including information in accordance with Article 8 of Regulation 2020/852 (Taxonomy Regulation), are addressed in the “Environment” section. Employee matters appear under ”Social – Own Workforce“ and “Governance,” while social matters are predominately outlined in ”Social – Consumers and End-Users.“ The topic of human rights is discussed across ”Social – Own Workforce“ and ”Social – Workers in the Value Chain." Lastly, anti-corruption and bribery matters, even if these were not classified as material under the DMA, are covered in the “Governance” section.
This statement also contains selected additional ESG data points below the materiality thresholds identified through the DMA. These disclosures are provided to further enhance transparency on topics of interest to external stakeholders and are presented in the section “Additional Disclosures on the Combined Non-financial Statement.” Additional Disclosures on the Combined Non-financial Statement